The changes and alterations that were made to the manufacture and labor systems have led to the improvement in the fulfillment of the company goal to manufacture up to 1300 products in two months. All these translate to the production of about 150 products on a weekly basis. This was the main goal and objective of the company’s decision to make the strategic move of introducing JIT to the manufacturing processes and systems. What do you think L’Oreal gained from doing each of these things?
With the introduction of JIT to the manufacturing system and the various changes that the company made to its manufacturing and labor set-up, many benefits have been realized. The main benefit that may be easily identified is the seeming fulfillment of the company goals, objectives, vision and mission to be a leader in the toiletries and cosmetics industry and to offer value for money for their consumers. Other benefits that may be outlined as gained from the process of set-up reduction are: 1. Successful reduction of the in-process inventory that would ensure return on the investment made on the introduction of the JIT system.
2. After introduction of the JIT system and the changes made to the
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Focused production centers would specialize in the production of specific products. This would be a positive change that would ensure that the production machines were well maintained and that the technology employed in these production centers was specific and customized to the type of products that were to be manufactured there. 6. With the just-in-time (JIT) system in place, there would be reduced costs on taking inventory. Automated information systems would be introduced to ensure quick communication when a stock of products was diminished and a need arose for replenishment.
This would then ensure that products were availed just when they were needed and they would be ready from the factory. 7. Reduction on product storage requirements would be on more advantage or benefit that was gained with the change if operating systems in the company. Since products were availed when they were needed (just-in-time), there would be minimal or no storage needed at the company premises. 8. Increased and better shop-floor management as well as creation of space that would be availed for future expansion is one other benefit that was seemingly gained.
The reduction of production storage through the introduction of JIT would give the company ample space for future expansion. Space that may have been used to store products would now be availed for expansion of the production or administrative activities in the company. 9. Reduction in the setup would see the company focus on improvement areas that would ensure better customer service. Improved staff allocation, utilization of specialized skills would ensure improvement in quality of products and staff skills. 10.
With the division of production to specialized centers and the introduction of the JIT system to the company’s processes, there would be better staff scheduling that would lead to improved consistency in the staff working times. 11. By manufacturing products just-in-time, the company would ensure that the suppliers demands for replenishment of products in the distribution centers to ensure that consumers get the products available when they need them. If we could halve all changeover times in the factory, what effect would this have on inventory?
The introduction of JIT system in the manufacturing process has brought great reduction in the changeover times and helped reduce the costs of inventory taking. By further halving the changeover times, significant improvements will be realized in the manufacture of products and enable manufacture of smaller batches of products when needed. This would then see improvements in the company in, though not limited to the following benefits; 1. Customer satisfaction: – Reduction of changeover times would ensure quicker manufacture of needed products that would be distributed to the clients who want them in time.
2. By reducing the changeover times, manufacture of smaller batches of products would be possible. This would ensure that when a line of products is depleted, there would be manufactured quickly. 3. Improvement on quality of products: – When changeover times are halved, there will be production of smaller batches of products. This would make quality monitoring easier and make improvement of products to suit market/consumer demand easy and quick. 4. Specialized training would be offered to skilled staff on the production of all product lines.
This would then ensure that the company staff would be deployed to any sector to ensure continuity of manufacture of products, efficiency in labor distribution and effective use of the company human resources. 5. With the production of smaller batches, there will be cost effective manufacturing and efficient use of the company resources. Focus on smaller batches would also ensure that the improvement team would have less time spent in quality monitoring and more time spent collecting data on the client needs and market trends to ensure that the market niche is sustained and expanded.
6. There will be sustained supplier relationship that will ensure improved supplier of products and a possibility of increased consumer loyalty. 7. Return on investment would be assured and this may lead to expansion plans to ensure that the company reaches markets that it had not penetrated before. 8. Improved competitiveness would ensure that the company competes effectively in the market to ensure that it does not lose the market it had created to its competitors.
All strategic decisions made by L’Oreal have seen the company make great strides towards improving its production and growth in the market. By showing improvements in production and in the market, the company would be able to attract competitive and skilled staff that would ensure continued growth for the company. Company objectives, goals, vision and mission would not only be realized, but future expansion plans would be viable. All these would be deemed as achievable only with the continued strategic decisions and changes made in the company.