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- Effects of Lean Management on company value
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You can start or join in a discussion here. Visit emeraldpublishing. Abstract Purpose The advent of recession at the beginning of twenty-first century forced many organizations worldwide to reduce cost and to be more responsive to customer demands. Findings There are plethora of LM definitions with divergent objectives and scope. Please note you might not have access to this content. You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
Table of search terms for literature review
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Effects of Lean Management on company value
The company prepares to introduce lean production into its operations and has an open eye for sustainability improvements to cope with their customer requirements. Thus, a primary purpose of this thesis is to provide recommendations on how to improve the production efficiency and sustainability of Markisol Holding AB operations. How could a lean and Sustainable production roadmap be created for a medium sized manufacturer?
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RQ 1 : How could the Value Stream Mapping be used in a medium sized manufacturer to reduce the sources of waste in production? RQ 2 : How could the production in a medium sized manufacturer be assessed with respect to the overarching sustainability principles? The research was designed as a case study, where a mix of quantitative and qualitative methods was used for data collection and data analysis. The quantitative methods mainly consist of time and work in progress measurements, while the qualitative methods included interviews, dialogues, and observations.
Different methods and tools were used in different parts of the work to fulfill the thesis purpose. VSM was used to provide a blueprint of the production processes and improve the production performance. The first part of the results describes how VSM can be used to visualize the material and information flows, from the reception of materials from suppliers until the shipment of finished goods in a medium-sized manufacturer.
Taking into consideration all the processes the product goes through on the production floor on a door-to-door level.
Through interviewing the customer, the value was defined as the delivery time and costs. Accordingly, the value-added and non-value-added activities in production could be determined at a later stage in the analysis.
Afterward, a product family was selected, and mapping the current state VSM for the typical product at the case company took place. It is found that the value-added time is about 3. To improve the situation, analysis of the VSM was performed according to the eight guiding questions from the VSM literature, combined with the process-level waste analysis, to identify the sources of waste and maximize the improvement potential.
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The amount of waste was surprising, with the majority of the waste classified under the following categories; incorrect processing, unnecessary motion and waiting. Finally, a future state map was proposed with the adequate improvements indicated. In the second part of this case study results, a combination of tools has been utilized to assess the production with regards to the sustainability principles.
The SLCA tool was adopted to explore how the current production lines appear from a strategic sustainability perspective through the questions and answers template. For each sustainability principle, a set of questions was created to provide a holistic understanding of the current situation. Interviews with management and production were conducted to fill the SLCA template. For the current level of compliance was found to be an excellent level SCI 9 , good level SCI 6 for the second and third ecological sustainability principles respectively, which is related to the buildup chemicals produced by society, and degradation of nature by physical means.
However, lower compliance levels SCI 3 were revealed for the first ecological principle concerned with the buildup of substances extracted from the earth crust and the social sustainability principles. Respectively, higher future sustainability levels could be attained in the production.