A Comparative Study of Lean and Mass Production System Toyota and Ford - Free Essay Example

Sample details Pages: 17 Words: 5028 Downloads: 5 Date added: 2017/09/13 Category Advertising Essay Did you like this example? SUB: LEAN MANAGEMENT AND TOTAL PRODUCTIVE MAINTENANCE TERM PAPER TOPIC: A COMPARATIVE STUDY OF LEAN AND MASS PRODUCTION SYSTEM: TOYOTA AND FORD Date of Submission: 13th Sep’10 By GROUP-11 Yashraj D. Pawar -09258 Chaintanya Sharavanth C. 09211 Harshita M. 09217 Batch XVII VIGNANA JYOTHI INSTITUTE OF MANAGEMENT Bachupally, Hyderabad, A. P – 500072, India SUMMARY: This paper deals with the production systems of two major leaders in the automobile market. Mass production is briefly touched up on and its advantages and disadvantages are discussed. Lean production is the emerging trend, which talks about minimizing waste and increasing production. We have also thrown light on when to use lean and mass production in production process . Our study majorly concentrates on Ford Co. and Toyota Co. which follows mass and lean production systems respectively, a detailed study has been done on their production processes. Contents 1. OBJECTIVES4 2. MASS PRODUCTION5 . 1 USE OF ASSEMBLY LINES IN MASS PRODUCTION6 2. 2 WHEN TO GO FOR MASS PRODUCTION:6 2. 3 ADVANTAGES6 2. 4 DISADVANTAGES7 2. 5 HOW DID MASS PRODUCTION EVOLVE7 2. 6 THE LIMITS OF FORD’S SYSTEM9 3. LEAN PRODUCTION10 3. 1 CHARACTERISTICS OF LEAN PRODUCTION11 3. 2 BASIC ELEMENTS OF LEAN MANUFACTURING13 3. 3 BENEFITS OF LEAN PRODUCTION14 3. 4 SEVEN PRINCIPLES OF TOYOTA PRODUCTION SYSTEM (TPS)15 3. 5 THE FOCUS OF TOYOTA PRODUCTION SYSTEM16 3. 6 LEAN MANUFACTURING AT TOYOTA17 3. 7 FOCU S ON FLEXIBILITY19 4. Don’t waste time! Our writers will create an original "A Comparative Study of Lean and Mass Production System: Toyota and Ford" essay for you Create order COMPARISON BETWEEN MASS AND LEAN PRODUCTION20 5. Conclusion21 6. Bibilography21 1. OBJECTIVES ?To understand lean and mass production in detail. ?To understand Implications of lean and mass production in production process. ?To compare Ford and Toyota with respect to production processes. 2. MASS PRODUCTION Mass production (also called flow production, repetitive flow production, series production, or serial production) is the production of large amounts of standardized products, including and especially on assembly lines. The concepts of mass production are applied to various kinds of products, from fluids and particulates handled in bulk (such as food, fuel, chemicals, and mined minerals) to discrete solid parts (such as fasteners) to assemblies of such parts (such as household appliances and automobiles). Mass production of assemblies typically uses electric-motor-powered moving tracks or conveyor belts to move partially complete products to workers, who perform simple repetitive tasks Mass production of fluid and particulate matter typically involves pipes with pumps or augers to transfer partially complete product between vessels. Mass production is capital intensive and energy intensive, as it uses a high proportion of machinery and energy in relation to workers. It is also usually automated to the highest extent possible. With fewer labour costs and a faster rate of production, capital and energy are increased while total expenditure per unit of product is decreased. However, the machinery that is needed to set up a mass production line (such as robots and machine presses) is so expensive that there must be some assurance that the product is to be successful to attain profits. One of the descriptions of mass production is that the craftsmanship is in the workbench itself, not the training of the worker; for example, rather than having a skilled worker measure every dimension of each part of the product against the plans or the other parts as it is being formed, there are jigs and gauge blocks that are ready at hand to ensure that the part is made to fit this set-up. It has already been checked that the finished part will be to specifications to fit all the other finished parts and it will be made more quickly, with no time spent on finishing the parts to fit one another. This is the specialized capital required for mass production; each workbench is different and each set of tools at each workbench limited to those necessary to make one part. 2. 1 USE OF ASSEMBLY LINES IN MASS PRODUCTION Mass production systems are usually organized into assembly lines. The assemblies pass by on a conveyor, or if they are heavy, hung from an overhead monorail. In a factory for a complex product, rather than one assembly line, there may be many auxiliary assembly lines feeding sub-assemblies (i. e. car engines or seats) to a backbone main assembly line. A diagram of a typical mass-production factory looks more like the skeleton of a fish than a single line. 2. 2 WHEN TO GO FOR MASS PRODUCTION: It is generally agreed that mass production is justified only when production quantities are large and product variety small. The ideal situation for mass production would be when large volumes of one product are to be produced continuously for an extended period of time. Thus the rate of consumption of the product as compared to the rate of production decides whether continuous or batch production is called for. 2. ADVANTAGES †¢The economies of mass production come from several sources. The primary cause is a reduction of nonproductive effort of all types. In craft production, the craftsman must bustle about a shop, getting parts and assembling them. He must locate and use many tools many times for varying tasks. In mass production, each worker repeats one or a few related tasks that use the same tool to perform identical or near-identic al operations on a stream of products. The exact tool and parts are always at hand, having been moved down the assembly line consecutively. The worker spends little or no time retrieving and/or preparing materials and tools, and so the time taken to manufacture a product using mass production is shorter than when using traditional methods. †¢The probability of human error and variation is also reduced, as tasks are predominantly carried out by machinery. †¢A reduction in labor costs, as well as an increased rate of production, enables a company to produce a larger quantity of one product at a lower cost than using traditional, non-linear methods. †¢Little skill is usually required by operators at the production line, hence training simple, short and inexpensive. Less space is occupied by work in transit and for temporary storage. 2. 4 DISADVANTAGES †¢Mass production is inflexible because it is difficult to alter a design or production process after a production l ine is implemented. Also, all products produced on one production line will be identical or very similar, and introducing variety to satisfy individual tastes is not easy. However, some variety can be achieved by applying different finishes and decorations at the end of the production line if necessary. †¢A breakdown of one machine may lead to a complete stoppage of the line that follows the machine. Hence, maintenance and repair is a challenging job. †¢Supervision is general rather than specialized, as the supervisor of a line is looking after diverse machine on a line. †¢Generally, high investments are required owing to the specialised nature of the machines and their possible duplication in the line. 2. 5 HOW DID MASS PRODUCTION EVOLVE Mass production was popularized in the 1910s and 1920s by Henry Fords Ford Motor Company, which introduced electric motors to the then-well-known technique of chain or sequential production and, in the process, began a new era often called the second industrial revolution. Fords contribution to mass production was synthetic in nature, collating and improving upon existing methods of sequential production and applying electric power to them, resulting in extremely-high-throughput, continuous-flow mass production, making the Model T affordable and, as such, an instant hit. Although the Ford Motor Company brought mass production to new he ights, it was a synthesizer and extrapolator of ideas rather than being the first creator of mass production. Ships had been mass-produced using pre-manufactured parts and assembly lines in Venice several hundred years earlier. The Venice Arsenal apparently produced nearly one ship every day, in what was effectively the worlds first factory which, at its height, employed 16,000 people. Mass production in the publishing industry has been commonplace since Johannes Gutenbergs Bible was published using a printing press in the mid-1400s. During the Industrial Revolution simple mass production techniques were used at the Portsmouth Block Mills to manufacture ships pulley blocks for the Royal Navy during the Napoleonic Wars. These were also used in the manufacture of clocks and watches, and in the manufacture of small arms. During the American Civil War the Springfield Armory started to mass produce guns, using interchangeable parts on a large scale. The interchangeable part in manufacturing gun was strongly advocated by Eli Whitney. For this reason, the term Armory practice is occasionally used to refer to mass production. Soon after the war the American System of Watch Manufacturing showed that these techniques could be successfully applied even when very high precision was required. Later, in the 1890s, dollar watches traded off lower precision for much lower manufacturing costs. Taking a look back at the history of American manufacturing, the key features of mass production were the perfect interchangeability of parts in the goods produced, long production runs and large quantity of outputs that were homogeneous. These key features were developed out of the earlier non-mechanized factory system known as the American system. While the preceding American system of manufacturing relied on steam power, mass production factories were electrified and used sophisticated machinery. Adoption of these techniques coincided with the birth of the second industrial revolution in the US and its emergence as the dominant industrial superpower in the 20th century. Countries that were quick to follow in its wake (e. g. Germany and Japan) enjoyed high rates of growth. 2. 6 THE LIMITS OF FORD’S SYSTEM Perhaps surprisingly, hidden behind this oft-quoted comment about painting the car is the reason for the failure of Henry Ford to create full mass manufacturing in the car industry. The comment is more than fictional, for the paint on early car bodies took a very long time to dry and black was the fastest drying colour. Black paint had higher solids content and hence dried more quickly. Car bodies could take up to 40 days to paint and dry. The result was fields full of drying car bodies. Needless to say, Ford could not put up with this with his production volumes and he in fact bought most of his bodies from outside suppliers making them watch the paint dry instead. Ford could do this, because the core of the car was its chassis; a steel frame to which engine, gearbox, axles and wheels were attached. The body was added later or indeed after the production process, and its main function was keeping out the worst of the weather. In other words, Henry Ford industrialised all aspects of car production, except the body. In practice, drying time for paint was the main bottleneck in the mass production of cars and many manufacturers, including Ford, tried to address it. One method was to heat the bodies by baking them, but this also caused problems. At this time, car bodies were built around a wooden frame to which the metal panels were attached – hence Ford’s need for forests. When heated, these frames could catch fire with disastrous consequences. Yet, at the very time when the moving assembly line was being installed into the Highland Park factory in Detroit, Michigan to smooth the production of the Model T, an unknown engineer in Philadelphia was assiduously laying the foundations that would revolutionise car design and render the Model T obsolete. Edward Gowan Budd, along with his colleague Joe Ledwinka from Austria were messianic in their advocacy of sheet steel in engineering, a modern sophisticated material that with thought and careful design could replace the crude, heavy and brittle cast iron used in many instances. While he started small, working on components such as pressed steel pulleys, Budd came to believe there should not be a piece of wood â€Å"as big as a toothpick† in a car body. After securing a series of patents in metal pressing, fixtures to hold parts, and spot welding techniques Budd managed to convince the Dodge Brothers – who had recently left Ford Motor Company to set up their own business – to place an initial order for 5000 bodies in 1915. Their new car was well received and the following year Dodge Brothers were able to order 15,000 – Budd and Ledwinka were vindicated. The all-steel car body concept swept through the industry at a pace unrivalled for almost any technological innovation. In 1920, car bodies in the US were still 85% timber-framed; by 1926, 70% were steel; such was the success of Budd’s new technology. At the same time, paint technology was improved and adapted to suit the new system. Dupont lead much of this innovation in paint and their shareholding in General Motors ensured Ford’s main competitor got first choice. General Motors were the first to use synthetic paints and they offered these in a range of colours when Ford was still limited to black – the industry leapt into the era of styling and marketing. Henry Ford had thought that his Model T and the manufacturing system to produce it could not be improved upon. His obdurate refusal to change, the very determination and self-belief that laid the foundations for his success, almost brought his company to its knees. 3 . LEAN PRODUCTION Lean is about doing more with less: less time, inventory, space, labor, and money. Lean manufacturing is shorthand for a commitment to eliminating waste, simplifying procedures and speeding up production. The term was coined by James Womack and Daniel Jones to describe the Toyota Production System, widely recognized as the most efficient manufacturing system in the world. Lean production is an assembly-line manufacturing methodology developed originally for Toyota and the manufacturers’ of automobiles. It is also known as the Toyota Production System (TPS). The goal of lean production is described as to get the right things to the right place at the right time, the first time, while minimizing waste and being open to change. Taiichi Ohno, who is credited with developing the principles of lean production, discovered that in addition to eliminating waste or Muda (anything other than which adds value to the product or service), his methodology led to improved product flow and better quality. TPS evolved slowly over a span of 15 years. Initially known as JIT (Just In Time), it emphasized minimizing inventory and smoothing the flow of material so that it arrived just as it was needed or â€Å"just-in-time†. As the concept widened in scope, the term lean production became more prevalent. Now the terms are often used interchangeably. Just as mass production is recognized as the production system of the 20th century, Lean production is viewed as the production system of the 21st century. Five areas drive lean manufacturing/production: 1. Cost 2. Quality 3. Delivery 4. Safety 5. Morale 3. 1 CHARACTERISTICS OF LEAN PRODUCTION †¢Integrated single piece continuous workflow Close integration of the whole value chain from raw material to finished product through partnership oriented relations with suppliers and distributors. †¢Just-in-time processing: a part moves to a production operation, is processed immediately, and moves immediately to the next operation †¢Short order-to-ship cycles times; small ba tch production capability that is synchronized to shipping schedules †¢Production is based on orders rather than forecasts; production planning is driven by customer demand or pull and not to suit machine loading or inflexible work flows on the shop floor. Minimal inventories at each stage of the production process †¢Quick changeovers of machines and equipment allow different products to be produced with one-piece flow in small batches †¢Layout is based on product flow †¢Total quality control by active involvement by workers in trouble shooting and problem solving to improve quality and eliminate wastes. †¢Defect prevention rather than inspection and rework, by building quality in the process and implementing real time quality feedback procedures. †¢Team based work organizations with multi skilled operators empowered to make ecisions and improve operations with few indirect staff. During the 1980s, the set of practices summarized in the ten rules of lea n production were adopted by many manufacturing plants in the U. S. and Europe. The management style was tried out with varying degrees of success by service organizations, logistics organizations and supply chains. Since the demise of many dot. coms, there has been a renewed interest in the principles of lean production, particularly since the philosophy encourages the reduction of inventory. Dell Computers and Boeing Aircraft have embraced the philosophy of lean production with great success. The ten rules of lean production can be summarized: 1. Eliminate waste 2. Minimize inventory 3. Maximize flow 4. Pull production from customer demand 5. Meet customer requirements 6. Do it right the first time 7. Empower workers 8. Design for rapid changeover 9. Partner with suppliers 10. Create a culture of continuous improvement 3. 2 BASIC ELEMENTS OF LEAN MANUFACTURING 1. Flexible resources- It is recognized as the key element of lean production and includes multi-functional workers who perform more than one job and general purpose machines that perform several basic functions. 2. Cellular Layouts- There are Manufacturing Cells, comprised of dissimilar machines brought together to manufacture a family of parts. In this the Cycle time (time required for the worker to complete one pass through the operations assigned) is adjusted to meet Takt time (paces production to customer demand) by changing worker paths. 3. Pull system Material is pulled through the system when needed. It forces cooperation, and prevent over and underproduction. While push systems rely on a predetermined schedule, pull systems rely on customer requests. 4. Kanbans – It is a Card which indicates standard quantity of production. It is derived from two-bin inventory system and maintains the discipline of pull production. It authorizes production and movement of goods. Sample Kanban 5. Small Lots Require less space and capital investment and moves processes closer together and more dependent on each other. It Make quality problems easier to detect. 6. Quick Setups – This includes Internal setup (setup activities that can be performed only when a process is stopped) and External Setup (setup activities that can be performed in advance). 7. Uniform Production Level – This is maintained by smoothing the production requirements on the final assembly line, or smoothing the demand across the planning horizon. This helps in reducing variability, with more accurate forecasts. Mixed-model assembly steadies component production. 8. Quality at the source It includes visual control, that makes problems visible; Poka–yokes, that prevents defects from occurring; Jidoka, that gives authority to stop the production line if required, when any defect occurs; Andons, which are call lights that signal quality problems; Kaizen, which is a system for continuous improvement; and Under-capacity scheduling, that leaves time for planning, problem solving, and maintenance 9. Total Productive Maintenance (TPM) combines preventive maintenance, which is a system of periodic inspection and maintenance to keep machines operating, with total quality concepts. 0. Supplier networks – This deals with long-term supplier contracts, synchronized production, supplier certification, mixed loads and frequent deliveries, precise delivery schedules, standardized and sequenced delivery, and being in close proximity to the customer. 3. 3 BENEFITS OF LEAN PRODUCTION Establishment and mastering of a lean production system would allo w us to achieve the following benefits: †¢Waste reduction by 80% †¢Production cost reduction by 50% †¢Manufacturing cycle times decreased by 50% Labor reduction by 50% while maintaining or increasing throughput †¢Inventory reduction by 80% while increasing customer service levels †¢Capacity in current facilities increase by 50% †¢Higher quality †¢Higher profits †¢Higher system flexibility in reacting to changes in requirements improved †¢More strategic focus †¢Improved cash flow through increasing shipping and billing frequencies However, by continually focusing on waste reduction, there are truly no end to the benefits that can be achieved. 3. SEVEN PRINCIPLES OF TOYOTA PRODUCTION SYSTEM (TPS) 1. Reduced Setup Times: All setup practices are wasteful because they add no value and they tie up labor and equipment. By organizing procedures, using carts, and training workers to do their own setups, Toyota managed to slash setup times fro m months to hours and sometimes even minutes. 2. Small-Lot Production: Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities. 3. Employee Involvement and Empowerment: Toyota organized their workers by forming teams and gave them the responsibility and training to do many specialized tasks. Teams are also given responsibility for housekeeping and minor equipment repair. Each team has a leader who also works as one of them on the line. 4. Quality at the Source: To eliminate product defects, they must be discovered and corrected as soon as possible. Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka). 5. Equipment Maintenance: Toyota operators are assigned primary responsibility for basic maintenance since they are in the best position to defect signs of malfunctions. Maintenance specialists diagnose and fix only complex problems, improve the performance of equipment, and train workers in maintenance. . Pull Production: To reduce inventory holding costs and lead times, Toyota developed the pull production method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time (JIT) originated. 7. Supplier Involvement: Toyota treats its suppliers as partn ers, as integral elements of Toyota Production System (TPS). Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc. , and take responsibility to deliver their best possible parts. 3. 5 THE FOCUS OF TOYOTA PRODUCTION SYSTEM Real TPS is not just about â€Å"flow† or â€Å"pull production† or â€Å"cellular manufacturing† or load leveling. TPS in Toyota is primarily concerned with making a profit, and satisfying the customer with the highest possible quality at the lowest cost in the shortest lead-time, while developing the talents and skills of its workforce through rigorous improvement routines and problem solving disciplines. This stated aim is mixed in with the twin production principles of Just in Time (make and deliver the right part, in the right amount, at the right time), and Jidoka (build in quality at the process), as well as the notion of continuous improvement by standardization and elimination of waste in all operations to improve quality, cost, productivity, lead-time, safety, morale and other metrics as needed. Instead of devoting resources to planning, which would be required for future manufacturing, Toyota focused on reducing system response time so that the production system was capable of immediately changing and adapting to market demands. In effect, their automobiles became made-to-order. The principles of lean production enabled the company to deliver on demand, minimize inventory, maximize the use of multi-skilled employees, flatten the management structure, and focus resources where they were needed. Toyota pioneered the just-in-time manufacturing system, in which suppliers send parts daily or several times a day and are notified electronically when the assembly line is running out. 3. LEAN MANUFACTURING AT TOYOTA Toyota’s approach to automobile production, with its inherent quality controls, revolutionized the industry. Its â€Å"just-in-time† supply-chain concept has become a model for manufacturers around the world, and not just for automakers. The Toyota Production System (TPS) calls for the end product to be â€Å"pulled† through the system. This means the right parts reach the assembly line at the right place, just as they are needed, and with no excess. This approach represents a radical departure from conventional manufacturing systems, which require large inventories in order to â€Å"push† as much product as possible through production lines, regardless of actual demand. The idea of TPS, the contrary, is to produce only the products required in the precise quantities desired at a given point in time. There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which the focus is upon improving the flow or smoothness of work (thereby steadily eliminating mura, unevenness) through the system and not upon waste reduction per se. Techniques to improve flow include production leveling, pull production (by means of kanban) and the Heijunka box While low inventory levels are a key outcome of the Toyota Production System, an important element of the philosophy behind its system is to work intelligently and eliminate waste so that inventory is no longer needed Toyota, through its lean production system, has been able to produce cars much more cheaply, and to a higher quality, than its US rivals. In 1998, it took Ford and GM 50% more hours to make a car than Toyota and the difference was so great that GM did not make a profit on any of its cars. In 2006, Toyota could build an average car with just 29 hours labor, while it took GM workers 33 hours. The list of organizations that have tried to ape the Toyota lean production method includes rivals GM and Ford, aerospace giants Boeing and even the NHS. Lean manufacturing allows Toyota to develop products quickly, reduce the time it takes to produce an end result and have zero to low levels of waste. Toyota can develop a new model of car in just 18 months, and in 2006 it took just 29 hours to build a Toyota from scratch. General Motors took 33 hours at best. A decade ago GM and Ford were taking 50 per cent longer to build their vehicles than Toyota, and the final product was famous for its unreliability, while Toyota are famous for the opposite. Toyotas business has taken off because its delivering faster and better quality, which is a result of its lean manufacturing practices. Although a mass manufacturer, Toyota has ditched the traditional way of mass manufacturing and instead produces cars as the customer wants, and they can have what they want when they need it. 3. 7 FOCUS ON FLEXIBILITY By basing production on demand rather than simply on capacity, Toyota manages to keep inventories, both of parts and of finished goods, to a strict minimum. But this is only one of the more obvious advantages of Toyota’s unconventional approach. By focusing on smaller production lots and producing only what customers require, and when they require it, Toyota has developed a flexibility and responsiveness that continues to set the standard for the industry. With its attention to continuous improvement (Kaizen), Toyota has attained die-changeover and machine-set times that are a fraction of its competitors. Thus its capacity for reacting quickly to new market trends makes TPS an ideal system in today’s rapidly changing global business environment. Just as important is ensuring quality control, and the delivery of reliable and dependable products to customers. If a problem arises at any stage of production, Toyota’s automatic error detection system, called â€Å"Jidoka†, flags the defect and enables line employees to take the necessary steps to resolve it on the spot – even if that means bringing production to a halt. By calling attention to the equipment when an error first occurs, the Toyota system makes it easier to identify the source of the problem and prevents defects from progressing to subsequent stages of production. Only a system as agile and quality-oriented as TPS could make such measures economically possible. This approach not only helps eliminate waste, which makes TPS more respectful of the environment, it also means that customers can rest assured that Toyota products will conform to the highest standards of quality, reliability and urability. Applying TPS principles, the Toyota staff carefully examined how production waste was created, and invented appropriate solutions to reduce, reuse or recycle all the ‘waste’ materials generated. This resulted in a 73% reduction of waste going to landfill between 2001 and 2005- Between 2001 and 2005- ?Total energy usage per car was reduced by 37% across all their European manufacturing plants. ?Water usage was reduced in Europe b y 34%. ?Packaging waste has been reduced through the full use of returnable or recyclable packaging. Volatile organic compound emissions per square meter of painted surface were reduced by 21%. 4. COMPARISON BETWEEN MASS AND LEAN PRODUCTION Mass productionLean production High quality-high costHigh quality-comparatively low cost Make what engineers want in large quantities at statistically accepted quality levelsMake what customer wants with zero defects, when they want it Leadership by executive flat and coercionLeadership by vision and broad participation Individually and military style bureaucracyTeam based operations and flat hierarchies Based on priceBased on long term relations Information poor management based on abstract reports generated by and for managersInformation rich management based on visual control systems maintained by all employees Culture of loyalty and obedience; sub culture of alienation and labor strifeHarmonious culture of involvement based on long term development of human resources Large scale machines, mass inventories, low skills, long production runs and functional layoutHuman scale machines, zero inventories, multiskilling, one piece flow and cell type layout Maintenance by maintenance specialistsEquipment managed by production, maintenance and engineering Model of the isolated genius, with the little input from customers and little respect for production realities Team based model, with high input from customers and concurrent development of product and process design. 5. Conclusion Lean production has truly changed the face of manufacturing and transformed the global economy. It is both a philosophy, and a collection of management methods and techniques. The main advantage of the system is derived from the integration of the techniques into focused, smooth-running management systems. Lean production is most effective in repetitive environments, but elements of lean can be applied to almost any operation, including service operations like, retailing, banking, health care etc. , as every system contains waste, i. e. something that does not provide value to your customer. Whether you are producing a product, processing a material, or providing a service, there are elements which are considered waste. The techniques for analyzing systems, identifying and reducing waste and focusing on the customer are applicable in any system, and in any industry, and hence proper adoption of leans advantages can prove to be a strategy for increased market share and market domination by combining lower costs and higher quality to create more value for the customer. Despite its obvious connection, mass production was not a corollary to the modern Industrial Revolution. Various mass production techniques had been practiced by ford and according to our study we have observed that lean production in automobile manufacturing will have good results like it minimizes cost of production and helps in reducing operating expenses 6. Bibilography †¢Ford, H. 1926. â€Å"Mass Production. † Encyclopedia Britannica, 13th ed. , Supplement Vol. 2: 821-823. †¢Hounshell, D. A. 1984. From the American System to Mass Production, 1800-1932. Baltimore, MD: Johns Hopkins University Press.