Lean Efficiency And Effectiveness Essay

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The following sections will describe Lean efficiency and effectiveness, and also give examples with real case studies.
1.1 Efficiency of Lean Supply Management
The lean approach can substantially improve the process' efficiency. The objective is to create high quality products at a minimum cost in a short delivery time (Basu and Wright, 2008). This section explains briefly how Lean improves operational efficiency and enhances the competitiveness.
1.1.1 Elimination of waste
In the Lean concept, any non-value adding activity in the process is considered as a waste. The Lean principle tackles this problem by aiming to eliminate the waste from the operation, which will subsequently improve workflow and its efficiency as well as improve inventory …show more content…

If raw materials sent to the station are in the right quality, these materials will produce a standard quality output. For example, Seagate Technology improved their lean supply chain by increasing customers’ and stockholders’ value by refining products as an attribute of the Lean Six Sigma objectives. After that, considerable benefits were attained comprising 31 percent of throughputs, 80 percent of authorisation rate on requirements for vacuuming instruments, compared with 40 percent in the past; less operation time and a reduction on investment spending such as machinery, equipment etc. because the current equipment was utilised more powerfully. (Basu (2004) cited by Basu and Wright …show more content…

Another significance of lean supply network is working collaboratively with a fewer sets of suppliers (Trent, 2008). Fewer suppliers mean companies can work more closely and more efficiently towards a common goal by sharing information and creating trust. Moreover, Lean also provides clear benefits in the part of employee productivity enhancement. Caspian company, a Pennsylvania constructor of industrial sensors, accomplished a rise in labour productivity development by of 12 percent over a two-year period after the implementation of Lean (Cooper & Maskell,

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