"Lean" production theory was first used in Japanese factories. The Toyota production system is especially admired as a highly successful use of "lean" techniques. In general, lean production refers to manufacturing processes that improve upon mass production techniques to reduce cost, reduce time to produce, improve quality, and better respond to market demands. The benefits of lean production techniques have been documented in several studies, including a worldwide study of automotive industry. This report will focus on some elements of lean production; give some general description of each element of lean production.
Generally, lot-sizing direct affect a company's manufacturing competitive advantage; the reason is this influences the cost, quality, lead time, and flexibility of production. According to different situation for each company, company will design different kinds of lots. For example, when it is the quantity of materials purchased from a supplier it is called a purchase or order quality. Also, there have some other lots, such as process batch, transfer batch and delivery quantity. Small-lot production influence production costs directly. If a company uses large lot, which result in large setup expenses in EOQ-based model, this can give the economic optimum, but this may have disadvantage. When they minimize dollar costs, they lead to greater non dollar costs associated with increased production lead time, hidden defects, and also reduced scheduling flexibility. Cost is not an only factor when company consider, company also should consider demand, production capacity and setup times. When the companies reduce lot sizes, as the result, the number of lots will be increase. (We can find from the picture above). Not only large lots, but also for small lots, it can also increase flexibility to meet customer demands. (On the left)
To sum up, small-lot production is achieved by giving more purchasing responsibility to shop-floor workers, by reorganizing the facility layout to reduce material transfer distance and cost, by locating materials at the point of use, and by working with suppliers.
The goal of setup reduction is to increase flexibility and make small-lot production practical, the process of reducing setups is itself a useful way to start increasing company shop-floor workers' participation in problem solving and decision making, there have some steps of how to reduce the setup costs, and this example is just download the file of the internet.
From the picture above we can find is that, setup times should be tracked, charted, and ported as evidence that management considers performance in set up important. There have two different setup time for company operation, one is from internal, which means reduces by using rapid-attachment devices as well as standard fixtures and tools to eliminate trail-and-error adjustment. On the other hand,...