Since its formation in 1927, the aim of Presto has been to provide solutions that aid in the conservation of water in public places. After coming up with the timed tap, the organization was buoyed by its potential. In fact, Presto went on to release a few more innovative products into the market. From its inventions, it has emerged as a market leader in the design and manufacture of tapware and related appliances used in community facilities, healthcare institutions, as well as laboratories. Over the years, the company has established itself as a leading innovator when it comes to the production of appliances which promote water conservation. The following discourse explores the options that Presto has in reference to improving its operations to meet the demands of its customers.

With the increased demand for its products, the organization’s management has considered outsourcing the manufacturing of these hardware to meet the present demand in the market. Despite the likely advantages that outsourcing can bring to the company, it cannot be without its drawbacks. Importantly, outsourcing production to another firm might lead to financial benefits, strategic optimization, market discipline, as well as flexibility in the firm’s operations. However, the likely challenges that might come with such a move might outweigh its benefits. For instance, if the organization outsources the manufacturing of these appliances to another company, it might lose its manufacturing expertise (Rolstadås, et al., 2012). When this happens, Presto might lose its technical proficiency and skills which might prove costly in view of its competitiveness in the future.

Apart from losing its technical expertise, the business’s dependence on the other firm for the manufacturing of its products might get to a point where the contracted organization will be indispensable in Presto’s operations. Technically, such a situation is not good for any business. Notably, if the organization outsources the production of its products, then resumes production at a later date, it would take it years to get back to the level of performance it currently enjoys. However, if the services of the contracted firm deteriorate, or the prices of their products is increased, it might leave Presto in a bad shape. Other than that, based on a licensed agreement with the subcontracted company, Presto might lose the control it has over the cost of production. Instead of seeking to outsource the production of these appliances, therefore, the organization can improve its production facilities to meet the market demand (Rolstadås, et al., 2012). Notably, it is always important for organizations to go for internal solutions to their challenges before seeking other options.

When Presto Group outsources the manufacturing processes, it would have to cede the control it has over the production to the selected contractor. When this happens, the firm might find itself competing for laborers with the outsourcers. In addition, security problems might also arise in the event the organization outsources the production of these equipment to other companies. Notably, the enterprises the organization outsources from might not have the same ethical standards as Presto (Rolstadås, et al., 2012). The lack of ethical standards in the said company might also lead to corruption as well as other unethical standards that, in the long run, might affect Presto’s bottom line.

Instead of outsourcing the production process to other organizations, Presto Group can adopt a number of strategies to cope up with the challenge it faces. Before implementing a system of production that can solve its manufacturing problem, the organization needs to consider a number of issues. For instance, it has to focus on how to control its waste products by adopting a more efficient means of production. Importantly, the mode of production that can aid the organization in this situation is lean manufacturing (Womack & Jones, 2013). According to the theory, such a system of production can help in simplifying and organizing the work environment of a company so that it can reduce its wastes and, in the process, keep its employees, equipment, and workspace responsive to what it needs.

For the organization to embrace lean manufacturing, it needs to focus on the strategies of finding efficiencies that will allow it do away with the wasteful stages that do not add value to its end products. The organization must adopt a customer centered approach that emphasizes on asking its customers the amount they are willing to pay for the finished products. It is common knowledge that consumers appreciate value and will only pay for a commodity if they feel that it can satisfy their needs (Womack & Jones, 2013). Therefore, the organization should only adopt efficient means of production to ensure that its consumers only pay for the value they get from the products.

In this case, it is important for Presto to ensure that it produces the right quantity of goods, at the right quality, to meet its customers’ demands. If the organization identifies that its production processes are not efficient, for instance, it will be compelled to change them. When such a situation is overlooked, it will contribute to the firm’s overhead charges. At times, to impress the customers, an organization might find itself overly spending on the production of quality goods. In the end, such a situation might prove costly (Womack & Jones, 2013). In this case, the time the organization will take to correct any defects in its systems of production, and the efficiency with which it uses its workforce, will determine how it successfully implements the lean system of production.