Lean Manufacturing

Lean Manufacturing

Introduction

Young and Selto (1993) conducted a field research project within one division of a firm to provide evidence on factors that affect performance across direct labor workgroups. While their results provided little additional understanding of JIT performance as a function of management control, they find that while top managers may understand the strategy and the information useful for pursuing a strategy, individuals at the operational level of a firm may not understand the same. However a study by Banker, Potter and Schroeder (1993) which examined used a sample comprising 362 worker responses from 40 plants located in United States of America. They also found an increase in the morale of workers in the presence of such management practices. Two researchers with the name of Ittner and Larcker in the year 1995 examined the association between the use of advance manufacturing practices, such as TQM. They used data collected from a survey of management practices covering the automobile, as well as the technology industries in many advanced economies such as united states of America, Japan, Canada, Germany, so as to find that there was a greater use of non traditional information and reward system with the presence of TQM practices. However, they found mixed results for the premise that organizational performance was a function of the interaction between adoption of TQM and the use of non traditional information and reward systems. Using the same data, however, on the other hand, a study conducted by Ittner and Larcker in the year 1997 clearly examined the adaptation of strategic control practices by organizations following a quality-oriented strategy and found that firms which placed superior prominence on the eminence or the quality in their tactical plans that did have a propensity to make a much greater making use of all the necessary and essential quality related strategic control practices.

Sim and Killough (1998) used data from a survey of 83 firms in the electronics industry to extend the study by Ittner and Larcker (1995) and found that performance gains can be achieved when TQM or JIT practices are used along with specific features of management accounting systems. While several studies have used proxies to capture firm strategy, Ittner et al. (2001) noted that (drawing similarity between choice of organizational objectives and strategy) these studies have largely taken strategy as given and that the development of comprehensive proxies for firm strategies has been an impediment to the studies examining the association between firm strategies, management accounting practices and organizational design (Daniel, 1998).

Discussion

Lean manufacturing is one of the greatest philosophies at present. It also, can reduce the necessary on-site inventory in half, result in a number of fewer defects, and produce a much greater, as well as ever increasing range of products.

The company should understand that a lack of statistical model is costing the company in that fifteen percent of the batches produced are being rejected. The motive of the company should be to get each of the batches produced to be accepted by ...