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Operations Article | Implementing Lean Production Techniques in India

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Implementing Lean Production Techniques in India

- by Karthik Nagarajan & Manan Vansola *

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Current Scenario in India

It is the manufacturing segment that has created jobs for millions in the developed economies. The disposable incomes in their hands pushed consumer spending up and thereby set in motion the cycle of disposable incomes, demand fulfillment, capital formation and economic growth.

In India, now there is evidence that the same is happening. The industry is humming with activity once again with a phenomenal growth of 11.3% in the recent quarter, April-June 2005 (according to Business Standard). Rising consumer demand is backed by large investments both in infrastructure projects such as construction and transportation, and in core industries such as cement, chemical, oil and gas, power, pulp and paper, refining and steel. However, in the post-WTO era, domestic manufacturing companies can succeed, not by investing in expanding capacities alone, but by investing in technologies and practices that make them globally competitive.

To achieve the above strategy, an industry has to give consistent quality of acceptable levels, has to be productive, has to be flexible to accommodate varying customer demands, has to have fast response times and should have a low cost performing organization structure. Manufacturing has to break away from its traditional mass production strategy, which is plagued, by wastes due to overproduction, high waiting times, unnecessary transport, excess inventory and defects.

Comparing Manufacturing Scenario in India with Other Countries

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* Contributed by -
Karthik Nagarajan & Manan Vansola,
Faculty of Management Studies,
University of Delhi.


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