How has Lean Manufacturing Influenced the Service Industries - Essay Example

HOW HAS LEAN MANUFACTURING INFLUENCED THE SERVICE INDUSTRIES? Lean manufacturing describes production strategies, practices and strategies, which are focused at providing value to consumers. In lean production, the utilization of raw materials and production resources is dedicated at providing goods and services that buyers will pay for willingly to satisfy their needs or preferences. Lean manufacturing has significantly influenced the business practices and strategies of businesses within the service industry. This paper presents a critical review, analysis and discussion on how lean manufacturing has influenced the operations of service industries. The paper describes lean manufacturing in line with the service industries. The benefits and challenges of lean manufacturing are also analyzed within the paper with a goal of demonstrating how corporations within the service industry have employed lean manufacturing to provide consumer value for their services. The analysis also provides recommendations on how companies within the service industry would effectively employ lean manufacturing to enhance their competitiveness and performance within the market. The argument within the paper supports lean manufacturing as the prerequisite of effective and high quality services and consumer value within the service industry. The implementation of lean manufacturing within the service industry has significantly influenced the quality of services that companies offer to their customers. It is through lean manufacturing that the quality of services is effectively improved (Lee, Olson, Lee, Hwang & Shin, 2008, p. 973). The quality of services is defined by the ability of a company to meet or exceed the expectations of a customer (Carlborg, Kindstrom & Kowalkowski, 2013, p. 292). Lean manufacturing has allowed service providers to offer services that are aligned with the unique needs, tastes and preferences of consumers. This is made possible through the role of lean manufacturing in ensuring that consumers get exactly what they want. The design of services within the lean manufacturing paradigm is based on the specifications of consumers. In this sense companies are able to provide diverse services, which are aligned with the attributes of various market segments. More importantly, lean manufacturing has allowed companies to deliver services at the right time (Suarez-Barraza, Smith & Dahlgaard-Park, 2012, p. 360). It is through lean manufacturing that companies are able to deliver services and goods when buyers need them (Green, Lee & Kozman, 2010, p. 76). The mission, vision and core values of companies within the service industry have been influenced by lean manufacturing. Companies within the service industry design their mission and vision in line with the need of providing consumers with value in the services that they offer (Lee, Olson, Lee, Hwang & Shin, 2008, p. 974). For instance, service companies often look at value from the consumers’ point of view and engage their mission and vision in meeting this value. The business practices of service providers are also based on the need to provide value. This is based on the core principle in lean manufacturing which depicts the importance of determining what can be of value to consumers and aligning the production processes with this understanding (Mcdonald, Ellis, Van Aken & Patrick, 2009, p 28). Business values and practices, such as customized services to consumers, are influenced by the principles of lean manufacturing (Cottyn, Van Landeghem, Stockman & Derammelaere, 2011, p. 97). It is upon the lean production concepts that organizations within the service industry have been able to prevent wastage (Drohomeretski, Gouvea Da Costa, Pinheiro De Lima, & Garbuio, 2014, p. 805). For example, concepts in lean manufacturing have allowed service providers to eliminate environmental hindrances, which limit the efficiency and effectiveness of employees in the delivery of services and products to the consumers. Through lean manufacturing, service providers have also been able to eliminate wastage that is associated with the use of equipment and technology. In this sense, it is arguable that lean manufacturing play the leading role in the efficiency of services. The competitiveness of companies within the service industry is influenced by the level at which they implement lean manufacturing processes (Ghosh, 2013, p. 114). It is through lean manufacturing that companies have been able to reduce the production costs and at the same time improving the efficiency of their services (Lee, Olson, Lee, Hwang & Shin, 2008, p. 976). This has enhanced their profitability and an increase in market share. These illustrations demonstrate the role of lean manufacturing in enhancing the performance of service companies and therefore their competitiveness within the market or industry. The design of production systems and techniques in lean manufacturing is based on the need to achieve the highest level of efficiency (Suarez-Barraza, Smith & Dahlgaard-Park, 2012, p. 363). This means that service providers employ lean manufacturing in responding effectively to an increase in consumer demand, a factor which defines their competitiveness within the market. Companies which employ the lean manufacturing approach in service delivery are reported to be more competitive in the service industry (Wan & Frank, 2008, p. 68). The human resource management processes within the service industry have been influenced to a greater extent by lean manufacturing processes. Human resource management practices and strategies play a leading role in determining the success and performance of service providers. This is due to the role of employees in determining the quality and efficiency of the services, which are offered to consumers. The implementation of lean manufacturing principles in the human resource practices of service companies is reported to be the prerequisite of innovation and creativity in service delivery (Cottyn, Van Landeghem, Stockman & Derammelaere, 2011, p. 98). Human resource managers employ specific management practices, such as employee motivation, to ensure that they provide innovative, creative and improved services to customers, so that the company is able to create value for its services and products. The participation of employees in service improvement programs and processes is higher in companies that have employed lean manufacturing processes. Adoption and implementation of lean manufacturing strategies within a service company has an influence on the design of its business environment (Lee, Olson, Lee, Hwang & Shin, 2008, p. 975). Service providers ensure that the business environment is aligned with the attributes of the market and the needs of the consumers. For instance, restaurants design their business environment with a goal of providing a comfortable and safe atmosphere for its customers. Additionally, companies within the tourism service sector design their hotel rooms in a manner that is aimed at meeting the specific tastes of the consumers. Such designs are often based on the need to provide diverse services, which suit the social economic status of the customers. It is as a result of this that service companies provide services at different class levels and varying costs. Through effective design of the business environment, companies which employ lean manufacturing strategies are able to promote efficiency and meet the needs of their customers in the most effective manner (Suarez-Barraza, Smith & Dahlgaard-Park, 2012, p. 368). The standards of services have been influenced by lean manufacturing principles (Vinodh, Kumar & Vimal, 2014, p. 290). The service industry has specific quality standards, which companies must meet in order to compete favorably. Industry standards are based on the need to provide value for services, efficiency in service delivery and safety. Specific standards, such as communication and interaction with the market, have also been influenced by lean manufacturing practices and principles (Cottyn, Van Landeghem, Stockman & Derammelaere, 2011, p. 97). Service companies are dedicated towards achieving effective communication processes. This is aimed at promoting the relationship of the company with its stakeholders and customers. Online communication processes are preferred by modern companies because they promote standards of communication in terms of efficiency and reliability (Drohomeretski, Gouvea Da Costa, Pinheiro De Lima, & Garbuio, 2014, p. 807). The flow of processes and business activities within the service industry has been impacted by the lean manufacturing strategy (Ramesh & Kodali, 2012, p. 35). For instance, the flow of goods and services along the supply chain of a company are designed to achieve efficiency. It is through this that companies are able to deliver services to their consumers at the right moment. The design of services is also influenced by the need of providing convenience to customers. This is related to the principles of adding value and meeting the needs of consumers as described by the architects of the lean manufacturing strategy. It is therefore notable that lean manufacturing plays a role in the design, adoption and implementation of business systems within the service industry. Opponents of lean manufacturing argue that it is a highly expensive approach and therefore not suitable for small scale service companies (Lee, Olson, Lee, Hwang & Shin, 2008, p. 977). It is evident from this argument that the costs of operations are directly influenced by lean manufacturing processes. When lean manufacturing is implemented within a company, the traditional systems and setups are dismantled. These are replaced with new systems which support lean production processes. The acquisition of new systems is relatively costly. Other aspects of lean manufacturing which have attracted costs include training employees and losses that are associated with the implementation of change within an organization (Drohomeretski, Gouvea Da Costa, Pinheiro De Lima, & Garbuio, 2014, p. 808). Nonetheless, it is argued that the long term benefits, such as elimination of waste, increased efficiency and meeting consumer needs, supersede the initial costs of implementing lean manufacturing processes and systems. Change management practices are highly influenced by the lean manufacturing practices. Lean manufacturing is disadvantaged by the fact that a company faces the risk of resistance to change or lack of acceptance of the new lean manufacturing systems or setups (Cottyn, Van Landeghem, Stockman & Derammelaere, 2011, p. 99). However, effective change management processes would be used to overcome these challenges. This includes demonstrating to employees why the implementation of lean management setups is advantageous for both the workers and the company. For instance, the role of lean manufacturing in promoting effectiveness in work processes and making service delivery easy and efficient should be demonstrated to employees. This will enhance their motivation in accepting change and being part of the implementation and application of lean manufacturing processes or practices in service delivery (Lee, Olson, Lee, Hwang & Shin, 2008, p. 973). The supply of raw materials within the service industry is influenced by the implementation of lean manufacturing practices (Chauhan & Singh, 2012, p. 58). Lean manufacturing is based on the need for keeping the lowest amount of inventory as possible (Ciarniene & Vienazindiene, 2013, p. 42). This may have a negative implication on the delivery of products and services to consumers. For instance, sudden changes in demand may result in the inability of a company to provide adequate services to the consumers. Additionally issue of quality may be experienced in the delivery of services. These problems can be overcome through coordination and collaboration between the suppliers, producers and service providers (Cottyn, Van Landeghem, Stockman & Derammelaere, 2011, p. 97). This will ensure that convenient and adequate services are available to the market. An integrated communication process is recommended as the most effective way through which supply issues can be overcome in a lean manufacturing system of a service company. The critical analysis within this essay leads to a conclusion that lean manufacturing has had a great impact and influence on the business activities and practices among companies within the service industry. The impacts of lean manufacturing are however experienced by companies which implement the principles of lean manufacturing in the production and delivery of services to buyers or consumers. The aspects of service companies which are influenced lean manufacturing include the management processes, company objectives, mission and values, production processes and human resource practices. The organizational culture of a service provider has also been influenced by lean manufacturing processes. Challenges, such as costs of implementation and resistance to change among employees characterize lean manufacturing processes and practices among service companies. Since the benefits of lean manufacturing supersede the pitfalls, this approach is recommended for all service companies. 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