In the new global economy, with the improved information technology, and the increased competition, a study by Levy (2007) shows that, many companies have attempted to recognize and implement lean production (LP) systems, established by Toyota, that involve goals such as just-in-time (JIT) delivery, low inventories, zero defects, flexible production in small batches and close practical cooperation with suppliers. Therefore, this paper will present how Kellogg’s has been able to manage its lean production in a very efficient way to create long term value products and competitive advantage.
In brief, Kellogg’s is the world’s leading breakfast cereal manufacturer (The Times 100, 2010). Kellogg’s has manufacturing plants in the UK, Canada, Australia, Latin America and Asia (The Times 100, 2010), thus Levy (2007) settles Kellogg’s must have established an international supply chain as a response to the globalisation in which needs to act responsibly. Furthermore, this essay will also demonstrate Kellogg’s lean production system, and how exploits that. Interestingly, Krajewski et al. (2009) has drawn attention to the fact that lean production is an operations system, which assists to exploit the value of the company, in this case, Kellogg’s activities by eliminating waste. Referencing to Paton et al. (2011) agrees lean production is based on a series of practices which mostly seen at Kellogg’s as a management approach, namely; just in time (JIT) which will be included in this essay. The rationale behind the choice is, The Times 100 (2010) highlights; Kellogg’s lean production enables the rearrangement of processes and removes waste. As it is known that in the supply chain, there are parts where waste can be found (Paton et al. 2011). However, Kellogg’s constantly assess its production methods so as to make sure that the desired outcomes are satisfying as well as reduced waste (The Times 100, 2010).
Lean Production System
In a journal article by Marodin and Saurin (2013, para.3) define the lean production implementation as;” the process of applying a set of principles and practices of LP, exploring their synergies and adapting them to the particularities of each company.”
To apply lean production system concept to Kellogg’s case that has been found; according to Krajewski, et al. (2010); the implementation of lean system of Kellogg’s is to reduce waste and inventory costs. Therefore, Narmadha, et al. (2010) correctly argues that; with the help of lean system, Kellogg’s exploit economies of scale in order to completely affect productivity and profitability. Reference to Ramarapu, Mehra, and Frolick (1995) – cited in Marodin and Saurin (2013) reveals that; 105 studies indicates five factors, which are indispensable for implementation of lean production system: elimination of waste, production strategy, quality control and improvement, management commitment and employee input, and supplier involvement. The Time 100 (2010) agreed Kellogg’s...