Definition of Lean Manufacturing

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CHAPTER II LITERATURE REVIEW

This chapter compiles and organizes information about lean manufacturing, value streams and standardized work that will aid the reader in understanding the specifics of the study.

2.1 Definition of Lean Manufacturing

The term “Lean Manufacturing” was firstly introduced in the book “The machine that change the world” written by James Womack in 1990. According to Womack, Jones, and Roos 1996, the term “lean” represents a system that utilizes fewer inputs in order to create the same outputs than those created by a traditional mass production system, while increasing the range of different finished goods for the end customer. The term lean manufacturing is synonymous with different names, such as agile manufacturing, just-in-time manufacturing, synchronous manufacturing, world class manufacturing, and continuous flow cited from Tinoco, 2004. Lean manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste Liker, 2004. It is derived from the Toyota production system and its objective is to increase the value-added work by eliminating wastes and reducing unnecessary work. The technique often decreases the time between a customer order and shipment, and it is designed to improve Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 12 profitability, customer satisfaction, throughput time, and employee motivation cited from Tinoco, 2004. The benefits of lean manufacturing generally are lower costs, higher quality, and shorter lead times Liker, 2004 and a “house” is often used to visualize and describe the Toyota Production System as the root of lean manufacturing Figure 1. The term lean manufacturing is created to represent less human effort in the company, less manufacturing space, less investment in tools, less inventory in progress, and less engineering hours to develop a new product in less time cited from Tinoco, 2004. Figure 1 Toyota Production System “House” Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 13

2.2 Types of Wastes