STRATEGIC MANAGEMENT

Topics: Lean manufacturing, Sustainability, Better Pages: 5 (909 words) Published: November 29, 2014

QUESTION 1 : Describe what is meant by ‘sustainability’ in business.

Business sustainability is defined as managing the triple bottom line - a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. However, this approach relies on an accounting based perspective and does not fully capture the time element that is inherent within business sustainability. These businesses create economic value and contribute to healthy ecosystems and strong communities. Business sustainability requires Nestle to adhere to the principles of sustainable development. So, for industrial development to be sustainable, it must address important issues at the macro level, such as: economic efficiency (innovation, prosperity, and productivity), social equity (poverty, community, health and wellness, human rights) and environmental accountability (climate change, land use, biodiversity). Company that are sustainable have been shown to attract and retain employees more easily and experience less financial and reputation risk. This company is also more innovative and adaptive to their environments. Example

·        Tech or financial firms going to a paperless office environment; ·        A cell phone manufacturer pursuing a “conflict-free” mineral resource supply chain; ·        A bank committing to and accomplishing carbon-free operations.

QUESTION 2 : Explain how Nestle used a ‘waste hunting’ exercise to help in its planning.

Nestle used the waste hunting exercise to reduce the excess material used in the process, waiting or delay by using seven areas of MUDA. MUDA is broken down into the seven areas that make up of mnemonic ‘TIMWOOD”. ­­Factor

Impact
Improvement
TRANSPORT
Moving materials unnecessarily wastes time and energy
Reduce weight/size of pieces to ease handling
INVENTORY
Too much stock increases costs of storage
Ensure suitable customer outlets available to buy products so no build-up of stock occurs MOTION
People moving or travelling excessively and unnecessarily
Use effective project planning to ensure efficient performance WAITING TIMES
Wastes employee time or keeps customers waiting
Equipment and timescales planned ahead
OVER-PROCESSING
Repeated activity wastes time
Elimination unnecessary steps in process
OVER-PRODUCTION
Extra material has storage costs
Computer modeling reduces number of trials needed to obtain valid results DEFECTS
Reworking wastes times and materials
Computer modeling minimizes trial failures
Through this seven steps of MUDA, it will help Nestle to identified of inefficiencies that being use to plan the new factory design and production layout to reduce waste.

QUESTION 3: Analyze the different elements that make up lean production. Which do you think is most important and why? 1) Nestlé Continuous Excellence (NCE)
Nestlé Continuous Excellence assists in minimising resources use in the whole production process. Production should aim to take place using the most efficient use of space, machinery, labour, materials and crucially be in the shortest time period. 2) Value Stream Mapping (VSM)

VSM illustrates the flow of materials and information required to bring the finished product to the consumer. This can then be analyzed to see where improvements can be made. Value can be added by reducing waste which in turn reduces production costs. 3)Kaizen

Kaizen is another idea developed in Japan. It supports lean production by introducing the idea of continuous improvement. Improving efficiency becomes a continuous process that is the responsibility of everyone involved in production. This helps empower the workforce to voice their opinions to make improvements. For example in this case study, Kaizen will benefit Nestlé through reducing overall costs and empowering staff to come up with new...
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