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How lean approach is utilised in the production system
How lean approach is utilised in the production system
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Executive Summary
On the 30th of December 2009, as a result of the global economic crisis, Chabros International Group, a leading wood company with headquarters’ in Lebanon recorded a drastic drop in both Lumber and Veneer sales in its largest market, Dubai. Chabros International Group customers ranged from wholesalers to building contractors to carpentries to retailers as well as end users. However, the customers differed from country to country. The success story of Chabros can be attributed to Chami’s application of several strategies most especially the transnational strategies that guided him towards the company’s success. Also, the organizations performance objectives were also a critical part of the improvement.
Chami’s father and uncles founded Chabros in the 1960’s. The name Chabros came from Chami Brothers. Originally, Chabros operated only in Lebanon and dealt only with veeners, that is, the different kinds of wood surface. In 1978, Chami’s father wholly owned Chabros and Chami took full charge after the death of his father in 1987. At that time, the country was undergoing political crisis and economic downturn so Chami’s goal was survival and that was what prompted him to internationalize. By 2009, he already had established eight subsidiaries in six countries; an independent agent did their first export. We shall be exploring their motives for internationalization, review different international strategies, the performance objectives of any operation, the competitive advantages of Chabros, their limitations, solutions to these problems, supply chain, and the application of the lean philosophy, and the process layout.
Chabros occasionally serviced Lebanese customers in Dubai, an emirate in the UAE. The client...
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...n, firms generally need to consider political risks in countries, the local competition and the cultural distances to potential foreign markets.
GLOSSARY OF TERMS
Wood veneer: in woodworking, veneer refers to thin slices of wood, usually thinner than three millimeters that are typically glued to core panels to produce flat panels such as doors, tops and panels for cabinets and parts of furniture.
Lumber: boards or planks that have been sawn or split from large harvested logs, mostly used for construction, flooring, paneling and furniture.
MENA: Middle East and North Africa.
Reference
Bassam Farah. (2012). Chabros International Group: A World of Wood. Richard Ivey School of Business. 1, 1-16.
Nigel, S., Alistair, B.J. and Robert, J. (2011) Essentials of Operations Management, 2nd edn., Italy: Pearson Education Limited.