Strategic Management

By:
Khalid Al Salami
Younis Al Souli
Salim Al Busaidi

Friday 27th Sep 2019

• From lean production to the lean enterprise
• Harvard business Review on Managing the Value Chain
Abstract
• Business became VUCA
• Most of Organizations always look for improvement
• Need to be efficient and responsive
• Adapt to the Eco system (PESTEL)
• Striving to do more with less, and do it consistently
• Organizations started to implement efficiency programs:
• Six Sigma
• Lean Manufacturing/production
• Lean management
BUSINESS SURVIVAL and Competitive Advantage
The way of packing oranges in Japan

4
 Orange Packing (1)
It is difficult to open a net and put
oranges in the net at the same time.

I need
help.

1 net per min. 5 nets per min with 2 workers 5 nets per min with 2 workers

5
 Statement of problem

HOW ORGANIZATIONS ADAPT BEST COST HOW ORGANIZATIONS BALANCE BETWEEN

EFFECTIVE PRODUCTION BEING LEAN AND NEEDS OF INDIVIDUALS,
FUNCTIONS AND ORGANIZATIONS
Research Question
• Why Organizations Adapt Best Cost effective Production
• How Organizations balance between being Lean and needs of
Individuals, Functions and Organizations
 Over Production--Producing more material than is needed before it is needed is the
fundamental waste in lean manufacturing.
 Excess Inventories--Material sits taking up space, costing money, and potentially being
damaged. Problems are not visible.
 Waiting--Material waiting increases lead time and cost without adding value to the product.
 Producing Defective Products--Defective products cause rework, impede work flow and lead to
wasteful handling, time, and effort.
 Wasted Employee Motion--Toolrooms.
 Transportation--Moving material between work sites does not add value.
 Over-Processing--Over engineering, inspections, layers of document review, unnecessary
requirements.
 Quality deficiencies
 Maximize Profit
 No balance between needs of Customers, Individuals, Functions and Organizations
Objective of the study
• To Adapt Best Cost effective Production
• To balance between being Lean and needs of Individuals, Functions
and Organizations
• Reduces delivery time, cycle time, set-up time
• Eliminates waste
• Seeks continuous improvement
• Improves quality
• Increases overall customer satisfaction
• Improves employee involvement, morale, and company culture
• Increase Revenue and Income
• balance between needs of Customers, Individuals, Functions and Organizations
 • The German: focus on technological knowledge and
individuals advance by climbing the functional ladder.
• The American: focus on the individual. every
company for itself
Lean Models • The Japanese: focus on the needs of the company.
Companies to focus on the needs of the value stream
Behavioral model for individuals, functions, and
companies.
Lean Method • Khalid
Summery
Organizations need radical changes in employment policies, the role of
functions within companies, and the relationships among the
companies of a value stream
Recommendation
• value-creating activities can be joined, but this effort will require lean enterprise model
(lean Behavioral Model)
• ds
• Organizations need a radical changes in employment policies, the role of functions
within companies, and the relationships among the companies of a value stream
• Alternating Career Paths. When individuals and functions feel threatened by streamlined
processes, these processes won’t be streamlined for long.

• Functions Act as Center of Excellence: is to develop guidelines—the best practices—for,

say, purchasing or marketing and to draw up a roster of those companies
• Organization should have Sharper Focus for (companies today do too much and do
much of it poorly)
Conclusion
• Lean is one of the tools for TQM which focuses on adding value to the
customers
• Six sigma and lean are excellent road‐maps, which could be used one
by one or combined, together with the values in TQM
• 6 Sigma is very technical and it does not give much attention to
quality
• Organizations need to brand the quality of its products to remain
competitive and gain customers loyality