Answer to Question #240215 in Management for Bhavana

Question

MG Motors have been having a tough time from the time of their launch in India. They feel that there have been a lot of pilferages and wastage in their production and they need to sort it out as soon as possible. Also, the time taken to manufacturer one unit of their cars is extremely high as compared to global benchmarks. They have hired you as a consultant for the same? Can you explain the concepts of JIT and Lean Production to them and help them apply the same in order to reduce their troubles?

Answer 1

JIT and Lean Production are the most frequently used systems to regulate production and ensure profitability. They are different but share common ground in terms of their applications automotive industry. JIT (Just-in-Time) is based on production efficiency, while lean production focus on utilizing efficiency to increase value for the product end-user. MG Motors can apply both systems separately or jointly to reduce waste and increase value in production for the customers. JIT can be used to eliminate waste accumulation in excessive inventory. The company can also apply Lean production across various departments, including manufacturing, marketing, and distribution, to boost the company’s performance in the Indian market. Both systems have shown positive outcomes in the automotive industry, and the company can succeed in its application to overcome the challenges.