Abstract
Service sector organisations are constantly overcoming the challenges facing the over-production and waste reduction within their environments. Industries are also becoming very competitive thus forcing them to seek suitable production organisation strategies with the aim towards enhancing their competitiveness and efficiency. The aim of this research study is to investigate the impact of lean production practices on the performance of service based businesses through the case study of a local baked goods supplier. The research framework adopted consists of questionnaire survey method implemented with different end users, thus covering the overall production – retail – customer cycle. The research results and analysis justify the objective of the research that lean production practices enhance the performance of the supplier company and the common tool identified were JIT (Just in Time), Value Steam Mapping (VSP) and the 5S methods. The results also suggest that JIT method has a higher impact towards improvement on performance relating to quality, speed, dependability, flexibility and cost of the supplier. However, the research study also identifies that one of the major challenges faced by the organisation while adopting lean practices was the lack of commitment from top management, continuous training and employee engagement measures.
Highlights
The current manufacturing and production based environments are facing the key challenges towards managing and reducing over production and towards the reduction and elimination of waste within their environments
Research within this aspect suggests in order to achieve continuing competitive advantage, industries need to create appropriate production systems and technologies mainly relating to high product quality, reducing product design time, demand based production and reduction of waste and inventory management [1]
4.1 Lean Production Practices Utilised by Company X
Summary
The current manufacturing and production based environments are facing the key challenges towards managing and reducing over production and towards the reduction and elimination of waste within their environments. The adoption of lean production is an edge for industry to manage their operational and strategic gains reducing waste. Considering the challenges of present competition, both locally and globally, many organisations are improving the quality of their products, decreasing cost and meeting the unexpected need of their customers. With this focus, this study is focussed to identify the extent of Lean production practices adoption in organisations. It seeks to provide a more comprehensive knowledge about the impact of lean production practices on organisations’ performance and the challenges they face in the implementation of lean production practices on organisations
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