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  • Ch15 Case3 A

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    Saharsh Saraogi
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    L'Oreal organized their factory into three production centers, each with separate teams making different product types and one manager overseeing the entire process end-to-end within each center. They also set up improvement groups in each center to focus on flexibility, quality and efficiency goals. This organizational structure and emphasis on continuous improvement helped L'Oreal reduce setup times through enhanced ownership, identification of cross-stage issues, integrated operations and human resources management, and empowering workers to directly contribute to reductions. Eliminating all changeover times would further reduce costs by potentially halving the cost of changeovers and lowering inventory levels.

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    L'Oreal organized their factory into three production centers, each with separate teams making different product types and one manager overseeing the entire process end-to-end within each center. They also set up improvement groups in each center to focus on flexibility, quality and efficiency goals. This organizational structure and emphasis on continuous improvement helped L'Oreal reduce setup times through enhanced ownership, identification of cross-stage issues, integrated operations and human resources management, and empowering workers to directly contribute to reductions. Eliminating all changeover times would further reduce costs by potentially halving the cost of changeovers and lowering inventory levels.

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    17 views1 page

    Ch15 Case3 A

    Uploaded by

    Saharsh Saraogi
    L'Oreal organized their factory into three production centers, each with separate teams making different product types and one manager overseeing the entire process end-to-end within each center. They also set up improvement groups in each center to focus on flexibility, quality and efficiency goals. This organizational structure and emphasis on continuous improvement helped L'Oreal reduce setup times through enhanced ownership, identification of cross-stage issues, integrated operations and human resources management, and empowering workers to directly contribute to reductions. Eliminating all changeover times would further reduce costs by potentially halving the cost of changeovers and lowering inventory levels.

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    Answer Flexibility helps JIT at LOral

    1. What did LOral do to help it organise the process o set!p red!ction" LOral did several things which probably helped with its overall objective of reducing setup time. It organised the whole factory into three production centres each with separate teams making different types of product. One manager was placed over the whole process from end-to-end in each product area. n alternative would have been to have a separate manager responsible for each stage of manufacturing through which all products would have passed. !o" for e#ample" one manager could have been responsible for all pre-weighing" another for the first stage of manufacture" etc. $he production centre manager was made responsible for training and staff development. Improvement groups were set up in each focus production centre with clear objectives of improving fle#ibility" %uality and efficiency.

    #. What do yo! thin$ LOral gained ro% doing each o these things" &ocusing production cells on the whole set of manufacturing tasks for a particular product helps both to enhance individuals 'ownership of the process and also helps to identify any problems which occur as products move between one stage and another. (aking the production centre manager )in effect the operations manager* responsible for training and staff development made human resource tasks an integral part of operations management. n alternative organisational structure used in many companies is to have separate managers for human resource issues. +owever" with a ,I$ philosophy people issues are seen as being totally integrated with more technical issues. Organising shop floor improvement groups harnesses the skills and enthusiasm of the shop floor workers and giving them clear objectives" allows improvement to contribute directly to reduction of changeover time.

    &. I we co!ld hal'e all changeo'er ti%es in the actory( what e ect wo!ld this ha'e on in'entory" It would reduce the cost of changeover substantially. It may even half the cost of changeover. )$his is probably unlikely because there is a 'fi#ed cost element of a changeover cost.

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