Aveneu Park, Starling, Australia

One strategy. Another cost category can be

One of the non-financial benefits of the JIT system is the enhanced level of motivation on the part of the employees. Implementing the cell manufacturing system and as a result, employees will be empowered to make their decisions. Other benefits are minimization of inventory. This will minimize the level of carrying costs and therefore facilitate the implementation of the cost minimization strategy. Another cost category can be in the form of separate cells requiring the same machinery and this adds to the level of expenditures required in making the process effective.2) At what stage, and how, should Dean sell his idea to the Joinery Manager and to the workers?Dean should sell the idea to the Joiner manager and to the workers at the very start during the conceptual stage. Converting to the JIT system means that this will be a project of managing change. Most projects of this kind fail because employees are unwilling to accept change. In fact the success of the conversion depends on the early involvement of the workers because they are in the best position to generate ideas on how to maximize the efficiency of the process design.3) How different would the cell work (job design) be to that in the main Joinery Department?The cell work would be different because the entire floor of the department would be divided into small cells that would specialize in different parts of the product manufacturing process. Previously it was not specified where different products were placed on the department floor. The location of the equipment was also not specified. . The new system would also differ in terms of the workers being assigned to individual cells . It would also involve training the workers so that they can adapt to the cell operational, the Joiner Manager would need to supervise less.4) Should Dean differentiate the working environment by providing distinctive work wear, such as T-shirts, and distinctively-painted machines in order to reinforce a cultural change?Employees are the most important assets of an organization and therefore the top management should create the best possible working conditions designed to maximize employee satisfaction. Therefore Dean should implement the suggested changes in order.5) What risks are associated with Dean’s proposal?The risks associated with Dean’s proposal have to do with the costs that will be incurred as a result of the factory floor being rearranged. The risks also have to do with the employees not being motivated enough. Additional costs will be incurred in the form of formal training that will have to be conducted in order to help the employees adapt to the new structure. Also, the equipment might have to be upgraded from time to time.


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