Manufacturing and Services

Answer

Manufacturing and Services

Manufacturing operations produce tangible goods while service operations produce intangible services that cannot be easily identified (Canel et al., 2000). Manufacturers also produce standardized products while service providers customize the services to suit the customers. Although both service and manufacturing processes plan their working environment, the focus is on different issues. While manufacturing operations try to optimize the layout depending on the process, service processes prepare the environment with the effect of the customer in mind. Both operations are similar in minimizing cost, being competitive and anticipation of products and services. SBS Seating produces tangible goods (seats) and standardized products while MLD produces intangible services (blood results).

The SBS Seating manufacturers use the batch operation. Parts are manufactured in different places then transported to the central plant for assembly. According to Blevins & Nixon (2011), a batch process involves each step of the required process producing bulk material in batches and the processing of subsequent batches waits until the first batch is completed. This method has numerous disadvantages including high inventory, time consuming, with a disordered flow that has lacks a standard sequence of operation. To increase efficiency and reduce cost, the operation should be changed. The best alternative is the JIT where no item can be produced or retrieved from a previous process if it is not needed in the next process.

Similarly to SBS Seating, MLD Hospital's Diagnostic Medicine unit uses a batch process in processing blood.  Patients are directed to one or more collection office where blood is drawn. The sample is then taken to different laboratories for testing.  Typical to all batch processes, this operation is time-consuming. To reduce the time taken to get results, labor should be increased. Although processing blood is a service done on demand, it still requires or JIT as the JIT system is concerned with the processes involved in achieving the finished product or service.

According to Toyota global (2016), Just-in-Time principle is concerned with making what is needed, when it is needed and in the amount needed. The three elements of JIT are monitored all through the production process. The best way to monitor JIT is ensuring that each “next process takes only the required items, in the required amount and when required, from the “previous process” (Hirano, 2009). The system ensures efficiency, eliminates wastes and inconsistencies leading to improved productivity. SBS Seating develops different parts of leather seats in different areas then they are later assembled in the central plant. This system is conventional where as soon as a unit is completed; it is taken to the next point.

SBS Seating can utilize JIT to improve productivity. As a manufacturing company, it can produce only the required amount needed by the consumer in the required time. Such a move reduces waste and enables the company to adjust quickly to changing consumer preference without incurring high losses. Instead of waiting for all the units (previous process) to be complete before transporting to the central plant (next process), the company can production can be kept constant by retrieving from the “previous process” what is needed in the “next process” when it is needed. It can use also kanban to manage inventory through identifying items in a process and between process and controlling in-process inventory at allocated levels. By using JIT, the company will maintain minimum stock and reduce production cost as inventory represents a cost.