How Nike Continually Improves Its Manufacturing and Processes Research Paper

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Lean manufacturing commonly refers to the ability of a company to optimize assets and process to help minimize waste. For Nike, this includes optimizing the flow of products throughout the value chain. This issue is heavily complicated by Nike’s status as a leading global apparel operation throughout the world. Here, lean operations must be adapted to properly address issues from both a geographical and legal standpoint. Without regard to these issues, process improvement initiatives may become outdates or out of touch with economic reality. For example, in , Nike’s brand was heavily tarnished due a sweatshop scandal. The operation itself was completely legitimate as it complied with all applicable laws and regulation prevailing at the time. Likewise, the operation was very lean resulting in very optimal profit margins and product productivity. However, the lean operation was conducted in such as way that women and children were susceptible to very inhumane working conditions. These conditions, albeit lean, where disastrous for the image of Nike and what it’s brand. As a result, lean operations and process improvement from the standpoint of Nike not only need to be view from a quantitative lens, but they also must be viewed from a qualitative perspective as well. Today, nearly 30 decades after the scandal, the company appears to be flourishing through model adaptions to its lean operating…

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The appraisal for example, consists of a risk analysis of the country, a review of the ability of facilities to comply with its lean methodology, and overall financial ability of the facility to improve processes. Here, to improve the lean process, the company has committed to using 100% renewable energy in owned and operated facilities. The company has also improved operations by changing the overall materials in used to manufacture its shoes. This includes all elements of the manufacturing process such as dyeing, chemical makeup and more. Figures 2 and 3 show how Nike targets these areas in the manufacturing process and the metrics it uses to evaluate success of the….....

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