The Lean Management of Chain Supply Management - Case Study Example

LEAN MANAGEMENT, AGGREKO COMPANY NAME: INSTITUTION: COURSE: INSTRUCTORS NAME: DATE OF SUBMISION: Introduction. The report is based on the Lean Management‘s review and its application in an operational setting in “Aggreko”, which is the chosen company. The company of interest is the Aggreko Company that deals with provision solution to industries on cooling, heating and power generation. The Aggreko Company produces power by operating and installing mobile and modular power plants, rents and offers solutions and electrical equipment to the parties interested in their products. Besides, the firm provides power generators fueled by gas or diesel, distribution boards as well as cables and other hiring products. The Aggreko Company that is located in Australia offers several services and products. It deals with provision of solutions to industries on cooling, heating as well as power generation (Appelqvist, 2013, pp.184). Therefore, the company produces power by operating and installing mobile and modular power plant, renting as well as provision of electrical solutions and equipment. The products and services include rental generators, power accessories, fuel tanks, load banks and electrical distribution. Besides, the company offers remote monitoring, solutions library, sales used equipment (Clarke, 2014, pp. 82). Main customers at the Aggreko Company are the power-using organizations whose businesses cannot run without power supply. Therefore the Aggreko Company that deals with provision solution to industries on cooling, heating and power generation to its customers. The Aggreko Company produces power by operating and installing mobile and modular power plants, rents and offers solutions and electrical equipment to the parties interested in their products. Besides, the firm provides power generators fueled by gas or diesel, distribution boards as well as cables and other hiring products (Ellis, 2010, pp.76. Aggreko Company’s order qualifier These order qualifiers are the competitive characteristics portrayed by a firm for its competitiveness to be viable in the market. The Aggreko Company’s order qualifier is the good quality products and services alongside fair prices for the services and goods. Aggreko Company’s order winner The order winners are a reference to the characteristics that a firm displays thus attracting the customer’s interest to choose their goods and services as well over the products and goods from the firms’ competitors. Therefore, the order winner here at Aggreko Company is the product customization as well as their delivery speed being high. Also, the firm’s delivery is reliable with provision of after-market services and good design of the products in the market. This makes the customers to prefer their goods and services over the competitors’ (Flynn, 2015, pp. 659). Identification and description of the problems existing currently in the firm. The problems that are currently affecting the performance of the Aggreko Company in their delivery of their goods and services to their customers are a wide range. The problem of concern here is the inability of the firm to effectively provide temporary power as well as temporary control services. The inability to provide to the customers the temporary control services as well as the temporary charger (Peter, 2010). 2. Description of the evidence supporting the claim for the problem’s existence. Over the recent years the Aggreko Company has been unable to provide adequate and sufficient power and control services temporarily to their customers. The evidence for the existence of the problem is the loss records in the annual financial report of the firm. Also, the problem is evidence of less customers in the company and the majority joining other companies for the gain of the problem. The other evidence if the existence of the problem in the firm is brought about by the already governed. 3. How the problem if harming the potencies of the company The problem, which is the firm’s inability to produce sufficient and adequate products and services to their customers has been of great harm to the company. It has highly impacted negatively on the financial potentiality of the firm as well as its supply procedure of services and goods. Lack of adequate mega-warts and kilo-warts of power to be supplied to this customers has led to the loss of customers by the firm. Therefore, the company’s marketability has been harmed as a result of the problem. Also. The firm is unable to rent its goods and services to the customers in need of them due onto the absence of the requirements for the accomplishment of the tasks performed by the company. The employment department is affected by the problems cropping up in the Aggreko Company that provides rental services and goods related to electricity and weather regulation apparatus as well as selling them to the customer (Standing, 2013, pp. 935). 4. Literature review. Introduction The review on literature in Lean Management is giving the problem that is faced by the supply chain management 0ffice at the Aggreko’s as well as the frameworks that are available in the market of the business. These frameworks are appropriate for any other organization having the same problem in supply chain management department. These frameworks include the Ge-Mckinsey 9-box matrix, the porter’s five forces as well as the balanced scorecard. Also, we have additional frameworks which are benchmarking, the core competencies as well as the Boston Consulting Group’s share matrix growth (Fitzpatrick, 2006). Therefore, different authors have variated views on the supply chain management as well as having differentiated frameworks for the success of the business organizations. Also, the review addresses the Aggreko Company that deals with provision solution to industries on cooling, heating and power generation. The Aggreko Company produces power by operating and installing mobile and modular power plants, rents and offers solutions and electrical equipment to the parties interested in their products. Besides, the firm provides power generators fueled by gas or diesel, distribution boards as well as cables and other hiring products. It also takes care of the amendments and implementations that are required to be made on the organization for future production and servicing. The frameworks: (i) Core competences The identification activity of Aggreko’s core competences aids in the definition of the company’s competitive benefits as well as its positioning advantages. The core competence is the proficiency in the areas whose competitor’s replications are not easily traced. This has led to the allowance of the company to deliver different and unique values, products as well as services to their customers. Therefore, the company is at a change of gaining the potency in the competitive market. The Aggreko Company employees as well as the unique cultures there have greatly helped in the alliance of the firm’s production of better services to the consumers (Hill, 2007, pp. 47. (ii) The BCG growth share matrix framework. BCG (Boston Consulting Group developed this framework which is a quadrant matrix. The BCG being Aggreko’s tool that it uses for easy assessment of the relative strengths of the services and products within the portfolio. The four quadrats include the cash cows, stars, dogs as well as the question marks (Hill, 2010, pp. 46). The BCG framework takes care of the management’s portfolio towards the success of the servicing and production of the company. (iii) Porters five forces authors frameworks at the Aggreko’s. The framework was developed by an author named Michael E. Porter. This framework was aimed at being used in the strategic plan’s input. Therefore, these five forces on competitiveness of an organization is best described by the five elements of the porter’s model. The frameworks on competitive rivalry has been used in the Aggreko’s firm by Michael the author. The rivalry has fuelled the attempt of the Business opportunity to compete for the marketability of their products and services as well (Hill, 2013, pp. 38). The author also mentioned about threats of new entrants in the framework. This new entrants leads to the increase in the competition over the selling and renting of their services. Therefore the Aggreko Company is required to work harder and better to outdo the new entrants in the market as well as create advertisement materials that decrease the fame of the new entrants in the market. Also, we have threats of substitute offerings by other firms thus pinning down the goods and services at the Aggreko’s. We also have the bargaining power of the buyers being part of the formwork alongside the bargaining power of the suppliers (Lollar, 2010, pp. 423). (iv) The balanced scorecard The balanced scorecard is also another framework that has been taken into consideration by authors aiming at the development of the Aggreko’s servicing and goods production. The balanced scorecard therefore is the framework that can be used in the tracking of the important aspects to the strategies that the company uses as well as in the facilitation of the organizational changes as improvements as well (Scheer, 2010, pp. 73). Therefore the framework is used in the measurement of the metrics that are beyond the typical matrix in the financial segment. This is done with the aim of helping the Aggreko’s company in the maintenance of the strategic goals which are long-termed as a way of focusing and spotting trouble before their appearance in the financial statements of the company, the scorecards are quantitative as well as comprehensive sets of objectives that are always measured from time to time with the common components of the scorecard being; revenues, market shares,, consumer satisfaction metrics, quality as well as the earning (Spring). (v) Benchmarking framework This framework is used by the differentiated firms that are running the same business as that of the Aggreko Company. The process involves the comparison of the metrics of a given company with those of the competitors or to those of the companies whose innovative are outside the company (Nurmilaakso, 2008, pp. 725). These common metrics includes the employees turnover, the production cost, the revenues as well as the process cycle time. Through benchmarking the organization gets to acquire more strategies that greater organization are putting in place for their success. Therefore, the framework is recommended for our organization of choice (Matsumoto, 2009, pp. 1550). Discussion of the authors The authors have had different views and points of interest over a wide range of time. The differences are brought about by the different ideologies in everyone pertaining Lean Management in the supply chain management department. Therefore, several authors had a positive understanding and arguments over the subject with a few posing negativity towards the project and its application in Aggreko’s business (Lubale, 2016, pp. 678). These authors have been of great impact in the Aggreko Company that deals with provision solution to industries on cooling, heating and power generation. The Aggreko Company produces power by operating and installing mobile and modular power plants, rents and offers solutions and electrical equipment to the parties interested in their products (Nurmilaakso, 2008, pp, 376). Besides, the firm provides power generators fueled by gas or diesel, distribution boards as well as cables and other hiring products to their customer. The authors through the use of the data given and obtained from the organization formulate the respective frameworks for the benefit of the organization (Hill, 2007, pp. 49). Authors’ review on the subject and framework The several authors who came up with the business frameworks have been of great help in the Lean Management of the Chain Supply Management of the Aggreko Company. The different authors of the framework have reviewed the inability of the organization to provide adequate and sufficient power supply and products to the organization (Golkuhl, 2016, pp. 78). The operational benefits that are expected to be seen and experienced from the introduction of the concepts within the Lean Management into the chosen organization which is the Aggreko power supply and rental organization. These benefits include the increase in the supplier’s bargaining power which aids in the maximum profitability of the firm (Nurmilaakso, 2006, pp. 589). It also helps in the increase in the customers bargaining power helps them get services and products in a favorable price. Therefore, the adequate cost and speed of delivery by the organization has greatly helped the firm to market its products and services in the market (Atuahene-Gima, 2012, pp. 62). Several benefits will be expected to be introduced in the near future for the development of the Lean Management of the organization chosen. These benefits include endurances that the firm hassurplus products for the emergency cases.Ways in which the topic might develop in the coming five years are that the speed of the products delivery to the customers increase will lead to the development in the Lean Management of the Aggreko Company. Besides, the setting of reasonable process for their goods and services also imposes a probability of the organizations development in the near future. Conclusion The company of interest is the Aggreko Company that deals with provision solution to industries on cooling, heating and power generation. The Aggreko Company produces power by operating and installing mobile and modular power plants, rents and offers solutions and electrical equipment to the parties interested in their products (Arnold, 2007, pp. 439). Besides, the firm provides power generators fueled by gas or diesel, distribution boards as well as cables and other hiring products. In conclusion of the project, the framework analysis is necessary for the organization as a way of identification of the developments in the firm. The project plan for the changes to be introduced as a way of solving the problem is that the organization needs to improve on the products and services offered to the market as a way of being competitive in the market. This will highly impact positively in the customer’s preference to their products, services and goods as well (Arsanjani, 2009, pp. 490). Also, the balanced scorecard is seen as the framework that can be used in the tracking of the important aspects to the strategies that the company uses as well as in the facilitation of the organizational changes as improvements as well. Therefore the framework can be used in the measurement of the metrics that are beyond the typical matrix in the financial segment (Clark, 2015, pp. 88). This is done with the aim of helping the Aggreko’s company in the maintenance of the strategic goals which are long-termed as a way of focusing and spotting trouble before their appearance in the financial statements of the company, the scorecards are quantitative as well as comprehensive sets of objectives that are always measured from time to time with the common components of the scorecard being; revenues, market shares,, consumer satisfaction metrics, quality as well as the earning thus being a future project plan over the identification of new modernized strategies to put in place for the betterment of the organization (Evans, 2012). Reference list Appelqvist, P., 2013. Order winners, order qualifiers and supply chain strategies–a comparison. Strategy and organisation in supply chains. Heidelberg, Germany: Physica-Verlag, pp.181-196. Atuahene-Gima, K. and Li, H., 2012. When does trust matter? 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