MGMT 290 Week 8 Final Paper

Introduction

Lean systems are formulated for manufacturing industries where they function to reduce waste while on the hand increase productivity (Elbert, 2016). With the traditional systems of manufacturing a lot of waste used to be experienced where the company would end up making unnecessary losses. In many manufacturing industries today the shifting from the traditional systems to the lean production systems is happening rapidly since most of them have realized its advantages. However, this is not happening without some trade-offs that the companies are experiencing. In the past, some unnecessary activities used to happen which used to make the company lose some funds. These activities included unnecessary transportations, overproduction, and excess inventory among others. The lean system aims to eliminate such activities while at the same cutting the cost for the organizations (Secchi, & Camuffo, 2016). Shifting into the lean system also affects some individual and other areas since change always has its victims. However, the system has more advantages and its incorporation with technology helps it to function even more effectively towards the minimization of waste and cost.

Trade-offs involved in shifting from traditional operations system to lean system

Manufacturing firm

Tradeoffs are meant to bring a balance between two entities that are not compatible with each other. In a manufacturing firm, one example of a tradeoff that may arise is that of having to change the time for the delivery materials from the suppliers. In the traditional system companies request for raw materials and end up storing them in the stores, and some might go bad in the process. With the lean system, the suppliers are asked to supply raw materials which require to be manufactured at that particular time, and that is a tradeoff meant to cut the cost (Das, 2018). Another example would be the company that is shifting would be forced to stop the overproduction of goods and move start processing them only when there is an order. Sometimes goods produced may fail to attract any customer and end up becoming waste with the making of pre-orders is a tradeoff that the manufacturing company might have to make.

Service firm

Organizations that belong to the service delivery to their clients also have some tradeoffs that they might involve themselves. The work of human resource management is to make sure that there is enough personnel to work and deliver the services that th

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