Understanding of Lean and Just-in-Time Production. Zara's innovative Essay

Understanding of Lean and Just-in-Time Production. Zara's innovative business organization - Essay Example Understanding of Lean and Just-in-Time Production. Zara's innovative business organization The Just-In-Time production is the first way which ensures more efficient use of resources. Many firms incur extra and overhead costs who stock-up resources beforehand. Through this firms waste space and monetary resources. At Portakabin JIT production methodology is used which pulls the resources itself into the production process. Portakabin only holds resources for orders which are in process hence no extra cost is incurred for idle materials and resources. Also advance systems are being used which make calculate exact reorder points with little or no error hence keeping the production process on time. Another way that Portakabin utilizes in lean production is the reduction of waste. How Portakabin reduces waste is quite innovative and hadn’t been done in the construction industry before. Portakabin started modular production of components required for an order at separate sites which greatly reduced the size of on-site production facility and the no of laborers required th ere hence reducing the traffic and environmental pollution at on-site facility. It also used such designs which required standard size resources easily available hence no customization or trimming would be required. Re-use of materials along the production process which were up to the mark and passed testing. Portakabin also promotes recycling of the little waste produced during the construction process and also employees advice of waste contractor. Explain how just-in-time production would operate in delivering and assembling a new Lilliput Children’s Centre. (15 marks, 300 words) Just-in-time production technique eliminates the cost of storage of resources while at the same time no cash is tied up in the holding stock hence the cost of the nursery significantly reduced. At Portakabin advance replenishment systems have been employed which work efficiently with zero or little error margin which is quite less to pose a threat to the production process. This system identifies t he exact reorder points necessary to place order for the resources hence reducing the cost by no extra inventory while the production stays on schedule as the resources are replenished at the right time. Also Portakabin enjoys an ISO 14001 international standard assuring it is an environmental friendly organization and follows procedures which reduce pollution and works for the benefit of the organization. As it’s a Children’s center it has to have an environment that is healthy through usage of quality material. Portakabin follows quite rigid and though safety policies for children safety and does not compromise on it. In the case it has been highlighted these children’s centre provide work as a resource for the whole community. Using JIT this resource can be created in half the time as compared to other methods if employed also using modular building techniques make the rooms multipurpose which can be used as kitchens, creche facilities, and training rooms as well as nurseries. If other traditional methods which employed on-site construction and non-modular designs were used the construction process time would have exceeded by many folds and would have limited the center’s usage because of its specific design and texture of rooms. Evaluate the impacts on Portakabin of using lean production. (15 marks, 400 words) Usage of lean production at Portakabin