How Nike helps Chang Shin get Lean

Just weeks ago I visited Chang Shin, a Korean contract manufacturer in Qingdao, whose 9,500 employees produce an average of 2 million pairs of shoes per month erythromycin. Interestingly Chang Shin manages their facility cooperatively with their sole customer, Nike shoes. Nike's American on-site Operations Director, Bruce Casey, helped to organize a manufacturing tour in March 2010 for members of the Qingdao Business Leaders.

Iggy Lee, a manager for Chang Shin, spoke about their close collaboration with Nike, their quality management system and how the implementation of Lean methods have improved their performance in many areas over the past years. Mr actonel. Lee emphasized that “Nike takes a pretty active role where they plan to make products,” he said. They act like “a mentor and coach.”

In order to improve operational efficiency Chang Shin together with Nike developed a training center open to all Nike contract factories that offers in-depth training on how lean principles can enhance their business.



Whanil Jeong, chairman of Chang Shin, Inc., notes that Nike played a decisive role in implementing Lean manufacturing methods into their operations over a decade ago.

We were a small company and lean was a new tool in the footwear business. We were an early example of lean benefits. Nike was trying to find an efficiency program and they partnered with us to open the NITC (NOS Innovation and Training Center). The NITC is a training center open to all Nike contract factories and gives them in-depth training on how lean principles can enhance their business. We had a lot of our workers attend this training and it has been a very strong engine for building our lean efforts. We also share ideas with other Nike factories to learn what is working well. We are open with our information and are helping each other to improve.

Their training center, located in Ho Chi Minh City, prepares transition leaders who learn the essence of Lean manufacturing and return to their factories to guide coordinated teams along their own path through Lean practice.

Before implementing the efficiency program, Whanil Jeong said, “we were in bad shape; poor product quality, late deliveries - it wasn't comfortable.”

Today Chang Shin produces approximately 20 million pairs of shoes each year, and is now a leader in the industry. Lean manufacturing concepts helped them to improve factory working conditions and efficiency.

Whanil Jeong shares the key to the Chang Shin turnaround here: “We thought lean was about the use of [the tools of lean, such as 5S, Kanban, standardization, production line layout and changeover]. We totally did not understand the culture changes required, but it was a first step.”

Whanil Jeong offers some good advice for other companies that are starting their lean journey.

First you have to set a clear vision that lean is the way to run the business, and everyone must support this vision. Second is to invest in people and ensure all employees have the knowledge and skills to implement lean from the bottom up. Third is to seek help from experts - consultants, partners, other companies. Finally, have patience to let the process work. This includes listening to all the ideas of your employees as well as hearing and sharing the pains of your employees.