Lynda Case 2.1,2.2,2.3

2.1 Lean culture

Lean culture is the ability to stay agile and to manage change. George Bernard Shaw says, “Progress is impossible without change.” What that means to me is that change must happen to make improvements. It takes time and effort to make change and it’s a continuous process. Change takes all people to happen from the top down. Lewin made a model that is the best fit for lean culture. This is unfreezing, change, and refreeze. The step 1 is unfreeze meaning that the upper management recognizes that there needs to be change. Management must make everyone on board with this process and with change comes some push back. Step 2 is change. To work this step, you must identify something that needs improvement or change. This step requires people to implement and help reinforce change because some people will have a hard time with change. The last step is refreezing. This means to change the culture to make the new changes permanent.  

2.2 The Lean Company

Amancio Ortega says “The customer has always driven the business model.” He is the CEO of Inditex which is best known for the clothing line Zara. Zara is a clothing companies that has the most affordable and fashionable clothing. The clothing chain is difficult to stay current because of the new trends that come out. However, Zara has found a way to make it work. By keeping the inventory to a minimal makes the company more agile to try new trends and fads out. They can test the customers response and can shift manufacturing to fit the customers needs.  Also, Zara does not utilize all the production until they can make a forecast of the trends. So, they can quickly mold the production to what the customer truly needs. When a company has control over the inventory and can take away overhead associated with excess then, the company has the flexibility to figure out what the customers needs are. This gives the Zara clothing line absolute control of the profit just by using just-in-time.

2.3 Lean Thinking for Supply Chains

The ease of transportation is one part of the lean process. Transportation can be considered wasted time. For example, hurricanes, natural disasters, traffic, human error, accidents, or any other thing that can hinder the product from getting to the customer. Amazon has figured out how to make their product more assessable to the customers by putting the inventory in the air called an Amazon fulfillment center. Drones can drop off the product when order is fulfilled. This makes the product very fast and easy to get. The invention must be well organized and supplied to have on hand the types of merchandise that is needed. Bezos has made the transportation of the product real time. Also, what makes this lean is the inventory must be placed in the best way to utilize space. Its amazing to think about being at some public event and ordering anything you need.