Lean manufacturing refers to a systematic method that is used in waste reduction within the manufacturing process (Nordin & Md Deros, 2017). This type of manufacturing process minimizes the waste from the supply chain management process without sacrificing the productivity in an organization. Continuous improvement is a crucial part of lean manufacturing. However, the food industry is associated with the substantial amount of foods that are produced in a large batch. Waste management is a crucial part of the food industry. Hence, for the food processing industry application of lean manufacturing will be beneficial to identify the steps that cause the excess waste in this industry. Food processing industry can manage the waste by food handling method. This study deals with the application of lean manufacturing in the context of Absolute Foods. This report is addressing Pat, who is the MD of Absolute Foods and the recommendations are given to him regarding the issues.
1. Discussion of the development of the philosophy, principles, and process of lean manufacturing process in the context of food processing industry
Development of the lean philosophy goes through an evolution. As for example, lean philosophy was first developed by Japan. Toyota is the first manufacturing company that adopted the lean manufacturing techniques. In the past years, lean thinking is associated with the manufacturing industry, however, in the recent years it has been evolved to public and trade sector (Nadeem et al., 2017). Despite the expansion of the lean philosophy or lean thinking in the new areas it cannot spread the many other areas in the business sectors. In the manufacturing industry, lean philosophy is stable. However, the transformation of the lean philosophy in the recent years has improved the service quality and the productivity of the industry. After the high effectiveness of the lean philosophy strategy is required to develop the process. Value creation without and waste is the major philosophy of lean manufacturing since its development to the present time.
Lean principles are associated with lean philosophy. The concept of lean practice is to reduce the raw materials, labor and time in the manufacturing process and to give the high volume of production (Reza, Adebanjo & Chan, 2017). The lean concept is derived from the Toyota production, which is the automobile manufacturing industry. In the recent years, this concept has been evolved and lean manufacturing also focuses on the waste minimization in the manufacturing industry along with the quality improvement. Literature focuses on the necessity of the establishment of the relationship between the customer and the suppliers in a manufacturing industry. Lean supply considers the entire process that is the flow from the raw materials to the suppliers. Therefore, long-term customer’s satisfaction is another principle of lean manufacturing that has been evolved in the recent years. In the recent years, the lean production philosophies need to evolve with the implementation of new innovation to cope up with the technological advancement. However, lean manufacturing is a renowned philosophy that is adopted by the manufacturing industries in the recent years.
A lean process has been developed as at previously it focused on the cost reduction, however, in the current time this process has evolved and focuses on the waste management and continuous improvement besides the cost reduction. Manpower reduction, increased efficiency, problem elimination, easy management, reduced space and safer work are the major aspects of the lean manufacturing process in the recent years (Zhu et al., 2017).
As per the given scenario, it has been observed that Absolute Foods supplies fresh meat and meat products to the customers with food intolerance. They check their food processing properly and there is no cause of contamination. Livestock procurement and animal welfare are the major initiatives of such organization, which makes them popular. They integrated technology into their food processing process that ensures the safety and standard of the food. However, Pat the managing director of Absolute Foods has limited knowledge about the latest thinking regarding the manufacturing process.
Incorporation of the lean manufacturing principle and philosophy will be helpful for this organization to enhance their operation process. The organization needs to consider the lean manufacturing by reducing the labor cost, raw materials and time along with a high volume of production. High volume production with low cost is the basic element of each manufacturing industry (Reza, Adebanjo & Chan, 2017). In order to get long-term customer satisfaction, Absolute Foods needs to consider more technological incorporation via adopting the lean manufacturing. However, as a managing director of Absolute Foods, Pat needs to adopt lean manufacturing in your food processing as it is helpful to reduce the cost of the operation. Lean practice is associated with the manpower reduction and the increased efficiency (Nadeem et al., 2017). Adoption of such principles and by applying it in Absolute Foods Absolute Foods can make a balance between the profitability and the investment in the food processing. Absolute Foods needs to manage the waste as it is a fresh food processing industry. Hence, this organization should focus on the implementation of the lean manufacturing to reduce the waste and to bring continuous improvement in the organization. On the other hand, Absolute Foods needs to follow the philosophy of lean, which is based on the Toyota production as such organization has increased their productivity besides reducing the waste and achieving continuous improvement. This will help the MD of Absolute Foods to improve the performance of the organization as the MD of this organization.
2. Discussion of the implication and challenges that arise during the implementation of lean manufacturing in the context of Absolute Foods
Lean manufacturing is or lean practice is beneficial for every manufacturing industry. This method helps the organization to reduce their cost and to sustain their business through continuous improvement (AlManei, Salonitis & Xu, 2017). One of the major challenges of the lean manufacturing is the issues regarding the employee development program. Often lean practice creates talent gap in an organization. In the context of Absolute Foods, they may face issues during the implementation of the lean. Lean manufacturing is associated with the continuous improvement with the application of high technology. Absolute Foods is a food processing organization and they focus on the technology. Thus, to get technical assistance via implementation of lean practice they need highly skilled employees having license and safety certification. As a result, they have demand for higher compensation.
Absolute Foods supply meat and meat product to the supermarket and restaurants across Scotland. On the other hand, one of the major challenges of lean manufacturing is the complexity in the supply chain process in the global market. Lean manufacturing is associated with the reduction of the storage time of the incoming and outgoing materials (Huo & Boxall, 2017). For this reason, it is important for Absolute Foods to track that the raw materials are coming on time to meet operational demand. As a result, the organization needs to make a close contact with the suppliers. This often creates a host of issues. Hence, Absolute Foods needs to make a good cooperation with their suppliers to carry on the just in time supply process by fulfilling the order. In order to make an improved supply chain in the global market high workforce is required. However, due to the implementation of the lean manufacturing process, Absolute Foods will try to reduce their manpower as it one of the major principles of the lean practice. This may affect the supply chain process of this organization in the global market. Keeping low stock is another principle of the lean manufacturing thus, an organization has to depend on their supplier more while implementing lean manufacturing process. Transportation delay, employee strike and quality error from the supplier’s end are the major drawbacks of the lean manufacturing (Wyrwicka & Mrugalska, 2017). As a food industry, Absolute Foods have to more effective in the delivery of the products. For this reason, an effective supply chain is crucial for them. However, delay in the delivery of the products due to the fault of suppliers may make the global supply chain of Absolute Foods.
Due to keeping low stock in the lean manufacturing process organization always needs to get the product at a scheduled time (Yadav, Seth & Desai, 2017). In the context of Absolute Foods, the lack of availability of the vendor hampers the delivery of the food products at a scheduled time. On the other hand, Absolute Food requires a small amount of raw materials from the supplier as they have to manage the low stock in the lean process. Therefore, they focus on the fresh food products thus, low inventory is mandatory for them. Hence, often the vendors eject to deliver such small amount of raw materials to this organization, which makes the supply chain complex in the lean manufacturing process (Mohamad et al., 2017).
The high cost of the implementation is another major risk of lean manufacturing as it leads an organization to dismantle the previous plant’s system (Kumar & Mitra, 2017). In the context of Absolute Foods, the organization needs to implement new machinery and equipment to increase the efficiency of the manufacturing process, which increases the expenses of the organization. Leaning down and the complexity of the supply chain in a global business environment ensure the drawbacks of the lean practice in the context of Absolute Foods. However, the Pat the MD of Absolute Foods needs to pay attention the necessity of managing the risks by developing a resilient and transparent supply chain process in their food processing. Such organization needs to consider the risk identification process to detect the risks associated with the lean practice. Therefore, it is crucial for them to train their employees to access the technology in the lean manufacturing and making a good track of the entire supply chain process to minimize the risks.
3. Recommendations to overcome the challenges of lean manufacturing in the context of Absolute Foods
High compensation for hiring the technical employees is a major challenge of the lean practice that may face Absolute solution. However, providing training to the existing employees to develop their skill will be helpful for the Absolute Foods to reduce their expense in the operation process. By providing training to the employees an organization is able to improve the performance of the employees and employee loyalty (De la Vega-Rodríguez et al., 2018). In order to reduce the employee development problem in the lean manufacturing process implementation of the technical system is crucial. Absolute Foods should consider a self-directed team to identify the problems of the employees and to resolve that instead of involving the management in this work. The training process should be shared widely across the organization not just to the employee.
Supply chain complexity is another big issue of the lean practice in an organization. However, the low stock should be maintained in the supply chain process. In the context of Absolute Foods, they provide meat and meat products thus it is crucial for them to maintain low inventory to reduce the food waste. Often complexity occurs to in the supply chain due to delay in transaction and irresponsibility of the vendors (Pereira & Tortorella, 2018). Making a continuous communication with the suppliers and establishing a good relationship will be helpful for Absolute Foods to reduce complexity in the low inventory management. This organization should focus on the maintenance of the continuous tracker to track each step of supply of raw materials. This will be helpful for the Absolute Foods to get the raw materials for their inventory on time.
As per the given scenario, Absolute focuses on the technical innovation to ensure the standard of the food, which may increase the operation cost. Hence, the high cost is a big barrier to the lean practice. Giving concentration on the cost fulfillment is an effective approach for an organization to keep the implementation cost of the lean manufacturing under control (Realyvásquez-Vargas et al., 2018). Absolute Foods needs to consider the lowest cost strategy. This organization should focus on the decision that will help Pat, the MD of Absolute Foods to meet their customer demand along with reducing the high cost of the lean manufacturing. This can be achieved by when the stakeholders of the lean manufacturing share the financial as well as operational benefits during the waste elimination. Supply chain complexity often occurs in lean manufacturing is the organization fails to identify the customer demand. Absolute Foods should consider the Plan-Do-Check-Act or PDCA tool. This will help such organization to resolve the cost of the lean manufacturing and to minimize the problem to enhance the customer value.
1. Critical Reflection on the five principles of Lean
Lean product development is first established in the Toyota in order to gain a competitive advantage in the global market. According to Womack & Jones, (1996), there are five principles associated with the lean practice one of the vital is defining the value based on the customer perspectives. However, in order to make the customer satisfaction, it is crucial for a business to define the value from the perspective of the customers in the context of a specific product with the specific price. Value is a flow between the many departments of an organization. As argued by Zhou, (2016), each entity of a business may not able to identify the value from customer perspectives and they define the value for themselves to gain the profit. In the context of Absolute Foods if this organization fails to identify the value before the implementation of the lean technique then it will lead them to provide a wrong product or service to the customers.
Identification of the entire value stream for each specific service or product is another principle of the lean. Identification of the value stream can be done through product definition, information management and physical transformation (Aqlan & Ali, 2014). This principle is effective for Absolute Foods to complete each phase of their supply chain process in a proper way. The entire process of product development to delivery can be done from department to department and organization to organization. Maintenance of the step flow of the product development that is from beginning to end is the third principle of lean practice. Absolute Solution should consider the flow that is working on the design, order and the product development steps to make their lean manufacturing process successful. As criticized by Jasti & Kodali, (2016), flow can be maintained through the continuous incremental development. However, flow can be maintained by bringing continuous improvement in each step of the supply chain management process.
Design the product and provide it to the customers when they demand it. This fourth principle of the lean practice is crucial for an organization to satisfy the customers by meeting their needs with specific products or service (Womack & Jones, 1996). This principle brings a good opportunity for Absolute Foods to eliminate waste in the form of design, which is obsolete before the introduction of the product. The fifth principle of lean technology is the pursue perfection. During the implementation of the lean technique up and down occurs in the value stream, as a result, some issues start to take place in the manufacturing process. This enables Absolute Foods to maintain the continuity of the improvement.
2. Critical evaluation of the benefits of the lean practice on the performance of the business in the context of Absolute Foods
Reduction of the waste is the main benefit of lean technique. According to the first principle of the lean technique, waste can be eliminated from the operation process by differentiating the value for the consumers (Bhamu & Singh Sangwan, 2014). Defining the value based on the customer perspective will be beneficial for Absolute Foods as it will lead the organization to identify the needs of the customers based on which they can offer their product or service. As for example, Absolute Foods offers meat and meat product. In the recent years, people are more health conscious thus, it is crucial for Absolute Foods to supply hygienic food products to the customers. This can be done by defining value from the customer’s perspective, not the organizational perspective. However, by following this principle of lean practice Absolute Foods can enhance their performance by understanding the current needs of the market.
Identification of the value stream of the specific product allows Absolute Foods to evaluate the product definition through analysis of the detailed design of the product. Therefore, information management can be done to make a track regarding the delivery of the product. Therefore, the physical transformation that is from the collection of the raw materials to the development and delivery of the finished product to the customer’s end can be carried out by the identification of the value stream (Piercy & Rich, 2015). As argued by Panwar et al., (2015), if the value stream is not identified in a manufacturing process then continuity of the entire supply chain will be broken. However, Absolute Foods can monitor each process of the product development through following this principle of lean manufacturing. On the other hand, maintaining the value-creating steps flow will enable Absolute Foods to introduce new technology in their manufacturing process. This organization is meat processing food company. Hence, by following the lean manufacturing principle they can incorporate new technology into their food procession to enhance the food standards and its hygienic level.
According to the fourth principle of the lean technique waste management can be done by proper designing of the product manufacturing. This enables an organization to develop the product based on the demand of the market (Nallusamy, 2016). In the context of Absolute Foods, they need to design their meat processing as per the needs of the customers by following this particular principle of the lean manufacturing process. This will be beneficial for the organization to eliminate the waste along with the increased productivity. Lean principles will help Absolute Foods to elaborate the inventory tracking system, which will make a control over the inventory and low stock will be managed. Meat is raw food material and excessive inventory can spoil this food product and create waste in the manufacturing process. Hence, by following the principle of the lean technique Absolute Foods can minimize the waste from the supply chain operation process. On the other hand, by following the pursue perfection principle of lean the continuity can be maintained in terms of cost reduction, space reduction and time reduction in the context of Absolute Foods.
Conclusion
The entire piece of work provides a brief overview regarding the application and significance of the lean practice in the context of Absolute Food. It has been observed that implementation of the lean manufacturing process in the food processing industry is associated with some major challenges besides the benefits. The major challenges are high cost, supply chain complexity, and employee development issue. Therefore, application of the lean principles Absolute Foods will be able to take necessary initiatives to reduce the complexity in the supply chain by marinating low inventory and developing a good relationship with the suppliers by identifying the demand of the customers.
References
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