Ford system to Lean Enterprise

As we have discussed lean manufacturing concepts were originated for the Ford system. Then these concepts were studied and developed by the Japanese manufacturers especially for the Toyota system. This system was known as the Just In Time or JIT system. Then with time this system was developed as lean manufacturing system.

Today the most important development in lean manufacturing is the lean enterprise concept. Lean enterprise is very important in today’s context, in the war against waste. Lean enterprise is an extension of the lean manufacturing concept. It goes beyond the boundaries of the organization. It reaches customers, suppliers and other parties in the process of value creation.

The aim is to create value and eliminate waste not only within the organization but also throughout the supply chain. Everyone in this chain is important in fulfilling above goals. Customers themselves are very important to avoid wastes in a system. Many customers are poor in supporting their manufacturers and suppliers. This will lead to poor performance of the system. All the wastes created in this process make the cost high and eventually customer will pay these costs. Poor quality and other related wastes are not exceptions. Ultimately they will affect the customer in a negative way.

Suppliers are also very important in this process. In many industries more than half of the cost of manufacturing is for the raw materials. Every improvement in your supplier will make your life easy and comfortable. As a manufacturer it is very important to have a base of suppliers who can be trusted easily for their cost, quality and delivery. No, suppliers are not your enemies. They are a very valuable part of your process and even more important in achieving the goals of lean enterprise.

In today’s world manufacturers can do very little on their own in creating value. Each and every activity is interconnected very closely. Every part of your supply chain must improve simultaneously in order to deliver superior value to your customer.

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