Leagile Manufacturing Essay Example | Topics and Well Written Essays - 3750 words

Leagile Manufacturing - Essay Example The paper throws light on the concept of Just in time was introduced to reduce the cost of the overall production by reducing the waste in the process. The reduction in the waste associated with the production process decreased the unnecessary cost of storage and maintenance which also contributed in the overall decrease of the cost of the production, besides, concept of Just in Time was aimed to reduce the involvement of high proportion of its working capital towards the stock as Just in Time involves the ordering of stock only when required. Considering the advantages of the Just in Time technology, the vice president of the organization, Scott Murphy, decided to implement the system in order to provide the organization with an effective edge in respect of its competitors. However the implementation of the Just in Time environment emerged to be a failure for the organization, and problem was encountered in almost every aspect of the business. After the new system was implemented in the organization by Scott Murphy, the organization found out that instead of reaping benefit for the organization, the new system is causing hindrance in the productivity to a large extent and there have been complaints from every sector of the business, and also gave rise to the dissatisfaction among various section of the employee. The purchasing department of the organization was highly dissatisfied with the process. According to the words of the purchase manager, an increase in cost emerged after the new system was implemented in the organization.... izations spend a huge amount of money towards the protection of the inventory and its maintenance, and also suffers a threat from the loss, if the inventories are not used due to economic fluctuations or due to the change in taste and preference of the customers. But Leagile manufacturing’s main problem arose with the start of the ordering for the material when on need. The costs associated with the purchase orders are significant and the overall cost of the purchase orders increased to a large extent as frequent orders were placed for the purchase of materials. Apart from the problem of the rise in cost of the purchase, the organization faced a significant problem with that of the frequent change in schedule for the order. As the stock of the inventory was calculated on a regular basis, so the schedule of orders were also changed accordingly and caused significant amount of trouble. However the problem associated with the process of production can be identified in the failure of the organization in determining the right amount of the inventory required for the production. If the process of the identification of the right amount of product would have been done in a proper way, then the case of shortage of material in the process of production would not have occurred and the production people would not have asked for the next day delivery of the material for the change in the schedule. As a result of the failure to deliver the right amount of raw material in time, the overall production process was hampered and even caused a lag in the production. The Just in Time incorporated in the organization was successful in reducing the inventory cost but the associated cost increased the overall cost of the production. The incorporation of the just in Time technology also