Lean Production in a Changing Competitive World - a Japanese Perspective by Katayama and Bennet - Article Example

Business: case study report Author’s name Institutional affiliation Case study report The main learning points from the article The advocacy and marketing of lean production idea has dominated many school of thoughts and practice revolving around production system designs (Katayama & Bennet, 1996). Additionally, the principles and benefits of lean production have been acknowledged well and compelled such that as of recent times, there are quite a few numbers of countries and industries where its methodology and influence such as Total Quality Management, Just In Time as well as Total Productive Maintenance have less been felt (Katayama & Bennet, 1996). The main talking points of this article revolve around the examination of the importance and the role of lean production as far as the current economic and industrial environment in Japan is concerned (Katayama & Bennet, 1996). Additionally, this article explores and evaluates the contemporary pressures that Japanese companies face and how most of them are responding to the new environmental conditions that are arising as a result of the ever changing industrial, economic and competitive situation. Moreover, for its empirical factual evidences, the article uses the case study experiences of Japanese manufacturing plants (Katayama & Bennet, 1996). The first Japanese company is the final assembly plant industry that is basically an automobile manufacturer that is well known for its pioneering role in establishing and developing lean production. An electronics plant which is basically a telecommunications equipment firm is the second Japanese industry the article explores. The other case industries the company explores are the plant manufacturing refrigerators and the domestic air conditioners (Katayama & Bennet, 1996). By employing the case studies, this article explores and postulates that, Japanese companies have evolved and can no longer depend on concepts and technologies developed and initiated in the 1980s. By so saying, it means that, so as to remain competitive in the modern world, they must find ways of adapting to the most recent market developments as well as the shifting industrial relations climate (Katayama & Bennet, 1996). Additionally, this article clearly explores and assesses the paradox that revolves around most Japanese companies. The paradox that is explored simply states the fact that Japanese overseas operations are tremendously reducing and preventing the opportunities for the local Japanese plants to depend on exports as their only means of realizing large production volumes and outputs (Katayama & Bennet, 1996). Critical analysis of the article Lean production was thought of as the most effective and the superior technique of producing manufactured goods in the early 1980s. Additionally, to support and argue their assertions, the authors of the book, The Machine that Changed the World tended to draw their factual evidences from Japanese industries most especially automobile industries which they believed has established techniques and means of building and designing cars with fewer people, less time coupled with lower inventories as compared to the Western manufacturers (Katayama & Bennet, 1996). However, in order for Japanese companies to realize and maintain a competitive advantage, they no longer have to depend on the concepts and technologies that were fashioned in the early 1980s (Katayama & Bennet, 1996). They have to evolve with the demands of economic, technological and industrial environments. In this case, Companies need to develop a more adoptive method of production that is dynamic and flexible at all times. One of the primary aspects of lean management is that; very limited resource inputs are needed by the manufacturing system in terms of materials needed and time-frame of production. Additionally, there is immense pressure as far as output production is concerned such as higher technical specifications, better quality and a variety of products which in turn offers greater customer satisfaction , in the end, the lean production firm gains a competitive advantage in terms of market share (Katayama & Bennet, 1996). However, as much as lean production management seems like a superior method of production, one of the questionable factors about it is its robustness as a production approach in coping with evolving future market and economic conditions given the fact that it came into existence during the Bubble economy where demand for goods was extremely high and generally, they were characterized with low interest rates and bull stock market (Katayama & Bennet, 1996). Adaptable production is a concept of production that may act as a better alternative to lean production. By way of explanation, adaptable production is fundamentally, a concept of production that is based on the collection of technologies as well as methodologies that go hand in hand with adaptability rather than process and resource efficiency Katayama & Bennet, 1996). As compared to lean production, adaptable production offers a cost production that is so sensitive to changes and economic demands. Its system enables the rate of production to be adjusted depending on the market changes (Katayama & Bennet, 1996). Consequently, high product variety can be realized without necessarily switching to new designs. By so doing, adaptable production gives room for modularization of product designs so as to enable efficient and effective production of greater goods and service mixes Katayama & Bennet, 1996). However, as much as adaptable production is more dynamic as compared to lean production, the operation management of any industrial firm should establish a way of establishing it so as it may utilize minimum level of workers within a very short period of time. Summary and personal reflection of the article From the case analysis taking into account the bubble economy of japan, lean production actually proved to be one of the most effective and competitive manufacturing method. However, as far as the most recent recessions are concerned as well as the ever rising threats in terms of imports, has questioned the effectiveness of lean production most especially given the fact that there have been economic, industrial and market changes that have occurred recently. One of the notable weaknesses of lean production is basically its ineffectiveness when it comes to soaking and absorbing the reductions and variations in demand for already finished goods and services that have occurred in most Japanese industries. By so saying, it means that, a slight shift in demand may move the production of goods and services below the break-even production point. It is therefore of utmost importance for the manufacturing company to establish a way of manufacturing products profitably across a number of demand levels. Adaptable production gives manufacturing companies a more advanced alternative on production since it gives room for embracing features and attributes which enable companies to operate with minimum fixed costs and in the process gain advantage of the variable cost element. Additionally, with additional attributes, adaptable production offers a more advanced technique of producing a mix of products in different varieties efficiently while in the process, the company may still be strategically viable and still competitive in the market (Katayama & Bennet, 1996). On a personal level therefore, adaptable production offers a better dimension to production as compared to lean production. Reference Katayama H., and Bennet D., (1996). Lean production in a changing competitive world: a Japanese perspective, International Journal of Operations & Productions management. Vol 16 No 2, (1996). Read More