Implementation of Lean Principles in SONAE MC

The assignment discusses the implementation of lean principles in an organization, SONAE MC. The report highlights the increase in productivity, reduction in inventory level, reduced stock-outs and breakages. Additionally, the organization expanded its business operations by adopting lean approaches across all sectors, considering each employee with the program. Challenges were faced during the implementation process, including supply chain issues, but these were addressed through internal audit systems. The report also emphasizes the importance of motivation and reinventing in sustaining a lean program. Finally, the assignment concludes that operations management is an integral part of any business organization.

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Operations Management
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Operations Management
Executive Summary
In the below summarized report an analysis has been executed over the lean principles
and the associated approaches and models. The concept is mainly concerned with the objective
of disposing of waste the non-esteem included parts in any procedure. The main idea of the
concept of lean principles is reduction. The idea is a way more across the board term and
oversees changed scope of complex functionalities inside the business enterprise. Settling on
choices in regards to the execution or introducing the plants, instruments and procedures for
expanding the partnership and furthermore using the structure of information for development
frameworks and so on are some significant cases of operations administration. The business
substance additionally faces number of issues while executing different operations which are
related with this idea. Keeping up stock levels, dealing with the WIP levels and crude materials
acquirement and managing crude materials and quality control are a portion of the capacities
which are being executed inside the system of operations administration. The report has been
segmented mainly in four major divisions which are presented as follows. The first part
comprises of the process of the generation of the momentum which is the push required to start
the project. This concept has been preen very much beneficial for the business entity as it will aid
the business corporation in attaining the targets and desired goals. After that the report includes
reasons which aided the business firm for making the implementation of the lean project in the
organizational structure and the next part is the life cycle of lean which has been segmented in
various divisions. The further segmentation comprises of the challenges which are faced by the
business entity during the implementation process of lean principles. Supply chain issues and
employee development are some of the examples of the challenges which can be faced by the
business corporation. The next is the extension of the lean principles of customer flows which is
an integral part amongst the 5 lean principles. The further segment comprises of motivating and
reinventing the team projects and the team members so as to sustain in the competitive
environment. Moreover, the further part includes the reflection which has been made focused on
the main body and content of the report. This reflection comprises of the understanding about all
the approaches and the models of the lean principles and also the implementation in the
organizational structure of the business corporation. The benefits and the disadvantages which
can be suffered after the adoption of the lean principles are also discussed.

Operations Management
Contents
Introduction.................................................................................................................................................4
Generation of momentum............................................................................................................................4
Challenges in implementation of lean principles.........................................................................................6
Extension of lean principles to customer flows...........................................................................................6
Appendix 1...............................................................................................................................................6
Sustaining motivation and reinvent in lean program...................................................................................7
Refection: Generation of momentum...........................................................................................................7
Reflection: Challenges in implementation of lean principles.......................................................................8
Reflection: Extension of lean principles to customer flows.........................................................................8
Reflection: Sustaining motivation and reinvent in lean program.................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Operations Management
Introduction
The business mechanisms and tools which allude to the organization for operations and
practices to create largest amount of productivity inside the business association can be named as
operations administration. Essentially the key thought has been influenced centered on the
administration and organization of the operations or the procedures which can be settled by the
business association for creating and upgrading the capability. This will thus lead achieve a hike
in the level of effectiveness in the functionalities and operations executed by the business
company. The procedure of operations administration in like manner contains the transformation
of the raw materials and information into items and ventures in order to accomplish the best level
of efficiency prompting a higher gainfulness. The major concern of the idea is keeping up the
harmony between the costs and the incomes in order to achieve the most raised net benefit for
the business enterprise. As portrayed in points of interest the system likewise includes the
administration which makes the ideal use of human asset, materials, instruments and devices and
the imagination. Moreover it likewise incorporates coordinating, laying out, controlling, and the
distinctive procedures inside the business element. In addition lean principles are the concept
which has been presented and analyzed from the given case study. Basically the concept of lean
principles is concerned with the objective of disposing of waste the non-esteem included parts in
any procedure. Unless a procedure has experienced lean numerous circumstances, it contains
some component of waste (Heizer, 2016). At the point when done effectively, lean can make
enormous upgrades in effectiveness, process duration, profitability, material expenses, and scrap,
prompting lower costs and enhanced intensity. The below executed report has been analyzed on
the adoption and implementation of the theories and practice of lean principle.
Generation of momentum
The hardest piece of an undertaking is regularly simply beginning. Moving from a smart
thought to a venture group on the ground working and executing a strong arrangement is
extreme. Development of force should be done (Slack, 2015). The below executed are the
reasons which have aided in generation of the momentum for implementing the lean project in
SONAE MC:
Executive buy-in: This mechanism has been considered as one of the first methods which can
be adopted the SONAE MC for generating the momentum for starting any of the projects. This
method has been also considered as a beneficial one as it entails in understanding the mission
and aids of the project (Darer 2015). A project without any benefits won’t be proven beneficial
for longer run. In this method the main role is of the executives and the decision makers’ .i.e. the
managerial team and senior authorities. They are required to understand the about the concept in
what they are dealing and also the understanding the factor which will be proven beneficial for
the organization. Evaluation of all these factors is required to be done before devoting their time
and resources into the project.

Operations Management
Life cycle of lean project
The implementation of lean principles in SONAE MC has been demonstrated with the help of
the below described segments:
The beginning: On the basis of the executed research it has been observed from the case study
that in July 2006 Jaime Maia contemplated and reacted for the changes brought in by the
Portugal and according to which the employees are required to get the training of 35 hours per
year by the company. Moreover, he was also interested in the concept of the on-job training
instead of classroom training (Krajewski, Ritzman and Malhotra, 2013). This approach was
proven beneficial as to avoid the chances of removing the workers for a longer run. After this he
consulted with the Kaizen Institute for the training programs in the lean system as these
approaches were fitting best according to his thoughts. Also a significant amount of Muda was
uncovered y the KI’s lean perspective on operations In the concept of lean the improvement was
observed after combining the training programs. The further process has been segmented in the
below mentioned phases.
The first phase is known as pilot program which had some well-defined focus the three store
process (goods reception, replenishment and multi-replenishment), three sectors of store
operations (food, non-food and textiles), application of tree simple lean tools (5s, visual
management and standard work) (Hitt, Carnes and Xu, 2016). This step was introduced after the
introduction of various seminars from the duration of March to May 2007and which was
attended by regional operations manager. The main objective of the seminars was to explain
regarding the lean tools and also testing of the same should be done immediately. The managers
were supposed to provide training sessions regarding the lean concept to the employees after the
seminars (Naveen et al., 2013). The below mentioned are some of the benefits which were
observed after the adoption of the seminars:
 There was an increase in the productivity
 Also a reduction in the inventory level was observed
 Reduced stock-outs
 Reduction in breakages
The next is the phase two which is regarding the consolidation and expansion and the same
was decided by the business entity after the success of the programs of 2007 (Khanna, 2015).
The below mentioned are the several ways in which SONAE MC decided to expanding:
 For all the sectors in the stores
 Inclusion of additional lean approaches
 And considering each and every employee with the program
And the third phase is formalization and consistency. This included the problem which was of
implementation of the process as it was difficult to have a visibility, due to the large teams of

Operations Management
about 20000 employees. Also due to some circumstances there was a need for an internal audit
system (Brown, Bessant and Lamming, 2013). And hence SIM auditing system was
introduced .i.e. (System for the implementation of Kaizen Improvements) this comprises of the
two levels of lean implementation of This system also enabled the business entity in identifying
the test practices stores
The last phase is regarding the internal logistics and is also known as the pilot stage. The main
objective of this stage was to maintain the implementation of level 1 and also start building the
inroad into level 2 (Goetsch and Davis, 2014). After that there were introduction of 3 internal
logistics projects were doene while making concentration on the value stream mapping.
Challenges in implementation of lean principles
The concept is concerned with the minimization of the waste and also reduction of expenses
through modifications and continuous improvements in the operational efficiencies (Sheth,
Deshpande and Kardani, 2014). The concept relies on the integrated mechanisms of systems and
also the radical shift in the organization etc. The below mentioned are the issues which can be
faced by SONAE MC while implementing the lean principles:
Supply chain issues: Lean manufacturing incorporates the minimization or close disposal of
capacity time for approaching materials and active items. Executing an in the nick of time
requesting framework is important to guarantee that crude materials are always coming in at the
ideal rate to take care of operational demand (Zahraee et al., 2014). This will require the business
entity to develop close coordination with providers, notwithstanding going similarly as
incorporating computerized requesting and arranges satisfaction frameworks between the
organizations (Ahmad, 2013).
Employee development: Executing lean manufacturing philosophies in the business
organization will make an ability hole that must be crossed. The mechanical foundation required
to oversee store network issues while keeping up robotized generation and quality-control
frameworks requires more-taught and prepared workers than conventional sequential
construction system setups (Nallusamy et al., 2015). Lean manufacturers require highly skilled
and trained workforce to examine, repair and plan the format of robotized generation innovation
consistently. Experts will probably require wellbeing accreditations and exceptional licenses to
work and keep up such frameworks, and they request substantially higher pay than general-work
representatives.
Extension of lean principles to customer flows
Appendix 1
The core idea of the concept is that a flow should be created for the products (Modi and Thakkar,
2014). The flow can be from person to person, sections to sections in the organization, or

Operations Management
facilities to facilities. This process is all about making movement of the products or an individual
through a service mechanism. This segment has been considered as one of the significant part of
the approach of lean principles. The core concept is to ensure the offerings “flows” to the
service user. There should be no delay, no waiting, no diversions, no pauses. Ideally this
process is concerned with the movement of the products and services from batch and queue
and the flow is continued and is also focused on the requirements of the product or service,
instead to that of the business corporation (pm-partners 2015). Large wastage is created
during the process of flow of the products. It can be estimated that approximately 90% of
wastage is created while the process of flow in the system This principles of lean process is
concerned with the development and implementation of the techniques and strategies which
will bring a continuous form of improvement in the flow and which will lead to substantial
savings (Qureshi et al., Bahru, 2015). This will also enhance the quality of the services offered to
the consumers and which will increase their satisfaction level. These are some of the reasons for
the extension of the lean principles to customers flow.
Sustaining motivation and reinvent in lean program
Motivation can be considered as one of the key factor in the success and growth for any of the
task or the project. There are number of strategies and mechanisms which can be used by
SONAE MC for motivating and reinventing the project for its sustainability:
Lead and manage by example
The team members are always keen to watch their seniors and perform accordingly. So it is of
very much significance for the mangers to lead in an effective manner so as to set the examples
for the team members (Eshna 2017). The managers of SONAE MC will require to be honest,
transparent with the work. This approach has been considered as very much contagious and also
motivates the other team members.
Be direct
The project managers are required to be direct and open with their communication which will
also enable the team members to perform well and a development of will and interest will also be
observed. This in-turn will enhance their efficiency and effectiveness and which will be reflected
in the tasks and projects performed.
These can be considered as the strategies which can be attained by the managers for sustaining
motivation and reinventing.
Refection: Generation of momentum
 In the above executed analysis it has been observed that development of a push or a force
is required for performing each and every task. This force or the push is known as

Operations Management
momentum which enhances the efficiency and effectiveness of the task and also provides
a hike to the performance level. SONAE MC is the business entity which has been
making the use of the lean approaches for bringing minimization in the wastage occurred
during the various operations. Further, the strategy has been described for generating the
momentum. The lifecycle of the lean project and also the implementation of the lean
principles are also determined in the further analysis. Different phases of the life cycle
have been presented in the analysis which is demonstrating the implementation of the
lean principles in the Business Corporation. Moreover, the adoption and implementation
of the lean principles showed some benefits which were also discussed and are presented
as follows.
 There was an increase in the productivity
 Also a reduction in the inventory level was observed
 Reduced stock-outs
 Reduction in breakages
Further a discussion over the ways through which SONAE MC decided to expand the business
operations is done and the same are mentioned as below:
 For all the sectors in the stores
 Inclusion of additional lean approaches
 And considering each and every employee with the program
Reflection: Challenges in implementation of lean principles
From the above carried out analysis it has been observe that implementation process of lean
principles has been considered as very much significance. SONAE MC also faced number of
challenges and issues while implementing these principles in the organizational structure. The
main concern of the concept of lean principle is the minimization of the waste and also reduction
of expenses through modifications and continuous improvements in the operational efficiencies.
Also the concept relies on the integrated mechanisms of systems and also the radical shift in the
organization etc. The first discussed issue is the supply chain issue which is concerned with
number of number of variables. As the business entity will require materials and a smooth supply
of goods and for the same the business entity to develop close coordination with providers,
notwithstanding going similarly as incorporating computerized requesting and arranges
satisfaction frameworks between the organizations.
Reflection: Extension of lean principles to customer flows
From the above executed summary it has been concluded that the concept of extending he floe of
the lean principles has been considered as an empirical term in the concept. And the key idea
thought of this concept is that a flow should be created for the products and this flow can be from
person, sections to sections in the organization, or facilities to facilities. It has also been observed

Operations Management
that the concerned procedure sis all about process is all about making movement of the products
or an individual through a service mechanism. Moreover, this business concept is also ideally
concerned with the movement of the products and services from batch and queue and the
flow is continued and is also focused on the requirements of the product or service, instead to
that of the business corporation. Large wastage is created during the process of flow of the
products. It can be estimated that approximately 90% of wastage is created while the process
of flow in the system. Moreover, there were some problems which were faced by the
implementation of the process. A difficulty was developed to have a visibility, due to the large
teams of about 20000 employees. Also due to some circumstances there was a need for an
internal audit system. And hence SIM auditing system was introduced .i.e. (System for the
implementation of Kaizen Improvements).
Reflection: Sustaining motivation and reinvent in lean program
Motivation and reinventing has been considered as one of the relevant and significant for
developing a sustaining position for the business entity in the competitive environment. It has
also been observed that the concept of motivation can be considered as one of the key factor in
the success and growth for any of the task or the project. There are some strategies which can be
adopted by the business entity for developing and sustaining in the competitive environment.
Leading and managing the and setting examples, being direct and specific, work should e
transparent are some of the examples of the strategies which can be implemented so as to make
the work efficient within the organization.
Conclusion
In the limelight of the above executed analysis it has been concluded that the operations
management is an integral part for any of the business organization. The report has been
segmented in various divisions which comprises of the adoption of the lean principle and the
theories of the same within the organizational structure. The further analysis includes the
description of generation of momentum for starting the lean project and also the lifecycle of the
same approach. Moreover, the evaluation is also done for the challenges which are faced by the
business organization while implementation of the lean principles. And also the extension of tee
lean principles till the customers flow has been explained. Moreover, at last it has been observed
that involving everyone has been considered as a key factor in the implementation process and
tis also involves how the business entity will sustain motivation and reinvent the lean program.

Operations Management
References
Ahmad, S.A.S., 2013. Culture and lean manufacturing: towards a holistic framework. Australian
Journal of Basic and Applied Sciences, 7(1), pp.334-338.
Brown, S., Bessant, J.R. and Lamming, R., 2013. Strategic operations management. Routledge.
Darer, K, 2015, Generating momentum in a project, Assessed on 21st September 2017,
https://www.projectsmart.co.uk/generating-momentum-in-a-project.php.
Eshna, 2017, Motivate and sustain your teams, Assessed on 22nd September 2017,
https://www.simplilearn.com/5-strategies-to-motivate-and-sustain-project-teams-rar242-article.
Futurestate, 2014, The 5 lean principles, Assessed on 21st September 2017,
http://www.futurestate.ie/index.php/5-lean-principles.

Operations Management
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hitt, M.A., Carnes, C.M. and Xu, K., 2016. A current view of resource based theory in
operations management: A response to Bromiley and Rau. Journal of Operations
Management, 41(10), pp.107-109.
Khanna, R.B., 2015. Production and operations management. PHI Learning Pvt. Ltd..
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: processes
and supply chains (Vol. 1). New York, NY: Pearson.
Modi, D.B. and Thakkar, H., 2014. Lean thinking: reduction of waste, lead time, cost through
lean manufacturing tools and technique. International Journal of Emerging Technology and
Advanced Engineering, 4(3), pp.339-334.
Nallusamy, S., Dinagaraj, G.B., Balakannan, K. and Satheesh, S., 2015. Sustainable green lean
manufacturing practices in small scale industries-A case study. International Journal of Applied
Engineering Research, 10(62), pp.143-6.
Naveen, K., Sunil, L., Sanjay, K. and Abid, H., 2013. Facilitating lean manufacturing systems
implementation: role of top management. International Journal of Advances in Management and
Economics (IJAME), 2(3), pp.01-09.
pm-partners, 2015, 5 principles of lean, Assessed on 22nd September 2017, https://www.pm-
partners.com.au/5-lean-principles.
Qureshi, M.I., Rasli, A.M., Jusoh, A., Kowang, T.O. and Bahru, U.J., 2015. Sustainability: A
new manufacturing paradigm. Journal Teknologi, 77(22), pp.47-53.
Sheth, P.P., Deshpande, V.A. and Kardani, H.R., 2014. Value stream mapping: a case study of
automotive industry. International Journal of Research in Engineering and Technology, 3(1),
pp.310-314.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Zahraee, S.M., Hashemi, A., Abdi, A.A., Shahpanah, A. and Rohani, J.M., 2014. Lean
manufacturing implementation through value stream mapping: A case study. Journal
Teknologi, 68(3), pp.119-124p.

Operations Management
Appendix 1