OPERATION MANAGEMENT Case Study Solution
Performance Effect of Lean
There are various aspects of lean operational management which includes time management, waste management, efficiency enhancement etc. Implementing lean operations could improve the operational efficiency by eliminating waste through time management, inventory management and waste management. These different aspects of lean operations are affected by firm size, customer characteristic, country, organizational culture and approach to implementation. Hence, performance aspect of lean can be impacted by firm size i.e. if the firm is small then the lean operation can be implemented easily whereas if the firm size is large then implementing lean operations to reduce waste in certain area will take extra time in comparison with the small size firm but the effect of lean operation on large size firm could be greater because of the size of its operations. Moreover, regulatory environment prevailing within the country also effect the lean operation management i.e. if the regulatory environment in the country requires company to follow strict rules and regulation then the company will require less improvement through lean operation management because company is already focused on managing waste due to strict regulatory environment prevailing within the country.
Organizational culture also affect the lean aspects according to the culture adopted by the organization i.e. whether the culture of organization focus in retaining and investing in employees and focus on employee development. This organization culture will impact the efficiency of the organization in reducing waste and time which effect the lean operations management within the organization. Hence, lean operational management can be affected by several aspects of organizations which are reflected by the impact on organizational efficiency.
The evidence of lean programming can be taken from the company IKEA a leading retail store giant in manufacturing and selling furniture. The business model of IKEA was to sell quality furniture through retail outlets. When customer were attracted to different models of ease and convenient i.e. they use to prefer companies where they don’t really need to visit store for selection of furniture then the company applied the lean operation management to change with the change in consumer demand. The company bought Task Rabbit application through which the company used to acquire online orders and used to deliver furniture once selected by the customers. The company also adopted the business model of online retailing which resulted in increased sales for the company. Hence, these adoption of business model is an example and evidence that the company has applied lean operation management to increase the company sales which was declined due to the old business model adopted by the company for retailing (NIGEL, 2017).
Conclusion
Companies used to apply lean operation management in order to gain efficiency through changes in business model or processes. The lean operation management are applied by the companies in order to reduce the cost of inventory management, waste management and time management. Moreover, apart from reduction in cost the company’s motive to apply lean management is to increase the profitability of the company through increased efficiency which could be resulted from change in business model and processes (Jaroslava Kadarova, 2016). Hence, after conducting analysis on several companies it is found that lean operation management is applied almost by every company as a part of the evolving world where the company’s business models are changing in order to meet and fulfill the demand of evolving customers. Moreover, lean operation management has provided advantages to the companies in the form of technological advancement, production efficiency, and increase in turnover of the company which enable the companies to transform themselves in the modern era of business where every business strategize to remain competitive in the industry so that customer base and the revenue base of the companies can be maintained and increased. Therefore, lean operation management is now considered the most important tool for the companies in order to remain competitive and survive in the competitive world of businesses..............
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