Mass production in Industry: Efficiency-driven Advantages

Q.1 Can you think of an industry or profession that employs mass production principles?

• a. What are the strengths of this industry or profession? (10 points)
• b. What are the weaknesses? (10 points)

Ans. Mass production methods depend on two general standards:

• · The division and specialization of human labor.
• · The utilization of tools, machinery, and other equipment in the production of a standard, interchangeable parts, and products.

McDonald's is one of the dominating food chain industry which work on mass production principles. McDonald's is the world's biggest eatery network by revenue serving more than 69 million clients every day in more than 100 nations across around 36,900 outlets as of 2016.

The strengths and weaknesses are determined by SWOT analysis which are given below.

(a) Strengths:

• · First company that applied pull strategy in fast food market.
• · Proper implementation of lean tools i.e. Kanban, Poka Yoke, One-piece flow, Layout plan, etc.
• · Strong management structure in production design.
• · Diversified geographic presence.
• · It is based on just-in-time kitchen system.
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• · Effective application of supply chain in the system.
• · Diversified income.
• · Applying Six Sigma for quality customer service.

(b) Weaknesses:

• · Restricted procedure adaptability.
• · Low product enhancement.
• · Sustainability.
• · high employee turn-over.
• · lack of disruptive innovative products.

Q.2 a. Investigate and explain in your own words Toyota Production System (TPS) (10 points)

Ans. The Toyota Production System targets to streamline processes and minimize waste to improve productivity and efficiency. It focuses on individuals in the working environment and eventually satisfying the customers. The Toyota Production System also includes changing the working environment, so every individual tends for little approaches to constantly improve processes.

This persistent improvement is called kaizen. Numerous different techniques and tools are utilized in TPS including 5S, gemba, kanban, just-in-time, poka yoke, and heijunka in order to get best quality, lowest cost, shortest lead time, best safety and high morale. Jidoka and JIT are the two main pillars of TPS to acquire continual improvement. In short, TPS is a continuous improvement to achieve better result in entire value chain.

b. Investigate and explain in your own words why is TPS is so important. (10 points)

Ans. There are many benefits which are associated with TPS in system. JIT helps to improve customer service by delivering product matching customers demands. Improvements in throughput and value add per person leads to better productivity.

Jikoda proved to be efficient in reducing the defects in the production line. Lean strategies applied in TPS are affective to achieve shorter lead time, lesser waste and improved stock turns. All the above-mentioned benefits also have financial impact on the firm and better customer relationship.

Q.3 How is Flow Shop different from Job Shop (10 points)

Ans. In flow shop processes, the process is set in a linear structure. Therefore, mostly the machines essential to complete the process are set in a convenient way to limit idle time. I feel this is convenient when you have a standardized product. McDonald's could be a good example. For instance, BigMacs are experiencing one and the equivalent pre-set process.

In the job shop processes, processes are set by functions of different pieces of the process. I believe that would be helpful when you can't standardize your product to make an assembly line process. For instance, a top-notch eatery with an evolving menu. Subsequently, processes in such kitchen are separated into workstations by functions (for example saucier, barbecue, pastry, and different workstations). This order keeps up the variety and adaptability of a restaurant.

Q.4 During the past five years, Toyota has faced its worst crisis in 50 years.

a. How has Toyota responded to the crisis? (5 points)

Ans. Toyota managed the effect of poor quality in the year 2007, which affected its reputation and brought the crisis to the business. Negligence of the nonfamily chiefs on the major elements security and quality were compromised for lessening the expense of or production.

That impacted in low quality cars with issues i.e. gad pedal and brake failure issues resulting in recall of more than 8 million cars. The company was effective, but its leadership was poor as company's president avoid taking any responsibilities. But the management took step ahead and recalled faulty cars and allied with government workforce and relationship management to help to overcome the crisis.