Lean Enterprise Systems Management

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What should be done to implement a pull system?

There is a need to understand the benefits of a lean management system and the advantages of a pull system over a push system of production (Bell, p.10). This is the first step. Corporate leaders, managers, supervisors, and factory workers must understand that there is a better way. Once this realization becomes a part of corporate culture and once everyone is in agreement as to what it means to adhere to a lean management system and just-in-time production then it is time to go to step two.

The next phase in transforming a conventional push system into a pull system is to develop a special relationship with suppliers. This simply means that a supportive supplier relationship must be created in order to reduce the number of suppliers. After the number of suppliers had been reduced then the organization must make clear to each supplier the intended number of deliveries that they expect based on a given schedule. This also requires the company to reveal to the suppliers a long-term plan and assure them there will be a fixed amount of raw materials that will be expected from the supplier. In this regard, the supplier will know what to expect and continue with a mutually beneficial relationship with the partner firm.

In addition, the people involved in production must be trained to adapt to a new system. The first thing that they need to learn is to master the flow of information from the production team to the suppliers and how to receive feedback from the suppliers in order to translate it into a plan of action (Shinkle, Gooding & Smith, 12). The suppliers must know the exact amount of materials that would be needed in a given period of time and when they are expected to deliver the same.

After the raw materials component of the production process is taken care of the production team must learn how to use every piece of raw material given to them and avoid waste. In addition, the production team must have a clear channel of communication with their customers. The customers must provide the correct information when it comes to the exact number of key chains that are needed for their souvenir scheme. The production team must know in advance in order to manufacture the exact amount needed and not to overproduce.

Finally, the finished product must be expected to be shipped at the designated time and reach the customer not later or earlier than expected. This is the only way in which the customer will feel secure to a new system wherein there is no need to maintain a buffer inventory in order to anticipate problems in the manufacturing and delivery process. The system must be adjusted and continuously refined in order to create a true pull system.

Which of the 7 wastes are very evident for the division? Choose one waste and express what can be done to eliminate it?

With regards to the 7 wastes in a lean management system, there are five that are most evident in the division. These are: a) overproduction; b) queues; c) inventory; d) motion; and e) defective product. It is normal to find long queues because of key chains that are yet to be processed. There is also a problem with motion or unnecessary motion because of the need for workers to move parts from one end to the next. For example, the plastic molding department is located fifty meters away from the ink stamping department.

In addition, the souvenir manufacturing firm was forced to maintain a high level of inventory. As a result precious space within the factory has been used to store up inventory. There is also a significant amount of defective products. This is unacceptable according to industry standards. But the most important thing is overproduction. The reason for overproduction is the inability of the firm to predict what the customers needs. Thus, in order to prepare for the unexpected, they deliberately overproduce. This is a problem because it is a major waste of money, time, and effort on the part of the keychain manufacturing firm. This problem can be solved by communicating directly with ADNOC, specifically to the person-in-charge of giving away the said souvenirs. There is a need to demand a contract to be able to know the requirements of the customers. The last-minute changes in the purchase orders should be deemed unacceptable.

Which of the 5 S’s should be tackled at the division?

The 5 S of lean management systems calls for the need to sort, simplify, shine, standardize and sustain. In the case of the souvenir manufacturing firm, it is imperative to focus on simplification, standardization, and the need to maintain neatness in the workplace. It is important to simplify the process. This can be achieved after dealing with the problem of the inventory. The layout of the workplace was not a priority and therefore excess inventory is forced to be stuffed in every available space but this means that that there is not enough space for workers to move freely and comfortably.

The next thing that has to be dealt with is the need to standardize. Consider the fact that there are at least five suppliers of resin used in the manufacture of keychains. If that is not enough one of the suppliers is from Egypt. It has been mentioned that a bidding process has been conducted to determine the best supplier. This system has to be perfected and to reduce the number of suppliers to at least a few. If possible there should only one supplier in this regard the simplification process is not only limited to the brand of resin used but also in the streamlining of operations because the purchasing arm of the firm need not communicate to five different suppliers of resin.

Finally, the most important thing is to maintain neatness in the workplace. There was a report of scrap materials on the floor. There are also equipment and tools lying around. It would be difficult for the workers to move around with these things on the floor. Neatness is a simple step but it can go a long way when it comes to developing a smooth process that can ensure speed, reliability, and the elimination of waste in the production of keychains for ADNOC.

What should be done to reduce throughput at the division?

The time required to manufacture keychains the moment the customer requested for a particular number to be delivered on a particular day is known as throughput. This means that the more time spent attempting to manufacture and deliver a product to the customer increases the throughput. It is therefore important to speed up the process and thus reduce throughput.

The reduction of throughput can be achieved by carefully analyzing the current practice and determine the weaknesses of the production process and correct it using principles gleaned from studying lean production and just-in-time production systems.

The first thing that needs to be done is to know the exact number of keychains that need to be manufactured at a given time period. For instance, if the customer plans to give a large number of keychains during the holiday season then the manufacturing firm must be told of that plan. By knowing this crucial piece of information then the firm need not worry about buffer inventories and the need to overproduce and create a safety net in case there is a last-minute change in the purchase order.

The next important step is to study the layout of the manufacturing floor. There must be enough space for workers to move freely. Secondly, there is a need to shorten the distance between one step of the process to the next. For example, if the next step after the molding process is painting the plastic tags then it is imperative to consider the proximity of these processes.

The third important step is to make sure that particular raw material is available on the day that it is needed. If the firm requires a certain volume of resin then that particular amount must be made ready before that time comes. If this is not achieved then it is the same as pushing the “pause” button because just as surely the workflow stops.

What supplier, buyer, quantity, and quality characteristics should the division stress to move towards JIT?

There must be a certain standard that the firm should finalize with regards to choosing their suppliers. If the criteria are not met then the supplier is dropped from the list. It is impractical to deal with numerous suppliers that cannot deliver what is needed. But once a reliable supplier has been identified then the firm must reward that supplier with repeat business.

As result suppliers and buyers develop trust. The next thing that has to be done is to make the supplier understand that there must be no deviation in schedules. The supplier must deliver on time every step of the way. In return for this service, the buyer must inform the supplier of the long-term plan of the company in terms of buying needed raw materials.

The quality of the product must be considered. It is not enough to simply deliver a product to the customers without developing a system that ensures the highest standards of quality had been met. There is a need to make sure that the nickel rings are of the same size all throughout. There is a need to make sure that the paint used is of the same quality from the first batch to the last batch.

What are the supplier’s concerns and how can they be eased?

Suppliers constantly worry about the lack of assurance with regard to future business. This is true when it comes to new transactions. Suppliers are determined to secure repeat business but this is not guaranteed even if buyers made known their satisfaction with regards to the quality of the raw materials delivered. Thus, the firm can ease these concerns by making known their intention to buy from the same suppliers as long as their conditions are met.

The next most important thing in a supplier’s list of concerns is related to unnecessary activities. It simply means that suppliers are also bogged down by numerous steps necessary to conduct business with the buyers. Thus, the firm can deal with this problem by simplifying the system making it much easier for suppliers to deliver their products from their warehouse to the department requiring the raw materials.

What improvement can be done to the layout if the JIT project were to be successful?

It is imperative to remove excess inventory on the factory floor. Inventory and an excess number of raw materials must be removed from the premises. The company can build a separate facility that can handle inventory, scrap material, overproduction, and everything else that can clutter the workplace.

It is also important to group people and machines together. If a particular group works in tandem with another then it is logical to put them in one place. The same thing is true when it comes to equipment. Similar equipment must be placed in one place.

The firm can consider grouping people together into cells. The cell-type of layout can be seen as a team of workers working together to perform related tasks. It is impractical for a worker to walk 50 meters away from his designated area in order to deliver a yet to be assembled part.

What quality improvement tool do you suggest to be used? Explain?

The use of the just-in-time system can be used to convince corporate leaders that by reducing lot size there is a way to expose the flaws of the system. Small lot size means changes in the system and the reduced number of lot-sized sizes will expose the low quality of the products. There is no way to hide the problems because the customers can immediately see them. Even on the factory floor, quality control can easily observe poor quality. As a result, there is an added impetus to look for flaws in the system. It also means that a much better feedback mechanism was created.

What do you believe is the source of variability in this case? How can it be reduced?

There are many sources of variability. The first one is the lack of needed information. There must be a constant flow of information from the top to the bottom and from the bottom to the top. The lack of information can be the cause of waste because production can be delayed. In this case, the design specifications must be made available to the people on the factory floor. If they have no access to this information then they will produce key chains of various sizes and designs.

Another source of variability is overproduction. This is a problem because the resources of the firm can be focused to satisfy the demand of the market even if real demand has changed over the past couple of months. Overproduction puts unnecessary strain on the production process and therefore it is difficult to achieve and sustain a high level of quality.

Aside from these things, there is a need to take a closer look at the production process. There are certain flaws in the manufacturing process. This has caused delays, defective products, and other problems that can reduce the quality of the final product. Aside from that the machines used to produce the nickel rings were unreliable.

It is therefore important to take a closer look at the equipment and other processes required to develop key rings. If there is a problem like that, the production of defective key chains can be affected. In this regard, it is time for the company to invest in equipment that can improve the production process. Upgraded equipment can help speed up the process by making sure that everything has been done based on a particular standard. There is no need for guesswork.

Another important variability, in this case, is the excessive number of defective products returned to the firm. It is a major waste of time because the firm labored so hard to deliver the said product only to be returned because of substandard quality. The unnecessary movement is hurting the firm. It is time to find a way to eliminate this form of production waste.

Variability is also caused by the inability of the customer to present accurate information regarding purchase orders and the exact amount of keychains needed at a particular time of the year. Nevertheless, the manager of the factory must be replaced with someone who has a clear understanding of lean management techniques and just-in-time systems.

Variability can be reduced by using principles gleaned from the study of lean management systems and just-in-time production system. Managers and workers must make it their goal to produce the correct type of product and achieve high-quality during the first attempt. If the customers reject a batch of products then the firm is forced to redo the whole thing over again. This is a waste of valuable resources and not a sign of quality management.

Works Cited

Bell, Steve. Lean Enterprise Systems. New Jersey: John Wiley & Sons, Inc., 2006.

Shinkle, George, Lloyd Gooding, and Michael Smith. Transforming Strategy into Success. New York: Productivity Press, 2004.

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Lean Enterprise Systems Management

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