A Comparative Study of Lean Production Metrics in an Automotive Assembler

Abstract

The presence of tradeoffs makes it problematic for a manufacturing firm to satisfy “lean logistics” characteristics across a broad front. A model for representing such tradeoffs is proposed, and evidence from comparative, case-based research at a single automotive manufacturer is presented. This evidence provides metrics for the various tradeoffs from two models. Model A used a comparatively fixed production system with stable production schedules that facilitated lean supply and lean manufacture. This, however, meant that model A was remote from the market. Model B production system, on the other hand, allowed changes in the schedule to be made up to and including build day. While model B was closer to the market, this had a negative impact on the supply chain and on manufacturing. It was concluded that lean characteristics such as schedule stability must be viewed in the light of the competitive characteristics of the firm, that elimination of waste is not an absolute standard, and that metrics of leanness must be viewed in terms of their impact on competitive strategy and the tradeoffs that are involved.