Critical Thinking
Answer One
Today efficiency has become a critical component in manufacturing companies than ever. That is why most manufacturing companies, especially those located in areas where production costs are high, emphasize lean thinking. Lean production refers to the technique of minimizing wastage of labor and raw material while increasing or maintaining the level of production. Lean thinking consequently leads to the improvement of the total productivity of a company. It helps in eliminating activities and operations that do not generate value to a company and producing the best possible product to the consumers faster, eliminating all the barriers to the process (Grant, 2005). It helps manufacturing companies to reduce waste, improve efficiency, and increase productivity. There are a couple of benefits that manufacturing companies enjoy when they use the lean technique. The first benefit is increased product quality through quality controls that ensure resources and labor are not wasted. The second benefit is improved lead time, ensuring that the production process does not break due to a lack of resources. The third benefit is sustainability, as it helps the manufacturing companies to attain better adaptability for the future. The fourth benefit is increased job satisfaction, boosting the productivity of the overall company. The last benefit is increased profits as the company produces more using fewer resources (Grant, 2005). Therefore that is why manufacturing companies emphasize lean thinking.
Answer Two
Overproduction is the most serious waste in production and can cause excess inventory and all other sorts of wastes. The stocking of products that are not ready for sale or use leads to unwanted costs attributed to wasted materials, storage, and excess capital that are tied to idle inventory. Overproduction is dangerous because it can also lead to environmental impact when unnecessary materials are thrown away as they become obsolete. Among the seven wastes of lean manufacturing, overproduction is the biggest waste of all. It leads to the exploitation of a company’s resources to make products that are not yet needed. It is described as the worst waste because it hides all the other issues in the production process, making it hard for managers to identify them. It goes against the principles of lean manufacturing, which states that a company should produce only what is needed by the customers at the time they need it such that only what is ordered is produced (Grant, 2005). Overproduction leads a company to tie up its capital on raw materials, work in progress, stock, and finished goods.
Answer Three
In supply chain management, lean thinking is critical because it helps deliver the best supply chain. It helps the supplies to supply products to the end consumer in the most efficient way possible while minimizing loss, waste, and achieving the greatest flexibility. Lean thinking ensures that products do not spend much time in the warehouse such that unnecessary operation costs are eliminated. There are a couple of benefits lean thinking provides in supply chain management. The first one is that it boosts the profits because it helps reduce unnecessary processes suppliers need before delivering products to the final consumer. Second, it helps in reducing waste as it makes the supply chains as efficient as possible (Grant, 2005). Lean thinking helps identify the areas that can lead to wastes and eliminate them. Third, it streamlines the processes of the supply chain as it grows to incorporate new third parties such that it becomes more complex. Fourth is customer satisfaction by removing unnecessary steps in the supply chain, delivering a product to them as fast as possible. This increases the loyalty of customers to the suppliers, making them repeat customers. Lastly, lean thinking ensures the stability of manufacturing as the suppliers ensure that the resources needed for manufacturing are always available (Grant, 2005).
Reference
Grant, C. (2005). 7th World Congress of chemical engineering: a review. Chemical Engineering Research and Design, 83(12), 1345-1360.