Why Companies adopted Lean Thinking and JIT model?

Why Companies adopted Lean Thinking and JIT model?

Just in time, production is a model that states that firms should stock little inventory and the sufficient amount required for production and distribution. This model is associated with Japanese management techniques. This principle means that a manufacturer should receive raw materials and supplies from the suppliers just in time to be used for production. This is concerning the time the raw materials are received. The output is supposed to be shipped to the customers quickly and fast after it has been manufactured to prevent lagging and delays. In an organization, just in time production is aimed at reducing waste and maximizing costs in the organization. It also helps the organization secure a competitive advantage over other organizations. It is important to note that this type of production requires additional conditions for it to be successful. These include; short set up and change over time, quality control, and designing of the whole production process. All these factors are aimed at maximizing efficiency and improving the functionality of the organization.

Lean manufacturing, on the other hand, is a westernized version of just in time production. This process aims at reducing inventory and streamlining the production process. Lean manufacturing encompasses years of hard work and dedication for its successful implementation. It aims at using fewer resources in the process of production while still increasing the output produced. This type of production highly reduces the number of resources used in every production activity. Lean manufacturing aims at improving the efficiency of the organization and increasing its earnings and profits. It is a safer and affordable way of increasing the revenues of the organization while still satisfying the customers of the organization.

Discuss significant types of waste, companies has to keep in mind during production.

It is important to note that there are different types of wastes involved in the production. A company has to keep in mind these types of wastes during its production. For one, overproduction is a type of waste that different companies and organizations need to consider during their production of goods and services. Overproduction is the most severe and significant type of waste. It can lead to other kinds of wastes, such as excess inventory. The storage of too many goods can lead to excessive capital needed, wasted storage, and excessive use of capital. Overproduction as a much more felt impact depending on the product to be produced. For example, if many products are used to create a particular product, then the product may become obsolete or inefficient. Secondly, if the product is hazardous to the environment, it may lead to a population of the environment in general. In essence, overproduction leads to other wastes in the organization.

The second type of inventory is unprocessed waste materials. This encompasses a lot of things. For one, there is a loss of raw materials; there is waste tied up in unprocessed inventory and thirdly, waste of transporting inventory. The environmental effects of this type of waste are deterioration of the work-in-process and packaging expenses. The third type of waste an organization needs to consider is motion waste. Motion involves the movement of a person or a machine. This waste results if the movement of these people and devices that could be reduced is not. It leads to unnecessary contact and a waste of time and energy. There are different effects of motion waste. For one, there is burnout and exhaustion of machines that could be used for a longer duration of time. All this impacts an organization financially.

Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end-users?

It is important to note that lean manufacturing is beneficial to both the organization and the end-users. For one, it leads to a decrease in cost. Lean manufacturing aims at reducing the production cost of the company. This impacts the selling price of the organization. The selling price of goods and services is usually affected by the production costs of the organization. This means that the organization will sell their products and services at a reduced price. In essence, customers get quality goods and services at a reduced price. Secondly, lean manufacturing leads to improved interactions between the customers and the employees. This is because it takes into account the communication of the staff and their customer responsiveness. They address the concerns of the customers, which leads to improved customer satisfaction. In essence, the customers end up benefiting. Thirdly, lean manufacturing takes into consideration the utilization of push and pull. For one, push and pull takes into account the inventory of the organization. It ensures there is no wastage involved in the manufacturing of goods and services. For example, there are no excesses and under production. The customers can get their quality goods and services and on time. This improves customer satisfaction in the organization.

Lean production leads to customer satisfaction by increasing the quality of goods and services produced. For one, it ensures that a lot of attention is paid during the production of products. The organization can identify the mistakes they have made and correct them. The process is optimized to avoid any unnecessary mistakes. This saves a lot of time involved in the production of goods and services. Lean management improves employee morale. For one, the employees understand the culture of the organization, which entails lean manufacturing. Their interactions with customers are improved, which leads to increased customer satisfaction. In essence, what directly affects the organization and its employees indirectly affects the customers and consumers.

Due to COVID 19 emergency, do you think an agile supply chain is a right concept in this kind of situation? Give reason with example.

The agile supply chain is a concept used to illustrate the fast and efficient response businesses have to the continually changing environment. It also describes the ability of the organization to survive in changing times while still fulfilling customer demands. This model focuses on the speed and efficiency of an organization. It is important to note that this concept is concerned with the flexibility of the organization. The more flexible an organization is, the increased chances of survival of the organization. For example, this is the technological era which means organizations need to change the way they do things. They need to adapt to new technologies to improve their efficiency and their chances of survival. In essence, this type of business model aims at increasing the survival rate of an organization.

The coronavirus pandemic is a pandemic that has hit almost all countries of the world. This has led to the staggering and failure of many businesses. International businesses suffer more because of reduced exportation and importation services. In essence, many companies have closed down due to this pandemic. I believe the agile business chain is the most effective model in this time of need. This is because it increases the efficiency of business activities by improving flexibility. Additionally, it ensures customer satisfaction by ensuring they get their goods and services delivered to them. This business model provides organizations with a way to survive during this pandemic.