1. What are the specific quality problems Oak Hills is facing, and how will they influence the company’s ability to convert to a lean system? Oak Hills is facing a couple specific quality problems. One that stood out to me was that the inventory holding cost were pretty high and that the turnover is only 5 times a year. With the delivery costs also being high and having a lot of overtime pay are other costs that effect the quickness of orders. This makes the customer upset which trickles into the employees and then results in bad customer service. Another problem the company faces is that they have a different size lid to each size box. Which makes it hard on whoever keeps track of inventory. 2. What changes in the manufacturing environment need to be undertaken in order to convert the current system to a lean system? Think …show more content…
Then to proceed by training the employees on the process of testing and moving the lids nice and neatly to other departments to ensure the product is safe. Another change that I would make is to go with another supplier for the sensor boards; the supplier has a bad track record for not making deliveries on time. If the company changes the supplier then it would cut down on cost and time because there would be less overtime pay. 3. How will the implementation of a lean system impact employees, and what can be done to smooth the transition? At the beginning it can be hard employees are so used to doing it one way they may fear losing their job. However, if the manager can layout the new system and make sure employees are trained and understand the new system. This will make for a smooth transition before the new system is put in place. This makes for a less stressed employee and a more efficient run process. At what stage in the development of a supply chain is Oak Hills, and what can be done to improve the supply