Question

Learning Outcome:

1. Demonstrate an understanding of how global competitive environments are changing supply chain management and logistics practice.

2. Apply essential elements of core logistic and supply chain management principles.

3. Analyze and identify challenges and issues pertaining to logistical processes.

Assignment Workload:

This assignment is an individual assignment.

Critical Thinking

The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002). Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keen indecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supply techniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’s leads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

Consult chapter 7 of your text book or secondary available data on internet and answer the following questions.

Question:

1. Why Companies adopted Lean Thinking and JIT model?
2. Discuss major types of Waste, companies has to keep in mind during production.
3. Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end users?
4. Due to COVID 19 emergency do you think agile supply chain is the right concept in this kind of situation? Give reason with example.

The Answer should be within 4- 5 pages.

The Answer must follow the outline points below:

• Lean Thinking and JIT Concept
• Agile Supply chain
• Their Main functions
• Reasons with suitable Examples
• Reference

Ans 1:

Ans 2:

Ans 3:

Ans 4:

Answer 1

1. JIT- Just in time model for inventory states that companies don't stock too much raw material in warehouses, instead order them as and when required. This can only be achieved when they can make sure there is a continuous supply of required raw materials, as and when orders are placed. It also requires strong inventory management skills, to make sure there is no disruption of production due to late or inadequate supply of raw materials. Since the markets have now become global, the demand patterns are quite difficult to judge compared to when the markets were predominantly local a few years back. Due to the erratic demand, the production houses tend to produce on the basis of orders they recieve. Also the customers today are quite demanding, that means they quickly change to a better quality and cheaper alternative to the product. This means the business needs to keep upgrading their products to stay in the race. The JIT model helps them in achieving this. Since businesses don't stalk up huge inventories, it's easier for them to change or alter their products to adapt to the change in demands. For example, for many years children and adults used plastic water bottles and lunch boxes to carry eatable and water around. Some studies then popped up stating storing edible substances in plastic boxes or bottles is the major source of cancer. quickly the demand changed from plastic bottles and boxes to glass or stainless steel. A production house in the business of producing these items and not following the JIT model, due to huge stalks would continue to produce these boxes with declining demands and hence face losses. where as the ones following the JIT model, would quickly change their raw material and alter their production technology to meet the new demand in the market and beat their competitors.
2. There are various types of waste a production house can produce. Mainly, the one which can be reused and the ones that cannot be. Some types of waste can also be treated or recycled in order to enable it to be used again, according to the environmental laws companies cannot dump waste on landfills. Also producing a huge amount of waste means inefficient technology and management. proper Inventory management, reducing packing material , reusing byproducts etc can reduce waste and also cost of production.
3. COVID 19 is a compile situation. There are 2 sides of a coin here. Where many can argue, that due to lock down and restriction on movement of goods, production houses cannot carry on with the production and hence are forced to shut down and incur losses, there could be the other side as well. There is a new demand in the market for personal hygiene and medical equipment for protective wear. Many car manufacturers have been asked to produce Ventilators. Looking at the change in demands and current situation, many Whiskey manufacturers have actually decided to produce hand sanitizers. Looking at the brighter side, a production house following the JIT or Agile supply model can alter their line production line, best suited to them and tap the market stay in businesses even at this time. Let us consider the above example of tiffin manufacturers. Currently people are locked down and confined in their homes. there would be zero demand for tiffins, but if they switch provide packing assistance of hand sanitisers in plastic bottles, they can still stay in business.