Successful stimulate employees · Can enhance product

Successfulcompanies heavily invested on structural prerequisites to enhance theiroperation. Based on nature, these investments can be categorized under o4areas. Such as,  ·        An emphasis on continuous improvementthroughout the organization·        Investment in research and development·        The adoption of advanced product,process, and organizational / managerial technology·        The integration and coordination ofactivities through the value chain Accordingto the given scenario can be summarized details as follows. An emphasis oncontinuous improvement throughout the organization Continuousimprovements mean that continually makes small changes within an organization.Small changes provide a road map to massive changes. This concept isuniversally known as Kaizen. Kaizen is the secret behind the success ofJapanese firms. Millikenmanagement had introduced Kaizen principles to all levels of the firm.

Theyarranged corrective- action groups to deal with numerous interior issues withquality. These groups consist with lower level employees, a process improvementspecialist and managers. And also 200 suppliers and 500 customer action groupswere created in that period. As a result of the above changes, Milliken able toachieved 60% drop in the cost of nonconformance. And also reduce the percentageof the number of off-quality discounts and customer returns.

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As well as on timedeliveries improved from 75% to 99%. Dueto above advantages,·        Milliken achieved a high market share ·        Retain customer for long periods oftimes ·        Increased customer loyalty·        Generated competitive advantages throughlow price and high qualityInvestment in researchand development Incurrent practice Milliken allocated 2% of sales revenue, for research anddevelopment (R&D) activities. R&D is the best way to achieveinnovations.  Milliken is developingtheir own machineries to save proprietary technology within the firm. Researchand development activities provide a lot of advantages for Milliken.

Such as, ·        Can generate competitive advantages overmarket rivalry·        Can enter new markets with new products·        Can stimulate employees·        Can enhance product quality whileminimizing production cost  The adoption ofadvanced product, process, and organizational / managerial technology Machineoperators faced a lot of unexpected downtime on the machine. In previously Millikenused mechanic staff to repair breakdowns. Problem was they have taken longhours to repair machines. As a result of that increased ideal time of machineoperators. To overcome this issue introduced an automated system to repair andmaintenance.

Through this system they obtained below mentioned advantages. ·        Speed up their production process whileminimizing human intervention·        Decreased ideal time of machineoperators·        Respond  and deliver customer orders on time  Milliken had adapted to the advancedtechnologies to survive in the market. Management introduced new looms to thedecorative fabrics business unit. That looms can run at a high cycle rates.This is caused to improved amount of lineal feet of fabric woven per loom hour.As a result of that Milliken has enabled to cut the minimum efficient length ofrun.

Milliken can function beneficially on short run due to high cycle rate.And also it was caused to increase operational flexibility and responsiveness.Now Milliken can carry out production run in a shorter period of time thanpass.  Decorativefabric business unit waste time can be minimized by reducing the design cycletime. To achieve above target management introduced a computer aided designsystem (CAD) to the decorative fabrics business unit. It generated followingadvantages, ·        It saves time of designers·        Incurred low cost to design process·        Eliminated manual drafting·        Product can be designed quickly·        Provided high accuracy·        Reduced cycle time·        Can easily carry out modifications andenlargements The integration andcoordination of activities through the value chain Thereare two methods to save customers and create value through the value chain.Such as,·        Push system Conduct promotion campaign to attract customers     Tries to sell firm’s product to customer           Thisis the traditional method of manufacturing products.

In here did not concernabout needs and want of customer. Firms produce products based on theirpreference. ·        Pull system Pullsystem differs from push system. It has many steps.

Such as,Ø  Conductmarket survives to determine customer need and wantsØ  Basedon that design productØ  Forecastdemand for the productØ  Identifymaterial and labour requirements for productionØ  Startproduction process  Thisis the newest way of manufacturing products. Under this method manufacture donot allocate more money on promotions. There is no risk in the market.Manufacture can sell their product easily without any extra effort. Millikenmoved from a push system to pull system. It generated more value to Milliken.

Such as, ·        Increased employee involvement on bothproduct design and manufacturing·        Reduced the work in progress in inventory·        Provide a basis for continuousimprovements·        Generated more cash flowsInaddition to management taken action to eliminate limited value added activitiesin the value chain. Example: removed management position of the organizationalstructure. Millikengot support from their key suppliers and customers for new product development.

Suppliers know how to minimize costs through material handling. Customers knowwhat type of product features satisfy their needs and wants.  Suppliers and customers ideas helpful to the generatemore value.  

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