Answer to Question #272520 in Management for habbibullah

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

Production is the core component of an organization’s success; in case of wastage, the process of production becomes ineffective and can cause a significant loss to an organization; in the long run, therefore, Just-in-time (JIT) and Lean Production can be used to address the matter. JIT is a production method that G motors can use to reduce wastage of time in the production system ad increase response time from suppliers; JIT is focused on the production side of the business. On the other hand, lean production can be useful because it is based on customer concerns; it is a production method that focuses on reducing waste, where waste, in this case, refers to items that do not add value t customers and the organizational process. G motors, therefore, can combine the two production methods to reduce waste of time and resources and increase value to customers.