RUNNING HEAD: Assignment 3 1

Logistic Management

Author Names

University
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Table of Contents

Answer 1..........................................................................................................................................3

Answer 2..........................................................................................................................................3

Answer 3..........................................................................................................................................5

Answer 4..........................................................................................................................................5

References......................................................................................................................................7
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Logistic Management

Answer 1:

The overall purpose of implementing the lean concept is to be able to minimize the waste

which results from production. In other words, this is achieved by being able to stop or eliminate

any activities which do not bring benefits to the final product. Due to that, the company owners

need to be able to differentiate between the activities which add value and those who do not add

value to their product. Customization processes are frequently considered as being an activity

that adds value while wrapping them while they wait to be delivered are not considered cost and

resource efficient. Due to that, it is believed that the goal in case of lean concept is to be able to

prioritize those activities which will directly contribute to the product's or services value.

In addition to this concept, another element of interest is represented by the JIT concept,

an acronym for just in time.The key reason businesses adopted the JIT model is because of the

need to produce timely manufacturing inputs. Besides that, the JIT model also ensures that goods

produced are delivered on time. Based on the given case, the role of this model is to eliminate

those costs of inventory but also the holding cost of all the raw materials. If it were to exemplify

this concept, the best example would be the Toyota Motor Corporation. By implementing this

model, they were able to reduce the cost and to also minimize what is known as the lead

times(which refers to the latency which can exist between the initiation process and the

completion one). (EKU,2018)

Answer 2:

Based on the Lean Manufacturing concept, there are 8 major types of waste that can be

determined during the operation process. Seven out of these eight wastes are considered to be
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orientated towards the production process. On the other hand, the last one is related to the

management capacity of using their resources. In the following lines, each of this waste will be

briefly presented:

1. Defects: There are no doubts that this waste will impact not only the time and money of the

company but also the satisfaction level of the customer. The explanation for them can be due to a

lack of appropriate documentation, poor design of a product or a lack of adequate quality control

during the process workflow.

2. Excess processing: this clearly described a process that is poorly designed. The cause of it can

be either lack of communication, human errors or inaccurate forecast . In order to avoid this

waste, process mapping can be efficient.

3. Overproduction : it is considered that it will create what is known as the caterpillar effect.

Nevertheless, it also can hide defects because there are to many products to be analyzed. Takt

time is used to regulate output levels between different departments.

4. Waiting: this can include idle equipment or even human resources. In case it will cause the

company to try to catch up, it can lead to multiple defects.

5. Inventory : due to the holding costs, this is seen as a waste. The common causes of it are

represented by inventory defects, excessive transportation of overproduction of goods.

6.Transportation: the cause of it can be represented by large distances between different

operation, multiple storage facilities or a system which is not adequately designed.

7.Motion: the most common cause is either poor planning of the production or even a lack of

different standards for the production process.

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8. Non Utilized talent: as stated in the beginning, this is not specific to the manufacturing

process. The cause of it is the failure to involve people in the companies activities, poor

communication or even poor management. (Oakland,2015)

Answer 3:

As was specified in the first question, the major explanation for why companies try to

incorporate lean thinking is due to minimizing waste production. After analyzing the possible

wastes, it was determined that the lean concept can improve customer interaction. Continuous

communication between the produced and the customer is required in order to get honest

feedback in order to improve the product and services. Nevertheless, the lean concept also

increases customer satisfaction due to the fact that the producer focuses more on the quality of

their products which means they will pay more attention to its details. By being able to increase

the quality, the business will also reduce the waste and will bring to a minimum the need for

reworks.

The customer is not the only one who is in an advantageous state. The supplier will also

experience fewer costs. Both the inventory and the holding cost will be reduced since they are

seen as wastes that are combated by this concept. Nevertheless, it is expected that all the

situation to boost the morale of the company as they will be more motivated to produce products

after they will see that most of their previous production is fully sold.(Kamath,Saurav,2016)

Answer 4:

Usually, an agile supply chain tends to be focused on elements such as cost efficiency,

flexibility, speed, productivity and responsiveness. The advantages of agile manufacturing are
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represented by product design which is focused n the customer, and cooperation within the

supply chain. Even so, there are some disadvantages too which need to be taken into

consideration. They are represented by limited resource planning which can be challenging for

the producers and difficulties tracking the progress because the end result tends to be unclear.

Due to the emergency situation caused by the COVID-19 pandemic, all these elements

will be required. In order words, the producers need to be able to both produce and distribute

their services as fast as possible in order to meet the demands of the market.

In the scenario of this pandemic, many hospitals stated that there is a lack of protective

equipment such as gloves and masks. These two products are essential in order to ensure the

safety of the care providers and to be able to continue offering adequate treatment for the

patients.

Due to the situation, many companies decided to focus the production on these two

equipment in order to meet the need of society. Even so, the most affected country at this time of

writing is Italy. The economic status of the country is in a critical state because they have limited

production due to their sever quarantine limitation but a high demand for these products. Other

nations and foreign companies try to offer their support to ensure that the Italian medical care

providers receive the required items.

The example given above and the situation which Italy experiences, points out that indeed agile

supply chain is efficient in supporting the production of the different resources which are needed

to fight COVID-19.(Northeastern University,2017)

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References

EKU, (2018), An Introduction to Lean Management, Article, EKU Online, Retrieved on 5 April

2020 from: https://safetymanagement.eku.edu/blog/an-introduction-to-lean-management/

Oakland,(2015), Eight Waste, Pawley Lean Institute, Retrieved on 5 April 2020 from:

https://oakland.edu/lean/resources/eight-wastes/

N Kamath, S Saurav,(2016), Handvook of Research on the Strategic Supply Chain, DOI:

1466698942

Northeastern University,(2017),The Costs and Benefits of Agile or Continuous-flow Supply

Chains, Retrieved on 5 April 2020 from: https://onlinebusiness.northeastern.edu/blog/the-

costs-and-benefits-of-agile-or-continuous-flow-supply-chains/