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Nike has reaped the benefits of moving to ‘lean’ manufacturing with shorter lead times and fewer product defects in its supply chain.

The sportswear brand’s FY10/11 Sustainable Business Performance Summary, explained by adopting a lean approach - which it described as ‘better manufacturing’ that reduced wasted materials and time - the company’s supply chain has operated more efficiently. The report explained the company had worked to eliminate waste, lost time and lost material from its processes as part of its sustainability agenda.

The report said contracted factories which adopted the lean approach showed defect rates 50 per cent lower than those that didn’t. It also revealed delivery lead times from lean factories were, on average, 40 per cent quicker. Productivity increases of 10 to 20 per cent and a reduction in the time taken to introduce a new model by 30 per cent were also reported from lean factories...Read more on supplymanagement.com

 

Published in Corporate
Monday, 23 November 2009 19:35

Just-In-Time principles

Lean manufacturing has its roots in the Toyota Automobile of Japan where waste was to be avoided at all cost: the waste in time caused by having to repair defective products, the waste of investment in keeping high inventories, and the waste of having idle workers. Lean manufacturing is now a major components of the Supply Chain management.

Published in Operations Management
Tuesday, 24 November 2009 16:06

The Kanban approach

Kanbans are the heart of just-in-time production. Kanban is a Japenese word meaning card and these cards are the means of communication within to, and from a work center.

Published in Operations Management
Monday, 23 January 2012 08:53

What is lean manufacturing

The lean manufacturing is a way for companies to be more competitive in a global market environment and in a customer-centred supply chain organisation.

Published in Operations Management
Sunday, 25 March 2012 16:47

Lean Manufacturing

The pressure on manufacturing organizations has increased dramatically over the last 15 years. This has been driven by globalization in the aftermath of the Cold War, the liberalization of markets, and the emergence and growth of economies such as Brazil, Russia, India and China. Organizations that continue to manufacture in high-cost countries must eliminate any “fat” from their manufacturing if they are to remain competitive.

Published in Best Practices

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