Question

Discuss the _ Risks and Benefits of implementing a Lean System in a service environment or production.

Use an example business to explain your points of concern and improvement

Answer 1

Benefits

1. A Decrease in price
Lean management is all concerning increasing profits. whereas the damage is compact by numerous factors that would rely upon product qualities or markets, typically firms will do additional to manage their prices, and lean practices facilitate to decrease prices so all savings are often superimposed to profit.

2. Improved client Interactions
—The manner they convey with employees, responsiveness to their considerations, and their expertise with the merchandise are a number of the leading drivers of cutting wasteful practices.

— If client surveys are skewing an exact manner, then leaders ought to concentrate to what the corporate will stand to lose.

— As a result, client interactions and overall service ought to improve.
3. Utilization of “Push and Pull”
— Company expenses will become inflated if leaders don't seem to be being attentive to however inventory is stilt up.

— a technique which will facilitate manage this can be having a “pull” over a “push” mentality.

— this suggests that later production stages confirm what's happening in earlier processes.

— this may facilitate firms stop the matter of production and paying the next opportunity cost. firms can solely order what they have.
4. enlarged Quality
— Lean management is additionally a few mickle of attention being paid to details.

— The goal is to decrease the quantity of defects and reworks in product.

— This action implies that processes are going to be optimized to avoid mistakes that saves time that employees can have to be compelled to desire remake product, and therefore the cash required to pay them for the labor.
5. AN Improvement Culture
— once an organization understands the importance of lean management and begins to implement the methods, then a replacement manner of thought begins to require over within the company.

— employees are additional receptive improvement and are trying to find ways in which to systematically build the work they are doing even additional impactful.

— Introducing groups to lean management will produce a culture that values daily improvement.
6. enlarged worker Morale
— Since lean management favors AN approach wherever managers are in regular communication with workers concerning their work and their method, workers might feel they're authorized to create higher choices.

— employees recognize wherever they stand and wherever they'll improve to make quality work.

Disadvantages

There are heaps of execs to incorporating a management vogue that highlights continuous improvement. However, with any new method implementation, there ar factors leaders ought to bear in mind of.
1. the matter of Inventory
— historically, in lean management implementation, low amounts of stock are unbroken reachable to decrease carrying prices.

— This causes firms to rely upon suppliers and hope they're ready to build the adjustment to deliver product quickly and with efficiency.

— If there's any disruption of inventory processes, then it will derail the corporate.
2. tough to alter Over
— workers might not continuously be hospitable to lean management practices. The implementation of this vogue can take heaps of patience and a whole overhaul to figure processes. this could not be one thing longer-tenured employees are going to be comfy with.

— so, leaders have to be compelled to be clear concerning all changes that may happen within the company.

— There conjointly has got to be a while allowed for inquiries from employees World Health Organization don't seem to be nevertheless oversubscribed on the switch.
3. High Implementation price
— Most of the time, once lean management is enforced in a very company that has ne'er before used it, it's seemingly that everyone systems and production processes can have to be compelled to finish in their current state.

— This event will bring high prices for firms World Health Organization don't seem to be ready for the enlarged expenses of conveyance in new instrumentality and coaching programs.
4. The Temptation to Over-Structure
— Everything won't would like AN overhaul. The challenge for leaders is to see what has to be incorporated into lean management and what doesn't.