Name ：Tan Wei Jie （탄） Student Number:

201909541
Individual Assignment - Supply Chain Management (BUS4027-1)
Case Study 2: Lean Implementation and Supply Chain Development at Oak Hills
1. What are the specific quality problems Oak Hills is facing, and how will
they influence the company’s ability to convert to a lean system?
The specific quality problem facing by Oat Hills is employees’ concerns. The
employees are working frantically in shipping department. Due to the business
slowdown, some of the employees had been laid off, this have cause negative impact
to employees. Lack of communication between the top management and employees
and merge rumours were also influence employees sentiment and feelings. Beside that
the Productivity and quality bonuses were based on team performance and those
employees to assist other teams rush jobs will feel unfair.
Besides that, old machines using in production is also a problem facing by
Oak Hills. The assembly press machines are worn and it is over twenty years of use.
The employees feel chaos. If closer inspection revealed that the metal bar used to
level the law material was no longer straight but concave due to continuous scraping.
Moreover, Set-up by engineering department also took time around 10 to 15 minutes.
Insufficient of space for keeping sensor boards near assembly line. This had delayed
the production activity.
At Oak Hills facility, there is lack of quality checkpoint to measure the quality
while work in progress. Quality control during assembly only. Firm is unable to
examine those failure output during transportation process. This will cause the defects
discovered by customers’ and end up lose the reputation of firm.
The low productivity of the processes is also one of the problems. The
engineering department was usually notified of set-up requirement after the batch
production had been complete. Besides that, Black Dome had a poor on-time delivery
record that created late deliveries problem for Oak Hillis. Both is problem may cause
wasted time of shipping team and may delay the production as well.
Before implementing lean system, this kind of problem should be solved. Lean
system is operating systems that maximize value by reduce waste and delay in
production. With current situation, employees are unable to accept the sudden change
rapidly. Oak Hills should invest in new machines instead of using old machines so
that the wastage of time and human power cost can be reduced. The product quality
need always controlled by management and every employee to find out the defects.
So that the reverse supply chain cost can be reduce. In fact, Oak Hills facility still
need some time to implement lean system.
 2. What change in the manufacturing environment need to be undertaken in
order to convert the current system to a lean system? Think about this
from both a short-term and a long-term perspective.
Oak Hills wish to implement lean system to improve their manufacturing process
more efficient. Firm needs take processes, system and employees into account.
First of foremost, Oak Hills need have a good communication with suppliers and
customers. (Short term) With this, Oak Hills can reduce the lead time to one week.
For example, Oak Hills can have procurement with Precision Milling because
Precision Milling agreed to ship lot sizes of 3000 units for each case size within 24
hours of Oaks Hill placing an order. Oak Hills can also have an agreement with Black
Dome because Black Dome had a poor on-time delivery problem. Oak Hills may have
an agreement such as penalty (short term) in kind of fund or dissolve partnership
relationship (long term) with Black Dome. Firm also need request more information
about E&E project of customers, so that it can schedule for the potential demand of
testing equipment.
Oak Hills should have an inventory reduction and utilize time buffer. (Short
term) Due to E&E customers were used to the luxury of placing rush orders and the
inefficient of supplier delivery, Oak Hills have to maintain the high level of inventory.
Oak Hills need have efficiency coordination such as communication, understanding
the problem and solve the delivery problem between Oak Hills, supplier and
customers. With pull method, the Oak Hills can reduce the inventory level and
reducing the holding cost. Besides, Oak Hills utilize time buffers for its various
operations. For instance, Press set-ups by the engineering department took ten to
fifteen minutes, during which time employees either helped with packing or built up
materials on the assembly table.
Moreover, to implement lead system, firm need to have a systematic management
in every flow or every activity. (Long term) The shipping department was a blur of
activity as teams of employees worked frantically. The weekly production schedule
was fluid due to need expedite rush order. The top management should implements a
systematic or structure every activity so that the employee will more efficient and
reduce the wastage of time and resources. Besides, as manufacturing of lid involves
hazardous material, firm should think of using conveyor belts or some other system to
move finished lids to shipment area. So that can improve the safety level of company.
For the success of lean system, the organization needs to change the perspective of
organization members especially employees thinking. (Long Term) First is having a
good influence in employees’ perception. (Long term) Top management can have
enough training to employees related to their job scope so that can reduce the stress
level during working. Employees are an important element in lean system. Firm’s
employees should will to learn and accept new things. Top management also need
implement lean leadership and instil continuous flow of information among
employees for internal environment and among suppliers and customers for external
environment.
 3. How will the implementation of a lean system impact employee and what
can be done to smooth the transition?
Oak Hills have to give proper training and educate employees. Without this,
employees will fail to possess skills needed to create value within the organization.
This can improve truth and faith among members. Individual incentive and bonuses
should be provided in order to encourage the production among members. An
effective communication with managers, supervisors and employees should be made
to build a trusting relation. Employees need to involve in lean thinking and continuous
learning in their job requirement and content.
Lean system also cultivates the team work in the company. This can improve
cooperation among the members. For example, shipping department has 4 members
which classified as delivery person, assembler, assistant and packer. Oak Hills
implement the crossed trained among the shipping department member so the member
of the team can assist other who rushes the job. Employees were crossed-trained
among shipping and other department. Requirement of lean system which need a
multifunctional team have been achieved.
Organization need to implement these changes so that the employees do not feel
stressed or left out. An organization need have communication between each other.
Oak Hills needs to keep its employees informed about the changes and the potential
benefit. With the communication, employee will clear about their task and instruction
so that can improve in processed and smoothening of the operations to achieved the
company goal.
With sufficient of training and education, employee will become more efficient in
process. With cross training, employee will be more flexible. Employee will be able
to avoid stress cause by rush jobs. With the proper training and information, Oak Hills
can smooth in transition and reduce error and wastage of company.