Implementing Lean Manufacturing Principles at Absolute Industries

Absolute Industries implemented lean manufacturing principles to streamline operations and increase productivity. This case study examines their approach to value stream mapping, waste reduction, and continuous improvement processes. By analyzing these implementations, insights are gained into how lean methodologies can lead to significant operational enhancements in a real-world industrial setting. The essay highlights the benefits observed by Absolute Industries, including reduced production costs and improved product quality.

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Executive Summary
The present report focuses on the implementation of the lean practice in the context of Absolute
Foods, which is a meat processing company and supplies meat across Scotland. It has been
received that lean manufacturing may bring some operational issues during its implementation in
an organization. One of the major issues is the complexity of the supply chain. Often transport
delay occurs due to the lack of proper tracking in the supply chain process. Therefore, a problem
arises in the employee development program and managing the operation cost in an organization.
Hence, by following the basic principles of lean manufacturing such as differentiation of the
value based on the customer perspective, analysis of the value stream and delivery of the product
according to the customer's need will be helpful for Absolute Foods to enhance their
performance in the supply chain management.

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Table of Contents
Introduction......................................................................................................................................4
Part A...............................................................................................................................................4
1. Discussion of the development of the philosophy, principles, and process of lean
manufacturing process in the context of food processing industry.................................................4
2. Discussion of the implication and challenges that arise during the implementation of lean
manufacturing in the context of Absolute Foods.........................................................................6
3. Recommendations to overcome the challenges of lean manufacturing in the context of
Absolute Foods............................................................................................................................8
Part B.............................................................................................................................................10
1. Critical Reflection on the five principles of Lean.................................................................10
2. Critical evaluation of the benefits of the lean practice on the performance of the business in
the context of Absolute Foods...................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Lean manufacturing refers to a systematic method that is used in waste reduction within
the manufacturing process (Nordin & Md Deros, 2017). This type of manufacturing process
minimizes the waste from the supply chain management process without sacrificing the
productivity in an organization. Continuous improvement is a crucial part of lean manufacturing.
However, the food industry is associated with the substantial amount of foods that are produced
in a large batch. Waste management is a crucial part of the food industry. Hence, for the food
processing industry application of lean manufacturing will be beneficial to identify the steps that
cause the excess waste in this industry. Food processing industry can manage the waste by food
handling method. This study deals with the application of lean manufacturing in the context of
Absolute Foods. This report is addressing Pat, who is the MD of Absolute Foods and the
recommendations are given to him regarding the issues.
Part A
1. Discussion of the development of the philosophy, principles, and process of lean
manufacturing process in the context of food processing industry
Development of the lean philosophy goes through an evolution. As for example, lean
philosophy was first developed by Japan. Toyota is the first manufacturing company that adopted
the lean manufacturing techniques. In the past years, lean thinking is associated with the
manufacturing industry, however, in the recent years it has been evolved to public and trade
sector (Nadeem et al., 2017). Despite the expansion of the lean philosophy or lean thinking in the
new areas it cannot spread the many other areas in the business sectors. In the manufacturing
industry, lean philosophy is stable. However, the transformation of the lean philosophy in the
recent years has improved the service quality and the productivity of the industry. After the high
effectiveness of the lean philosophy strategy is required to develop the process. Value creation
without and waste is the major philosophy of lean manufacturing since its development to the
present time.

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Lean principles are associated with lean philosophy. The concept of lean practice is to
reduce the raw materials, labor and time in the manufacturing process and to give the high
volume of production (Reza, Adebanjo & Chan, 2017). The lean concept is derived from the
Toyota production, which is the automobile manufacturing industry. In the recent years, this
concept has been evolved and lean manufacturing also focuses on the waste minimization in the
manufacturing industry along with the quality improvement. Literature focuses on the necessity
of the establishment of the relationship between the customer and the suppliers in a
manufacturing industry. Lean supply considers the entire process that is the flow from the raw
materials to the suppliers. Therefore, long-term customer’s satisfaction is another principle of
lean manufacturing that has been evolved in the recent years. In the recent years, the lean
production philosophies need to evolve with the implementation of new innovation to cope up
with the technological advancement. However, lean manufacturing is a renowned philosophy
that is adopted by the manufacturing industries in the recent years.
A lean process has been developed as at previously it focused on the cost reduction,
however, in the current time this process has evolved and focuses on the waste management and
continuous improvement besides the cost reduction. Manpower reduction, increased efficiency,
problem elimination, easy management, reduced space and safer work are the major aspects of
the lean manufacturing process in the recent years (Zhu et al., 2017).
As per the given scenario, it has been observed that Absolute Foods supplies fresh meat
and meat products to the customers with food intolerance. They check their food processing
properly and there is no cause of contamination. Livestock procurement and animal welfare are
the major initiatives of such organization, which makes them popular. They integrated
technology into their food processing process that ensures the safety and standard of the food.
However, Pat the managing director of Absolute Foods has limited knowledge about the latest
thinking regarding the manufacturing process.
Incorporation of the lean manufacturing principle and philosophy will be helpful for this
organization to enhance their operation process. The organization needs to consider the lean
manufacturing by reducing the labor cost, raw materials and time along with a high volume of
production. High volume production with low cost is the basic element of each manufacturing
industry (Reza, Adebanjo & Chan, 2017). In order to get long-term customer satisfaction,

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Absolute Foods needs to consider more technological incorporation via adopting the lean
manufacturing. However, as a managing director of Absolute Foods, Pat needs to adopt lean
manufacturing in your food processing as it is helpful to reduce the cost of the operation. Lean
practice is associated with the manpower reduction and the increased efficiency (Nadeem et al.,
2017). Adoption of such principles and by applying it in Absolute Foods Absolute Foods can
make a balance between the profitability and the investment in the food processing. Absolute
Foods needs to manage the waste as it is a fresh food processing industry. Hence, this
organization should focus on the implementation of the lean manufacturing to reduce the waste
and to bring continuous improvement in the organization. On the other hand, Absolute Foods
needs to follow the philosophy of lean, which is based on the Toyota production as such
organization has increased their productivity besides reducing the waste and achieving
continuous improvement. This will help the MD of Absolute Foods to improve the performance
of the organization as the MD of this organization.
2. Discussion of the implication and challenges that arise during the implementation of lean
manufacturing in the context of Absolute Foods
Lean manufacturing is or lean practice is beneficial for every manufacturing industry.
This method helps the organization to reduce their cost and to sustain their business through
continuous improvement (AlManei, Salonitis & Xu, 2017). One of the major challenges of the
lean manufacturing is the issues regarding the employee development program. Often lean
practice creates talent gap in an organization. In the context of Absolute Foods, they may face
issues during the implementation of the lean. Lean manufacturing is associated with the
continuous improvement with the application of high technology. Absolute Foods is a food
processing organization and they focus on the technology. Thus, to get technical assistance via
implementation of lean practice they need highly skilled employees having license and safety
certification. As a result, they have demand for higher compensation.
Absolute Foods supply meat and meat product to the supermarket and restaurants across
Scotland. On the other hand, one of the major challenges of lean manufacturing is the complexity
in the supply chain process in the global market. Lean manufacturing is associated with the
reduction of the storage time of the incoming and outgoing materials (Huo & Boxall, 2017). For
this reason, it is important for Absolute Foods to track that the raw materials are coming on time

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to meet operational demand. As a result, the organization needs to make a close contact with the
suppliers. This often creates a host of issues. Hence, Absolute Foods needs to make a good
cooperation with their suppliers to carry on the just in time supply process by fulfilling the order.
In order to make an improved supply chain in the global market high workforce is required.
However, due to the implementation of the lean manufacturing process, Absolute Foods will try
to reduce their manpower as it one of the major principles of the lean practice. This may affect
the supply chain process of this organization in the global market. Keeping low stock is another
principle of the lean manufacturing thus, an organization has to depend on their supplier more
while implementing lean manufacturing process. Transportation delay, employee strike and
quality error from the supplier's end are the major drawbacks of the lean manufacturing
(Wyrwicka & Mrugalska, 2017). As a food industry, Absolute Foods have to more effective in
the delivery of the products. For this reason, an effective supply chain is crucial for them.
However, delay in the delivery of the products due to the fault of suppliers may make the global
supply chain of Absolute Foods.
Due to keeping low stock in the lean manufacturing process organization always needs to
get the product at a scheduled time (Yadav, Seth & Desai, 2017). In the context of Absolute
Foods, the lack of availability of the vendor hampers the delivery of the food products at a
scheduled time. On the other hand, Absolute Food requires a small amount of raw materials from
the supplier as they have to manage the low stock in the lean process. Therefore, they focus on
the fresh food products thus, low inventory is mandatory for them. Hence, often the vendors eject
to deliver such small amount of raw materials to this organization, which makes the supply chain
complex in the lean manufacturing process (Mohamad et al., 2017).
The high cost of the implementation is another major risk of lean manufacturing as it
leads an organization to dismantle the previous plant's system (Kumar & Mitra, 2017). In the
context of Absolute Foods, the organization needs to implement new machinery and equipment
to increase the efficiency of the manufacturing process, which increases the expenses of the
organization. Leaning down and the complexity of the supply chain in a global business
environment ensure the drawbacks of the lean practice in the context of Absolute Foods.
However, the Pat the MD of Absolute Foods needs to pay attention the necessity of managing
the risks by developing a resilient and transparent supply chain process in their food processing.

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Such organization needs to consider the risk identification process to detect the risks associated
with the lean practice. Therefore, it is crucial for them to train their employees to access the
technology in the lean manufacturing and making a good track of the entire supply chain process
to minimize the risks.
3. Recommendations to overcome the challenges of lean manufacturing in the context of
Absolute Foods
High compensation for hiring the technical employees is a major challenge of the lean
practice that may face Absolute solution. However, providing training to the existing employees
to develop their skill will be helpful for the Absolute Foods to reduce their expense in the
operation process. By providing training to the employees an organization is able to improve the
performance of the employees and employee loyalty (De la Vega-Rodríguez et al., 2018). In
order to reduce the employee development problem in the lean manufacturing process
implementation of the technical system is crucial. Absolute Foods should consider a self-directed
team to identify the problems of the employees and to resolve that instead of involving the
management in this work. The training process should be shared widely across the organization
not just to the employee.
Supply chain complexity is another big issue of the lean practice in an organization.
However, the low stock should be maintained in the supply chain process. In the context of
Absolute Foods, they provide meat and meat products thus it is crucial for them to maintain low
inventory to reduce the food waste. Often complexity occurs to in the supply chain due to delay
in transaction and irresponsibility of the vendors (Pereira & Tortorella, 2018). Making a
continuous communication with the suppliers and establishing a good relationship will be helpful
for Absolute Foods to reduce complexity in the low inventory management. This organization
should focus on the maintenance of the continuous tracker to track each step of supply of raw
materials. This will be helpful for the Absolute Foods to get the raw materials for their inventory
on time.
As per the given scenario, Absolute focuses on the technical innovation to ensure the
standard of the food, which may increase the operation cost. Hence, the high cost is a big barrier
to the lean practice. Giving concentration on the cost fulfillment is an effective approach for an

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organization to keep the implementation cost of the lean manufacturing under control
(Realyvásquez-Vargas et al., 2018). Absolute Foods needs to consider the lowest cost strategy.
This organization should focus on the decision that will help Pat, the MD of Absolute Foods to
meet their customer demand along with reducing the high cost of the lean manufacturing. This
can be achieved by when the stakeholders of the lean manufacturing share the financial as well
as operational benefits during the waste elimination. Supply chain complexity often occurs in
lean manufacturing is the organization fails to identify the customer demand. Absolute Foods
should consider the Plan-Do-Check-Act or PDCA tool. This will help such organization to
resolve the cost of the lean manufacturing and to minimize the problem to enhance the customer
value.
Part B
1. Critical Reflection on the five principles of Lean
Lean product development is first established in the Toyota in order to gain a competitive
advantage in the global market. According to Womack & Jones, (1996), there are five principles
associated with the lean practice one of the vital is defining the value based on the customer
perspectives. However, in order to make the customer satisfaction, it is crucial for a business to
define the value from the perspective of the customers in the context of a specific product with
the specific price. Value is a flow between the many departments of an organization. As argued
by Zhou, (2016), each entity of a business may not able to identify the value from customer
perspectives and they define the value for themselves to gain the profit. In the context of
Absolute Foods if this organization fails to identify the value before the implementation of the
lean technique then it will lead them to provide a wrong product or service to the customers.
Identification of the entire value stream for each specific service or product is another
principle of the lean. Identification of the value stream can be done through product definition,
information management and physical transformation (Aqlan & Ali, 2014). This principle is
effective for Absolute Foods to complete each phase of their supply chain process in a proper
way. The entire process of product development to delivery can be done from department to
department and organization to organization. Maintenance of the step flow of the product
development that is from beginning to end is the third principle of lean practice. Absolute

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Solution should consider the flow that is working on the design, order and the product
development steps to make their lean manufacturing process successful. As criticized by Jasti &
Kodali, (2016), flow can be maintained through the continuous incremental development.
However, flow can be maintained by bringing continuous improvement in each step of the
supply chain management process.
Design the product and provide it to the customers when they demand it. This fourth
principle of the lean practice is crucial for an organization to satisfy the customers by meeting
their needs with specific products or service (Womack & Jones, 1996). This principle brings a
good opportunity for Absolute Foods to eliminate waste in the form of design, which is obsolete
before the introduction of the product. The fifth principle of lean technology is the pursue
perfection. During the implementation of the lean technique up and down occurs in the value
stream, as a result, some issues start to take place in the manufacturing process. This enables
Absolute Foods to maintain the continuity of the improvement.
2. Critical evaluation of the benefits of the lean practice on the performance of the business
in the context of Absolute Foods
Reduction of the waste is the main benefit of lean technique. According to the first
principle of the lean technique, waste can be eliminated from the operation process by
differentiating the value for the consumers (Bhamu & Singh Sangwan, 2014). Defining the value
based on the customer perspective will be beneficial for Absolute Foods as it will lead the
organization to identify the needs of the customers based on which they can offer their product or
service. As for example, Absolute Foods offers meat and meat product. In the recent years,
people are more health conscious thus, it is crucial for Absolute Foods to supply hygienic food
products to the customers. This can be done by defining value from the customer's perspective,
not the organizational perspective. However, by following this principle of lean practice
Absolute Foods can enhance their performance by understanding the current needs of the market.
Identification of the value stream of the specific product allows Absolute Foods to
evaluate the product definition through analysis of the detailed design of the product. Therefore,
information management can be done to make a track regarding the delivery of the product.
Therefore, the physical transformation that is from the collection of the raw materials to the

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development and delivery of the finished product to the customer's end can be carried out by the
identification of the value stream (Piercy & Rich, 2015). As argued by Panwar et al., (2015), if
the value stream is not identified in a manufacturing process then continuity of the entire supply
chain will be broken. However, Absolute Foods can monitor each process of the product
development through following this principle of lean manufacturing. On the other hand,
maintaining the value-creating steps flow will enable Absolute Foods to introduce new
technology in their manufacturing process. This organization is meat processing food company.
Hence, by following the lean manufacturing principle they can incorporate new technology into
their food procession to enhance the food standards and its hygienic level.
According to the fourth principle of the lean technique waste management can be done by
proper designing of the product manufacturing. This enables an organization to develop the
product based on the demand of the market (Nallusamy, 2016). In the context of Absolute Foods,
they need to design their meat processing as per the needs of the customers by following this
particular principle of the lean manufacturing process. This will be beneficial for the
organization to eliminate the waste along with the increased productivity. Lean principles will
help Absolute Foods to elaborate the inventory tracking system, which will make a control over
the inventory and low stock will be managed. Meat is raw food material and excessive inventory
can spoil this food product and create waste in the manufacturing process. Hence, by following
the principle of the lean technique Absolute Foods can minimize the waste from the supply chain
operation process. On the other hand, by following the pursue perfection principle of lean the
continuity can be maintained in terms of cost reduction, space reduction and time reduction in
the context of Absolute Foods.
Conclusion
The entire piece of work provides a brief overview regarding the application and
significance of the lean practice in the context of Absolute Food. It has been observed that
implementation of the lean manufacturing process in the food processing industry is associated
with some major challenges besides the benefits. The major challenges are high cost, supply
chain complexity, and employee development issue. Therefore, application of the lean principles
Absolute Foods will be able to take necessary initiatives to reduce the complexity in the supply

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chain by marinating low inventory and developing a good relationship with the suppliers by
identifying the demand of the customers.

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