Solved Essay! Describe the Lean Management of toyota with its advantages and limitation.

Describe the Lean Management of toyota with its advantages and limitation.

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During the 1950s, Japanese engineers,Taiichi Ohno and Eiji Toyoda created a framework which is also called as Lean manufacturing or Just-in-Time system providing high production and quality levels in manufacturing. Based on the principles of waste reduction and maximising value resources by achieving low cost, high quality and flexible output.

Just-in-time, Kanban, 5S, Poka-yoke, Value stream mapping are some of the lean techniques.

Advantages – Following are the main benefits derived by applying Lean Management

  1. Reduced cost
  2. On time delivery
  3. Structured workflow or process
  4. High production numbers
  5. Improved quality
  6. Reduced uncertainity and delays
  7. High customer (client) satisfaction
  8. Treat each member equally and empower them
  9. Influences every aspect of an organization including common beliefs, values and process
  10. Focus on environmental and safety concern for all


  1. Change in organizational structure, acceptance and mindset – Not many employees and organizations accept or willing to follow the standards of Lean management. eg. Nissan
  2. High implementation cost – Implementing Lean techniques requires dismantling the earlier structures and investing in new style, methodology and techology. Training employees is time consuming and can be expensive
  3. Labour shortages or unavailability of Blue collar workers – Sometimes skilled or professional labour is not available
  4. Disruption in supply – Shortage in supply or reliable suppliers result in holding inventory
  5. Customer Dissatisfaction – Due to supply disruption and non availability of goods on time results in poor customer experience.
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