September 20, 2015
Elements of Lean Manufacturing
University of Phoenix
Eliminating waste and items that are not of value inside an organization is called Lean manufacturing. Lean manufacturing will help save the company in the long run. The lean manufacturing was created by Sakichi Toyoda from the Toyota Production System. (Toyota Production System, 2015) This was made to help the company reduce inventory. It helped them not only lower wasted material but improve productivity. The purpose of this paper is to review lean manufacturing and how the core elements relate to AIG.
THREE CORE ELEMENTS OF LEAN MANUFACTURING
There are so many elements in lean manufacturing that can be used. American International Group, Inc. utilizes many of the core elements but I will cover the three major elements.
The elimination of waste is the first major element of lean organization we will discuss. Elimination of waste can be either eliminating unnecessary processes in the data entry operations or removing the amount of people needed in specific departments. The main point is to eliminate things that will save the company time and money. This will also make the clients happy. If AIG can save money by eliminating a job that was handled by more than one person then it will save cost and this can be passed on to the clients.
The Root Cause Analysis is another core element of lean manufacturing. For all the waste that you find in the company you need to find the reason for the waste. Say a department is two weeks behind, a person may think there is an issue with the employees processing the work. So they request more help and it still stays two weeks behind. But Root Cause Analysis could show honestly that its do to how much work is coming in. So the company can find a way to pace the work flow coming in.
The third main element is standard work for the company. Standard work is when a company organize work procedures and writing them down for all of the employees to have when they need. This helps with training employees and so that everyone understands the policy’s in place. A person does not want to be taught one thing then another is actually being followed by everyone else.
ELEMENTS USED THAT MAKE AIG A LEAN ORGANIZATION
AIG is all about being a lean organization. AIG reviews process and procedures to ensure that the company is doing everything that it can for the company and doing it in the best possible way. From personal experience, I have helped updating processes and procedures in my department that has helped eliminate a third of work for several of the employees. Doing this has helped with allowing other employees help in other areas that might be busier at the time.
In the RMD and systematic department, we work with clients who are needing to setup their Systematic payments or RMD annual payments. With me having customer service background I understand how the forms can confuse an elderly client. So knowing and understanding the changes that are happening in our department. For this to happen AIG will need to use the Root Cause Analysis.
Standard work is the final element we will discuss that AIG utilizes in all of their departments. I have helped put together several of the procedures for departments. Having these procedure manuals available help with new and current employees. This tries to push everyone to follow the current procedures and stay on the same page. It also shows what everyone has to do on a daily bases.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life...
References: Manktelow, James, Mindtools (2015). Retrieved September 20, 2015: https://www.mindtools.com/pages/article/newSTR_44.htm
About us, Aig Retrieved September 20, 2015: http://www.aig.com/about-us_3171_437773.html
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