Business – 9.3 Operations strategy – Flexibility and innovation | e-Consult
9.3 Operations strategy – Flexibility and innovation (1 questions)
Login to see all questions.
Click on a question to view the answer
Advantages
- Waste reduction: Eliminates non‑value‑adding activities, lowering material and labour costs.
- Improved flow: Streamlined processes reduce lead times and increase throughput.
- Higher quality: Continuous improvement (kaizen) and visual management detect defects early.
- Employee engagement: Workers are encouraged to suggest improvements, boosting morale.
Disadvantages
- Implementation cost: Training, re‑design of workstations, and possible capital investment can be substantial.
- Resistance to change: Long‑standing staff may be reluctant to adopt new routines.
- Risk of over‑reliance on low inventory: Just‑in‑time systems can be vulnerable to supply chain disruptions.
- Potential loss of flexibility: Highly standardised processes may limit the ability to customise products quickly.
Overall, while lean manufacturing can deliver significant efficiency gains, success depends on careful change management, adequate training, and robust supply chain contingency planning.