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Lean Production and Supply Chain Assignment

   

Added on  2020-04-01

16 Pages3861 Words219 Views
Running head: HIGH PERFORMANCE ORGANIZATIONS1Building High Performance OrganizationsStudent’s NameInstitutional Affiliation

HIGH PERFORMANCE ORGANIZATIONS 2Table of ContentsExecutive Summary.............................................................................................................3PART A: Lessons Learnt.....................................................................................................4The Development of the Philosophy, Principles, and Process of Lean...........................4Implications and Challenges............................................................................................5Recommendations............................................................................................................6Part B: Reflections within the Context of an Organization.................................................6Reflection of the Principles on KFC................................................................................6Benefits of Lean on KFC.................................................................................................7References........................................................................................................................9Appendices........................................................................................................................10

HIGH PERFORMANCE ORGANIZATIONS 3Executive SummaryLean production and supply chain has become an essential element in modern businesses as they strive to reduce expenses and gain a competitive advantage in the industry. The concept comprises five principles that define how companies minimize wastage by enhancing processes through which they deliver products to consumers. Moreover, this strategy enables businesses to reduce lead time as they produce according to demand using pull strategy. Absolute Food is an example of a food processing company that could adopt this approach. Although this method is mostly adoptable in the manufacturing sector, several studies have shown its applicability in the service and food industries. In this regard, Absolute Foods has the potential to implement it in their processing and supply of fresh meat and meat products. While the strategy results in improved business performance, it also has numerous drawbacks including how to define wastage among other factors. However, inventory control would be the suitable recommendable method for achieving lean model. This strategy would mean procuring raw materials according to the demand. To this end, the company would have to check some raw materials, inventory, and finished product. On the other hand, the pull strategy would help them process final productsbased on the demand. Finally, this approach has been successful in KFC where the company usesthe wastage control principle of lean to ensure that their supplies are only enough to cover the demand in their branches. This method affords the firm a competitive advantage as it improves customer service while operating at reduced prices.

HIGH PERFORMANCE ORGANIZATIONS 4Building High-Performance OrganizationsPART A: Lessons LearntThe Concepts of LeanLean manufacturing or production is traceable to a long time ago in 1900 when companies such as textiles services and transportation through the silk route during the Middle Age until the first revolution when the economic importance was lost. The production system later emphasized through the introduction of automotive companies by dropping of the mass production technique. Lean concept manufacturing later popularized in 1990 by Womack and Jones who state the origin of lean manufacturing as from the shop-floors of Japanese Toyota manufactures. The companies faced challenges in meeting the customers’ demands that kept on growing on varied issues and options, as a result, led to the adoption of the lean manufacturing process. Given its dynamic nature, its philosophy definable in various ways since it is applicable differently in every country. According to Dickson, Singh, Cheung, Wyatt, and Nugent (2009), itcomprises techniques and principles that help organizations to improve their products by fostering valuable, relevant, and necessary steps while eliminating the less important ones. This way, it is a tool for providing customer satisfaction through efficient processes. Through, the non-value-added activities, the companies can supply customers with a more satisfactory productwithout incurring more cost that will eventually increase the price. The main elements that lean manufacturing address are such as overproduction of items that eventually leads to a poor flow of goods and supply to the market. The batch production also led to wastage of time as many customers took a long time to receive their goods, which eventually put pressure on the process; as a result, there were so many defected products. The process also eliminates the unnecessary movements caused by large number of employees through introduction of appropriate processing

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