In: Operations Management
QUESTION 1
Michael Douglas is the plant manager for a supplier of axles and other components for SUVs produced by one of domestic automobile manufacturers. His company had been using traditional batch production methods, but as the industry has become more competitive, and customers have been demanding just-in-time deliveries, Michael realized that he must make the transition to a JIT operating environment to improve speed and response, as well as reduce cost to help sustain their current competitive advantage. Douglas is well aware of Toyota’s reputation for lean enterprise, and decided to make a benchmarking trip to the Toyota Motor Manufacturing (TMM) plant in Long Beach, California to learn about their JIT processes. During his trip back from Toyota, Douglas began thinking of what he needed to do to plan for implementing JIT in his factory. The case provides a framework to discuss the many concepts and methods upon which JIT is built. Douglas’s task of moving from a batch process to a JIT system is immense and requires a long-term commitment from all managers above and below him in the organization's hierarchy.
a) What lessons did Douglas learn from his benchmarking trip to Toyota?
b) What significant challenges or barriers might he face in his plant if he implemented JIT?
c) What should he tell his managers and workers tomorrow?
d) Develop a plan to implement JIT with an emphasis on what to do early in the JIT initiative.
The lesson learned by Douglas on its benchmark trip to Toyota was remarkable in his head. He learns about managing the operation to implement the just in time processes in his firm. Management is a crucial part of every organization, and all the things should happen with time.
2 Many challenges can come in the way of Douglas. It may be regarding changes that would come for a shift in organizational structure, change in leadership style, change in production method,etc. Challenges regarding allocating resources and funds.
3 He will talk about how things were managed effectively and efficiently in Toyota. He would motivate them and make several targets that can be short term and long term. And make them realize that this is their organization, and they have to run it with all their efforts.
4 A plan which aims a short term target to provide just in time should make. At an initial stage, the organization should change organization Structure, analyze and research various activities that take much time.