Answer to Question #242945 in Management for BHAWNA

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

The Just-In-Time (JIT) concept is a industrialized workflow approach aimed at reducing flow times and costs within production systems and the circulation of materials.

Lean production is a making approach dedicated on eradicating waste, where waste is defined as anything that does not add value for the customer. MG Motors should combine both JIT and Lean production to reduce both time and wastage in the production system towards bettering their efficiency.

 JIT can be used to reduce waste accumulation in excessive inventory. The company can also apply Lean production across different sectors, including manufacturing, marketing, and distribution, to boost the company’s performance in the Indian market. Finally, both systems have shown positive outcomes in the automotive industry, and the company can succeed in its submission to overcome the challenges.