Answer to Question #271037 in Management for Preety

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 most often utilized systems for regulating production and ensuring profitability are JIT and Lean Production. They are distinct, yet they have a lot in common when it comes to the automotive sector. JIT (Just-in-Time) is built on production efficiency, whereas lean production focuses on increasing value for the product end-user. To reduce waste and improve value in manufacturing for clients, MG Motors can use both solutions independently or together. JIT can help you avoid accumulating waste in surplus 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.