The FY10/11 Sustainable Business Performance Summary
document of Nike describes the profits obtained by the company by adopting
“lean manufacturing”.
This approach has led to better manufacturing with reduced
waste materials and lesser time. Resulting in a better supply chain.
The major benefits obtained by adopting lean strategy are: -
•
Reduction in the defect rates by 50%
•
Increase in the lead times by 40%
•
Improvement in productivity by 20%
•
Reduction by 30% in the time taken to introduce
a new product
“Nike lays a
great focus on leveraging the efficiencies of lean manufacturing to bring about
positive changes across the entire supply chain.”
Does Lean manufacturing always make work more efficient? Is
it only Nike or have other companies experienced such phenomenal changes? And
do we exactly know how much is the lean production success rate?
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