Lean Supply Chain
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The document discusses how to create a lean supply chain by eliminating waste. It identifies seven types of waste: overproduction, waiting, unnecessary transport, overprocessing, excess inventory, unnecessary movement, and defects. For each type of waste, it provides an example of how it occurs within supply chain operations. It also states that the goals of a lean supply chain are to add value, manage variability in processes, achieve cost savings through eliminating waste, and have those cost savings be ongoing rather than one-time.
Lean Supply Chain
- 2. Create a lean supply chain Eliminate Waste Add Value
- 3. Waste Management Overproduction Waiting Unnecessary transport Overprocessing Excess inventory Unnecessary movement Defects
- 4. Waste Management Overproduction Waiting Unnecessary transport Over processing or incorrect processing Excess inventory Unnecessary movement Defects
- 5. Overproduction has counterparts in over-ordering at both the macro and micro levels of supply chain operations.
- 6. Waiting , for example, can be seen in the way trucks sitting idle awaiting their turn at the dock.
- 7. The unnecessary movement of products can occur within a warehouse, within a factory, or throughout a distribution network.
- 8. Quality inspections, redundant approvals, and order reviews at the conclusion of pick/pack are examples of overprocessing .
- 9. Ineffective inventory control is seen in excess inventory based on bad inventory data.
- 10. The unnecessary movement of people can be seen in warehousing.
- 11. Defective parts translates to supply chain errors of all kinds—from picking errors to incorrect order quantities.
- 12. Add Value
- 13. Sheep Herding
- 14. Manage the slow
- 15. Manage the Fast
- 16. Cost Savings
- 17. Cost Savings
- 18. Cost Savings • One-time vs Ongoing • Soft vs Hard • Category of savings Revenue Expenditure Asset Process • Savings achieved to goal
- 19. Ìý