Nexford University

Master of Business Administration

OPM6090 – Technology and Operations Management

Module 4 Assignment: Value-Based Decision-Making in Technology

Operations

Olubusola Ibitoye

27th February 2025

INTRODUCTION

The competitive manufacturing environment demands that companies maintain top operational

efficiency with strict quality control to reach sustainable organization success. As the newly

appointed Operations Manager at Rad Industries Limited—a manufacturing company facing

challenges in these areas—it is essential to adopt value-based decision-making strategies. This

paper examines key insights from the NUMMI podcast that demonstrates how Toyota

Production System (TPS) transformed an unproductive automobile manufacturing facility into

success. TPS principles including continuous improvement alongside waste reduction and

employee empowerment will guide Rad Industries Limited towards operations optimization and

productivity growth supported by sustainable development.

KEY INSIGHTS FROM THE NUMMI PODCAST

The NUMMI podcast provides essential information about how the automobile plant

transformed after implementing Toyota Production System (TPS) principles. The NUMMI plant

operated by GM and Toyota created a modern production revolution at their joint venture

facility. The company achieved this transformation through implementing TPS as its core

management system with three key principles:

1. Continuous improvement (Kaizen): establishing a framework for process and

workflow enhancements through regular increases between small steps.

2. Waste Reduction (Muda Elimination): Eliminating all productivity-altering

inefficiencies, thereby reducing waste.

3. Employee Empowerment: The workforce acquires power through decision-making

participation and team-based practices thus improving both quality standards and

operational effectiveness.
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The implementation of these strategies led to exceptional business improvements including

raised production levels with fewer errors while creating a better workplace engagement.

APPLICATION OF TPS PRINCIPLES TO RASD INDUSTRIES LIMITED

The organization will deploy a TPS-authorized value-based strategy to achieve operational

excellence and sustainable growth as well as enhanced productivity. Continuous improvement

becomes the core objective which also includes waste reduction and active engagement of

employees under this implementation strategy. This strategy includes:

1. Implementing Continuous Improvement (Kaizen)

i. Feedback systems should operate on a regular basis to allow workers to share

suggestions on process improvement.

ii. Hold daily meetings to track performance indicators and identify bottlenecks.

iii. Provide employees with training which lets them use problem-solving methods to

recognize and carry out incremental changes.

2. Reducing Waste and Enhancing Efficiency

i. An evaluation of the complete production workflow will be done to detect all

types of waste starting from unusable stock, and producing more product than

necessary.

ii. Implement Lean Manufacturing methods with Just-in-Time (JIT) inventory

management to achieve both shorter lead times and waste reduction.

iii. Restructure workflows for better consistency measures alongside enhanced

resource management practices.

3. Employee Empowerment and Engagement

i. Establish team-based working groups which empower staff to manage their

spaces and contribute to organizational decisions.

ii. Create a free-flowing policy that invites employees to communicate their thoughts

and express their worries.

iii. Provide training programs that enable workers to acquire multiple skills which

enhances flexibility alongside diversity within the workforce.

CHALLENGES AND MITIGATION STRATEGIES

The implementation of TPS principles will encounter several obstacles such as employee

resistance to changes together with insufficient training and workflow interruptions. To mitigate

these challenges:

i. Resistance to Change: Open communication about its advantages as well as employee

involvement in decisions and recognition of their work.

ii. Training Needs: Establish thorough training solutions which combine theoretical

education with practical sessions that teach TPS system instructions to all staff members.

iii. Initial Disruptions: The implementation proceeds through successive stages to limit

operational disturbances while tracking progress regularly.

iv. Initial Implementation Cost: Execute a cost-benefit evaluation to confirm future

financial benefits and efficiency results from implementation expenses. In addition,

introduce modification phases to effectively control expenses.

v. Ensuring Sustainability: Proper sustainability needs a well-organized method to

monitor and assess all progress improvement efforts. Organizations must honor

workforce members who enhance continuous improvement throughout the organization.

CONCLUSION

The NUMMI case demonstrates how value-based choices bring massive benefits to

manufacturing operations. Rad Industries Limited will obtain operational excellence through a

combination of continuous improvement methods with waste reduction and employee

empowerment approaches. The implementation of this approach will boost both productivity and

quality performance as it establishes an environment that promotes innovation and teamwork.

Upholding these fundamental principles will be essential to sustaining long-term success.

References

1. "NUMMI Podcast Transcript." This American Life. Available at:

https://www.thisamericanlife.org/403/transcript

2. Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's

Greatest Manufacturer. McGraw-Hill.

3. Womack, J. P., & Jones, D. T. (1996). Lean Thinking: Banish Waste and Create Wealth

in Your Corporation. Simon & Schuster.