An Synergy between Lean Manufacturing and Knowledge Management: Strategies for Waste Elimination and Productivity Increase

Abstract

According to international research, the productivity of Brazilian workers is only 24.5% compared to that of American workers. This means that it takes four Brazilians to achieve the same results as one person in the United States. Productivity, defined as the ratio between output and effort, can be significantly improved in the automotive industry through Production Balancing. However, many companies still use this technique only as a corrective measure, redistributing activities between workstations and adjusting processes in response to demand variations. This case study demonstrates how an automotive company adopted a differentiated balancing model using Lean Manufacturing techniques and a microelement study focused on waste elimination. Additionally, the integration of Knowledge Management was essential to ensure that practices and innovations were widely disseminated and incorporated throughout the organization, fostering a culture of continuous improvement. The company achieved a 23.3% increase in productivity over the past 10 years and a 10.7% increase in value-added rates in its assembly lines, machining, internal supply, and distribution center. Knowledge Management played a fundamental role in capturing and disseminating critical knowledge, enabling the replication of successful practices and quick adaptation to changes. Furthermore, the technique allowed for a 20.1% reduction in labor density and a significant labor release gain of 311 FTEs (Full-Time Equivalents).