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Lean Operations [pic]

   

Added on  2020-02-03

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Business DevelopmentLeadership Management
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LEAN OPERATIONS1
Lean Operations [pic]_1

LEAN OPERATIONSIn the present complex and uncertain business world, it becomes necessary for all theorganizations to manage their costs through optimum utilization of available resources and earnhigh revenues which results in high profitability. Lean process greatly helps to administratebusiness manufacturing process effectively so that firms can run successfully. It is a technique toeliminate waste and other non-value adding functions from the production process in which theterm valuable will be decide by the customers only. It is an effective tool which helps to reducewaste such as waste due to overproduction, waiting time, inventory waste, processing waste such asby-product, product defects and others. Each manufacturing business can implement this tool in their manufacturing process toeliminate unproductive activities and focus on only value-driven operational functions. It mainlyaims at improving efficiency and produce required quantity of goods at less costs. Present projectwill address the use of lean manufacturing process in Nike. It is an US multinational company whodesigns footwear, equipments, accessories and offer other services to large number of customers. Itis operating across the global market and also one of the world's largest distributor of athletic shoesand apparel. In 2013, its manufacturing network is very large as 700 factories are producing theproducts in 42 countries. It adopts lean operations for apparel and footwear products which resultsin additional savings at $0.15 per unit. It became possible because of high labour productivity andminimum waste. Through implementing lean process, Nike can minimize its production cost and enlarge theirefficiency in a great extent. Nike manufacture footwear and other products in number of countrieshenceforth, staff skills and their knowledge will be significantly different. Inefficiency and unskilledstaff may results in high labour costs due to less labour productivity. Thus, it will results to enhancewaste in the business (Distelhorst, Hainmueller and Locke, 2014). Lean manufacturing processhelps to enhance staff efficiency, skills and their knowledge through conducting an effectivetraining and development program. For instance, in 2008, Nike provided extensive training to theirstaff so that their efficiency can be improved and resulted in less production costs by wastereduction. It launched an footwear training centre in Vietnam in which all the personnel will receivetraining about their job and work allotted. There after, its Apparel Innovation and Training Center(AITC) has been further organized in Shri Lanka. Eight week training was provided to all themanagers and they learn a lot of things by observation and practical training methods in its leanimplementation (Leach, 2012). Recruitment of multi-talented and multi-skilled labour force in Nike's production factories2
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will results in improved efficiency because they are highly efficient to perform their dutieseffectively and timely. It will results in declined wastage in the production process. Illustration 1: Human resource management strategies(Source: Soni, 2014)As per the diagram, it can be seen that Nike workforce management strategies, safety andhealth policies and performance management tool helps to enhance employees skills and theirproductivity. Between 2009 to 2013, Nike's lean operational system resulted in 15% reduction inlabour violation (Soni, 2014). But still, in China and South-east Asian factories the problems can beseen now-a-days. Hence, it can be advised that Nike should introduce lean process in thesecountries so that waste can be eliminated due to higher labour productivity through providingadequate training to them.Moreover, before implementation of Lean, Nike's operations are distributed in differentfunctions which are not in connection. For instance, sewing, ironing and packing were separateactivities which led to high inventory buffer at each production process. It resulted in high inventorycost due to inefficient inventory management. This waste can be minimized or eliminate throughconnecting the process with each other which helps to reduce inventory buffer and cost as well.Lean operation will greatly assist to connect each forthcoming process with the end of previousprocess such as connecting ironing and packaging operates in line with sewing operations withusing physical moving operators (Fullerton, Kennedy and Widener, 2014). It will led to reduceproduction cycle time through immediately transferring the products to the next process. So that, it3
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