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The Cost Factor Is Deemed As One Of The Key Elements In The Strategic ...
The cost factor is deemed as one of the key elements in the strategic decision-making for the use of a particular method to another in the manufacturing process as the ultimate goal of LEAN strategy is to increase the profits through internally re-engineering the manufacturing and business process as argued by Kaushik Sengupta et al (2006).
People The final and important element with the LEAN manufacturing strategy is the people in the organization that are involved in the manufacturing process as well as the overall business process of the organization. This is not only because of the need for an effective approach to the management of the quality and achieving delivery excellence but also to increase the awareness of the policies of the organization on the quality and its importance for the performance of the organization in the given business sector as argued by Kaushik Sengupta et al (2006). This makes it clear that the effective people management and the control of workforce through reducing the cost overhead by operating at the minimum required level of work force for an organization's operation is the key for effective application of the LEAN strategy in a manufacturing organization.
Another interesting element with the people element of the LEAN manufacturing strategy is the need to create awareness by the organization among the staff members on the goals it is trying to achieve through the LEAN manufacturing strategy. This process is essential mainly at the production centre of the organization as the need to not only re-engineer the business process but also to provide efficient training to the staff members is a critical element for the success of the organization as argued by Kaushik Sengupta et al (2006). It is also essential at the production centre because of the fact that the production methods will not only change drastically but also require training and support to the staff members whilst ensuring that the day-to-day business process is not affected whilst implementing LEAN in the organization as argued by Kaushik Sengupta et al (2006).
This makes it clear that the LEAN manufacturing strategy in an organization can be implemented successfully to enable the organization to generate revenue through the continuous re-engineering and manufacturing process of the organization in the given organizational set-up. In the next section a detailed overview on the Outside in strategy and the role of LEAN is presented to the reader. This is aimed to provide a deeper understanding of the application of LEAN in the manufacturing sector not only as an operational excellence tool but mainly as a strategic tool to gain competitive advantage in the target market as argued by Kaushik Sengupta et al (2006).
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