Lean manufacturing techniques combine just-in-time processes with total quality management and cross functional teams in order to create an environment where inventory costs are reduced, production processes are made more efficient, individual employees have greater control over their tasks, and the company as a whole is able to deliver greater value to its customers. Companies which are just starting out are increasingly turning to lean manufacturing to provide them with a competitive edge in the market, but implementing a lean manufacturing environment in an existing organization can be challenging and require significant changes in the corporate culture. In spite of the challenges associated with implementing lean manufacturing, a large number of companies, including General Motors and Boeing, have turned to this technique. This research explores the salient features of lean manufacturing and the role of cross functional teams in the lean manufacturing environment.
The so-called lean enterprise is characterized by a "push" production philosophy. In traditional environments, companies manufacture their product based on their production capacity, and may well have unused product sitting in a warehouse waiting for customers to order the items. This can result in unnecessary costs as the company must support warehousing products and pay tax on the inventory in storage. The inventory in question might never be shipped if customers do not purchase it; this might result when another company receives the order, or when this company comes out with a better alternative. However, companies wanted to have inventory on hand so that customers who did place orders would be able to receive their products quickly and in the timeframe they needed ().
In a lean environment, items are "pulled" through the production cycle by the customer. If there is no customer demand, no product is manufactured. This results in lower inventory costs, bu...