DEVELOPING AND IMPLEMENTING A LEAN MANUFACTURING SYSTEM

Abstract

This paper describes the development and implementation of a lean manufacturing system at AO Larti. Lean manufacturing is a broad concept in management aimed at waste elimination and business process improvements: from developing and manufacturing a product to supply chain and sales management. When compared to mass-production, lean production systems allow for a more defect-free and less labour, capital, and land-use intense product to be created. It also helps improve product quality and reduce costs with same level of capital investment (16). In economic context, lean manufacturing organizes production operations in a way that ensures both the high quality of produce and low wastes and costs. This approach leads to a more effective use of financial resources, workforce, materials, and information in the face of different environments and evolving consumer needs, and with rapidly growing scientific and technological knowledge of economic agents, all the above being seen as major factors in modern economy (15). As such, these operations can be grouped into two types of activities: the first create the value desired by the customer while the second are necessary for the production process itself. Lean manufacturing sets the first as a standard and, if possible, eliminates the second (3).