MGMT-6087: Lean Production Challenges at Murphy Manufacturing

This report analyzes the implementation of lean management principles at Murphy Manufacturing, addressing challenges and proposing solutions. The report begins by outlining the importance and benefits of lean management, including Deming's theory and its application in reducing inventory costs and improving product quality. It then examines the specific issues faced by Murphy Manufacturing, such as resistance to change, increased costs, and delivery problems. The report includes an analysis of the ERP system's impact and the challenges faced by key personnel. The discussion section explores the problems encountered during the implementation of lean management. The report recommends the implementation of Six Sigma and a monitoring system. The recommendations include specific action plans with timelines and measurable outcomes. The report provides a comprehensive overview of the challenges and opportunities associated with lean production in a manufacturing environment.

TOTAL QUALITY MANAGEMENT
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Table of Contents
1. Importance and benefit of lean management...........................................................................3
2. Basic/ Other issues by Murphy construction............................................................................4
3. Assumptions................................................................................................................................6
3. Discussion point...........................................................................................................................6
4. Alternative recommendation.......................................................................................................6
5. Final Recommendation and action plan......................................................................................8
Reference list.................................................................................................................................10
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1. Importance and benefit of lean management
Lean management is referred to the process of continues improvement so that long term goal and
objectives can be achieved through incremental change. This is considered as one of the effective
and relevant way to improve business approach and techniques so that customer needs and
requirements can be fulfill. One of the major benefits of lean management is to reduce inventory
cost so that firm products and services can be delivered to customers. In order to understand the
importance of lean management, Deming’s theory has been taken into consider that facilitates in
understanding proper and legitimate way to approach business (Islam et al. 2017). This theory
stated that Shewart cycle (Plan- Do-Check-Act) is required to amend vigilantly within
organizations to assure that potential risks and challenges related to inventory control and lean
production. It also stated some points or process that helps in implementing lean management
successfully such as system appreciation, Variation Knowledge, knowledge theory and
psychology knowledge.
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Create Constancyof
purpose
Adopt the
new
philosophy
Stop dependancies on
mass inspections Don’t award business
based upon the price
Aim for
continuous
production and
service
improvement
Bring in
cutting-edge on
the job training
Implement
cutting-edge
methods for
leadership
Abolish fear from
the company
Deconstruct
departmental
barriers

Figure 1: Deming’s Theory
(Source: Created by researcher)
There are ranges of benefit of lean management within organization that have been illustrated
below:
Increased Product Quality
Lean production encourages employees and workers to seek for new approach and techniques
that eventually reflect on quality of product eventually. It helps in utilizing resources and
machine tools efficiently that reduce probability of failure.
Improved Lean times
The improvement is lean times is another benefit of lean management that helped in developing
the product in a streamline that facilitates in improving business (Urban, 2015). One of the major
benefits of the lean management is business can respond better to change in demand and
resulting in better lead times.
Sustainability
Sustainability is a key benefit of lean management that implies a better collaborative team work
to accomplish task positively (Wu & Xu, 2016). The implementation of lean management helped
in reducing waste and better adaptability of business techniques and solution so that maximum
desired goals and objectives can be achieved positively.
2. Basic/ Other issues by Murphy construction
Lean management has created a significant impact on manufacturing industry by changing the
approach to business operations. Murphy manufacturing has to face a number of challenges in
providing quality and standards services in an affordable rate (Marsh et al. 2017). ERP system I
has been followed within an organization that create problems in controlling cost and inventory,
which enforced Joe, Vice president of operations to change business approach. There are some
challenges faced by Joe that has been highlighted below:
Resistance
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Joe has experienced that Murphy Manufacturing was not prepared to bring changes within
business that create problems in assessing the needs of consumers. The Purchasing Manager,
Karen has stated that lean production and JIT approach create problems in serving a quality and
standard product to consumers (Lushey & Munro, 2015). The major problem is purchased order
is not free that gradually reduced cost saving. The rate of complaints related to delivery gets
increased by customers due to large transporting cost and building long run relationship with
supplier. This limitation of lean management directly reflects on profit margin. This challenges
demand Murphy Manufacturing to formulate an effective plan or strategy so that potential
challenge scan be trigger effectively.
Cost
Cost is considered as major challenges in lean management due to hike in raw material
inventory, transporting cost and operational cost. The e supervision of shipping, Oscar has stated
that two more trucks have been included in delivering process to assure that customers received
quality and standards services positively. The implementation of lean management has created a
significant impact on increasing operational cost. In Murphy Manufacturing, about 3 million
dollars have been spent to renovation that increased the operational cost about 500,000 dollars in
terms of delivering products (Lewis, 2015). It signifies that there is a necessity of proper
implementation of lean management so that profit margin can be upsurge positively. The major
challenge that Murphy manufacturing experienced is change in demand and interest of
consumers that create problems in achieving sustainable development within limited period of
time.
Startup and up keep
Start up and up keep has a leading role in driving business into sustainable development through
encounter potential risks and issues within manufacturing process. Initially, a resource planning
is required to develop to assure that respective task or work can be accomplished in a systematic
manner (WICKHAM & WOODS, 2005). The purpose of implementing lean management is to
upsurge sales and improve customer experienced positively. Joe has stated that sales
performance gets increased through proper management but delivery stinks due to significant
increase in inventory cost. The on-time delivery has reduced to 50% from 95% in last six months
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that directly reflect on profit margin positively (Khalifa, 2014). This implies that there is a
necessity of collaborative team work by compliance with ERP system for management of
manufacturing system.
3. Assumptions
Total quality management is elucidated as a system of management who works together in order
to achieve long term success positively. The purpose of this report is to analysis different aspects
of lean management so that a better a system can be amended within an organization.
 The first assumption that has been taken into consideration is that lean management helps
in reducing operation cost.
 The second assumption is lean management helps in enhancing quality and standard of
products.
 The third assumption that has been taken is lean management supports Murphy
manufacturing in improving customer experience.
3. Discussion point
Murphy Manufacturing has experienced a range of problems in upsurge sales performance and
operational cost during implementation of lean management. One of the major benefits of the
lean management is business can respond better to change in demand and resulting in better lead
times. The purpose of implementing lean management is to upsurge sales and improve customer
experienced positively. Joe has stated that sales performance gets increased through proper
management but delivery stinks due to significant increase in inventory cost.
4. Alternative recommendation
Recommendation 1: Implementation of SixSigma for lean management
Specific: To implement Six Sigma as a lean management to ensure that business can be drive in
a systematic manner
Measurable: It can be measured by progressive growth of business so that it is easy for Murphy
Manufacturing to operate all requisite business in an effective manner. Most of the time, it has
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been witness that Six Sigma helps in not to produce more than 3.4 defects per million
opportunity.
Attainable: Most of the time, it has been witness that Six Sigma reduce the defect in a product
that eventually give firm and quality service to consumers for effective result. In case if the
probability of defect is get reduced significantly then it is easy to enhance sustainable
development
Realistic: The Six Sigma DMAIC signifies broad perspective of research through measured and
define vision and aim to ensure that requirement of data can be positively met for maximum
result.
Time bound: The total time required to implement Six Sigma DMAIC is 2 months
Action plan
Activities Time period
Determine defect of a project so that it is easy
to trigger required defects for maximum
result.
2 weeks
Proper measurement of plan is required to
perform to ensure that each requirement
related to business have been met significantly
1 week
Analysis of system is required to perform to
ensure that system can be improved
positively.
2 weeks
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Based on the identified defect on product, it is
required to formulate an improvement plan to
ensure that decision making can be improved
simultaneously.
2 weeks
Once the improvement relates to product or
services can be mitigate effectively then it is
easy to upsurge possible risk.
2 weeks
Table 1: Action plan for recommendation 1
(Source: Created by researcher)
5. Final Recommendation and action plan
Specific: To monitor each task to reduce potential risks that eventually helps in lean
management as well as improves decision making for effective result
Measurable: It has been witness that proper monitoring and reviewing reduce the probability of
potential risks and ensure that each task can be accomplished effectively. Most of the time, it has
been witness that through proper monitoring it is easy to formulate effective decision that help in
meet sustainability.
Attainable: It can be attainable through reducing potential risks and confront possible challenges
for effective management of service and quality in an effective manner. It has been witness that
it is easy to improve system by existing process along with decision making in an effective
manner.
Realistic: Most of the time, it has been witness that critical review and monitoring help in
improving decision making that help in upsurge sustainable growth of company.
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Time bound: The total time that is required to monitor is 2 month.
Action plan
Activities Time period
Consider needs and requirement of each task
so that each task can be review vigilantly.
1 weeks
The potential areas of risk needs to be
triggered vigilantly to ensure that customer
will get quality services
2 week
Formulation of framework needs to be
implemented vigilantly to ensure that each
task can be accomplished effectively
2 weeks
Analysis of each task needs to be performed
in a systematic manner to ensure that each
task can be accomplished in a systematic
manner
2 weeks
Based critical review, it is required to produce
an effective management and reduce the
probability of risk eventually
1 weeks
Table 2: Action plan for recommendation 2
(Source: Created by researcher)
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