So, the key question that everyone is asking is: What is Lean Production Success?
How do you define and understand what it is? How do you know when you have achieved it?
Every company that’s seriously trying to implement lean production methodologies wants to read and hear positive things about other companies that are experiencing great results by doing the same.
Anyone that says implementing lean production methods is easy is not being totally honest. It is not easy, however it does not mean that it is impossible as many have tried and failed. It requires patience, perseverance and resolve to overcome the embedded cultural issues that every company faces when starting out on their lean journey. So, you must keep asking the question over and over again: What is Lean Production Success?
Here is a great article from the Association of Manufacturing Excellence – AME that discusses the latest report from Nikedemonstrating how they are achieving lean production success as part of their strategic vision for the company.
What is Lean Production Success?
Nike Inc. highlighted its lean manufacturing milestones in the recently released “FY10-11 Sustainable Business Performance Summary.”
The Beaverton, OR-based company unveiled its new factory rating system, the Manufacturing Index, which looks comprehensively at a contract factory’s total performance and includes a deeper look at how a factory approaches sustainability, This index elevates labor and environmental performance alongside traditional supply chain measures of quality, cost and on-time delivery.
Within its overall Manufacturing Index, Nike’s Sourcing & Manufacturing Sustainability Index (SMSI) assesses contract factory performance on sustainability measures, including measures of lean, environment performance (e.g., water, energy, carbon, waste), health and safety, and labor management factors, according to the report. Following two years of development and piloting the program, the company has rolled the SMSI out across its global supply chain.
By adopting a “better manufacturing” or lean approach as part of the sustainability initiative, Nike has reduced material waste and production time, allowing the company’s supply chain to operate more efficiently.
The report stated that contracted factories that adopted Nike’s lean approach experienced defect rates 50 percent lower than facilities that didn’t. Delivery lead times from lean factories were about 40 percent shorter. Lean factory productivity increased 10 percent to 20 percent; and the time to introduce a new product to a factory was reduced by 30 percent.
“Sustainability at Nike means being laser-focused on evolving our business model to deliver profitable growth while leveraging the efficiencies of lean manufacturing, minimizing our environmental effect and using the tools available to us to bring about positive change across our entire supply chain,” Nike CEO and President Mark Parker said in a statement…[Read more in the original article]
The Nike executive management team are a great role model for a lean production success story. They have designed and developed a great business culture that has clearly stated their strategic vision for where they want to take their company. They have clearly asked and defined the question: What is Lean Production Success?
Change does not happen overnight and it will never occur by chance. It is to be defined and planned with the ability to roll with whatever the economy throws at you. This takes stamina and guts to take on the risk because there are no guarantees in life, only opportunities. If we miss them, we may not get a second chance.
Article written by Chris Turner
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