Lean Supply Chain Management

Lean Principles

• Pull processing
• Waste minimization
• Continuous improvement – PDCA model
  • Plan-Do-Check-Act model (Figure 12.1)
• Flexibility
• Automation
  • Benefits: faster waste elimination, Internet of Things (IoT), controlled costs, increased worker safety, maximized employee productivity
• Load leveling

Lean vs Agile Supply Chains (Table 12.1)

• Lean:
  • Typical products: Commodities/functional/lasting
  • Demand: Predictable/consistent
  • Product lifecycle: Long
  • Product variety: Low
  • Consumer drivers: Cost
• Agile:
  • Typical products: Fashion goods/trending/variable
  • Demand: Volatile/market-based
  • Product lifecycle: Short
  • Product variety: High
  • Consumer drivers: Availability/popular assortment

Lean Tools and Techniques

• Poka-Yoke
• Value Stream Mapping (Figures 12.2 & 12.3)
• 5S Visual Management (Figures 12.4 - 12.8)
  • Sort (Seiri)
  • Set in order (Seiton)
  • Shine (Seiso)
  • Standardize (Seiketsu)
  • Sustain (Shitsuke)
• Just-in-time (JIT)
• One-piece flow production (Figure 12.9)
• Point-of-use storage (POUS) (Figure 12.10)

Types of Waste

• Over-production
  • Reasons: poor understanding of customer needs, badly implemented automation, product design changes, producing for forecast.
• Inefficient transportation (Figure 12.12)
• Unnecessary motion (Figure 12.13)
• Waiting time (Figure 12.14)
  • Reasons: waiting out buffer time, machine cycle time, end of process, parts delivery, or support.
• Defects
  • Product deviates from standard design
• Over-processing
  • More work than necessary

Six Sigma

• DMAIC Model (Figure 12.15)
  • Define, Measure, Analyse, Improve, Control
• DMADV Model (Figure 12.16)
  • Define, Measure, Analyse, Design, Verify

Goals and Strategy of Lean Supply Chains

• Organizational Objectives
  • Improved quality
  • Eliminate waste
  • Reduce time
  • Reduce total cost

Advantages and Disadvantages of Lean Supply Chains

• Advantages
  • Waste minimization
  • Emphasize consumer wants
  • Lean infrastructure
• Disadvantages
  • Employee dissatisfaction
  • Equipment failure
  • Delivery inconsistencies