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Small Goods Pty Ltd is a manufacturer of various types of processed meats, including ham, salami and sausages - VCE - SSCE Business Management - Question 4 - 2017 - Paper 1
Question 4
Small Goods Pty Ltd is a manufacturer of various types of processed meats, including ham, salami and sausages. The Operations Manager, Heidi, is concerned about the ... show full transcript
Worked Solution & Example Answer:Small Goods Pty Ltd is a manufacturer of various types of processed meats, including ham, salami and sausages - VCE - SSCE Business Management - Question 4 - 2017 - Paper 1
Step 1
Describe the principles of lean management.
Answer
Lean management is centered around the goal of reducing waste and maximizing efficiency in production processes. The key principles include:
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Value: Identifying what adds value to the customer and focusing resources on those areas.
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Value Stream: Mapping out all steps in the production process and eliminating those that do not add value to the end product.
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Flow: Ensuring that the production process flows smoothly without interruptions.
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Pull: Producing only what is needed, when it is needed, to minimize excess inventory.
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Perfection: Continuously striving for improvement in all processes to enhance efficiency and quality.
Step 2
Explain how lean management principles might assist in the reduction of the level of wastage at Small Goods Pty Ltd.
Answer
Lean management principles can significantly reduce wastage at Small Goods Pty Ltd through several mechanisms:
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Just-In-Time Production: By implementing a pull system, the company can ensure it produces goods based on actual customer demand, reducing overproduction and minimizing waste.
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Zero Defects: Emphasizing quality in the production process reduces the number of defective products, thus minimizing the levels of wastage associated with rework or disposal.
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Continuous Improvement (Kaizen): Encouraging staff to suggest and implement improvements can lead to innovative solutions for reducing waste, ensuring that every employee is engaged in the process of waste reduction.
Step 3
Analyze the impact that the reduction of the level of wastage may have on Small Goods Pty Ltd’s suppliers and one other stakeholder.
Answer
The reduction of wastage at Small Goods Pty Ltd can have positive implications for both suppliers and shareholders:
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Suppliers: As waste decreases, Small Goods Pty Ltd will likely require fewer raw materials, which can impact suppliers adversely by reducing their sales volume. However, cleaner operations can strengthen relationships, leading to potential partnerships focused on sustainability.
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Shareholders: Less wastage leads to cost savings and higher profit margins, enhancing returns for shareholders. Furthermore, a commitment to minimizing waste can boost the company's reputation, attracting socially conscious investors.
Step 4
Justify one corporate social responsibility consideration that a business, such as Small Goods Pty Ltd, needs to address when implementing change.
Answer
When implementing change, Small Goods Pty Ltd should focus on sustainable sourcing. This entails ensuring that the materials used in production are sourced responsibly, considering both environmental and social factors. By prioritizing sustainable practices, the company not only complies with ethical standards but also enhances its brand image and can build stronger relationships with customers who value corporate responsibility.
Step 5
Apply Lewin's Three Step Change Model to assist Shandra's Dairy Ltd with this future goal.
Answer
Lewin's Three Step Change Model comprises the following stages:
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Unfreeze: Shandra's Dairy Ltd should first communicate the need for entering the snack food market, ensuring all employees understand the strategic direction and the reasons behind it. This might involve market research presentations and staff workshops to address concerns.
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Change: During this phase, the company can begin to explore and experiment with snack food product development. Training and development should be provided to employees to equip them for their new roles in this market.
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Refreeze: Finally, after implementing changes and launching the new snack products, Shandra's Dairy Ltd should integrate these into their company culture. Continuous feedback loops and monitoring of product performance will help solidify the changes and ensure the company fully adapts to the new direction.