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Application Of Lean Management Techniques On Car Manufacturing Design Dissertation
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Lean management within organisations is an important source for maintaining the standard quality for production of product and rendering of services. An organisation needs to establish a relationship of trust and confidence that it can understand the requirements accordingly and cater to its best possible way that is to implement lean management within the organisations. The particular research is conducted in the reference to lean management and its process in making the organisation successful. Organisation decision making process tries to influence the choice selection for a product made by the consumers. However, lean management shapes up an important toll effective in shaping the organisations behaviour towards their objectives.
In a particular dissertation study, the researcher has tried to understand the role of lean management in organization decision making process. Application of qualitative sources of data along with secondary sources has helped the researcher in gaining better details of the research topic. Based on the result of the study, the researcher has also list of recommendations that can ideally help the organizations in adopting better lean management strategy within an organizations.
Conducting this research has been one of the most enriching experiences of my life. The contribution of this research to enhance my knowledge base and analytical skill has been paramount. It gave me the opportunity to face challenges in the process and overcome them. This would not have been possible without the valuable guidance of my professors, peers and all the people who have contributed to this enriching experience. I would like to take this opportunity to thank my supervisor for the constant guidance and support provided to me during the process of this research. It would not be justified if I did not thank my academic guides for their important and valuable assistance and encouragement throughout the research process. I would also like to thank my friends who had provided me with help and encouragement for collecting primary data and valuable resources. Finally, I would like to thank the professionals from the retail industry who have participated in the research survey and provided with valuable inputs into the subject. The support of all these people has been inspiring and enlightening throughout the process of research in the subject.
Heartfelt thanks and warmest wishes,
Table of Contents
The rising pressure on the organisation to reduce cost and improve quality is making many companies to choose ‘Lean’ tools and techniques as an advance solution for improvement in the performance of the company. Over the last few years, Lean has been emerged as one of the most impactful procedure to increase the organisations efficiency by decreasing the operations (Anderson, 2008). Currently lean is used in most of the industries worldwide. Toyota is one of the most selling cars in worldwide. Company uses lean method techniques in their manufacturing car design. The car design manufacturing is in the Derbyshire located at burans tone at north Wales. The researcher conducted its research over there. With lean management techniques Toyota is able to manufacture car design successfully all these years. Car manufacturing companies generally suffers from the poor manufacturing process which leads to decreases the quality of car design, decrease in the productivity of the employees within the company etc. With Japanese innovations, applications of lean management in car design has helps Toyota to overcome with problems like idle time, costing and quality of the car design is not been comprised. With the help of lean management, company will be able to gain customers confidence through quality and waste reduction in the company is the sole objectives of the companies so that company can achieve its organisational goals (Fliedner, 2012). With the help of the car design and innovations the researcher will be able to know the lean management and its effective use has given Toyota to control over its manufacturing.
The particular study will aim at studying the importance of application of lean management within the internal organisation of Toyota. Topic will involve analysis of lean management in achieving successful car design manufacturing.The researcher selected application of lean management in manufacturing car design in Toyota. This will help to identify the concept of achieving consistency in manufacturing. As discussed Levinson (2013), with the help of the various theories and concepts, the researcher will try define the relationship between the adoptions of lean management while manufacturing of designing of car in Toyota.
According to the research aim, framing of objectives will be established so that further penetration of the research topic is taken into consideration (Pezziardi, 2010). With the help of research objectives, the sub-division of the research topic will be enabled that will allow proper categorisation of broad topic into appropriate forms (Plenert, 2007). Some of the objectives helpful in successful achievement of the research aim are listed below:
- To critically analyse on the lean techniques and manufacturing process of the Toyota Plc
- To identify the value propositions of the Toyota in terms of discipline and behaviours of the employees and managers.
- To recommend on the better operations of manufacturing and design of car that can help to gain them the market.
- What methodical process should be used for utilising lean management as an overall concept for achieving the goals?
- How can lean management help in developing a flexible organisational approach towards different situations?
- How do work place discipline and behaviours of the employees and managers influence the value propositions of the company?
- What process can be implemented to enhance the value proposition of the Toyota Plc for achieving customer appreciation in car design?
As discussed by Plenert (2011), lean management helps to achieve the organisational objectives holds the theme of the research project. Lean management essentially focus in the building total quality management within the organization to improve the organisational activities. Further, lean management also involves trust and confidence relationship that initiates staff members to be loyal to the organisations irrespective of it size and participation of the organisations (Plenert, 2011). Lean management is the trend available the market that helps in improving the participation of the organisations. Manufacturing rely on the concept of TQM (total quality management) as it involves better control and dominance of the market over the rivals firms.
Concept of lean management helps in creating larger customer base for the organisation so that ultimately company can achieve its goal though value propositions (Shinkle et al. 2004). Lean management needs to have involvement of TQM and lean production so that company can gain adequate knowledge about the manufacturing of products and services catered by the organisation. Lean management awareness, focus on the quality and brand image is required that can help in continuous improvement in the quality and production and retain customer effectively within an organisations (Trent, 2008).
Toyota uses lean management to its production system. Lean was initially invented in the year1902. Sakchi toyoda invented lean management in the organisation for manufacturing. Since the Toyota is car-manufacturing company, it was specifically designed for the value of the customers. Toyota is fourth largest car manufacturer worldwide. Since it is Japanese company, the company uses Muda, Muri and Mura to control its productions process. Toyota uses lean management to reduce the waste materials in the company. However, initially Toyota fails to manage all of its resources but currently has gained large market share.
Toyota, the lading lean example’s company in the worldwide, stands is supposed to become the largest automaker in the world. Its dominant success in everything from rising sales to market shares in every global market, especially clear winner in hybrid technology. Lean thinking is continuously spreading in every country around the world. Leaders are also adapting the tools and techniques beyond manufacturing, to logistics and distribution and many other areas. Toyota continued success has over the past two decades created an enormous demand for grater knowledge about lean thinking.
The basic reason for choosing the particular topic is to know the application of lean methodology to design car. With the help of total quality management in care design manufacturing area is been achieved through lean management (Krugman et al. 2010). With the innovative idea and techniques through lean management company has continuous improvement techniques, which ultimately reduce the wastage and increase the productivity of the company.
With creativity and innovation in the work place, and continuous evaluation of improvement within the car manufacturing design and reducing the wastage has been leading to gain the successful and consistency in manufacturing. Lean management creates as sense of security within the Toyota concerning quality of the work performed (Shinkle et al. 2004). On the other hand, Lean management also encourages better focus on the quality of every work and specifications so that customisation can enhance the production to a new level. As said by Couper et al. (2011), toyota has implkemneted several norms and ploicies whioch bindfs the workwere and the machinbes to perform work together and create sound productivity. With the help of lean management, company can reduce its wasteful activities and increasing the efficiency of staff members of the organisations.
A company comprises various forms of norms and thoughts that highlight the objectives on various forms. As discussed by Hawkins & Rajegopal (2005) with the implementation of lean management within the organisation will create better level in of productions with improved quality. However, lean management tends to ensure maximum satisfaction for the company, which helps in building long-term relations between consumers and organisations (Doukidis & Paul, 1990). The particular chapter will focus on establishing a foundation of academic knowledge related to lean management and its procedure for achieving organisational success. As said by Hines (1994),With the help of this foundation, the researcher and the readers will get an opportunity of enhancing the research topic is more detailed manner and will be able to understand the critical perspectives as well (Gunasekaran, 1999). Application of the various theories and models will add literature to the research topic so that later chapters. It can be utilised will add literature to the research topic so that in later chapters, it can be utilised for better analysis.
Conceptual framework helps in categorising the list of key theories that can help in better understanding of the topic (Hines, 1998). Lean management and its role in company success will be considered so that the theoretical concepts can be highlighted in a detailed manner.
High Performance Governance
High Performance Organisations
High Performance Group / Individual
Figure 1: Conceptual frame work of Lean management
(Source: Harris & Harris, 2003, pp-75)
As described by Harris & Harris (2003),in the above diagram, lean management is useful tool in improvising organisational system based on high performance governance, high performance organizations, and high performance group. Lean management ahs potential of improving the quality within the organisations, which leads to flourish market growth and market expansion of the company.
As said by ttner, (2005), Lean management for an organisation comprises forms of attributes that in together give a better potentiality of having a quality effect over the mind of the workers. Application of lean management applies concept of high quality strategic management and supply chain management to improve the organisations (Karlsson & Åhlström, 1996). Lean management helps in analysing in determining the organisations success by lean management implementations. Treated as an asset of the organisation, lean management can help in enhancing the goodwill along with reputation by meeting the expectations of customers satisfactorily (Apsc.gov.au. 2013). Lean method is applied for long run; it allows integration of supply chain management in appropriate manner.
Five principles of lean management
Figure 2: five principles of lean management
Specify values from the customer point of view: Since customer are interested in only final product rather than looking at what kind of Technology Company is using (Levinson, 2013). Therefore, the company needs to identify the needs of the customer and design the products and service accordingly. As said by Couper et al. (2011), ‘give customer what they wants’ and not what is convenient for the company.
Value stream: With the help of value’s stream whole supply chain can be monitored. Values stream techniques help the organisation by adding value at every step of process within the of product manufacturing (Levinson, 2013). Here company focus on economies of time rather than economies of scale. The main advantage is that at every stage valued added to product is analysed which will help to monitor the waste and unwanted process (Hamman, 2012).
Flow: Principles regarding the flow has advantages of product move one place to another at constant piece flow (Lean Manufacturing Tools. 2011). With the help of flow company can avoid the unnecessary batches and queues which usually take lots of times and creates unnecessary cost for the organisations (Harris & Harris, 2003).
Pull: Pull defines the consumer demands and it is with production but not over producing (Hawkins & Rajegopal, 2005). The idea of lean is to push the upstream in the product making process, wait for the consumer demand, and then make the products and services in rapid way with high quality and low cost (Plenert, 2011).
Seek perfection: The final principles explain that achieving quality does not mean company ahs achieve perfection (Shinkle et al. 2004). For achieving perfection, company must understand needs of the consumer, cheaper products with minimum of wastage (Krugman et al.2010).
Figure3: Tools of lean management
(Source: Hawkins & Rajegopal, 2005, pp-78)
With the help of lean tools and techniques system, all of steps and procedure of that can be used by individual and teams to arrange work areas in the best manner to optimise performance, comfort, safety, and cleanliness (Harris & Harris, 2003).
Sorting (Seri): As discussed by (Trent, 2008), with the proper arrangement all work area must be sorted. It will help the company to understand the needed works are unnecessary work, which should immediately be discarded. If there is any confusion, company must choose red tag item, which has specific label consist of the date on it, and if the item is not used then company must be discard it (Plenert, 2011). Moreover, the items must be sorted according to the frequency of use. The sorting must be done according to fixed period of time after every month on a regular basis (Shinkle et al. 2004). In order to know whether the sorting out is working or not company must communicate with the staff by putting 5s board for all the employees to see the improvements.
Straighten (Seition): Straighten is to set in order the products and services according to location area of each of the items (Jackson and Jones, 2005). With the labels every item will be place in order of usage or unused. All the worker must know where the item are by labelling or by making shadow board that has outline of tools so as to identify its accurate location area (Fliedner, 2012)..
Shine (Seiso): The work area must be kept physically clean and tidy on a regular basis and the workers should also be scanning the area for anything that is out of place and try to make immediate effort to correct it. As said by Levinson (2013), the routine of cleaning must be made every day. The equipment use for cleaning and tidying must be suitable located and well maintained (Pezziardi, 2010). With the help of cleanliness company would be able to identify any problematic area.
Standardize (Seiketsu): As noted by Shinkle et al. (2004) ,standards must be made or rather develop for the making first 3s so as to ensure that the workers are doing what the company wants/requirements of them. Standards are benchmark that is set for repeatable job (Anderson, 2008). With all of the information about the certain area are recognised, if all labels are formatted the same way it is easier to read and identify. If the items are even return by the wholesaler it will be poses in the uniform way, it will be easier for everyone in the organisation locate items quickly.
Sustain (shitsuke): It means maintain uniformity in the practice. All of the steps must be maintained and done in a same way (Fliedner, 2012). The routine must be made in a discipline way so that the entire step and process of 5s become a habit for the workers and the organisations (Jackson and Jones, 2005). All of the workers must be in habit of maintain all of the 5s principles on a daily basis.
Some of the terminology used by Toyota such as Muda, Muri and Mura in the lean management
Muda: Muda means waste; it can be defects, over productions, waiting time, unused talent, transport, inventories, motion and excess processing etc (Levinson, 2013). However there are various types of tools are present to reduce the waste which can be use to eliminate the waste systematically.
Mura: As discussed by Hines, (1994), mura defines the unevenness. Unevenness can be found in fluctuations in customer demand, processing time of every product. Or variations of cycle times for different operators. When Mura is not reduced, one can increase it’s the possibility of Muri and therefore it cause Muda. Mur can be reduced by creating openness in the supply chain; in change product design and creates the benchmark for every operations in the organisations (Tompkins International. 2013).
Muri: With the help of Muri, company can reduce the over burden. With too much waste form the process will decrease the productivity of the company. As said by (Couper et al. 2011), muri cause die to all of the machines are used 100% then the over burden causes. This helps machine breakdown when it comes to machines and the employee will have no job (ttner, 2005). Therefore in order to optimise the use of machine and make sure that they functions properly, an autonomous maintenance should be implemented to reduce the over burden. To prevent form the work load employees, safety must be considered while designing the process of setting standard work initiatives (Lean Manufacturing Tools. 2011).
Kaizen: Kaizen is one of the most famous terminologies used by Japense. However Kai defines the continuous and Zen means improvements. ‘Continuous improvement’ is Lean technology slogan while implementing lean method in the company (Levinson, 2013). Kaizen centre of every lean tools and techniques. Kaizen process is implemented in the form of formal events and consists of the three stages (Pezziardi, 2010). The first stages explain the preparation of for kaizen event, the second stage involves performing the event, and the third stage involves check whether the improvements are truly beneficial or not. Moreover, kaizen involves permanent changes (Fliedner, 2012).
With the help of lean supply chain process company will be able to respond to the changes that has been occurred while maintain the process and ability to improve its system.
Lean suppliers: Lean suppliers are those groups of supplier who will be able to change them according to the organisations chances. Prices are low because the due to the efficiencies of the lean process (Pezziardi, 2010). Improvement in supply of raw materials, lean supplier delivers the goods in time and it is their continuous habit (Levinson, 2013). In order to achieve lean supplier organisations must include their values team. Organisation must encourage the suppliers to follow the lean transformation, which involves lean activities. This will make the company to fix the problem, increase their market share, and save lots of time (Marinadelreytoyota.com. 2010).
Lean procurement: With the help of lean procurement, suppliers will be able to see the operations of the company that will indicate when the supplies are finished. Lean procurement process is electronic procurement and automated procurement process that directly helps the supplier to identify the need of resources (Fliedner, 2012). With the help of electronic procurement, company will be able to make sure to conduct the transactions, strategic sourcing, and bidding or auctions using the web based application to procure the goods and services (Jackson and Jones, 2005). With the help of automated procurement, company will be able to reduce the human efforts and will be able to meet the procurement functions which are directly integrated with budget and financials.
Lean manufacturing: As said by Gunasekaran (1999),Lean manufacturing system helps to understand the customer wants and necessity rather than pushing its own product to customers. Lean manufacturing also identifies the quality and time when the customer is going to ask for products and services. With the help of automated lean management, company will be able to understand the pulse of the customers and their wants (Hawkins & Rajegopal, 2005). With the improvement in the other areas which creates a pull for the rest of organisations. With the help of lean concepts and methodology manufacturing will be have greater potential with reduction in cost with quality improvement. Most of the organisation worldwide has befitted through the lean manufacturing methods (Marinadelreytoyota.com. 2010).
Lean warehousing: with the help of lean warehousing, company will be able to manage all of its non-required or unwanted steps and waste in products storage process (Plenert, 2011). With the lean warehousing process, receiving of product will be easier. Storing the goods and service s will be helpful for the organisations (Plenert, 2011). With the help of the lean warehousing picking of goods and packing of the materials will be very helpful.
Through lean warehousing company can also detect the defective products and over productions (Levinson, 2013). Excess of inventories are avoided due to due to implement of lean warehousing. Moreover, the company will be able handle all of its unnecessary and inefficient processing steps, which will help in enhance the transportation, steps and distances (Reliableplant.com. 2013).
Figure 5: Organisation performance with lean Management
(Source: Hansson, 2006, pp- 98)
Leadership: As discussed by Liker (2004), leadership defines the ability to envisage powerful futures and initiate and influence other workers to work according to the requirement of the company. Leadership is all about capability of human being to make other work according to their will. With the leadership organisation can achieve its objectives and goals (Dennis, 2002). With the help of lean leadership techniques organisation will be able mobiles the entire organisation to change the right things at the right time for betterment of the organisation.
Tools and Techniques
Focus and Direction
Values and Behaviour
Figure 6: Lean leadership
(Source: Bicheno, 2004, pp- 65)
With the lean tools and techniques a leader will be able to handle all of its organisation decision based on the lean techniques which will be fruitful for the organisation. A lean leader is always be focus and directed towards his goals (Andersson, 2006). A lean leader makes every member in the organisation to work according to achieve the company target. However, a leader who follows lean leadership management has certain values and behaviour which motivates every employee to work according to the lean method and be disciplined while performing any work (Nicholas and Soni, 2006).
Organisational structure: With the help of lean organisational structure, company will be able to identify the loopholes at every stage and at every department (Conti et al.2006). With the help of six sigma an organization structure which will help the organization to increase its productivity.
Yellow belt (Operator)
Yellow belt (Administrator)
Champion senior manager
Black belt (Middle level manager)
Black belt (Middle level manager)
Green belt (supervisor)
Green belt (Supervisor)
Green belt (specialist)
Yellow belt (administrator
Yellow belt (operator)
Figure 7: Lean organisation structure
(Source:Crouch and Pearce, 2012, pp-64)
As said by (Dennis, 2002), with the help of lean organisation structure company will be able to manage all of its resources. With six-sigma implementation, every manager and operation manager will be able to identify the process. With the black belt six sigma operation company can gain more than 250,000 to 10, 00,000 operating profit per year. This implementation will help the organisation (Liker, 2004). With Green Belt Company, operating profit will be increase in 50000. Finally with yellow belt are operator will handle of the problem related to manufacturing or low level of work. Operators will participate in improvement of the project, which will help the organisation to chive it was goals through yellow belt.
Organisation culture: lean organisation culture helps the company to follow some simple steps such as:
Make customer everyone business: Customer are only reason which why an organisation exist. There would be no need for lean process management without customers. Therefore, customer must be everyone business in the organizations (Bicheno, 2004). Getting rid of useless processes is more effective that modifying them.
Set a benchmark for managers: Human being are not machine, therefore it is impossible to make them work on daily basis (Bicheno, 2004). Organisational manager must have to set a standard for the work so that everyone follows the same. Standardize work presents a clearly stated recipe for management, making it easier to evaluate managers’ effectiveness. Standard set for the worker must be based on the internal and external perspectives (Liker, 2004).
Maintain daily accountability: By maintain daily accountability within the organisation, the culture of the organization would be more effective as because everyone will be able to work according to the necessary organisational goals (Hansson, 2006). With the help of daily accountability, company will be able to identify their yesterday work and today’s work, which will help them to enhance their productivity (Bicheno, 2004).
Mandatory discipline: With the help of the lean management system, standardize work should be maintained and the daily accountability of process must be maintained in discipline (Bernard, 2011). Discipline is fuel that keeps the work of the organisation to run in smooth way. However customers are the drivers who are driving wherever they want to. With the motorcycle metaphor, lean management system in the organisation company will be able to understand the needs of the customers (Andersson, 2006).
In order to establish need lean culture in an organisation, company must be aware of two major parts before implementing the lean:
Part1 developing cultural framework: By establishing guiding principles or behavioural expectations for the entire organisations company will be able to maintain establish lean culture in an organisation (Branch, 2009). With the help of human resources policy and procedure according to lean vision and implementation will help the organisation to achieve lean culture (Liker, 2004). With organization leadership and management principles, company will be able to develop the cultural framework for organisations (Bicheno, 2004).
Part2 establishing a people and team based environment: In order to establish the team-based environment an organisation must divide group. Company should not apprise individual rather it should always appraise the group (Bryman and Bell, 2011). While establishing people and tem based management environment an organisation must understand the codes of conduct of the employee and set a work according (Andersson, 2006). Every work should be divided into group and groups must divide the work according to needs of the team requirement. With the help of the transparency in the organisation and reducing the cycle time of work will help the organisation to gain success in the within the organisations (Conti et al.2006). However, with the help of the certain efficient operation company will be able to meet its entire requirement and would handle all of the operations, which will be able, the company to achieve the objectives.
With transparency and system thinking company can measurement efficiency. Furthermore, company will be able to measure the efficiency by reducing the cycle time of every operation, simplifying every work by repeatedly making everyone to do the same work and benchmarking will help to measure the lean efficacy of management. However, application of lean management and concepts and principles will help the company to achieve its objectives. As observed form the study of the particular chapter, the researcher was able to gather knowledge and details of the organization and its decision making process and the role of lean management in the concerned process. Lean management helps in recognising the growth achieved by particular organisations. With the help of lean effective management organisation can seek quality so that customer are attracted to gain adequate satisfaction level and converted into loyal customers. Organisation perception towards a good and transparent environment is revealed by successful by making a brand image of an organisation that helped in competing with rivals at better rate.
Research methodology as a chapter helps in defining the most suitable approach that needs to be adopted to attain complete and detail results and process. All the theories and concepts adopted in research methodology helps in deeper and better analysis of the research topic (Bryman and Bell, 2011). Application of research methodology helps in understanding the role of lean management in the process. Detail process of research methodology also leads to common that may create limits within the research process (Burns et al. 2008). Apart from that, the researcher has tried to apply each detail process of research methodology that can help in better analysis of lean management in organisation success. The analysis is conducted in Derbyshire of Toyota Plc car manufacturing. This is the place where the car is designed and manufactures. It takes entire region of the UK and some of Europe.
In the particular chapter, detail research techniques to analyse the lean management successfully and its influence for organisation decision making process will be evaluated with reference to organisations. Selected research philosophy is positivism that can help in gaining information based on proper logic and evaluation (Cooper and Schindler, 2010). Moreover, deductive approach will allow the researcher to conduct the study based initially on secondary sources that can help ion defining consumer’s behaviour and influence of lean management in organisation success in much better manner. As noted by Crowther and Lancaster (2012),Descriptive design will help the researcher in defining the used and applied concepts in the detailed manner further helping in defining the impact of study as well (Crouch and Pearce, 2012). Application of primary and secondary sources will help in much detailed of research topic and will bring better quality of analysis.
In research methodology, application of research philosophy helps in determining the appropriate manner for gaining details of research topic. Research philosophy helps in explaining the assumptions process undertaken by researcher while conducting a research topic (Denzin and Lincoln, 2011). However, the thinking process of evaluating a particular topic can vary so the selection of research philosophy needs to be effective and proper alignment (Gulati, 2009). The broad and common forms of epistemology that is a part of philosophy are positivism, interpretivsim and realism.
Justification of chosen philosophy (Positivism)
As said by Dul and Hak (2012),Positivism as subject of philosophy helps in application of logic that can help in analysing the hidden facts and information in a scientific manner. Although dominated by scientific method, positivism tries to rejects metaphysics so that detail observations and knowledge collection is enabled (Gummerson, 2010). Interpretive as amid of epistemology supports the concept of complex structure involve in a social world of business and management activities.
An approach for study of a topic is required so that the format required conducting the study is revealed. A particular research topic can be undertaken for study in two ways of either deductive or inductive. As noted by Hair and Money (2011), Inductive approach is study the helps in studying a research topic even enough data on a chosen one is not available. The initial phase of inductive approach is observations that help in gaining relevant information and builds the path of research accordingly. Inductive approach serves theory building of any topic. On the contrary, as said by Hakim (2007), deductive approach is used as a process that describes the practical applications of theories studied to gain access to content of the research paper. Deductive approach aims build a theory with more specifications and concepts of data analysis (Handwerker, 2008). However, depending upon the nature of the study and research topic, the selection for research approach is made that can help in a better analysis of the topic.
In the present study, the topic will try to study the concepts related to lean management and its process in achieving car manufacturing success with the help of various theoretical knowledge (Kothari, 2008). Models of lean management principles required a selection of approach that can help in understanding at much precise and clear manner. However, inductive approach fails to be implemented in the present topic as in new concepts or theories is emphasised by researcher (Lancaster, 2012).
There exist two types of research method that help in analysis of the topic, quantitative and qualitative. As said by Leavy and Hesse-Biber (2010), Qualitative data and Quantitative data, Qualitative data helps in adding theoretical concepts in research topic. Qualitative data helps in adding theoretical concepts in the practical field that also leads to better understanding of topic unlike qualitative procedure (Leedy and Ormrod, 2012). Quantitative data on the other hand applies the statistical data that are helpful in recording data of large sample sizes. In the present study, mixed approach for both the quantitative and qualitative approach techniques. Survey questionnaires are considered while quantitative research techniques while the managers and employees are considered for qualitative one (Roger, 2009).
Sources of data are helpful in penetration of research topic and helps in extracting information according to the requirements. Primary and secondary are two data sources that are providing materials helpful in gaining details of any particular research topic. Primary data are helpful in collecting raw data that can be directly catered as per need of the research topic (Crouch and Pearce, 2012). The first hand data collection however needs clarification of reliability and validity. In case of secondary data sources , data are used a widening the concept of research that also enables better study of the topic as it involves more data and description (Gummerson, 2010). Primary data includes interaction sections with operation managers who helped in gaining information as per the research objectives. Apart from that, literature sources of the desertions can be considered as output if information gained through secondary sources (Hair and Money, 2011). Tools of secondary sources include both online and offline like journals and articles.
3.5.2 Primary Data: Sampling Techniques
Information Application: Data gained through study of the topic is helpful in understanding the present trend of lean management and its relation to organisational success (Bryman and Bell, 2011). However, any commercial applications of the data will be able avoided so that the findings can be strictly limited to academic purpose only.
Respondent’s participation: The researcher tried to insert no external influence on pressure over the respondents for taking part in the feedback process of the research topic. Respondents with as sense on voluntary participation were encouraged to participate in the following topic (Burns et al.2008).
Respondent’s secrecy: It was ensured that any form if mental or physical harassment was not involved with the respondents so the identity of respondents were covered as per the request for participants (Cooper and Schindler, 2010). Based on the above mentioned list of ethical consideration, the researcher tried to maintain the basic research ethics.
The sample size is divided into two forms for qualitative and quantitative data technique. For studying the quantitative research techniques, 50 employee of lean management using company were considered (Lodico and Spaulding, 2010). The sample taken was simple random probability sampling where no criteria for selection were considered. On the other hand, manager and employee of Toyota Plc were considered for non-probability sampling techniques (Somekh and Lewin, 2011). Non probability sampling is taking as per the lottery system. With the help of online questionnaire, around 50 employees of Toyota were asked for participation where survey performed based on Likert’s scale rating from 1 to 5. Likert’s scale helps in ranging the response on a quantitative basis and accordingly helps a researcher in analysis the respondents’ feedback on a much easier and effective basis.
On the other hand, quality manager and operational level managers were considered for interview as per their flexible schedule and timings. The researcher with the help of the University had an appointment with the office of the Toyota Plc so that related information and survey could be extracted for the particular research process. However, due to their prior appointments, many of the employees and managers could be contacted for the survey purpose.
As noted by Vander et al. (2009),during the process of research methodology, a researcher needs to follow a code of conduct that helps in denitrifying the wrong and right set of behaviour required to be adopted during the process (Bernard, 2011). The researcher for analysing the role of branding in customers decision making process tired to follow few ethical considerations that can help in adding standardisation to the research topic.
A research study that can help in gaining results of the concerned topic to meet list of restrictions that are both avoidable and non-avoidable in nature (Hakim, 2007). In a particular research work, limitations within research topic are natural that also defines the area with restricted scope and abilities: some of the limitations are as follows:
Time limitation: The researcher had time limitations that led to study of the work for limited time. As noted by Kothari (2008),much sinking knowledge of the study was not analysed due to observational study that also erupted as a cause of research limitations for studying the organisations under lean management (Handwerker, 2008).
Budgets limitations: Limitations of budget, the researcher faced few limitations in the study of then research topic. Lack of finance limited the applications of SPSS or Regression analysis software could have enhanced the quality analysis with better statistical tool applications (Hair and Money, 2011). Further, adequacy in funds would have increased the some more Tests like Anova and T-test, which increases the reliability of the research work and the worth of research would have increased (Gummerson, 2010).
Trustworthiness: As discussed by Gulati (2009), respondents involved in the process were not involved in any form of pressure or influence. However, operations managers and quality mangers can be biased towards the organisations, which may affect the findings of the research topic (Kothari, 2008). Thus, issues related with reliability are present in the study. However, without respondents the research topic would not have been completed.
In this chapter, the researcher tried to show that data analysis of lean management of Toyota and its employee’s effectiveness. With the help of the qualitative and quantitative analysis, data analysis helps a part of research process to increase the quality of information and make better analysis and conclusion for a particular topic. Data analysis helps a researcher in implementing the theoretical knowledge in the practical application. However, data analysis involves complexities and limitations as well such as data manipulation, lack of authentic and others. Thus, a process of cross- check is observed through data analysis in research work. Role of lean management in organisations decision-making process will be evaluated in this chapter with the help of the feedback given by respondents in relation to organisation, Toyota. Based in the data gained in this chapter, the researcher will try to gain information related to the topic and will accordingly analyse the findings to add a validity in the process of data collections. Respondent considered for process of data is quality managers and operational level managers or employee of Toyota organisations so that more concerned, specific and detail information is extracted with the particular research work.
In the present section, customer of Toyota will be considered for quantitative analysis so that the researcher can understand the influence of lean management in the organisation and its important in holistic development of an organizations. Number of respondents involved in the quantitative data section are 50 as others were not properly filled in so were unused form being the sample of research study.
Q1. Are you familiar with the concepts of lean management?
- No idea
Number of respondents
Table 1: familiar with lean management
Graph 1: familiar with lean management
Findings and analysis
As given in the above chart, maximum of the respondents are quite familiar with lean techniques in Toyota, but 8% still have no idea about lean management in the company. Most of the employee is also partially knows about the Lean management. However, majority has idea about lean management in Toyota.
Since Toyota has achieved its attention through advanced technology by implementing lean management in manufacturing process which has enhanced the productivity and quality in the Toyota. Most of employee of the Toyota has familiar with the term and using the applications in the company. However, with modernisations, every employee of Toyota has achieved achieve their target through implementation of lean management in Toyota. The respondents are the quality managers who are working in the manufacturing department with lean methodology applied; therefore, they have expertise in their work.
Q2. What does lean management created in Toyota?
- Better customer relations
- Higher quality
- Optimum process quality
- Higher productivity
Number of respondents
Better customer relations
Optimum process quality
Table 2: creation of lean management in Toyota
Graph 2:creation of lean management in Toyota
Findings and analysis
Around 42% of respondents believe that lean management creates better quality of cars that nay other thing. Around 28% of respondents believe lean management creates better customer relations. With 16% of respondents believes that it help sin creating optimum process of quality. Apart from that, 14% of employee believes higher productivity is the main motive o the lean management.
Toyota is successfully able to generate target consumer, for the quality concerned. Since the lean management helps respondents in generating idea about quality of the product that creates a sense of satisfaction and security within the organisation and enables better relationship with customers. Apart form the customer loyalty, Toyota is able to control its waste which leads them to optimum productions. With the higher productivity Toyota is able to gain high market share in the manufacturing of car in comparison with his competitors like General motors and Honda.
Q3. Waste is only familiar to
- Specific in manufacturing industry
- Service industry
- Extendable to any industry
- No idea
Number of respondents
Specific in manufacturing industry
Extendable to any industry
Table3: Waste is quiet familiar
Gtraph3: Waste is quiet familiar
Findings and analysis
As cited in the above figure, most of the respondents by 48% believe that waste is generally located in manufacturing company. Around 28% of people believe that waste is extendable to any kind of industry. Apart from that, 18% of respondents believe that waste is mostly located in service industry. Moreover, only 1.2% of respondents made selection of no idea for the concerned questions.
Waste is considered one of the major disadvantages for any company. With the help of lean management, waste can be controlled and monitor at every stage of production. However, with the help of adequate measures, the organisation is trying to gain repeat customers that help in the loyalty. As waste, in service industry is time and efficiency of the workers. However, waste is quiet familiar in any industry. Toyota focus on the reducing the waste and increase the quality of the cars.
Q4. Do you found that waste materials have eaten up Toyota productivity?
- We has it earlier presently the process is streamlined
- It is still there but the amount is reducing
Number of respondents
We has it earlier presently the process is streamlined
It is still there but the amount is reducing
Table 4: Productivity of Toyota
Graph4: Productivity of Toyota
Findings and Analysis
Maximum number of respondents respond opted for waste was initially present but due to lean techniques it is been streamlines with 42%. While 28% of respondents believe that, Toyota has never faced the waste problem. Apart from that, 22% of people believe that company still cant control the waste and finally 8% of respondents believes waste is still there but it amount of waste is reducing.
Lean management has helped mostly in decreasing the waste and control the waste. Quality is one of the major concerns of the Toyota, since the waste is controlled and streamline and monitor, productivity of Toyota is increasing. Lean management has immensely helped the company to reduce the waste as favoured by moots of the employee. Since the generalisation idea about the waste of Toyota has helped to increase the productivity of the company. Due to huge competition in the market, Toyota is slowly and steadily gaining the markets share in the car manufacturing arena.
Q5. Do you think that you have to re-orient operations to implement ‘Muda’ style of management?
- It probably is but I need some training
- I am not sure that there is a general co-relation
Number of respondents
It probably is but I need some training
I am not sure that there is a general co-relation
Table 5: Muda style of management
Graph 5:Muda style of management
Findings and Analysis
Around 30% of respondents have agreed on that Muda style of management has will recreate the operations in controlled way. Around 26% of respondents believe that there is any correlation between the operations and Muda style of management. Around 24% believes that Muda style of management will re-orient any kind of changes in the Toyota. Finally around 20% of respondents responded that Muda style of management exists in Toyota but they needed proper training to execute it.
Muda is Japanese word which means uselessness and idleness or rather wastage at every stage of the process manufacturing. However, it was mixed response from the employee regarding the mud style of management. Since the operation manager in Toyota has to work along with the Muda style of management but most of the worker still unaware of the Muda style of operations. Muda style of operation cares about the waste stages like transportation, inventory motion, and waiting which reduces the efficiency of workers and machines. Therefore the Muda style of management will help to enhance the operations which will directly effected in optimum utilisation of resources.
Q6. Do you think you can implement Muda in your operation project independently?
- We can all try
- The shop level initiative cannot achieve any such feat
Number of respondents
We can all try
The shop level of initiative cannot achieve any such feat
Table 6: Muda operated independently
Graph 6:Muda operated independently
Findings and analysis
Around 40% of the respondent’s believe that it is impossible to operate Muda independently. Since the 24% respondents said that they would like to try to implement Muda in their project. About 20% of respondents have agreed that in shop level initiatives Muda cannot be used. About 16% respondents say that they agree that it possible to implement Muda in their project.
Since Muda will help to analyse the waste in every project used in by the management. However, Muda application is not achievable in the shop level initiative because it is very costly in nature and it is used mainly in manufacturing. However in employee has shown concern of Muda in their project. Toyota follows the Muda concept since the inception. Toyota has able to meet all of its requirements through applying Muda, Muri and Mura. Muda has been given much more attention as waste than other to means. Since Toyota lean practitioners, if fails to watch Muda, simultaneously they will fail to see the Mura and Muri.
Q7. Do you think implementing Muda initiatives or lean management is an extra burden on production process?
- May be burden but necessary
- A waste control process will results in better productivity
Number of respondents
May be burden but necessary
A waste control process will results in better productivity
Table7: Muda as burden
Graph7: Muda as burden
Findings and Analysis
Around 12% of respondents believe that Implementation of Muda is an extra cost. Apart from that, 42% of respondents believe that Muda implementation is not a burden. Muda implementation is burden but it is necessary, as said by 22% of respondents. Finally, only 24% of employee believes that waste control measure is very necessary for the company.
As Muda is one of the major tool which reduce the waste product in the company which will help to enhance the productivity. Although, Muda application is costly yet it will be very effective and cost effective for company in the future. However, small manufacturing company will not be able to apply Muda in their company as because it is very expensive. Toyota has gained lots appreciation worldwide for applying Muda concept and application their company.
Q8.A wholesome initiative on the Enterprise level is absolutely necessary and no efforts less than this complete thing can achieve the goal of productivity – do you feel it is right?
- I am not qualified to assert anything like that.
- Yes that is true
- I know that coordination of all projects and various levels can help achieve productivity
- There is lot to do before we can really find out the answer
Number of respondents
I am not qualified to assert anything like that.
Yes that is true
I know that coordination of all projects and various levels can help achieve productivity
There is lot to do before we can really find out the answer
Table 8: whole some initiative is necessity for productivity
Graph 8: whole some initiative is necessity
About 34% of respondents are willing to change the wholesome of enterprise through lean management. About 28% people are not interested in answering their question. Around 26% of respondent’s believes that wholesome initiative is necessary for Toyota. Around 12% of respondents believe that, there is lots of things needed to complete before changing the whole taking wholesome initiative to change the level of productivity.
Since, wholesome initiative is necessary to increase the productivity level of the Toyota. Through lean management, company will be able to meet all of its healthy wholesome initiative that is necessary to enhance the productivity. With a healthy and nourishing enterprise the company will be able to enhance its productivity through lean management. Less than the wholesome beneficial, company will not be able to meet its entire requirement which duty of company. Although most of the companies are looking to increase its productivity, with lean techniques company will able to meet its customer requirements. Company should not accept less than the healthy and wholesome productivity within the company.
Q9.Waste control is total quality management throughout the company- what is your take?
- No it is not
- Yes it is
- Can’t say
- Needs multi-level testing
Number of respondents
No it is not
Yes it is
Needs multi-level testing
Table: 9 Waste controls
Graph 9: Waste controls
Findings and analysis
As cited in the above graph, 46% respondents strongly agree that waste control is better quality management throughout the company. Around 22% of respondent’s believes that waste control is not fixes in quality control management. 14% of respondents are not willing to answer the questions. 18% of the respondents believe that waste control is multi level tasking not only fixed in the quality department.
Since most of the employee believes that waste control in Toyota is managed by the quality control manager rather than any other manger. Although waste control is part of the quality control but it is managed in all over the department and managed by operational level manager too. Toyota has applied lean management which has enhanced the quality control and continuous improvement in the company manufacturing.
Q10.Do you think the Lean management initiatives should emerge from below or should come from above led by the superior management?
- From below
- From above
- Should have an automated procedure to go about
Number of respondents
Should have an automated procedure to go about
Table: 10 lean management hierarchy level
Graph10: lean management hierarchy level
Findings and analysis
As given in the above graph, 42% respondents strongly believes that lean management starts from the below. Around 28% believes it is stared form the above management. Only 12% believes that is seen in both lower level and as well as higher level and finally 8% believes it is automated process rather than any hierarchy level.
Toyota has maintained its lean management hierarchy level form the bottom to up model. Since the application of the lean management is at the quality level and operational level rather CEO level. However, at the tip most level members take decision based on the lean tolls and techniques. Toyota has maintained its decision-making process through lean management process which has benefited the company in numerous ways.
- Lean management used in Toyota has
- Bright future
- Not too rosy future
- It will stay and live but without much increment in popularity.
- It will be combined with other kinds of management as a partial trend
Number of respondents
Not too rosy future
It will stay and live but without much increment in popularity.
It will be combined with other kinds of management as a partial trend
Table11: Lean management future
Graph 11: Lean management future
Findings and Analysis
Around 58% of the respondents strongly believe that Toyota has bright future using lean management. Around 10% does not believe that lean management has good future. 4% believes that it will not increase it will remain same and finally 18% of respondents believes that it will be combined with other management.
Toyota has belief that lean management has bright future within the organizations since it is helping to reduce the waste and marinating quality control which is ultimately helping the company to achieve its objectives. However in near future the chance of lean management could be changed as the world of technology is changing rapidly. Apart from that company will be able to lean management has mixed with every department and has increased the mixed lean methodology which decreases the efficiency and value of lean management.
What do you think about the waste management process taking the responsibility of the TQM in Toyota?
A manager of Toyota uses the Muda application to control wastage in the company. Through total quality management waste management is controlled and monitored them from occurring. Mistakes can be absolutely check and prevented by detecting them early and inspecting at source or by next operations through total quality management so that it cannot be arises further.
How would you find the waste management would be important in Toyota?
Managers has opinion that waste management would be very important in Toyota as because it creates lots of problem for the company such as over production, excessive wait time , transportation waste , processing waste and inventory waste etc. All of these are considered while assigning any kind of work in Toyota. If, the waste could not find then the cost and time of manufacturing will increase.
Can Toyota measure the waste in the process? If so what are the parameters?
Managers have confirmed that, transparency within the organization and department has helped the company to measure the waste at every stage of productions. By keeping the records of waste at every stage of production waste are measured. Monitoring the waste products and setting up auditors for waste materials. Waste is divided into four main phases such as defects and checks at every department, resources used optimally, health, and safety associated with workers in the company and with system and structure waste during operation handling.
How can you relate production process controlling waste and then extending that to the service and marketing?
As answer given by the managers, Toyota gathers expertise in the resource available to the company to reduce the solid waste. Gathering the waste bills to create total annual wastage costs and the amount of waste the company produces. Using the re-use and recycling options to dispose the wastage. This all production process to control waste will help to enhance the service and marketing by enhancing them to gather their wastage bills and try to reuse all of their wastage material which is time in a productive way.
How much responsibility should be bestowed on your part with respect to the total quality management of the Toyota?
As a quality manager, he has been assigned to maintain quality at making engine department. Since the quality is synonyms with Toyota, my work is to check whether quality of engine is made right or not. As a quality manager he has to check all of the raw materials which is required for the engine is standard or not. Therefore it’s been 7 years he is performing the same. One of the quality manager has said that he has been able to perform the on very efficiently as he is very much know about the job by doing it again and gain.
The entire study was focused on the concept of lean management and its role in determining organisational success. As cited form the study of the research paper, the lean managmnet5 in Toyota is observed by the researcher so that the value of lean management with specific example of an organisations. As seen in the secondary and primary data sources, lean management is relied on the concepts of lean management and making their choices if products with sense 0of security and reliability. Toyota is trying to focus more on the imparting values to the customers so that they can feel their importance for the organisation. The effect of lean management is positive related with the organisation decision making process that essentially highlights the attribute of the employee relationship management.
- Linking with objective 1: To critically analyse on the lean techniques and manufacturing process of the Toyota Plc
As observed in Part A, graph1 and 2 and 3: to majority of the respondents are agreeing that most of the employees are quite familiar with lean management and its importance in the organization. With the help of lean management company will be able attain its goals and objectives through advanced technology and holistic development of the organisations. Lena management creates uniform process while producing goods and services. Based on the survey, the researcher found that maximum levels of employee are quiet familiar with the lean management within the organisations.
- Linking with the objective 2 To identify the value propositions of the Toyota in terms of discipline and behaviours of the employees and managers.
As observed in part A, graph 4, 5 and 6, majority of respondents believes that , waste material has is reducing and the productivity is increasing. With the Muda style of the waste control management the entire employee believes that company will be able to figure that all waste and art every stage and can recycle and control it through monitoring. Through Muda, every practicenor will be able to achieve discipline and control waste within the organisation. The production will be quiet familiar and will be able to solve the problem of organisation waste material through uniformity and through disciplined manner of productions. Since the organization is looking to develop the discipline the work place as given in the graph 8, we can identify the wholesome discipline in the organisations through application of lean management within the organisations.
- Linking with the objectives 3: To recommend on the better operations of manufacturing and design of car that can help to gain them the market.
As given graph 7, 9, and 10, most of the employee feels that with the Muda, company can achieve its objectives through reducing waste. As given graph 9, total quality management is looking after to control the objectives if the company. Value proposition can be increased through reducing waste and quality control within the organisations. At graph 10, most of respondents has believe that lean management comes from the below but 28% of the employee believes it comes from the both of the sides. Therefore, applying lean management in the organisation will enhance the discipline the organisations. As given graph 11, as according to survey believes that lean management within the organisation has bright future and is here to stay. Through continuous improvement, company will be able to achieve the customers and through quality in services and giving customer maximum satisfactions.
Depending upon the analysis and result of the study, the researcher has listed recommendations that can help in bridging a gap between the issues and proposed solutions.
Proper research facility
Since the research is done only in the Japan, but there is no connection between organisational R and D department. Toyota should open its Research and development department at every country wherever their branches are, which will increase the productivity by reducing waste at every manufacturing location all over the world. Without proper research lean management won’t be maintained in any organisation. Therefore it is burden for the company to make research and development place before using the lean management process.
Complex and strict structure: lean management ahs very complex structure to follow which some time frustrates the employees. Due to excess of strictness, employee is getting irritated and hence it decreases their productivity. However, with required work in the same area makes the employee gets repetitive and boring. Therefore the employees are going to lose interest in the job. So the company must exchange the work of every employee once in year which will make interested in their work.
The research was limited to the lean management in the Toyota. Lean management operates in more than several companies that could have been considered for the research study. Te time was limited for the specific study that does not allow participation of larger sample sizes for better quality of analysis’s. Financial budget is also one of the restrictions in the study that limited the quality of the study.
Scope of the study due to restrictions could not be exploited to its proper potential level. Further, the topic could have developed with study of two organisations such as Nike and IBM etc. Further, comparative study also will enhance the chances of observing the various steps applied in both of the organisations. Moreover, lean management helping to create innovative way of maintaining supply chain process. Lean management will make the banding and consumer decision making process effective for the company.
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