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NIKES LEAN PRODUCTION
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LEAN MANUFACTUING
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MANNAT, MUTHU, SELMAN & SHOBANA
More than 500,000 unique products
Those numbers are staggering and humbling at the same time.
Factory Sourcing
Quality begins at Factory Sourcing that is, the process a contract
manufacturer has to enter in order to be selected as a Nike
manufacturing partner. The sourcing process is more rigorous than it
was and Nike has improved the quality of the manufacturing partner and
the time it takes to select a partner.
In terms of time it takes to become a partner, it now takes Nike 152 days
versus 246 days. That means it takes Nike 38% less time evaluating a
manufacturing partner. This is a massive improvement.
In terms of quality, Nike has increased its requirements but doesnt leave
the partner hanging dry Nike actually spends time and energy and
resources helping the contract manufacturing partner reach Nikes new
standards. As of this writing, Nike has 0 manufacturers in Gold, 1
manufacturer in Silver, 535 in Bronze, 156 manufacturers in Yellow, 77
contract manufacturers in Red. As you can see, Nikes bar of excellence is
high and Nike actively not only audits its manufacturing partners, but
also helps them improve .
Manufacturing Excellence
According to Nike, in order to design the future, Lean Manufacturing
must be part of the solution for them. In their words,
Lean manufacturing has been a hallmark of our approach with
factories and is the foundation of how we advance sustainable
manufacturing. Lean manufacturing is a business system and
continuous improvement philosophy that aims to deliver the highestquality product while eliminating waste, including lost time and
material. At Nike, we also believe lean can empower workers and
teams. The success of the lean approach depends on the implementation
of physical changes to production processes, increased leadership
capabilities and the development of an empowered workforce. Lean
manufacturing seeks to engage the minds of those closest to the work to
solve the problems that prevent them from delivering quality product
on time, every time.
As we all know, people are at the heart of any operation. Nike has spent a
lot of energy in training and upskilling their contract manufacturers in
Lean. From their perspective, Lean helps their people in the following
ways:
Leadership: factory leaders use Lean to drive business
performance
The lean approach also seeks to engage the minds of those closest to the
work to solve the problems that prevent them from delivering quality
product on time, every time.
In fact, they use Jeffrey Likers model found in his book Toyota Culture,
the Heart and Soul of the Toyota Way as an example of how they need
to align people and strategy and lean in their training.
This is the aspect of the Lean deployment that impresses me the most.
Why? Most organizations will start Lean primarily in the Daily
Management section of the model and it stays there. Most of us know
this as Shop Floor Management, or even the Toyota Floor Management
Development System as I know it.
But at Nike, they go deeper and higher and more broadly. In their words,
this is how training is done in order to help their people notice the
level of Lean Six Sigma Training conducted 2:
The curriculum contains 10 modules that each focus on a key area of
the Culture of Empowerment Model. Each module is designed to share
HRM best practices related to lean manufacturing, and contains
interactive exercises that allow factory managers to assess their
current state and identify improvement opportunities in areas
including recruiting, selection, employee development, performance
management, worker-management communication and retention.
The curriculum also contains instruction and exercises on lean problem
solving and planning tools including PDCA (plan, do, check, act) and
A3 reports, which facilitates knowledge sharing and collaboration in a
concise document. These tools are used throughout the capacity
building to define follow-up projects that factory managers implement
after completing the training.
And, they also take temperature checks with their people, to see if the
Lean deployment is meeting their needs. In a survey conducted by an
outside firm, the results seem promising and Nike has also take this data
from survey results to help further improve their people operations: