Task 1: To what extent could or should Deane expect to apply the philosophies and techniques of JIT/Lean to the running of a staircase cell?
Staircases Production Company (SPC) is a small, successful, privately owned timber and building materials company based in a small city in the UK. The company offers a wide variety of timber products, from regular doors, windows and staircases to special products such as non-standard sections or special profiles (i.e. old designs of skirting board). Its products stand out from its main competitors (small joinery businesses) with high levels of quality. Due to the quality of its products as well as the huge demand of special stairs in the region, sales has been increasing steady …show more content…
To sum up, it can be said that the application of Lean principles is possible but it will be a great challenge for SPC.
Task 2: What are likely to be the main categories of costs and benefits in establishing the cell? Are there any non-financial benefits which should be taken into account?
Listed below, there is an analysis of the benefits (financial and non-financial benefits) and the costs (financial costs) expected to be achieved with the implementation of Lean principles in SPC:
- Benefits. The company will gain financial and non-financial benefits which will affect the revenue stream of SPC and the level of satisfaction of both customers and employees.
• The financial benefit of Lean for the company expected is an increase in its revenues as a consequence of increasing the productivity by finding and eliminating the waste within the process. This is achieved through reorganising and tidying the manufacturing floor (using 5S/CANDO or visual management), improving work flow to eliminate motion and transportation between stages of production (workshop layout) (Page 2004), and increasing employee efficiency by specialising and standardising the work and cutting out wasteful work;
• Non-financial benefits are shown by the level of customer and