First, the report will give a short insight into production theories adopted and used widely before the World War II. Later, the rise of post-war alternative theories will be in the focus. Finally, modern production theories and practices will be described as well as solid proofs will be given of how these techniques and practices can improve the overall competitive and financial states of a company. Lean manufacturing will be the most important point to emphasize throughout the report. Its components, practices and methods will be given much detail. At the end of this report an analysis of the techniques and a list of key factors perspective for implementation within the company will be presented. This report will be written in the 3rd person present tense.
At the turn of the XIXth and XXth centuries a new monopoly era comes into being. New breakthroughs become part of everybody's life. These include electricity, combustion engines, telephone. The technical progress and production need standardization and unification for production processes managed in old ways. In these conditions F. Taylor is the first to pay attention to production organization. His views are described in his works "The Principles of Scientific Management" (1911) and "Shop Management" (1911) (Stralser, 2004, p.40). Before Taylor's theories any organization would need just a good manager, whereas Taylor's approach creates an organization system, which breaks any job into components or constituent parts. Then, these parts are analyzed and possibilities to reduce expenses are found. Bringing in good wages and profits, Taylor's approach makes employees be like robots accomplishing assigned tasks. While Taylor concentrates on time and ways of how to reduce it for each part of a job, F. and L. Gilbreth consider the number of motions necessary for performing a job as crucial for business efficiency. For them, the fewer motions to perform a task are needed, the less time is consumed.
Henry Ford applies the two approaches into practice. His assembly line principle, maximum specialization of employees, regulated working regimen make his factories be very complex entities. It is the beginning of the so-called mass production period or production of standardized products in big quantities. Mass production increases greatly production rates per worker and provides inexpensive products. At the same time, the machinery used is extremely costly. So, to return the investment products must sell very well, which supposes customers have homogeneous needs and demands. In terms of contemporary economics and management, this type of manufacturing is called "push".
In the post-war period, a new type of manufactu