11 Bakheng Street, Svay Dangkum,
Siem Reap, Cambodia
Email our experts:
info@truenorthlean.com
11 Bakheng Street, Svay Dangkum,
Siem Reap, Cambodia
Email our experts:
info@truenorthlean.com

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How to Achieve Business Excellence with Strategy Levels and Continuous Improvement

Understanding key strategy level is important in a business because it helps to align the goals and actions of different units and functions within the organization. Strategy levels also help to clarify the roles and responsibilities of each unit and function, and how they contribute to the overall performance and success of the business. The first level of strategy is the corporate level, which defines the overall direction and purpose of the organization. The corporate level strategy answers questions such as what set of businesses to compete in, what markets to enter or exit, and what resources to allocate among different businesses. The corporate level strategy should be based on the mission and vision of the organization, as well as its core values and competitive advantages. The second level of strategy is the business unit level, which describes how to compete in each distinct business or industry. The business unit level strategy answers questions such as how to create value for customers, how to differentiate from competitors, and how to achieve a sustainable competitive position. The business unit level strategy should be based on the analysis of the external environment and the internal capabilities of the business. The third level of strategy is the functional level, which describes how to support and implement the business unit level strategy. The functional level strategy answers questions such as how to optimize the processes and activities of each function, how to coordinate and integrate across functions, and how to allocate resources and measure performance within each function. The functional level strategy should be based on the objectives and KPIs of each function, as well as the best practices and standards of each industry. How Continuous Improvement Can Enhance Business Strategy and Performance Continuous improvement is a process of making regular small changes and improvements to the products, services, or processes of a business. It can be applied to the three levels of strategy: corporate, business unit, and functional. At the corporate level, it can help a business to adapt to changing market conditions and pursue the most profitable opportunities. At the business unit level, it can help a business to create and sustain a competitive advantage in each industry or segment. At the functional level, it can help a business to support and implement the strategies of the higher levels and improve its efficiency, effectiveness, and performance. Continuous improvement can also foster a culture of learning and collaboration among employees. By understanding these three levels of strategy, a business can ensure that its strategic decisions are consistent and coherent across all levels, and that its actions are aligned with its goals. This can help a business to achieve higher efficiency, effectiveness, and competitiveness in the market. By applying continuous improvement to the corporate, business unit, and functional levels of strategy, a business can enhance its performance and competitiveness in the market. Continuous improvement can also create a culture of learning and collaboration among employees, who can share ideas, feedback, and data to improve the business. Therefore, continuous improvement is not only a process, but also a mindset that can help a business to achieve excellence and success.
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The Rise of Eco-Friendly Textiles in Vietnam: A Story of Adaptation and Innovation

“Vietnam’s textile enterprises are leading the way in green production, demonstrating their resilience and creativity in the face of global challenges.” Did you know that many textile enterprises in Vietnam are moving towards green production processes? This shift is driven by increasing consumer awareness in key export markets and the development of standards for imported textiles and apparel, particularly in the European market. To export to the EU, Vietnamese textile firms must meet strict standards around product safety and the environmental impacts of their supply chains. This has forced Vietnamese firms to take action and adapt, leading to significant changes in the industry. According to the General Statistics Office, textile and apparel exports in the first four months of 2023 experienced a decline of 19.3% compared to the previous year. This decline can be attributed to the challenges brought about by the Russia-Ukraine conflict, which has impacted the global economy and caused inflation among Vietnam’s major trading partners. However, this decline has been transformative for the garment and textile sector. Businesses have swiftly adapted to the economic challenges by reorganizing their production lines, adopting new technologies, and adjusting their business models. Green production has become increasingly important in response to the rising demand for durable and long-lasting goods. Several important export destinations for Vietnamese textiles and apparel, including the US, the EU, Japan, and South Korea, have laws and regulations governing environmentally responsible manufacturing practices. Additionally, higher standards for product quality are embedded in many of the trade agreements Vietnam is part of. These factors are driving a push towards more environmentally friendly textile production in Vietnam. By embracing green practices, textile enterprises are not only meeting regulatory requirements but also appealing to environmentally-conscious consumers. Vietnam’s textile industry is a shining example of how environmental sustainability and economic growth can go hand in hand.
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Lean Management: A Strategy for Cambodian Banks to Save Money, Satisfy Customers and Stay Competitive

“Be the change that you wish to see in the world.” – Mahatma Gandhi This quote is attributed to Mahatma Gandhi, the leader of the Indian independence movement and a champion of nonviolence and civil rights. He inspired millions of people around the world with his words and actions. He believed that everyone has the power to make a positive difference in the world by being an example of peace, justice and love. He also said, “The best way to find yourself is to lose yourself in the service of others.” How Cambodian banks can benefit from lean management Lean management is a managerial strategy that aims to use as few resources as possible to improve efficiency, reduce waste and create a quality banking product. It is based on the principle of providing value to the customer and eliminating anything that does not contribute to that goal. Lean management can help Cambodian banks achieve several objectives, such as saving money, improving customer satisfaction, increasing competitiveness and preparing for the future. Saving money One of the main benefits of lean management is that it can help Cambodian banks reduce their operating costs and increase their profitability. By identifying and eliminating wasteful practices, such as unnecessary processes, duplication of work, errors, delays and overstaffing, banks can optimize their resources and use them more effectively. For example, a report by McKinsey & Company found that lean management can reduce costs by 15 to 30 percent in retail banking operations. Improving customer satisfaction Another benefit of lean management is that it can help Cambodian banks improve their customer satisfaction and loyalty. By focusing on the customer’s needs and expectations, banks can deliver faster, simpler and more reliable services that meet or exceed the customer’s demands. For example, a study by Bain & Company found that lean management can increase customer satisfaction by 10 to 15 percent in retail banking. Additionally, lean management can help banks innovate and offer new products and services that cater to the customer’s preferences and needs. Increasing competitiveness A third benefit of lean management is that it can help Cambodian banks increase their competitiveness and market share in the banking sector. By improving their efficiency, quality and innovation, banks can gain an edge over their rivals and attract more customers. For example, a report by Boston Consulting Group found that lean management can increase revenue by 10 to 15 percent in retail banking. Furthermore, lean management can help banks comply with the regulatory requirements and standards of the National Bank of Cambodia, which oversees the banking industry in the country. Preparing for the future A fourth benefit of lean management is that it can help Cambodian banks prepare for the future challenges and opportunities in the banking sector. The economy of Cambodia is growing rapidly and becoming more integrated with the regional and global markets. This means that Cambodian banks have to deal with increasing competition, changing customer behavior, technological innovation and environmental sustainability. Lean management can help banks adapt to these changes and become more agile, resilient and flexible. Lean management is a powerful strategy that can help Cambodian banks achieve their goals and improve their performance. By applying the principles of lean management, such as customer focus, performance measurement, process improvement and employee engagement, banks can save money, improve customer satisfaction, increase competitiveness and prepare for the future. Lean management is not just about cutting costs; it is about creating value for the customer and the bank.
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Vietnam: A Rising Star in Manufacturing

Vietnam has emerged as a promising destination for manufacturing in Southeast Asia, thanks to its favorable location, abundant workforce, and stable political environment. The country has attracted many foreign investors who are looking for alternatives to China, especially in the electronics sector. Vietnam has also shown remarkable resilience and adaptability in the face of the Covid-19 pandemic and the US-China trade war, which have disrupted global supply chains and demand. However, Vietnam still faces some challenges in competing with China, which has a larger and more diversified economy, a more advanced infrastructure, and a more skilled labor force. Vietnam needs to improve its productivity, quality, supply chain agility, and lead times to match or surpass China’s performance. One way to achieve this is to adopt lean manufacturing principles and practices. Lean manufacturing is a production philosophy that aims to eliminate waste and maximize value for customers. It focuses on improving the efficiency and effectiveness of internal operations by streamlining processes, reducing inventory, enhancing quality, and increasing flexibility. Lean manufacturing can help Vietnamese manufacturers achieve the following benefits: To implement lean manufacturing successfully, Vietnamese manufacturers need to overcome some barriers and difficulties, such as: Vietnam has a great potential to become a leading manufacturer in Southeast Asia if it can adopt lean manufacturing principles and practices effectively. Lean manufacturing can help Vietnamese manufacturers improve their productivity, quality, supply chain agility, and lead times, which are essential for competing with China. By implementing lean manufacturing successfully, Vietnamese manufacturers can create more value for their customers and stakeholders while contributing to the economic development and social welfare of Vietnam.
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The Significance of Lean Implementation in the Ultra-Competitive Apparel Manufacturing Industry

The apparel manufacturing industry is known for its fierce competition and the need to prioritize efficiency, cost-effectiveness, and customer satisfaction. In this highly competitive landscape, lean implementation has emerged as a crucial strategy for apparel manufacturers to streamline operations, eliminate waste, and gain a competitive edge. This article explores the importance of lean implementation in the apparel manufacturing industry and highlights its benefits in enhancing productivity, quality, and profitability. Lean implementation focuses on optimizing processes by eliminating waste and non-value-added activities. In the apparel manufacturing industry, this translates to streamlining production lines, reducing lead times, and improving operational efficiency. By implementing lean principles like just-in-time production, continuous improvement, and standardized work, manufacturers can minimize inventory levels, improve workflow, and respond swiftly to changing market demands. These efficiency gains enable companies to reduce costs, improve delivery times, and enhance competitiveness. Lean methodologies emphasize identifying and eliminating waste in all its forms. Waste in apparel manufacturing can manifest as overproduction, excess inventory, defects, waiting times, or unnecessary movement of goods. By implementing lean practices such as value stream mapping, 5S, and Kaizen, manufacturers can identify and eliminate waste, leading to significant cost savings. This cost advantage allows companies to offer competitive pricing in a highly price-sensitive industry, attracting customers and capturing market share. Quality is crucial in the apparel industry, where customer satisfaction and brand reputation are paramount. Lean implementation promotes a culture of continuous improvement and defect prevention. By implementing practices like quality circles, error-proofing, and visual management systems, manufacturers can detect and rectify issues early in the production process, ensuring higher quality products. Improved quality minimizes returns, rework, and customer complaints, leading to enhanced customer satisfaction and loyalty. The apparel industry faces rapidly changing fashion trends, unpredictable customer demands, and seasonal variations. Lean implementation enables manufacturers to be more flexible and responsive to market dynamics. Techniques like quick changeover, cellular manufacturing, and cross-training allow companies to rapidly reconfigure production lines, accommodate smaller batch sizes, and reduce setup times. This flexibility allows manufacturers to efficiently produce a wider variety of products, respond to market fluctuations, and seize new opportunities promptly. Lean implementation emphasizes the importance of engaging and empowering employees. In the apparel manufacturing industry, involving employees in process improvement initiatives fosters a sense of ownership and motivation. Through practices like suggestion systems, cross-functional teams, and training programs, lean implementation encourages collaboration, innovation, and skill development among the workforces. Engaged employees contribute their best efforts, leading to higher productivity, improved morale, and reduced turnover. In the hyper-competitive apparel manufacturing industry, lean implementation plays a pivotal role in driving operational excellence, reducing costs, and enhancing customer satisfaction. By embracing lean principles and methodologies, manufacturers can streamline their operations, eliminate waste, and achieve higher levels of efficiency and productivity. Lean implementation not only delivers cost savings but also fosters a culture of continuous improvement, empowers employees, and ensures high-quality results.  In an industry facing a global slowdown in demand, lean implementation becomes even more critical for survival and success. Our assistance has helped apparel manufacturers achieve significant improvements, including reducing cut-to-box time by over 90%, improving right-first-time quality by over 75%, and doubling manpower productivity.
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Thailand’s Manufacturing Production Index (MPI) Contracts, but Positive Developments Emerge

Thailand’s Manufacturing Production Index (MPI) for May this year experienced a contraction of 3.14% compared to the previous month, according to the Office of Industrial Economics (OIE). Moreover, it dropped by 13.14% compared to the same period last year. The average MPI during the first five months of this year stood at 96.36, representing a drop of 4.49% compared to the same period last year. However, despite the decline in the manufacturing sector, positive developments are visible in other industries. The expansion of the tourism sector has led to increased demand for industrial goods. Notably, automobile production saw a significant jump of 17.54%. The textile and garment industries have also shifted focus to speciality fabrics, boosting their export potential. The expansion of the tourism sector has also influenced the demand for various products, such as sugar, frozen and chilled chicken, non-alcoholic beverages, meat and poultry products, seasonings, palm oil, dairy products, spirits, aquaculture products, and coffee. Additionally, there was a notable increase in the production of passenger cars (26.1%) and pick-up trucks (12.9%), driven by a 12.30% surge in car exports compared to the same period last year.The OIE is closely monitoring the MPI for June, anticipating positive factors from tourism, private consumption, and the recovery of major trading partners like China and Japan. However, the ongoing decline in exports, along with uncertainties surrounding Thailand’s next government formation, may affect investor confidence and the 2024 fiscal budget. Moreover, the El Niño phenomenon, leading to below-average rainfall, may pose challenges for raw materials in the agriculture industry. Amidst these developments, one industry to watch is the textile and garment industry, particularly in speciality fabrics. Entrepreneurs are encouraged to adapt their operations and focus on high-value products with growth potential. Speciality fabrics with properties like waterproofing, fire resistance, and disease-filtering can be further developed for medical and health-related equipment. To reduce dependence on imports, emphasis should be placed on using domestically produced raw materials and promoting the new S-curve development policy in Thailand’s medical technology industry. This includes focusing on the production of technical fabrics with special properties to boost competitiveness and export potential for the Thai textile and garment industry. The key industries that contributed positively to the MPI in May compared to the same period last year were automobiles (17.54%), other general machinery like air conditioners (12.57%), sugar (31.14%), motorcycles (22.11%), and basic synthetic plastics and rubber (2.98%). These expansions were driven by factors such as market demand, weather conditions, and increased production capacity.
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