Implementing Lean Approach to Eliminate Non-value-added Activity Essay

Implementing Lean Approach to Eliminate Non-value-added Activity - Essay Example With regard to the second question, it was determined that the JIT significantly decreases the total NVA in the WSS when the huge stock level is declined. This causes the obvious reduction in the variable costs; for example, opportunity costs and warehousing costs. By contrast, the TPM results in better productivity and product quality due to the higher effectiveness of the machine, which is caused by better maintenance systems and practices. Concerning the third question, both external and internal factors are the obstacles and limitations of the Lean application. Ultimately, this pilot research study functions as a guidepost for manager’s of paperboard companies, as well as other continuous operation companies lacking adequate sufficient models, that are seeking means of applying Lean production mechanisms to their firm’s supply chain system. The term, ‘Lean Production’ or ‘Lean Manufacturing’, was first introduced in the seminal book, The Machine that Changed the World by Womack et al. (1990) in order to represent the evolutionary approach against traditional thinking from the 1920s, ‘Mass Production System (MPS)’. This method intends to add values on products or services from the customers’ perspective and enhance efficiency by eliminating wastes or non-value-added activities (NVAs) in the production or supply chain. It requires all people, both management and operational level, in the organization to take part in the improvement (Womack and Jones, 2003; Liker, 2004). The Lean was previously known as ‘Toyota Production System (TPS)’ after the company that developed it in the 1940s. This approach was behind the successful growth of Toyota and other Japanese manufacturers, especially in the 1980s (Ohno 1988; Shingo 1989; Liker, 2004).