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UNIMO is a Malaysian based custom manufacturer for high-technology companies. Se

ID: 453612 • Letter: U

Question

UNIMO is a Malaysian based custom manufacturer for high-technology companies. Senior management wants to introduce lean management practices to reduce production costs and remain competitive. A consultant has recommended that the company start with a pilot project in one department and, when successful, diffuse these practices to other areas of the organisation. Discuss the advantages of this recommendation. Identify and explain ways (other than the pilot project's success) to make diffusion of the change effort more successful.

Explanation / Answer

The consultants know that a phased approach:

Other than pilot approach, the other methods of implementing the lean practices in the organizations are as follows:

Big – bang and phased roll – out approaches:

Big – Bang is a “one – and – done” deal – the system goes live across all departments on a predetermined date. Despite its name, substantial planning goes on in advance.

There are many advantages and disadvantages with this approach (Big Bang) like:

In contrast, phased roll out implements the new system in a series of steps. An organization adopt individual module one at a time, starting with its core processes.

There are many advantages and disadvantages with this approach (phased rollout) like: