Lean Production and Total Quantity Management Tool

Organisational Development and Change

Organisational Development 1
“Lean Production and Total Quantity Management Tool”
Organisational Development is the study of successful organisational change and
performance. The psychologist research states that organisational structure and operating
process affects behaviour and motivation level of employees. Organisational development
contributes in developing business operations and expanding business with the improved rate.
In the dynamic competitive environment, the process of the organisational development is
followed by companies that consist of fluctuating structure as well as operating system. The
companies adopts the changing tools for bringing the development such as lean production,
TQM, Business process re-engineering and the learning organisation (Waddell, Creed,
Cummings, & Worley, 2016). Lean production and TQM are two tools that have been taken
into consideration while changing the structure by companies like McDonalds and Toyota
Company that is service and manufacturing sector respectively.
Lean production is a tool that is used to minimise waste from manufacturing process
without sacrificing productivity. Most of the companies use different tools while producing
goods and services as these tools contribute effectively in eliminating wastage. Eliminating or
minimisation of wastage is beneficial for organisation in many ways such as reducing the
cost, improving the quality of the product (Elbert, 2018).
The tools helps the company to cut or minimise those activities that do not add value of
production process such as repairing faulty product, holding of stock, unnecessary movement

Organisational Development 2
of people and product around the business. Organisations can implement these tools in their
entire processes from design to production then to distribution of goods and services. It
decreases the probabilities of loss to company by offering quality services to consumers in
market. Further, this tool supports the work of employees to do things speedily and
effectively in systematic manner.
Total Quantity Management (TQM) is a tool that leads to continual process of
eliminating errors in manufacturing, streamlining supply chain management. It improves
customer experiences due to which organisation achieves success in business (Chvala, &
Johnson, 2017). This tool focuses on congregating all parties involved in production process
with corresponding motive of enhancing quality of final product or its services. It is a
structured tool which is vastly adopted by companies all over the world.
Toyota Singapore is a well-known multinational automotive manufacturing company
who implement the lean production and TQM tool with the motive of providing effective
services to consumers (de Kogel Ir, & Ir, 2016). The company implement lean production
tool based on seven factors that help in eliminate wastage from production process. The
company implement “just in time” approach in their manufacturing system to reduce
overproduction of products. However, Toyota Company manufacture product as per the
changing demands of consumer. As overproduction, causes excessive lead time and high
consumer cost in storing material. By countering overproduction, efficiency is improved as
product is manufactured and supplied that contributes effectively in saving time and money.

Organisational Development 3
Another focus of company is a delay in moving goods that affects production quality as well
as delay in consumer’s orders. Toyota links its entire process due to which the assembly time
of product reduces (Toyota, 2018).
It is observed many competitors of company use expensive tool for manufacturing
products due to it deals with numerous issues. Toyota invests in smaller, more flexible
equipment that supports them in manufacturing the quality of product by eliminating wastage
and focusing on human resources management. The investment activity of company is
improved as it invests the amount as per the requirement and budget. This tool benefits the
company in high revenue by investing fewer amounts and putting more efforts into human
resources management of organisation.
The lean production tool implemented by company also has negative impacts.
Although, there are less number of disadvantages that are witnessed while implementing lean
production tool at workplace. The major disadvantage of this is negative impact on the
performance of the organisation (Omogbai, & Salonitis, 2016). It has been observed that “just
in time” approach is not stable for company because the demand of the products fluctuate
which leads to change in number of units that are required to manufacture. It is required for
the company to maintain stock because it consumes more time and efficiency to develop it.
The brand image of company is affected, as it does not provide products to consumers on
time that affects profit of organisation, as the demand of consumers is shift towards other
companies who provide services on time.