Applying lean and TOC to improvement delivery performance for machine tool manufacturers

In this study, we apply the concept of lean system and the logic of Theory of Constraint to Machine tool industry which is one of the most competitive industries in Taiwan. The main objective of this study is to improve the due-date performance by using process of lean thinking and Strategy & Tactic Tree of TOC. After the lean thinking and TOC had been implemented, the efficiencies are improved in many areas, such as decreasing manpower, shortening the transportation distance, production leveling, decreasing the lead time and increasing the fill rate. The holistic effect of lean system is prevailing in every operation not only in manufacturing department; it is also drawing attention from sale, procurement, and engineering design departments. We found one important factor that without the support and the determination of the top level managers the effectiveness will be limited.