ECM14EKM: Lean Operations Assignment
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Lean Operations (ECM14EKM)
Added on 2020-04-21
ECM14EKM: Lean Operations Assignment
Lean Operations (ECM14EKM)
Added on 2020-04-21
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1Lean Operations in Nestle Name:Course:Tutor:College:Date:
LEAN OPERATIONS IN NESTLE 2Understanding of Lean throughout its yearsThe application of Lean operation in Nestle firm leads to effective and efficient utilization of resources. It is made possible because of the implementation of this flexible system which allows the use of fewer resources in manufacturing. The application of Lean since 2008 in Nestle and throughout its operative years, the company has managed to make an annual savings of CHF 1.5 billion. This saving is enabled by higher productivity, low manufacturing costs, shorter cycle time and more top quality in Nestle. The more significant productivity through the use of lean means massive sales of the manufactured products to esteemed customers. This higher productivity entails accommodation of particular products features from customers placed orders (Rahaman & Lal 2017, p. 39). The employment of Lean systems has led to less production cost. This because lean systems incorporate the application of modern technology in manufacturing of goods. Current innovation uses capital-intensive production techniques which exclude the number of people required in business operation. The reduction in labor means low production expenses hence high-profit levels. Nestle managers concerned with product improvement and quality has managed this through the utilization of lean operation (Mohamad 2014, p. 83). The attainment of1.5 billion saving in Nestle has been made possible through the consideration of shorter cycle time. This technique fastens and shortens the manufacturing process. The response to individual customers placed orders means their maintenance in the company. Despite the fact that Nestle rapidly responses to customer’s needs, it puts into consideration the quality of the product. High technology enhanced through lean operation makes it possible for high-quality manufacturing goods. These high-quality products are fast moving and have contributed significantly to the realization of the 1.5 billion profits.
LEAN OPERATIONS IN NESTLE 3The application of Lean system includes the employment of the Sigma six models by Nestle. Throughout its existence years, the company has been fighting the war on wastage, implementation of simplified process and aggregate value goals. Six Sigma is a technique, data-driven tactic, and approach for reducing defects in any progression from production to transitional in goods. The company aims at increasing the annual 1.5 billion profits to 2 billion through the six sigma model. This anticipated approach by Nestle considers just in time production, total quality management, and lean manufacturing. Just in time creates a highly synchronized dispensation technique in which products movethrough the system and services are executed, only as they are desired. This method which is currently implemented aims at timely delivery of goods to customers. The approach as under lean will get enabled by advancement in technology by Nestle. It is because timely delivery is facilitated by the speedy manufacturing process (Tshuma & Rivera 2015, p. 77). This process is currently implemented by the company also strategizing on how to respond to placed orders fromesteemed customers. Just in time too cuts down additional operation costs. Between 1997 and 2007, Nestlé went from 495 factories and CHF 67 billion in sales to 480 plants and over CHF 100 billion in sales. The Lean technique of six sigma has also maintained total quality management in Nestle. The CEO Peter Brabeck recognizes overall quality management in Nestle. It ensures inclusion ofspecific features as required by potential customers while maintaining quality. Brabeck postulate that administration of total quality includes cost saving in the entire production process. Through the enhancement of lean process, the quality is maintained and improved in all products. In the year 2006, the CEO Brabeck said that the lean process though consideration of
LEAN OPERATIONS IN NESTLE 4total quality management would move Nestle from project-driven initiatives to a sustainable, attitude-inspired approach to maintain product quality.The company as it practices Lean operation; it currently aims at implementing simplified manufacturing process. The simplified method means maintaining low costs while producing goods and maintaining quality. As the company presently aims at this objective, it serves its customers by through replacement of materials or parts by their demand. The implementation of lean ensures a shift from a manual system to automatic one which signifies the need for raw material and their associated cost. Brabeck said that the company branches are aiming at workload leveling to reduce the cost. It means that the initially placed orders are first sorted following a planned strict schedule (Rahaman & Lal 2017, p. 99). Nestle faces a test to connect with everyone at all levels of the association in a frequent consistent change to quicken execution change and guarantee manageability. José Lopez as the new vice president of global operation in 2007 was given mandate by Brabeck to solve this problem. Lopez though the application of Lean process initiated a collective goal strategy. It requires that labors from different departments in different branches focus on the same goals. Lopez is presently working on the improvement of the entire Nestle manufacturing system through the cooperation of workers (Rahaman, & Lal 2017, p. 43). The quality at each source in different companies was a challenge. Lopez through lean approach suggests the automatic operation of activities to ensure continuous improvement and accelerate performance. Implementation of Lean at Nestle CompanyIn Brazil, Nestlé had executed LEAN Thinking, an administration rationality concentrating on zero waste and on Total Productive Maintenance (TPM) in its plants starting in 2005. In
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