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This Is Followed By An Overview Of The Horizontal And Vertical Integration In ...

This is followed by an overview of the horizontal and vertical integration in an organization and the extent to which LEAN plays a part in both the scenarios. This is followed by the business positioning of the LEAN manufacturing approach in an organizational setup where the research is focused mainly on the academic theories on the implementation LEAN in an organizational set-up and its overall business benefits. The chapter then presents a critical overview of the application of LEAN in the Supply chain management in a global set-up and its ability to streamline the supply chain management of a manufacturing organization.
This is followed by a critical analysis of the macro and micro economic factors surrounding the LEAN implementation in an organization. Finally the chapter presents a critical overview on the three key areas of business identified in chapter 1 are analysed in the light of LEAN implementation from an academic perspective.
2.1: Manufacturing sector and resource management
Production management in the manufacturing organizations of the twenty-first century is a critical element for successfully utilising its resources and generate revenue at a lower cost as argued by Malcolm J. Sanders (1997). This makes it clear that the effective use of the resources is achieved not only through innovative methods of manufacturing where the organization utilises new techniques to enhance the performance of its manufactured items thus enabling leadership in quality and performance, but also through efficiently managing its supplies and resources. This is further justified in the arguments of Gerry Johnson and Kevan Scholes (2003) who argues that the supply chain integration is one of the key areas where an organization can gain competitive advantage through controlling its costs due to procurement and storage.
It is also interesting to note that the supply chain management and the extent to which an organization can reduce its cost overhead through efficient resource control is deemed as a major factor for cost control as argued by Gerry Johnson and Kevan Scholes (2003). This further justifies the arguments that the strategic positioning of the supply chain management in an organization one of the key factors that contribute to the resource planning and control of the resource usage with respect to the market demand as argued by Philip Kotler and Kevin Lane Keller (2005).
An interesting factor with the manufacturing organization is the level of integration within the organization that dictates the extent to which it can enable effective resource management in the business process as argued by Bob Rosenbaum (2005).


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