Wednesday, September 18, 2013

Nike Reaps the Benefits of Using 'Lean'

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

Mark Parker (CEO and President at Nike) says 

“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?

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.