Critical Thinking
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.
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).
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).
Read textbook chapter 7 or secondary data on the internet and answer the following questions.
Question:
Why Manufacturing Companies adopted Lean Thinking and the JIT model? (3.5 Marks)
Discuss major types of Waste, why overproduction is the biggest waste companies have to keep in mind during production. (3.5 Marks)
Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end users? (3.5 Marks)
With the advent of artificial intelligence. The agile supply chain is a perfect concept for future SCM? Give reasons with examples. (3.5 Marks)
Reference ((1.0 Marks))
Each answer should be within the limit of 400- 500 words.
The Answer must follow the outline points below:
Lean Thinking and JIT Concept
Agile Supply chain
Their Main functions
Reasons with suitable Examples
Reference
