The Porsche Lean Story | Competitive Advantage via Quantitative Methods

See on Scoop.itlean manufacturing

Michel Baudin‘s insight:

Along with information about the history of Porsche’s turnaround since the early 1990s, this article contains strange statements about, for example, Lean Manufacturing being “Non-Quantitative,” which must make Ohno and Shingo turn over in their graves.

It also contains the doubtful statement that “the costs of warehousing excess inventory are a hundred of times more expensive than a delay caused by a missing part.” The point of Lean Logistics is not to trade-off full warehouses for shortages!

The real paradox of stock is that hoarding parts is ineffective at preventing shortages. The Lean Logistics approach is to keep inventories low but monitored with vigilance, and to respond quickly when floods, tsunamis, or earthquakes disrupt the supply chain.

The article further asserts that “Statistical Process Control” was central to Porsche’s effort, but gives not indication that it is even used. I don’t recall it being mentioned or seeing any trace of it in the Porsche plant in Leipzig two years ago.

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2 comments on “The Porsche Lean Story | Competitive Advantage via Quantitative Methods

  1. I am a full time follower of your articles, this keeps me thinking where can i apply your experience, this article gave me thought to co-relate to one of my present work, I am learning on the operational perspectives for a company and I am looking into
    1. performance measurement and
    2. behaviour
    which are essentials for the operational excellence for a company.
    -We are sure to get quantitative results for profit, accidents, complaints from internal of the company.
    -For Behaviour: Lean culture, Leadership we cannot quantify these are practices. we might show up $ savings.

    May be Porsche has considered more in Behaviour perspective of its Lean, which cant be quantifiable.

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