Elements of Lean Manufacturing Paper
Jessica Ehrhart
September 20, 2015
Elements of Lean Manufacturing
University of Phoenix
ISCOM472
Daryl Pearson
INTRODUCTION
Eliminating waste and items that are not of value inside an organization is called Lean manufacturing. Lean manufacturing will help save the company in the long run. The lean manufacturing was created by Sakichi Toyoda from the Toyota Production System. (Toyota Production System, 2015) This was made to help the company reduce inventory. It helped them not only lower wasted material but improve productivity. The purpose of this paper is to review lean manufacturing and how the core elements relate to AIG.
THREE CORE ELEMENTS OF LEAN MANUFACTURING
There are so many elements in lean manufacturing that can be used. American International Group, Inc. utilizes many of the core elements but I will cover the three major elements.
The elimination of waste is the first major element of lean organization we will discuss. Elimination of waste can be either eliminating unnecessary processes in the data entry operations or removing the amount of people needed in specific departments. The main point is to eliminate things that will save the company time and money. This will also make the clients happy. If AIG can save money by eliminating a job that was handled by more than one person then it will save cost and this can be passed on to the clients.
The Root Cause Analysis is another core element of lean manufacturing. For all the waste that you find in the company you need to find the reason for the waste. Say a department is two weeks behind, a person may think there is an issue with the employees processing the work. So they request more help and it still stays two weeks behind. But Root Cause Analysis could show honestly that its do to how much work is coming in. So the company can find a way to pace the work flow coming in.
The third main element is standard work for the company. Standard work is when a company organize work
September 20, 2015
Elements of Lean Manufacturing
University of Phoenix
ISCOM472
Daryl Pearson
INTRODUCTION
Eliminating waste and items that are not of value inside an organization is called Lean manufacturing. Lean manufacturing will help save the company in the long run. The lean manufacturing was created by Sakichi Toyoda from the Toyota Production System. (Toyota Production System, 2015) This was made to help the company reduce inventory. It helped them not only lower wasted material but improve productivity. The purpose of this paper is to review lean manufacturing and how the core elements relate to AIG.
THREE CORE ELEMENTS OF LEAN MANUFACTURING
There are so many elements in lean manufacturing that can be used. American International Group, Inc. utilizes many of the core elements but I will cover the three major elements.
The elimination of waste is the first major element of lean organization we will discuss. Elimination of waste can be either eliminating unnecessary processes in the data entry operations or removing the amount of people needed in specific departments. The main point is to eliminate things that will save the company time and money. This will also make the clients happy. If AIG can save money by eliminating a job that was handled by more than one person then it will save cost and this can be passed on to the clients.
The Root Cause Analysis is another core element of lean manufacturing. For all the waste that you find in the company you need to find the reason for the waste. Say a department is two weeks behind, a person may think there is an issue with the employees processing the work. So they request more help and it still stays two weeks behind. But Root Cause Analysis could show honestly that its do to how much work is coming in. So the company can find a way to pace the work flow coming in.
The third main element is standard work for the company. Standard work is when a company organize work
References: Manktelow, James, Mindtools (2015). Retrieved September 20, 2015: https://www.mindtools.com/pages/article/newSTR_44.htm About us, Aig Retrieved September 20, 2015: http://www.aig.com/about-us_3171_437773.html