Question

Garage corp. uses a traditional production environment. its competitor uses lean production and just-in-time (jit) manufacturing. which is true for garage corp

Answer 1

Garage corp. uses a batch-and-queue or batch-and-wait production system wherein the sub-assembly or the partially completed product is move to the work-in-progress (WIP) location, the next department to take it from WIP location, perform an operation on them and then forward the resulting work into the next WIP location to wait once again. This procedure continuous until the final product is completed. Using this system, the Garage corp. produces and maintains large inventories since it drives products to lower average unit cost, so they need to produce more products and the more products produced, the greater the inventory asset. They will produce products of low quality since workers in traditional production do not have major responsibility for quality control during their work. They strive for efficiency which means producing the best yield at the lowest cost from the available resources but in the expense of effectiveness which is the degree where an objective or target is met. It is doing something right but not doing it right. And lastly they have an information loss between its organizational areas because they operate in a disconnected manner with little integration and communication.