Understanding Lean with a story - A Manufacturing Example...

3 minutes
Share the link to this page
Copied
  Completed
You need to have access to the item to view this lesson.
One-time Fee
$49.99
List Price:  $69.99
You save:  $20
€47.51
List Price:  €66.52
You save:  €19
£39.49
List Price:  £55.29
You save:  £15.80
CA$70
List Price:  CA$98.01
You save:  CA$28
A$77.33
List Price:  A$108.26
You save:  A$30.93
S$67.34
List Price:  S$94.28
You save:  S$26.94
HK$389.03
List Price:  HK$544.68
You save:  HK$155.64
CHF 44.45
List Price:  CHF 62.24
You save:  CHF 17.78
NOK kr558.35
List Price:  NOK kr781.73
You save:  NOK kr223.38
DKK kr354.44
List Price:  DKK kr496.25
You save:  DKK kr141.80
NZ$85.34
List Price:  NZ$119.48
You save:  NZ$34.14
د.إ183.61
List Price:  د.إ257.07
You save:  د.إ73.45
৳6,021.25
List Price:  ৳8,430.24
You save:  ৳2,408.98
₹4,219.67
List Price:  ₹5,907.88
You save:  ₹1,688.20
RM223.98
List Price:  RM313.59
You save:  RM89.61
₦84,207.15
List Price:  ₦117,896.75
You save:  ₦33,689.60
₨14,000
List Price:  ₨19,601.13
You save:  ₨5,601.12
฿1,754.64
List Price:  ฿2,456.64
You save:  ฿702
₺1,717.77
List Price:  ₺2,405.01
You save:  ₺687.24
B$291.53
List Price:  B$408.16
You save:  B$116.63
R913.08
List Price:  R1,278.38
You save:  R365.30
Лв92.76
List Price:  Лв129.87
You save:  Лв37.11
₩70,387.15
List Price:  ₩98,547.64
You save:  ₩28,160.49
₪187.72
List Price:  ₪262.83
You save:  ₪75.10
₱2,942.24
List Price:  ₱4,119.38
You save:  ₱1,177.13
¥7,803.91
List Price:  ¥10,926.10
You save:  ¥3,122.19
MX$1,027.62
List Price:  MX$1,438.75
You save:  MX$411.13
QR183.74
List Price:  QR257.25
You save:  QR73.51
P683.83
List Price:  P957.42
You save:  P273.58
KSh6,473.70
List Price:  KSh9,063.70
You save:  KSh2,590
E£2,467.95
List Price:  E£3,455.33
You save:  E£987.38
ብር6,151.01
List Price:  ብር8,611.91
You save:  ብር2,460.90
Kz45,573.91
List Price:  Kz63,807.12
You save:  Kz18,233.21
CLP$48,985.70
List Price:  CLP$68,583.90
You save:  CLP$19,598.20
CN¥362.11
List Price:  CN¥506.99
You save:  CN¥144.87
RD$3,035.42
List Price:  RD$4,249.83
You save:  RD$1,214.41
DA6,699.97
List Price:  DA9,380.49
You save:  DA2,680.52
FJ$113.84
List Price:  FJ$159.39
You save:  FJ$45.54
Q389.35
List Price:  Q545.12
You save:  Q155.77
GY$10,541.93
List Price:  GY$14,759.55
You save:  GY$4,217.61
ISK kr6,970.60
List Price:  ISK kr9,759.40
You save:  ISK kr2,788.80
DH501.11
List Price:  DH701.60
You save:  DH200.48
L903.57
List Price:  L1,265.07
You save:  L361.50
ден2,922.87
List Price:  ден4,092.25
You save:  ден1,169.38
MOP$403.70
List Price:  MOP$565.22
You save:  MOP$161.51
N$905.37
List Price:  N$1,267.59
You save:  N$362.22
C$1,854.78
List Price:  C$2,596.85
You save:  C$742.06
रु6,800.50
List Price:  रु9,521.24
You save:  रु2,720.74
S/191.01
List Price:  S/267.43
You save:  S/76.42
K202.53
List Price:  K283.56
You save:  K81.03
SAR187.83
List Price:  SAR262.97
You save:  SAR75.14
ZK1,378.33
List Price:  ZK1,929.77
You save:  ZK551.44
L236.45
List Price:  L331.05
You save:  L94.60
Kč1,201.36
List Price:  Kč1,682
You save:  Kč480.64
Ft19,383.17
List Price:  Ft27,138
You save:  Ft7,754.82
SEK kr551.85
List Price:  SEK kr772.63
You save:  SEK kr220.78
ARS$49,903.65
List Price:  ARS$69,869.10
You save:  ARS$19,965.45
Bs348.26
List Price:  Bs487.60
You save:  Bs139.33
COP$225,149.51
List Price:  COP$315,227.33
You save:  COP$90,077.82
₡25,735.02
List Price:  ₡36,031.09
You save:  ₡10,296.06
L1,272.39
List Price:  L1,781.45
You save:  L509.06
₲393,320.50
List Price:  ₲550,680.18
You save:  ₲157,359.67
$U2,123.91
List Price:  $U2,973.65
You save:  $U849.73
zł206.03
List Price:  zł288.46
You save:  zł82.43
Already have an account? Log In

Transcript

Lean manufacturing and lean in service and introduction. Let's understand lean with a short story. The management of one of the soap manufacturing organizations invested about $3 million to buy a new machinery that would automate the soap manufacturing process. This new machinery helped reduce manual work, increase production capacity and improve turnaround time. While it improve the efficiency of the soap manufacturing process, it had one major drawback. The distributors soon started complaining that many of the soap boxes were empty.

It did not have a soap. Now, this automated machinery would manufacturers soaps and pack them into cardboard boxes. How could this machinery Leave the soap boxes empty. The owner of the organization was furious. He immediately ordered an investigation and asked what it could take to fix the issue. After looking at the issue, the managers of the organization recommended a fix that would cost another million dollars for implementation.

The owner was infuriated, his anger was valid. The organization had already invested $3 million in getting this machine and now it is asking for more money. As a result, he decided to take a second opinion. He walked to the shop floor and shared this problem with those individuals who handled the machinery. This was the ground level staff who did the real job of soap manufacturing and packaging using that machine. These guys were never consulted.

By the management team before recommending that costly fix, when they heard the issue, one of them said, Oh, is this a problem? MP so boxes are being shipped to the distributors? No worries, I have a solution. Just hang on for a moment. He went into the warehouse and brought two large fans. He kept those fans in the front of the conveyor belt, packaged so boxes traveled through the conveyor belt and were then thrown into a steel basket.

As soon as he started those two fans, those cardboard boxes that were empty, few away eliminating the chance of transporting empty soap boxes. Now the distributors would never complain again on this issue. That's what we call lean thinking. Isn't that cool?

Sign Up

Share

Share with friends, get 20% off
Invite your friends to LearnDesk learning marketplace. For each purchase they make, you get 20% off (upto $10) on your next purchase.