ºÝºÝߣ

ºÝºÝߣShare a Scribd company logo

Lean manufacturing in zara

•Download as PPTX, PDF•
•
Harsh Sinha
Harsh Sinha

Zara is a Spanish clothing retailer known for its lean manufacturing approach. It implements one-piece flow where products move through production one at a time based on customer demand from stores. Store managers place orders twice a week and new designs arrive within 15 days. Zara uses a network of factories in Spain, North Africa and Turkey to quickly produce unfinished products that are then finished and shipped within 24-40 hours. Every evening, store managers provide customer feedback that is analyzed to improve designs and operations, allowing Zara to be highly responsive to changing fashion trends.

1 of 8
Downloaded 19 times
Lean Manufacturing in Zara Harsh Sinha 1627611 Aditya Agarwal 1627601 Priyanga A 1627648
Overview • Background • One Piece Flow • JIT Production • Agility • Let’s Talk Future
Background • Industry: Retail • Headquarters: Spain • Founder: Amancio Ortega • Stores (Worldwide) 20,000 + • Revenue: US $15.9 bn
One Piece Flow It is the movement of a product ,one piece at a time through the production process. ZARAs’s Implementation • Eight-hours after a store manager places an order based on customer demand, items are then picked, packed and ready to leave its distribution centre in North-west Spain. Because ZARA’s logistics are centralised, it can send products anywhere in the world within 48 hours. • One Piece Flow reduces all types of wasteful activities, it enables ZARA’s to be agile and respond to customer demand .
JIT Production How is JIT implemented in ZARA • Store managers order clothes twice a week, at precise times, as per the store schedule, new garments arrive. • As per the demand, new designs arrive in store within fifteen days. • Less popular products are not produced.
Agility ZARA’s Agility • ZARA uses a network of automated factories in Spain and over 300 small finishing factories in North Africa and Turkey to constantly create unfinished products • On approval of a new design, the unfinished products are pulled, sent to the finishing shops and turned into products, ready to be shipped in as little as 24 hours to Europe, and in 40 hours to the Asian and North American markets. • Every evening, store managers from 2,000 stores in 88 different countries feed everything they have learned about their customers buying habits into a computer at the collection counter. This information is then sent to the distribution centre, where it is picked up by Zara’s design team. Designers then digest the information allowing them to make improvements, reduce customer friction and, most importantly, make excellent fitting clothes.
Let’s talk future • Increased customer contact • Higher level of automation • Made to order
Source: The Leadership Network https://theleadershipnetwork .com/article/lean- manufacturing/zara-lean- fashion-retail

More Related Content

Lean manufacturing in zara

  • 1. Lean Manufacturing in Zara Harsh Sinha 1627611 Aditya Agarwal 1627601 Priyanga A 1627648
  • 2. Overview • Background • One Piece Flow • JIT Production • Agility • Let’s Talk Future
  • 3. Background • Industry: Retail • Headquarters: Spain • Founder: Amancio Ortega • Stores (Worldwide) 20,000 + • Revenue: US $15.9 bn
  • 4. One Piece Flow It is the movement of a product ,one piece at a time through the production process. ZARAs’s Implementation • Eight-hours after a store manager places an order based on customer demand, items are then picked, packed and ready to leave its distribution centre in North-west Spain. Because ZARA’s logistics are centralised, it can send products anywhere in the world within 48 hours. • One Piece Flow reduces all types of wasteful activities, it enables ZARA’s to be agile and respond to customer demand .
  • 5. JIT Production How is JIT implemented in ZARA • Store managers order clothes twice a week, at precise times, as per the store schedule, new garments arrive. • As per the demand, new designs arrive in store within fifteen days. • Less popular products are not produced.
  • 6. Agility ZARA’s Agility • ZARA uses a network of automated factories in Spain and over 300 small finishing factories in North Africa and Turkey to constantly create unfinished products • On approval of a new design, the unfinished products are pulled, sent to the finishing shops and turned into products, ready to be shipped in as little as 24 hours to Europe, and in 40 hours to the Asian and North American markets. • Every evening, store managers from 2,000 stores in 88 different countries feed everything they have learned about their customers buying habits into a computer at the collection counter. This information is then sent to the distribution centre, where it is picked up by Zara’s design team. Designers then digest the information allowing them to make improvements, reduce customer friction and, most importantly, make excellent fitting clothes.
  • 7. Let’s talk future • Increased customer contact • Higher level of automation • Made to order