Esterline Technologies and Lean Manufacturing
With this strong financial performance, analysts expressed their positive outlook for Esterline Technologies: “According to analysts reports, 206 revenues were likely to exceed $1 billion.”The success of Esterline in its operation is also indicated by its capability of achieving Tier-1 supplier status with two of its largest customers. Tier-1 supplier status puts the business organization into a more advantageous situation, which gives it higher bargaining leverage. On the other hand, it also highlights the company’s current performance. Cremin notes that Tier-1 status “means that you can handle the next biggest thing. you can be trusted, you’re reliable, and you have financial strength.”Lean manufacturing has been instrumental in the deployment and success of the strategy. Esterline recognizes that lean manufacturing is a system that helps it achieve its manufacturing goals of “lower cost, improve quality, and build competitive barriers to entry.”3. What are the key components of a lean system and how do they compare with components of traditional systems? As you prepare your answers to consider dimensions such as supply chain management, process architecture (layout), metrics, material flow discipline, inventory management, key performance metrics, use of IT, employee involvement, quality systems, equipment maintenance, scheduling, links between product design and manufacturing, and other factors that come to mind.The lean system is a quest in maximizing efficiency through the elimination of wastage in the manufacturing process in a business organization. The key components of a lean system are often in contrast to a lean manufacturing system.In a lean system, supply chain management is very much important as the flow of goods within the organization is highly organized. Close collaboration with suppliers through the use of IT is emphasized in a lean system. In a traditional system, this is not practiced.In a traditional system, employee input into how the operation is performed is low.