Improving Automotive Efficiency through Lean Management Tools: A Case Study
Managing and improving efficiency in the current
highly competitive global automotive industry demands that those
companies adopt leaner and more flexible systems. During the past
20 years the domestic automotive industry in North America has been
focusing on establishing new management strategies in order to meet
market demands. The lean management process also known as
Toyota Manufacturing Process (TPS) or lean manufacturing
encompasses tools and techniques that were established in order to
provide the best quality product with the fastest lead time at the
lowest cost. The following paper presents a study that focused on
improving labor efficiency at one of the Big Three (Ford, GM,
Chrysler LLC) domestic automotive facility in North America. The
objective of the study was to utilize several lean management tools in
order to optimize the efficiency and utilization levels at the “Pre-
Marriage” chassis area in a truck manufacturing and assembly
facility. Utilizing three different lean tools (i.e. Standardization of
work, 7 Wastes, and 5S) this research was able to improve efficiency
by 51%, utilization by 246%, and reduce operations by 14%. The
return on investment calculated based on the improvements made
was 284%.
[1] The Wall Street Journal, “Auto Sales”, Retrieved from
http://online.wsj.com/mdc/public/page/2_3022-
autosales.html#autosalesD. 2012.
[2] J. P. Womack, J. Daniel, and D. Roos, The machine that changed the
world, New York: Rawson Associates, 1990.
[3] AlixPartner, “Lingering Low Employment Nationally, Demographic
Shifts, Potential Contagion from Europe Present Big Challenges to the
Auto Industry”, Retrieved from http://www.alixpartners.com, 2012.
[4] R. EL-Khalil, K. Taraman, and S. Taraman, “Body shop flexibility:
Impact of framing system on overall performance”, Asian International
Journal of Science and Technology, Vol. 3 No. 2, pp. 110-128, 2010.
[5] R. EL-Khalil, “Simulation Analysis for managing and improving
productivity: a case study of an automotive company”, Journal of
Manufacturing Technology Management, Vol. 26 No. 1, pp. 112-135,
2015.
[6] J. Liker, The Toyota way: 14 management principles from the world’s
greatest manufacturer, New York: McGraw Hill, 2004.
[7] Matsui. Y, “An empirical analysis of just-in-time production in Japanese
manufacturing companies”, International Journal of Production
Economics, Vol. 108 No. 1, pp. 153–164, 2007.
[8] McKinsey and Company, Lean Implementation at the US automotive
companies, Retrieved from http://www.mckinsey.com/insights, 2014.
[9] C. Chen, A.L. Bergenwall, and R.E. White, “TPS’s process design in
American automotive plants and its effects on the triple bottom line and
sustainability”, International Journal of Production Economics, Vol.
140 No. 2, pp. 374-384, 2012. [10] S. Bhasin, and P. Burcher, “Lean viewed as a philosophy”, Journal of
Manufacturing and technology management, Vol. 17 No.1, pp. 56-72,
2006.
[11] J. Cabadas, J. River Rouge: Ford's Industrial Colossus, Motor Books
International, St Paul, MN, 2004.
[12] R. EL-Khalil, and M. Farah, “Lean Management adoption level in
Middle Eastern Manufacturing Facilities”, The Business Review,
Cambridge, Vol. 2, No 2, pp 158-167, 2013.
[13] R. EL-Khalil, “Managing and Improving Robot Spot Welding
Efficiency: A benchmarking Study”, Benchmarking: An International
Journal, Vol. 21, No. 3, pp 344-363, 2014.
[14] D. Mehri, “The darker side of lean: an insider’s perspective on the
realities of the Toyota production system”, Academy of Management
Perspectives, Vol. 20 No. 2, pp. 21–42, 2006.
[15] K. Newsome, “The women can be moved to fill in the gaps: new
production concepts, gender and suppliers”, Gender, Work, &
Organization, Vol. 10 No. 3, pp. 320–341, 2003.
[16] M. Hughes, “A true rap for work measurement”. Industrial Engineer,
Vol. 44 No. 10, pp. 213-226, 2012.
[17] R. El-Khalil, “Auto zone: Pour on the efficiency by applying work study
analysis to car production”, Industrial Engineer Journal, Vol. 43 No. 11,
pp. 30-34, 2011.
[18] H. Wittenber, “Kaizen the many ways of getting better”, Assembly
Autonomation, Vol. 14 No. 4, pp. 12-17, 1994.
[19] T. Whitmore, “Standardized work: Document your process and make
problems visible”, Manufacturing Engineering, Vol. 140 No. 5, pp. 171-
179, 2008.
[20] B. Münstermann, A. Eckhardt, and T. Weitzel, “The performance impact
of business process standardization: An empirical evaluation of the
recruitment process”, Business Process Management Journal, Vol. 16
No.1, pp 29- 56, 2010.
[21] K. Wuellenweber, D. Beimborn, T. Weitzel, and W. Koenig, “The
impact of process standardization on business process outsourcing
success”, Information Systems Frontiers, Vol. 10 No. 2, pp. 211-24,
2008.
[22] S. Vinodh, “Standardized work for noncyclical processes”, International
Journal of Production Research, Vol. 49 No. 21, pp. 6589-6590, 2011.
[23] J.K. Liker, “Becoming lean: Inside stories of U.S. manufacturers”,
Oregon: Productivity Press, 1998.
[24] M. Kocakulah, J. Brown, and T. Joshua, “Lean Manufacturing principles
and their Application”, Cost Management Magazine. Vol. 22 No. 3, pp.
112-138, 2008.
[25] L. Wilson, “How to implement lean manufacturing”, New York, NY:
McGraw-Hill, 2010.
[26] J.A. Farris, E.M. van Aken, T.L. Doolen, and J. Worley, “Critical
success factors for human resource outcomes in Kaizen events: an
empirical study”, International Journal of Production Econ.omics, Vol.
117 No. 2, pp. 42-65, 2009.
[27] W.M. Feld, How to implement lean manufacturing tools, techniques,
and how to use them, Boca Raton: St Lucie Press, 2010.
[1] The Wall Street Journal, “Auto Sales”, Retrieved from
http://online.wsj.com/mdc/public/page/2_3022-
autosales.html#autosalesD. 2012.
[2] J. P. Womack, J. Daniel, and D. Roos, The machine that changed the
world, New York: Rawson Associates, 1990.
[3] AlixPartner, “Lingering Low Employment Nationally, Demographic
Shifts, Potential Contagion from Europe Present Big Challenges to the
Auto Industry”, Retrieved from http://www.alixpartners.com, 2012.
[4] R. EL-Khalil, K. Taraman, and S. Taraman, “Body shop flexibility:
Impact of framing system on overall performance”, Asian International
Journal of Science and Technology, Vol. 3 No. 2, pp. 110-128, 2010.
[5] R. EL-Khalil, “Simulation Analysis for managing and improving
productivity: a case study of an automotive company”, Journal of
Manufacturing Technology Management, Vol. 26 No. 1, pp. 112-135,
2015.
[6] J. Liker, The Toyota way: 14 management principles from the world’s
greatest manufacturer, New York: McGraw Hill, 2004.
[7] Matsui. Y, “An empirical analysis of just-in-time production in Japanese
manufacturing companies”, International Journal of Production
Economics, Vol. 108 No. 1, pp. 153–164, 2007.
[8] McKinsey and Company, Lean Implementation at the US automotive
companies, Retrieved from http://www.mckinsey.com/insights, 2014.
[9] C. Chen, A.L. Bergenwall, and R.E. White, “TPS’s process design in
American automotive plants and its effects on the triple bottom line and
sustainability”, International Journal of Production Economics, Vol.
140 No. 2, pp. 374-384, 2012. [10] S. Bhasin, and P. Burcher, “Lean viewed as a philosophy”, Journal of
Manufacturing and technology management, Vol. 17 No.1, pp. 56-72,
2006.
[11] J. Cabadas, J. River Rouge: Ford's Industrial Colossus, Motor Books
International, St Paul, MN, 2004.
[12] R. EL-Khalil, and M. Farah, “Lean Management adoption level in
Middle Eastern Manufacturing Facilities”, The Business Review,
Cambridge, Vol. 2, No 2, pp 158-167, 2013.
[13] R. EL-Khalil, “Managing and Improving Robot Spot Welding
Efficiency: A benchmarking Study”, Benchmarking: An International
Journal, Vol. 21, No. 3, pp 344-363, 2014.
[14] D. Mehri, “The darker side of lean: an insider’s perspective on the
realities of the Toyota production system”, Academy of Management
Perspectives, Vol. 20 No. 2, pp. 21–42, 2006.
[15] K. Newsome, “The women can be moved to fill in the gaps: new
production concepts, gender and suppliers”, Gender, Work, &
Organization, Vol. 10 No. 3, pp. 320–341, 2003.
[16] M. Hughes, “A true rap for work measurement”. Industrial Engineer,
Vol. 44 No. 10, pp. 213-226, 2012.
[17] R. El-Khalil, “Auto zone: Pour on the efficiency by applying work study
analysis to car production”, Industrial Engineer Journal, Vol. 43 No. 11,
pp. 30-34, 2011.
[18] H. Wittenber, “Kaizen the many ways of getting better”, Assembly
Autonomation, Vol. 14 No. 4, pp. 12-17, 1994.
[19] T. Whitmore, “Standardized work: Document your process and make
problems visible”, Manufacturing Engineering, Vol. 140 No. 5, pp. 171-
179, 2008.
[20] B. Münstermann, A. Eckhardt, and T. Weitzel, “The performance impact
of business process standardization: An empirical evaluation of the
recruitment process”, Business Process Management Journal, Vol. 16
No.1, pp 29- 56, 2010.
[21] K. Wuellenweber, D. Beimborn, T. Weitzel, and W. Koenig, “The
impact of process standardization on business process outsourcing
success”, Information Systems Frontiers, Vol. 10 No. 2, pp. 211-24,
2008.
[22] S. Vinodh, “Standardized work for noncyclical processes”, International
Journal of Production Research, Vol. 49 No. 21, pp. 6589-6590, 2011.
[23] J.K. Liker, “Becoming lean: Inside stories of U.S. manufacturers”,
Oregon: Productivity Press, 1998.
[24] M. Kocakulah, J. Brown, and T. Joshua, “Lean Manufacturing principles
and their Application”, Cost Management Magazine. Vol. 22 No. 3, pp.
112-138, 2008.
[25] L. Wilson, “How to implement lean manufacturing”, New York, NY:
McGraw-Hill, 2010.
[26] J.A. Farris, E.M. van Aken, T.L. Doolen, and J. Worley, “Critical
success factors for human resource outcomes in Kaizen events: an
empirical study”, International Journal of Production Econ.omics, Vol.
117 No. 2, pp. 42-65, 2009.
[27] W.M. Feld, How to implement lean manufacturing tools, techniques,
and how to use them, Boca Raton: St Lucie Press, 2010.
@article{"International Journal of Business, Human and Social Sciences:69079", author = "Raed EL-Khalil and Hussein Zeaiter", title = "Improving Automotive Efficiency through Lean Management Tools: A Case Study", abstract = "Managing and improving efficiency in the current
highly competitive global automotive industry demands that those
companies adopt leaner and more flexible systems. During the past
20 years the domestic automotive industry in North America has been
focusing on establishing new management strategies in order to meet
market demands. The lean management process also known as
Toyota Manufacturing Process (TPS) or lean manufacturing
encompasses tools and techniques that were established in order to
provide the best quality product with the fastest lead time at the
lowest cost. The following paper presents a study that focused on
improving labor efficiency at one of the Big Three (Ford, GM,
Chrysler LLC) domestic automotive facility in North America. The
objective of the study was to utilize several lean management tools in
order to optimize the efficiency and utilization levels at the “Pre-
Marriage” chassis area in a truck manufacturing and assembly
facility. Utilizing three different lean tools (i.e. Standardization of
work, 7 Wastes, and 5S) this research was able to improve efficiency
by 51%, utilization by 246%, and reduce operations by 14%. The
return on investment calculated based on the improvements made
was 284%.
", keywords = "Lean Manufacturing, Standardized Work, Operation
Efficiency and Utilization, Operations Management.", volume = "9", number = "1", pages = "314-8", }
