John Deere Company deals with the manufacture of heavy machinery. The company’s primary target include the agricultural, construction, forestry, and turf care items. Some of the products that it manufactures include tractors, commercial mowers, dump trucks, and field rakes. It has built a quality brand name and image due to the production of items that meet and exceed their expectations. The firm has incorporated lean manufacturing technology to eliminate waste, remove variability, and improve organizational productivity. This process has enabled it to improve lead time and deliver products at the consumers’ point of need.
The Three Lean Principles
The lean manufacturing process helps to reduce wastes. It is deemed as anything that adds value to the product and integrates elements such as equipment, material, and labor (Santosa & Sugarindra, 2018). Businesses at times find themselves having excess stock due to overproduction. Excess inventory attracts increased wastage. Lean technology is an effective way of reducing wastage because it ensures that a company has suitable inventory levels and goods are produced at the consumer’s point of need. John Deere Company has relied on the lean process to eliminate waste. It reduces its inventory levels to avoid excessive production material at its disposal. The company also reaches out to its suppliers to adopt the lean system to enhance effectiveness in the delivery of raw materials. This has allowed the firm to meet its products’ flexibility and quality and thus extensively eliminate waste. There is less scrap in the company because of the streamlined supply chain activities.
The removal of variations is one of the key concepts in lean manufacturing, where a business aims to reduce non-value-added steps and observe quality through robust measurement tactics. John Deere Company heavily relies on the lean manufacturing process to eliminate processes that could accelerate the production cost while passing the burden to the consumers. It has adopted an e-procurement process and integrated supplies into product development to identify inefficiency in the production process while reducing the cost (Nelson, 2002). These strategies have played a crucial role in designing products to delight consumers and increase organizational efficiency.
The lean process has a substantial impact on organizational efficiency in companies that adopt it. John Deere has had a viable opportunity to advance its throughput across the costs, inventory control, and manageability (Works, 2018). The company has streamlined all its activities to align with available supply and demand across its operations and organizational functions. This has also enabled the firm to develop suitable inventory management tactics. Depending on the available demand, the company is better positioned to receive appropriate levels of inventory. It has a significant impact on the quality, cost of production, and management of all its supply chain-related processes. The company’s ability to effectively handle all its production processes through lean technology has facilitated its throughput.
John Deere Company has adequately balanced its cost and quality of its products. The integrated supplier network and e-procurement strategies ensure that the firm receives the appropriate inventory levels needed in the production. This helps in preventing excessive inventories that accelerate the cost of production due to increased holding costs. Its optimization of supply chain management aids the company in delivering quality products to the consumers. The production and logistic processes are linked to the lean system, which accelerates efficiency and effectiveness. Suppliers adhere to the consistency of materials delivered to the company with plans for improvement in place for emerging needs and actions.