Why Companies adopted Lean Thinking and JIT model? Discuss major types of Waste, companies has to keep in mind during production. Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end users? Due to COVID 19 emergency do you think agile supply chain is the right concept in this kind of situation? Give reason with example.

QUESTION

Critical Thinking

The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002). Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keen indecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supply techniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’s leads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

Consult chapter 7 of your text book or secondary available data on internet and answer the following questions.

Question:

1. Why Companies adopted Lean Thinking and JIT model?
2. Discuss major types of Waste, companies has to keep in mind during production.
3. Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end users?
4. Due to COVID 19 emergency do you think agile supply chain is the right concept in this kind of situation? Give reason with example.

The Answer should be within 4- 5 pages.

The Answer must follow the outline points below:

• Lean Thinking and JIT Concept
• Agile Supply chain
• Their Main functions
• Reasons with suitable Examples
• Reference

• ANSWER

• Lean Thinking, JIT, and Agile Supply Chain: Enhancing Efficiency and Adaptability in the Global Marketplace

  Introduction

  In today’s rapidly changing global marketplace, companies face increasing pressure from customers and competitors in both the manufacturing and service sectors. To survive and thrive, organizations must deliver high-quality products at competitive prices while continuously improving their performance. This essay will explore the adoption of Lean Thinking and Just-In-Time (JIT) models by companies to address these challenges, discuss the major types of waste that need to be minimized during production, assess the benefits of lean thinking from suppliers to end-users, and evaluate the relevance of an agile supply chain concept in the context of the COVID-19 emergency.

  Lean Thinking and JIT Concept

  Lean Thinking and JIT are closely related concepts that focus on streamlining operations, reducing waste, and enhancing efficiency in manufacturing and supply chains. Lean Thinking originated from the Toyota Production System and emphasizes the elimination of waste, continuous improvement, and respect for people. JIT, on the other hand, is a production strategy aimed at producing and delivering goods and services just in time to meet customer demand, minimizing inventory and associated costs.

  Major Types of Waste

  In the pursuit of lean manufacturing, companies must identify and eliminate different types of waste, also known as “Muda.” The main categories of waste include:

   Overproduction: Producing more than what is required by customers or before it is needed, resulting in excess inventory and storage costs (Dahlgaard et al.,2006).

  Waiting: Idle time caused by delays in the production process, such as waiting for materials, equipment, or instructions. It leads to inefficiencies and increased lead times.

   Transportation: Unnecessary movement of materials or products within the production process, which increases costs and the risk of damage or loss.

  Inventory: Excess stock that ties up capital, occupies space, and increases the risk of obsolescence or damage.

  Motion: Unnecessary movement of people or equipment during the production process, which wastes time, energy, and resources.

   Overprocessing: Performing unnecessary or excessive operations, adding no value to the final product or service.

  Defects: Errors or defects in the production process that result in rework, scrap, customer dissatisfaction, and increased costs.

  Reasons for Using Lean Thinking and Benefits from Suppliers to End Users

  Cost Reduction: Lean Thinking enables companies to identify and eliminate waste, leading to significant cost savings. For example, Toyota implemented lean practices and reduced waste in its production processes, resulting in higher profitability.

   Improved Quality: By focusing on waste reduction, lean practices promote higher product quality. With fewer defects and errors, organizations can improve customer satisfaction and reduce costs associated with rework and customer complaints (Shamah 2013).

  Increased Productivity: Lean principles enhance efficiency by optimizing processes, eliminating non-value-added activities, and empowering employees to contribute to continuous improvement. This leads to higher productivity levels and faster response times to customer demands.

  Shorter Lead Times: Adopting lean practices, such as JIT, enables organizations to produce and deliver products or services in a timely manner, reducing lead times and improving customer satisfaction.

   Enhanced Supplier Relationships: Lean thinking encourages collaboration and cooperation with suppliers, fostering closer relationships. By sharing information, improving communication, and aligning goals, organizations can achieve better supply chain integration, reduced lead times, and lower costs.

  Agile Supply Chain and COVID-19 Emergency

  An agile supply chain is characterized by flexibility, responsiveness, and adaptability, allowing organizations to quickly and effectively respond to changing market conditions, disruptions, and emergencies. In the context of the COVID-19 pandemic, an agile supply chain has proven to be essential for many companies to survive and thrive. For example, companies that adopted agile practices were better equipped to adjust their production lines, source alternative suppliers, and quickly introduce new products such as personal protective equipment (PPE) or sanitization solutions.

  Agile supply chain benefits during the COVID-19 emergency include

   Rapid Response: An agile supply chain enables companies to swiftly adapt to changing demand patterns and supply disruptions. For instance, pharmaceutical companies were able to ramp up production and distribution of COVID-19 vaccines in record time due to their agile supply chains.

  Supply Chain Resilience: By diversifying suppliers and ensuring redundancy, organizations can mitigate the impact of disruptions caused by lockdowns, travel restrictions, or other unforeseen circumstances (Nandi et al., 2021).

  Collaboration and Visibility: Agile supply chains emphasize collaboration and real-time information sharing, enabling organizations to make informed decisions, monitor demand fluctuations, and adjust supply accordingly.

  Customer Satisfaction: An agile supply chain allows organizations to meet customer demands even during uncertain times. By promptly fulfilling orders, maintaining consistent supply, and adapting to changing customer preferences, companies can enhance customer satisfaction and loyalty.

  Conclusion

  In the face of increasing global competition and rapidly changing market conditions, companies have adopted Lean Thinking and JIT models to improve performance, reduce waste, and enhance efficiency. These strategies have proven effective in reducing costs, improving quality, increasing productivity, and shortening lead times. Additionally, the COVID-19 emergency has highlighted the importance of agile supply chains, which provide organizations with the flexibility and adaptability to navigate disruptions and maintain customer satisfaction. By embracing lean principles and an agile mindset, companies can position themselves for success in the dynamic global marketplace.

  References

  Dahlgaard, J. J., & Mi Dahlgaard‐Park, S. (2006). Lean production, six sigma quality, TQM and company culture. The TQM magazine, 18(3), 263-281.https://www.emerald.com/insight/content/doi/10.1108/09544780610659998/full/html 

  Shamah, R. A. (2013). A model for applying lean thinking to value creation. International Journal of Lean Six Sigma, 4(2), 204-224.https://www.emerald.com/insight/content/doi/10.1108/20401461311319365/full/html 

  Nandi, S., Sarkis, J., Hervani, A. A., & Helms, M. M. (2021). Redesigning supply chains using blockchain-enabled circular economy and COVID-19 experiences. Sustainable Production and Consumption, 27, 10-22.https://www.sciencedirect.com/science/article/pii/S2352550920313592