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Lessons In Lean Essay

1362 words - 6 pages

Lean manufacturing has become a very important aspect of the manufacturing firms as it combines both high service levels and low levels of inventory. Innovation through the use of improved technology and methodology is increasingly becoming very important for the manufacturers. Lean production in a company includes diverse characteristics of the business, which includes the organizational structure, systematic education, use of sound production principles, and training (Reid, & Sanders, 2005).
Lean supply has enabled high technological companies to perform financially well in the market. More and more industries are using lean supply to ensure better distribution of their ...view middle of the document...

Many Companies have remained profitable due to the use of the lean principles that are cost effective to use. Many companies have employed lean management systems to remove wastes and ensure that the processes are functioning well. Also, the companies are striving for continuous improvement for these processes (Leeman, 2010).
To ensure lean management, the company must control its inventories, inputs, and output. Ensuring quality, involving people, ensuring continuous development, standardizing the company’s practices and reduction of lead time leads to a lean supply in the business (John, 2013). A business that employs lean management enjoys improvement in efficiencies they gain, which allows the company to manufacture products for same overheads, improving their profits. Through the reduction of waste, the companies that use lean management are able to make more profits. Companies that have been able to use lean supply have been able to do well in the market. For example, Wine companies in the US and UK have been able to develop long term relationships with most of their suppliers promising them high volume purchases in the future in return to low prices for the same.
The development and implementation of this lean supply is built around effective product and material distribution, which must take into consideration the aspect of time and accuracy. Based on this, it is clear that technology has a number of roles to help shape these innovations and makes them more efficient (Jackson, Jones, & Bodek, 2006). Time factor in lean supply is based on the need to have a standard and achievable times of achieving various supply chain activities. Based on technology, both raw materials can be delivered faster using machines to ensure set times are met. In addition to this, a number of software’s have been developed which are key towards attaining faster production and delivery so as to meet the important aspect of time (Sehgal, 2011).
Lean management in companies like Toyota and Wal-Mart aims at improving customer service. This ensures improved productivity of the companies by ensuring value addition per person in the business. In addition, the two companies have been able to improve their quality due to a reduction in the defects (Huntzinger, 2006). Supply Chain Management (SCM) enables companies to improve collaborations or chains they are able to work with efficiently. The interconnected companies work together to ensure the success of the firm. This is unlike traditional management system where companies worked alone and were not interested in any collaboration. Multinational companies are more complex compared to local ones, and as such, they need to create a network to be able to manage their projects in the most effective way. This will also enable them to gain access to materials and information needed to compete effectively. Essentially, lean supply is important, and there is no way a business is able to survive in today’s market place...

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