From lean production to lean logistics: The case of microsoft Ireland

Two bodies of literature have tended to dominate in the area of quality: one has emerged from the manufacturing/operations management discipline, the other from services and marketing. The interface between both schools of thought is addressed less frequently, probably reflecting the traditional perception of the existence of an adversarial relationship between manufacturing and marketing. This paper focuses on the issue quality in both a manufacturing and logistics context, the latter labelled by Drucker as 'management's last frontier'. A case study of the journey to lean production at Microsoft Ireland's manufacturing plant and the implications of such changes for the sales and service subsidiaries in Europe is included. Changes in channel structure and relationships, the management of logistics from a peripheral location and trust, are key elements of the case. In the conclusion, future trends and directions are highlighted.

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