Answer to Question #267447 in Management for Nishs

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

Just-in-Time (JIT) approach to manufacturing is based on continuous production to meet daily requirements. Its goal is to produce only the required quantity for each day, avoiding large inventories associated with traditional manufacturing systems. The most important benefit of JIT in MG Motors is the elimination of raw material, inventory and product storage costs. Lean production is a production methodology focused on eliminating waste, where waste is defined as anything that does not add value for the customer. Lean production improves efficiency, reduces waste, and increases productivity. Therefore, it Increases productivity quality at MG Motors also improving efficiency by freeing up employees and resources for innovation and quality control that would have previously been wasted.