Question

Explain how Amazon uses or should use lean production to create a competitive advantage. Must be at least 250 or more.

Answer 1

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Amazon is a customer centric company and knew from the beginning that customers will not pay for waste. This focus on waste is basically the fundamental principle of lean production. Amazon uses its high-tech information technology to understand what its customers actually want and builds the entire service offerings around it. For example, the chose transportation method based on promised delivery date to customer and only if low cost options are likely to deliver within the same time, it enters into the equation. This is employment of lean principles only where waiting time or transit time is reduced.

Amazon uses the lean principle of autonomation, which is to employ human for high value complex work and routine work automated through technology. Following the principle of lean production to empower and enable frontline workers, Amazon has great focus in engaging its fulfillment center workers

Another dimension of lean that Amazon worked on is the standardization of work. Since human output vary leading to difference in what is written down and what is being followed, Amazon prepared detailed SOP for processes and implemented various Kaizans that ensure uniformity in delivery of work by Human. Kaizan is a very powerful tool at Amazon to implement continuous improvement among its workers in fulfillment centers.

From the above it is very evident that Amazon uses lean production system in its operations