• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Examine the main benefits for a company such as General Motors of adapting a system of lean production.

Extracts from this document...


A2 Business Lean Production Case Study GM adopts Lean Production Q: Examine the main benefits for a company such as General Motors of adapting a system of lean production. There is need for change with GM, in 1998 they took 50% more hours to produce a car than Toyota do, this has probably caused them to make a loss on all there products also in the modern era thus why they're struggling for survival while Toyota sell more cars than them. main benefits TGM could gain from adopting lean production are cost and the stock process One main benefit for GM of using lean production is the fall in costs which help to increase profits. Lean production uses less factory space overall, specifically because of the Just-in-time (JIT) process for stock. The JIT process is designed to give businesses stock for just when they need it, cutting out storage costs and insurance costs, which helps increase the profits GM can make. ...read more.


Toyota's vehicles are based upon one specific base, in which they can modify to produce the model that is required. Because of the vast variety of cars that GM produce, the idea that they can use the same base and methods to produce a small Daewoo and a relatively large Chevrolet is not applicable, because of the costs per unit, both financial and time and the size of each products. General Motors therefore will have problems trying to copy the blueprint of Toyota, as their product range differs significantly. General Motors could solve this problem by re-designing all of their models. It takes 3 years for GM to design a new model, which would be a far too lengthy period of time for GM to have to wait in order to implement lean production, even for Toyota, who are deemed to be superior by 'commentators' take 18 months to re-design car. Therefore, the time for GM to fully implement the system, whereby re-design is required, may prove lean production inefficient up until that point as GM's products were not designed to be manufactured in the lean production way, which could worsen their profits. ...read more.


When all runs smoothly, and good communication is kept between suppliers and the businesses, this option is the best bringing more profit in. However, there are vast amount of problems that could stop this from happening, it is unlikely that GM, like Toyota, has all of its suppliers at there plants within a half a days drive, especially if new suppliers are needed. Overall, I don't think GM would benefit from lean production for many years at least should they adapt it. Because of the economic climate, the costs would be far too high to re-design the products, which is essential for lean production to work efficiently, by the time the process could become profitable, the demand for oil/ fuel powered cars could be minimal. I believe GM should focus more on the future of the market for cars, and try to adopt an alternative plan for their future approach. They would possibly look into electric cars, to follow the trend of other major car manufacturers, and by doing this, I then believe a lean production approach would benefit, as re-designing would need to be done in either way. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Comparison of the Honda & General Motors in terms of internationalisation theory

    The theory predicts that a firm first chooses to invest in nearby markets and gradually increase its commitment and psychic distance. Further verifying the Uppsala model is the issue that internationalisation is affected by the compatibility of the firm's experimental knowledge and the resources capability, as well as the perceived physic distance of the potential foreign market.

  2. PEST is a planning tool which is used by a business to evaluate and ...

    products, which will lead to Ginsters being unable to meet this aim. This PEST factor could also be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of maximising profit, this is because if people do not buy their products and buy Puka

  1. The main purpose of this research is to know and analyze whether the Olympic ...

    And also as I am residing in London which is about to host the Olympic Games this time, I have chosen this research work. The publicity which is been given to London Olympics made me to do this research work.

  2. Business plan. The business that I am going to produce is a personalised logo ...

    A business plan clarifies the objectives that a business has set, the reason why they are believed attainable and the plan for reaching those goals. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community.

  1. How does Toyota Prius gain from Globalisation

    Appendix 1 shows that the Toyota Prius is the most fuel efficient car in the market at that price. The creaming/skimming pricing strategy is no longer used and as other businesses have entered the market, to gain a competitive advantage Toyota has used cost leadership.

  2. Marketing plan for Trung Nguyen coffee company.

    This is a long-term trend. 1.1.4 Market Growth South Korea's still at the early stage of development when it comes to quality coffee. So there's still huge room for growth. The Information Center for Agriculture and Rural Development (AGROINFO) forecasts that Korean will continue to increase its coffee import turn-over and the country is included

  1. Suzlon Wind Power Company Analysis.

    Also in the recent years extra emphasis has been placed on project management, systems engineering, and certification. Cultural Environment Suzlon considers that the company?s specificities, its history, its background, its geographical spread and cultural diversity, and all factors that make Suzlon what it is today: A young dynamic company that

  2. Case study of the Unilever Company

    where they focused in fewer product categories, this obligates to the multinational to take out two-thirds of their brands in the market. One important fact of this corporation that highlights in their history is that in every country that operates, unilever respect their own culture and customs without imposing a single global view.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work