Lean production.

Global SourcesUpdated on 2023/12/01

Hot Topics

Global Sources Exhibitions

"Lean production is originally a combination of Taoism, but it is only a management technique when we cut it." Wang Yukun, a famous management expert, commented, "Lean production first introduces value. Lean, refined, unique, Continuous improvement, ultimate value, these are originally equivalent, but unfortunately we can only introduce it at the micro level. Instead of linking the value of lean with the inheritance of corporate value and the overall strategy.”

Wang Yukun’s comments can be described as one of the in language. The reason why "lean production" was rated as one of the top ten management practices in China in 2013 is precisely because in this year, Chinese enterprises closely combined the "dao" and "technique" of lean production, and the design of Xi'an Meridian Household Crafts emerged. Manufacturing Co., Ltd. (referred to as "Meridian") and a number of representative enterprises.

In fact, according to James P. Womack, who first proposed the concept of "lean production" and made it popular all over the world, the essence of lean production lies in his generalization and general application Five principles (or steps) of lean thinking for companies of all sizes in different industries: precisely define the value of a particular product; identify the value stream for each product; keep the value flowing continuously; let the customer pull value from the producer; Always strive for perfection. Running through these five principles is the idea of value.

After the international financial crisis in 2008 swept the global economy with lightning speed, the purchasing behavior of European and American importers and retailers began to undergo earth-shaking changes. The breadth and depth of this change reached a peak in 2013. . Different from the large-scale procurement of standardized large-scale goods in the past, international buyers now adopt a procurement strategy of multiple varieties, small batches and small orders.

The direct impact of changes in international buyers, according to Wang Yan, the company's deputy general manager of sales, is that "some orders do not meet the factory minimum order quantity (MOQ) requirements. When the minimum order quantity is reached, we will give up, which will affect the orders of these customers, and we will lose these customers.”

In response, Meridian Company, whose core business is R&D, production and export of glassware, adopts The method of "centralized production and split sales" is adopted, that is: for products with better feedback or interest from customers, according to the minimum order quantity of the factory or more than this quantity, centralized one-time mass production, and then one-time batch production. The products produced are split and sold to multiple small order customers. This move embodies James Womack's Lean thinking on order management value streams.

James Womack defines a value stream as a specific set of activities necessary to pass a specific product through the three key management tasks of any one business activity. For these three management tasks, he divided an enterprise's value stream into product development value stream, order management value stream and product manufacturing value stream.

The purpose of value stream management is to identify which activities or steps create value and retain them; which activities or steps do not directly create value, but are unavoidable under existing technology and production conditions , such so-called "type I wastes" need to be improved or transformed into value activities; and those steps or activities that do not create value and can be removed immediately, such so-called "type II wastes" need to be eliminated immediately.

On the value stream of product manufacturing, Meridian has implemented the quality inspection of the whole value stream from the initial stage of production to the later stage. Its quality control personnel are stationed at the factory from Monday to Friday, conducting in-line inspections of the production line as well as initial, intermediate and final inspections. In contrast, many of its peers are only doing mid-term or final product testing.

Meridian's glassware products often require post-processing such as color matching, decals, etc. before they are sold to customers. Early and mid-term quality inspections have become the top priority of this company's lean production. "If the product inspection is not done properly, if the post-processing is done on defective products, then the waste will be particularly large. Quality inspection is where we do better in lean production." Wang Yan said.

For example, she said, many international famous brands like to make products from Meridian, and the products have the logos of these famous brands. If Meridian makes a defective glass, it will not be detected until the customer's logo appears on the glass, and the glass is more expensive, "This will cause a lot of waste and our profits will be reduced. ."

Meridian's products are developed and manufactured according to the needs of European and American customers, and the "dao" of customer value management always runs through the "technique" of various business activities. Meridian lean production integration of Taoism, the company's sales revenue from 2011 to 2013 increased by an average of 70%.

See Weizhi. It can be seen from Meridian that Chinese enterprises are beginning to walk on the correct path of lean production, and the prospects are promising. As Dr. Xie Zuchi, former global senior partner of Booz & Company and chairman of Greater China, commented, "Farewell to the era of economic growth with the prefix '8', lean production will become the biggest potential field for China's manufacturing industry in the future.

Source the latest products from verified suppliers on our global sourcing platform, or install our app. Subscribe to our magazines for more in-depth insights and product discovery.

More Sourcing News

Previous Article
  • Leave us Feedback

  • Download App

    Scan the QR code to download

    iOS & Android
    iOS & Android
    (Mainland China)