Operations Management Excessive Stocks

Question: Discuss about the Operations Management of Excessive Stocks. Answer: During the time of my involvement with the manufacturing industry making automobiles suspension products, I had participated in an academic program to enrich my knowledge. To pursue with the program, I selected a specific project based on determining the lean management principles to improve the overall manufacturing process and sustainability of the manufacturing business. I believe that the particular study will elevate my skills to help me performing better regarding my professional career. Since the participation in the workforce of a manufacturing company, I have experienced a critical fact that the business processes are highly chaotic and disorganized. Even in the most decorative organizations, the same phenomenon can be observed critically. I have noted that the businesses need to take the inputs and transform them into the outputs according to the demands of the particular market. Whether it is a giant facility manufacturing computer component or cars, or a small business pr oducing car parts, the same principle should need to be maintained comprehensively. The identified process is necessary for the business to create more value with the less complicated works. The same process also applies to the individual levels of the organization. Lean management is one of the most important notions with the combination of 5S to ensure the development of a clean and organized workplace environment. Such an understanding leads me to select the topic to continue my study and assisting the growth in my academic skill level. Sorting, set in proper order, shine, standardise, and sustain are the 5S utilised in lean manufacturing principle, where the manufacturing companies require to implement all the five stages as part of their lean imitative. Concerning the first and the second phase, the companies need to sort out all of their unnecessary work tools and supplies to remove them from the workplace and ensuring the availability of adequate space for the production. Next, the shining stage is involved with cleaning the production space for facilitating the smooth conduction of work, whereas the standardize step enables the company to adopt different cleaning methods consistently. The continuous improvement of the manufacturing process to enhance the growth of production volume and quantity helps the company to withhold the last stage i.e. sustainability. Therefore, the historical development of lean manufacturing embarked to eliminate the waste generated from the overburden or unevenness of workloads syste matically. According to my investigation, I gathered the information that the relevant concepts and principles of lean derived from the Japanese manufacturing industry. The particular terms first invented by the 1988 articles formed by John Krafcik, who was a quality engineer of Toyota, one of the leading car manufacturing companies based in Japan. In this scenario, I must need to mention the benefit of selecting lean manufacturing concepts over the other conventional methods available for the manufacturing companies. The enterprises can ensure the value flow at the pull of the customers by implementing the lean manufacturing principles. At the same time, a business can eliminate the waste generated through the execution of the manufacturing processes. With the particular benefits obtained by adopting the lean principles, the performance quality of the organization can be elevated with a few defects. The manufacturing division of the company can maintain the value flow by introducin g the Just In Time (JIT) method and pull the customers towards the organization. One of the most significant aims of examining the concepts of Lean is to ensure the proper application of the knowledge obtained from the study, and apply it to my current workplace condition. I am currently working in a small manufacturing company producing Leaf Spring, which is an automobile suspension. I have found that the manufacturing division of our company highly faces the troubles regarding the leaves of key employees and ineffective training provided to the new employees. The particular scenario leads the company to become more prone to conducting mistakes and becoming non-functioning in the required time. Therefore, I have recognised the need for following and adopting the lean principles to these parts for securing the opportunity related to the improvement of the current business process. Concerning the lean philosophies, I developed the understanding that the primary emphasis should need to be provided to creating more values for the customers with the limited resources available. In this case, I must need to optimise the entire flow of the work through providing access to the needful tools for the employees. Such process will result in the development of outcomes in more organised manner. Conclusion: one of the primary principles of Lean is spotting out of the value of the product as perceived by the customers. I developed the useful understanding from the overall course of study. Therefore, the business can generate more numbers of satisfied customers by the core application of lean, as it will gain the ability provide the customers what they want at the right times. Apart from that, I came to know that the application of lean principles has the positive financial impact over the manufacturing companies with facilitating the improvement of profits. Where many accountants perceive the high volume of stock as the benefit to the business, lean principles suggest the factor as the major hindrance because of the additional value involved with the excessive stocks.