Many manufacturers that have applied lean concepts to their operations find that although they do achieve significant savings, their production costs remain high. This is, in most cases, attributable to material costs, which, depending on industry can range from 60 to 80 percent of total production costs.
Many manufacturers that have applied lean concepts to their operations find that although they do achieve significant savings, their production costs remain high. This is, in most cases, attributable to material costs, which, depending on industry can range from 60 to 80 percent of total production costs. The challenge for these manufacturers is to discover how to extend lean concepts and practices beyond the walls of their own factories.
Few observers doubt the immense potential of Brazil, one of the world's most significant emerging economies. Indeed, Brazil has great advantages. Compared with its colleagues in the BRIC quartet of emerging giants, it is richer than India and China and larger and more democratically stable than Russia. It is the largest nation in Latin America, with one-third of the region's population generating 44 percent of its GDP. Already the sixth-largest economy in the world, it could become the fifth by 2020, according to forecasts by the Economist Intelligence Unit. But growth, and the investment decisions that underpin it, doesn't happen by magic. Substantial growth takes enlightened government and well-informed decisions by potential investors.
Organic products were a luxury with little market to speak of when Ibrahim Abouleish founded Sekem, Egypt's first organic farm, in Cairo in 1977. The years Sekem spent honing sustainable cultivation practices paid off, though, in 1990, when it moved into growing organic cotton. Organic produce was entering mainstream Western stores then, and worldwide demand for all things organic began to surge.
