How lean production and service has helped Kellogg to maximize its productivity?
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
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The purpose of this assignment is to examine how lean production and service have helped Kellogg’s company to maximize its productivity. The Japanese Company Toyota introduced the lean system in 1960 which is the system where a business identifies and eliminates waste and non-value-added activities through the continuous improvement of the products and services. Currently, most companies implement the lean system in trying to reduce waste and increase the value chain. This essay is going to provide an analysis of the implementation of the lean system in Kellogg’s company. Kellogg’s is a manufacturer of cornflakes and it was founded by Will Keith Kellogg and Dr. John Harvey Kellogg in 1898. The product was introduced in the market in 1906 and it was appreciated by a number of customers. Currently, the product is manufactured in eighteen countries and distributed to 180 countries. It is worth noting that the lean system has helped the company to increase its productivity and reduce waste in the company.
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lean production and service at Kellogg's: A CASE STUDY OF maximizING productivity
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the meaning of lean production and system and its relevance in any organization
- Understand how lean production and service have helped Kellogg’s company to maximize its productivity
- Apply the lean system to any organization
1.0 INTRODUCTION
Kellogg Company was established in 1906 and later incorporated in 1922 and it has its headquarters in Michigan, US. Kellogg operates in the manufacture and marketing of delectable cereals and processed foods. Its products include cereals, cookies, crackers, frozen waffles, and toaster pastries among so many others. It operates through four segments namely; North America, Europe, Latin America, Asia, and Middle East Africa. As of 2023, its revenue is $15.6 billion, and a market capitalization of $23.7 billion. In 2020, the company had manufacturing plants in 21 countries and markets its products in more than 180 countries. Kellogg has utilized the lean system to reduce its waste and increase productivity.
Lean Management is an approach that is aimed at combating the inefficiencies that exist in an organization so as to increase its general productivity and meet the expectations of the consumers. Lean production is used by an organization to maximize the company’s efficiency by removing waste. These processes focus mainly on managing the inventory of an organization, eliminating wasteful products, improving an organization’s productivity, and quality management among so many others. Lean systems help an organization in developing high-quality products and services at low prices. This paper is going to examine how lean production and service have helped Kellogg’s company to maximize its productivity.
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