Abstract
The coursework focuses on studying the Lean principle from a theoretical and empirical point
of view. The main aspects of the Lean operating principles are critically analysed in the
literature review followed by an empirical investigation in the case of Aldi. The findings show
the advantages and disadvantages of the Lean operating principles, as well as, some areas of
future improvement in the case of Aldi. The coursework focuses on the benefits of the Lean
operating principles, such as the improved level of customer satisfaction and the generally
more effective waste management.
Table of Contents
Abstract.......................................................................................................................................1
1. Introduction.............................................................................................................................1
2. Literature Review....................................................................................................................2
2.1 Tools and techniques.........................................................................................................2
2.2 Criticism............................................................................................................................3
3. Critical evaluation of the chosen company.............................................................................4
3.1 Overview of Aldi..............................................................................................................4
3.2 Lean production implementation by Aldi.........................................................................4
3.3 Advantages of the applied LOP........................................................................................5
3.4 Disadvantages of the method............................................................................................6
3.5 Further actions...................................................................................................................6
Bibliography................................................................................................................................7
1. Introduction
Lean operating principles have many synonyms in practice, including Toyota Production
System, Lean Manufacturing, Lean Production, etc. For simplicity, it will be called Lean
operation principles (LOP) here. The origin of LOP dates back to the first half of the 20 th
1
, century when it was initially developed in Japan, although Henry Ford introduced similar
LOPs in the US at that time (Kilpatrick, 2003).
A precise definition of LOP does not exist; therefore, it can be generally defined as a
systematic approach which focuses on waste elimination through continuous improvement
where customers have a central role. Moreover, it should be mentioned that LOP apply for the
entire organisation and it cannot be partially introduced (Kilpatrick, 2003).
2. Literature Review
2.1 Tools and techniques
From a practical point of view, LOP applies a number of tools and techniques in order to
deliver the desired organisational improvements. Some of the major tools are continuous
improvement, just-in-time (JIT) production, production smooting and so on, which all focus
on waste elimination (Abdullah, 2003). These tools and techniques are presented in more
details below.
To begin with, cellular manufacturing is considered to be a cornerstone in LOP. The objective
behind cellular manufacturing is the increase of the product mix with minimum waste. Each
cell is consisted of equipment and workstations which are organised in a way that ensures the
smooth flow of materials and components through the entire process, thus delivering a series
of advantages: one-piece flow concept, extending the product mix, greater degree of
customization, decreased production lots and time. As a result, productivity and flexibility are
increased, as well as, inventories and storage space are reduced (Abdullah, 2003).
The second fundamental principle of LOP is the application of continuous improvement, also
known as Kaizen. It is a systematic pursuit of perfection throughout gradual and orderly
actions, which affects the entire organisation. In a manufacturing context, Kaizen focuses on
reduction in inventory and defects as major directions of improvement (Abdullah, 2003). One
of the most widely applied and effective tool in continuous improvement is the application of
the so called 5S: sort (removing the items not in current use), straighten (arranging items in
the right areas of use), sweep and clean (maintaining clean and well-organised workplace),
systemise (high standards of housekeeping and arrangement) and standardise (better
employee training, management, etc.) (Monden, 1998 and Feld, 2000).
2
The coursework focuses on studying the Lean principle from a theoretical and empirical point
of view. The main aspects of the Lean operating principles are critically analysed in the
literature review followed by an empirical investigation in the case of Aldi. The findings show
the advantages and disadvantages of the Lean operating principles, as well as, some areas of
future improvement in the case of Aldi. The coursework focuses on the benefits of the Lean
operating principles, such as the improved level of customer satisfaction and the generally
more effective waste management.
Table of Contents
Abstract.......................................................................................................................................1
1. Introduction.............................................................................................................................1
2. Literature Review....................................................................................................................2
2.1 Tools and techniques.........................................................................................................2
2.2 Criticism............................................................................................................................3
3. Critical evaluation of the chosen company.............................................................................4
3.1 Overview of Aldi..............................................................................................................4
3.2 Lean production implementation by Aldi.........................................................................4
3.3 Advantages of the applied LOP........................................................................................5
3.4 Disadvantages of the method............................................................................................6
3.5 Further actions...................................................................................................................6
Bibliography................................................................................................................................7
1. Introduction
Lean operating principles have many synonyms in practice, including Toyota Production
System, Lean Manufacturing, Lean Production, etc. For simplicity, it will be called Lean
operation principles (LOP) here. The origin of LOP dates back to the first half of the 20 th
1
, century when it was initially developed in Japan, although Henry Ford introduced similar
LOPs in the US at that time (Kilpatrick, 2003).
A precise definition of LOP does not exist; therefore, it can be generally defined as a
systematic approach which focuses on waste elimination through continuous improvement
where customers have a central role. Moreover, it should be mentioned that LOP apply for the
entire organisation and it cannot be partially introduced (Kilpatrick, 2003).
2. Literature Review
2.1 Tools and techniques
From a practical point of view, LOP applies a number of tools and techniques in order to
deliver the desired organisational improvements. Some of the major tools are continuous
improvement, just-in-time (JIT) production, production smooting and so on, which all focus
on waste elimination (Abdullah, 2003). These tools and techniques are presented in more
details below.
To begin with, cellular manufacturing is considered to be a cornerstone in LOP. The objective
behind cellular manufacturing is the increase of the product mix with minimum waste. Each
cell is consisted of equipment and workstations which are organised in a way that ensures the
smooth flow of materials and components through the entire process, thus delivering a series
of advantages: one-piece flow concept, extending the product mix, greater degree of
customization, decreased production lots and time. As a result, productivity and flexibility are
increased, as well as, inventories and storage space are reduced (Abdullah, 2003).
The second fundamental principle of LOP is the application of continuous improvement, also
known as Kaizen. It is a systematic pursuit of perfection throughout gradual and orderly
actions, which affects the entire organisation. In a manufacturing context, Kaizen focuses on
reduction in inventory and defects as major directions of improvement (Abdullah, 2003). One
of the most widely applied and effective tool in continuous improvement is the application of
the so called 5S: sort (removing the items not in current use), straighten (arranging items in
the right areas of use), sweep and clean (maintaining clean and well-organised workplace),
systemise (high standards of housekeeping and arrangement) and standardise (better
employee training, management, etc.) (Monden, 1998 and Feld, 2000).
2
