Lean manufacturing strategy - Toyota, Nike, Intel...
The ultimate aim of any company is to reduce expenses and improve the
profit, more companies in this current business race start adopting this
technique by implementing the lean strategy. Top companies in the world like
Toyota, Nike, Intel, and many other companies are currently adopting the Lean
strategy.
Lean is
about doing more with less. Lean concepts work well where demand is relatively stable and predictable. Also, a lean
concept or strategy will be effective where customer requirement for variety is
low.
There are
several pros and cons to using the lean strategy,
If the
business uses the Lean strategy, that business could be almost calm and stress
less in terms of forecasting the demand and analysing the ROI with their big
data. Because, if the business is volatile the ROI and demand are always
fluctuating, so, the analysing process will be stressful, but, by using this
strategy the analysing process will be easy. Especially. Demand forecasting is
the major axle of the business to win a market in terms of branding and
revenue. By using this Lean strategy we could mainly reduce the waste. It will
help us to be safer side from losing money, time, and resources. Meanwhile, it
encourages us to concentrate more on manufacturing or the heart of our business
only by just ignoring the burdens.
The backlog of the lean strategy, Lean employs a 'pull' approach to work, which means that work is given only when it is required, rather than in advance. However, if there is a bottleneck or your resources are limited, delays can soon accumulate.
Toyota
The
Greatest example of using a lean strategy is the Japanese car manufacturing
giant Toyota. The information says that the word Lean is initially coined by
the Toyota Company by implementing that. Their two main techniques in the lean
strategy are Jidoka and JIT. Jidoka is a Japanese word that means “automation
with a human touch” and JIT is the abbreviation of Just-in-time. Because they
do their repair of any issued vehicle during the manufacturing process itself
and only make their product in the need. Due to that, they could easily reduce
the time and cost of quality checking and making the car and spending the inventory
cost respectively. They named this production as TPS stands for Toyota
Production System.
Other most famous companies using the Lean strategy are Nike, Caterpillar Inc., Kimberley-Clark corporations, Intel, Parker Hannifin, John Deere, and so on.
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