Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

How lean management efforts of CHX were

enabling firm achieve lean operational objectives?


CHX has the following lean operational objectives, which they wanted to achieve through
their lean production system:
 Zero-accident safety to avoid any delays 
 Zero-defect quality at the lowest possible cost
 100% on-time delivery for customer satisfaction
 100% staff satisfaction
The management of the CHX team made considerable efforts to achieve these fundamental
objectives. Firstly, the experienced leadership of Yang, the six sigma director, guided the
firm in the right direction. His experience in lean production helped establish the basics of a
lean system. CHX hired outside consultants to teach their employees about the foundation of
lean production. This team of outside consultants only guide the employees and lets
employees solve the challenges in their lean production system, which helps them unleash
their hidden potentials. The team of CHX devised a set of standardized procedures to ensure
on-time production through automation. They made on-site improvements to shorten the time
between customer order and delivery by minimizing waste. CHX was using the pull model
as their "Day in supply inventory" was less than 50 days because of continuous
improvements to achieve operational efficiency. CHX has also achieved the inventory flow
as both raw materials and product inventories are kept at a minimal level. The first step in
establishing a lean production system is managing lean supply. We can see that the buyer-
supplier relationship was quite strong in our case as the supplier was also a subsidiary of
Carestream. They were both committed to their objective of achieving zero defects to achieve
100% customer satisfaction levels at a minimal waste level. CHX also focused on six sigma
activities to eliminate out-of-control processes and minimize process variance. We rely on
statistical and problem-solving tools to achieve total quality management in this technique.
Six Sigma is a customer-focused lean improvement strategy that has enabled CHX to achieve
excellent quality through continuous improvement processes. We can also see the
implementation of 5S visual management system in the lean production system of CHX.
CHX has sorted its product categories to eliminate any wastage in the production system.
They've set in order the required machinery to standardize operational activities. They've
been able to shine through extensive employee training and healthy work culture. CHX has
standardized its day-to-day operations to achieve lean production. This strategy of CHX will
sustain itself in the long run because of its operational excellence and clear communication.
On the downside of CHX's supply chain, an internal trade company named Carestream
Health Asia Pacific sells the finished goods to the agents and hospitals. It tells us that CHX
also relies on external lean production with an intense focus on consumer needs.

You might also like