Answer to Question #262933 in Management for Riya

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 needto 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

As a consultant to help reduce pilferage and wastage in production, I would advise MG Motors to consider using JIT and Lean production. This is because they are mostly applied systems to regulate production and increase profits. Though they are different, they have a common ground in application in automotive industry. JIT (Just-in-Time) relies on efficiency of production and lean production focuses on efficiency utilization to increase value of the product for the end-user. I would advise MG Motors to apply both systems either separately or jointly to reduce waste and increase value in production for its customers. MG Motors can use JIT to eliminate accumulation of waste brought by excessive inventory. It can also consider applying Lean production in its several departments like manufacturing, marketing, and distribution to boost its market share. These systems have proved to give positive results in automotive industry where MG Motors operates. The company can overcome the challenges through applying these systems.