"Even then when the lean manufacturing concept was years away, Ford had a focus on reducing time and material waste, increasing quality, and lowering cycle times, in order to achieve a lower cost vehicle which was reflected in the price reduction of the model T. year on year. This focus allowed him to reduce costs, even though he payed his workers well, and provide a great value product to the customer" (Lean Manufacture Website, 2009).
The editors at the Lean Manufacturing Guide online implement an approach similar to the editors at the Lean Manufacture Website. From their standpoint, lean manufacturing is an organizational effort by which waste is being reduced with the purpose of creating more value to the final product. In their own words, lean manufacturing is a "systematic approach to identifying and eliminating waste through continuous improvement by flowing the product at the demand of the customer" (Lean Manufacturing Guide).
Dennis P. Hobbs (2004) takes a different approach to lean manufacturing and argues that the concept is not a new one. In fact, he states that nothing in manufacturing is new. Nevertheless however, despite the fact that the concepts are not new, their implementations are growing to be more and more sophisticated and efficient. Lean manufacturing has for years been misunderstood, wrongly implemented or even overlooked in efforts to increase organizational performances. Nevertheless, it has always strived to improve the production systems by creating high quality products, delivered in the shortest possible times and with a limited resource consumption.
Hobbs (2004) continues his academic effort by revealing the history of lean manufacturing. As the Industrial Revolution commenced in the 1860s decade, a major challenge encountered by the business community was that of managing the machines which generated large volumes of output, output which far outpaced that of the humans. Still, one of the greatest challenges was that of correlating the mechanized work with the manual labor as several functions remained dependent on manual labor. By the middle of the 1880s decade, Frederick Winslow Taylor commenced to publish a series of studies in support of production improvements. The main point he made in his studies was that of breaking down the overall tasks into smaller, individual tasks. This decision would allow a better supervision of the processes and even the elimination of the unnecessary or redundant stages in the production effort. Another noteworthy element in Taylor's work is that of the emphasis he placed on the individual motivation the staff members had in completing their tasks. Up until that point, most emphasis was placed on the work, but Taylor assigned equal importance to the work and the motivation.
The first time these ideas were given true credit was with the opening of the Ford plants which produced automobiles on assembly lines. The process represented the move from individual production of items to mass production of units. As the ideas were also implemented by other firms, they resulted in the creation of scale economies as well as economies of scope. As competition increased, economic agents were virtually forced to improve their manufacturing systems in order to make them more efficient and able to generate high quality products, to be sold at competitive prices.
Another noteworthy element in Ford's efforts was the introduction of standardization, which also improved organizational processes by increasing their efficiency, and, in addition, reduced unit costs. At this stage, standardization could only be achieved through the integration of technological innovations which ensured complete interchangeability of parts. Aside form evolving manufacturing processes, this point also represents a major step in the support of technological developments.
After these evolutions, the business community focused on other organizational elements, such as marketing, and the emphasis on manufacturing decreased. In terms of production, the challenge was constituted by product variety and diversity and this constituted a major problem especially for the owners of scale economies. From the combination of new demands and expectations, new technologies and intensified competition, resulted the computer assisted manufacturing processes. During the 1980s decade, major shifts had occurred not only in manufacturing processes, but also in global manufacturing trends. "Into the 1980s, many product markets in the United States and Europe started to come under pressure from foreign manufacturers. Products were being brought to market with higher quality and lower price. The days of planned obsolescence were over. Consumers came to expect higher quality and lower prices as a requisite for purchase. Western manufacturers began to lose market share. Some manufacturers faded away while others began to look diligently for better ways to compete. Many abandoned the old batch manufacturing models in favor of the more responsive method of Lean manufacturing...
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