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Monday, April 16, 2007

Lean manufacturing and Chinese manufacturers

As you know I keep this blog dedicated for lean manufactures and lean lovers. Lean manufacturers achieve high quality on time deliveries at lower costs. They also comply with higher labor, social and environmental standards. Lean manufacturing started in Japan spread to US and European manufacturers in 1980 onwards. All the manufacturers worldwide are looking to achieve the advantages mentioned above with their lean initiatives.

But especially when it comes to the cost factor the winner is China without any doubt. I am not sure whether they follow lean principles to achieve these results. But certainly they have become very low cost manufacturers usually in the expense in other areas. They are so very low in their costs; people are willing to compromise on other areas for the price. Big brand owners are not an exception. They are making huge profits with these products. I am sure your organization is working with at least few Chinese manufacturers regardless of the industry you are in.

China trade directory one of the sites I had a look lately, suggests China has exported US$ 450 billion worth of manufactured goods to US in 2006. Interestingly it goes to show the substantial amounts of profits marketers has made with these products, which is almost US $ 850 billion according to this website (If you want to read the full story Click Here). Although I am not sure of the source of this information the reality might not be far away from this.

What do you think? Have Chinese found an alternative to lean manufacturing? You are welcome to add your comments on this.

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