Business Studies Paper on Lean Systems

Lean Systems

Wastes in an organization refer to the activities that do not add any value to the end product, customer and the overall organization. Pepsi is a soft drink manufacturer that operates internationally. The company plays number two to Coca Cola Company which puts pressure in the management of the company. As a manufacturing company, Pepsi co. portrays some key wastes including waste related to space, overproduction, and waiting time. The company’s overseas warehouses are not efficiently utilized and at times there are empty spaces with no products at all. Due to uncertainty in the demand of the company’s products Pepsi overproduces with the hope of selling more; when this happens then the problem of keeping too much inventory arises meaning the company incurs high storage costs. The waiting time negatively affects the customers who as a result may change brand loyalty. The time before an order is processed is long given that the company’s branches are not widely distributed around the globe. Pepsi can use the just in time strategy to confront these wastes. This will involve producing and distributing its products only when needed by the customers (“Lean Manufacturing: Working More Efficiently”, 2016). Therefore no space will be left unutilized, there will be no overproduction and the waiting time by the customers will be reduced.

There are various differences between the lean service system of Southwest Airlines and a full-service airline such as United Airlines. In terms of cabin service there is no service of meals during the flight in for southwest airline unlike for the full service airline where meals are offered especially on long flights. The boarding process for Southwest Airlines requires the passengersto stand in line in priority boarding zones classified as A, B, and C while for the full service Airlines boarding is by assigned seat rowsand the first class passengers aboard the plane first. In Southwest Airlines the luggage fly free while for the full service airlines charge the luggage on flight. For the service encounters southwest airlines offers cross-trained staff who are friendly and fun while for the full service airlines the jobs are defined by employee unions and the employees have little cross-training and more professional.

Airline carriers can improve their lean operation system to improve speed and eliminate waste by streamlining their processes (“Lean routine: cutting costs”, 2007). For example in the airport lobby the flow of the passengers can be managed using simple processes and techniques such as passenger categorization by classifying those with luggage and those without. This approach will increase the speed of checking in passengers thus eliminating long waiting time as a waste. A reduction in checkup time improves the quality for the passengers which will ultimately lead to satisfaction and hence loyalty.




Lean Manufacturing: Working More Efficiently. (2016). Retrieved 10 September 2016, from

Lean routine: cutting costs. (2007). Retrieved 10 September 2016, from