Tag Archives: lean management

Lean Supply Chain

  By admin | April 12, 2011 - 7:35 am | Logistic 1 Comment

Lean supply chain management is not exclusively for those companies who manufacture products, but by businesses who want to streamline their processes by eliminating waste and non-value added activities. Companies have a number of areas in their supply chain where waste can be identified as time, costs or inventory. To create a leaner supply chain companies must examine each area of the supply chain.

Drawing on the types of waste in manufacturing, there are seven types of waste in supply chain managemen:

  1. Over supply. This is supplying product at a faster rate than customer requires, having it ahead of demand. Bringing in large quantities of product without matching demand creates excess inventory and can cause write-down and fire sales to draw down inventories梐nd revenues and profits.
  2. Transportation. Unnecessary or slow movement of product adds no value. This can include movement of inventory between company facilities.
  3. Inventory. Firms have more finished product, raw materials, or work in process than the absolute minimum. This includes inventory in transit, regardless of whether it is treated as inventory when it is delivered or not; it is still inventory regardless of such transaction nuances.
  4. Waiting. Delays in previous supply chain steps cause unnecessary waiting of people or equipment. Inventory at warehouses reflect waiting.
  5. Movement. Any unnecessary movement of people during their work is to be avoided. This may be seen in warehouses or in special operations such as kitting.
  6. Defective Service or Product. Poor quality, rework, or scrap because it does not meet the customer requirements adds no value.
  7. Over processing. This is doing more than is necessary.

CONCLUSION. Lean supply chain management is not about “fixing” what someone else is doing wrong. It is about identifying and eliminating waste as measured in time, inventory and cost across the complete supply chain. This requires continuous effort and improvement.

A lean supply chain can take reduce time by 10 to 40%, inventories by 10% to 30% and costs by 10% to 25%. Continuous improvements can take payback to the upper range-and beyond. This is a significant benefit to ROI and to the bottom line.

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Lean Management and Lean manufacturing

  By admin | April 20, 2010 - 8:40 pm | Management 5 Comments

Books about Lean management on Amazon.com:Lean Project Management

Lean management is different from Lean Manufacturing.Which most important core is to pay less but get more.Now,let’s check What is lean and what is lean management.

Lean Management

‘Lean’is a way of working which identifies and eliminates waste to deliver improved value and service, based on identified customer requirements.

The Core of Lean

Define who are the customers–recipients, clients, payers &/or other stakeholders (e.g. owners of interfacing processes)
Define desired outputs & valuein customer terms
Define current process (value stream) -as it really is, not as it is supposed to be
Identify & eliminate waste-all steps should directly contribute to satisfying the need of the customer
Make the process flowso the customer can ‘pull’(i.e. demand from the customer).

lean management

Why Lean ?

Because ‘traditional change’is too often about:

Limited delivery following after months of work and the production of long reports
Lack of engagement generating resistance to change
Flavour of the month feeling so your people ignore it
The organisation staggering from one initiative to the next, never delivering the planned results
Focusing on the next big new idea –lots of up front cost and no real benefit, built on existing ‘process rubble’
Customer service being damaged

In summary: lots of cost, time and effort with little real improvement

lean management

It is now proven that Lean is applicable in any sphere of human activity, and a variety of industries – small and large from Retail, Office and Service industries have begun to appreciate the benefits of Lean Management and are transforming themselves. Many companies from Banking & Financial Services, Healthcare, Retail, Hospitality, BPOs, Call Centre & ITES and Software Industries have already embarked on a Lean Programme or are evaluating and seriously considering one. This is apart from Manufacturing Industries realising that Lean Management is more than applying tools and techniques in the factory operations.

Every industry needs to move away from the Alfred Sloan School of Management through Quarterly Rear View Mirrors that it has consciously or un-consciously adapted to the Eiji Toyoda School of Management in order to solve their customer’s problems better? Toyota did not need to do anything fundamentally different in 50 years. A Toyota Manager starts his career solving problems at the actual work-site using observation and the fundamental Plan-Do-Check-Adjust and continues solving problems. So why do initiatives have shelf lives in companies?

Lean manufacturing

Lean manufacturing or lean production, which is often known simply as “Lean”, is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, “value” is defined as any action or process that a customer would be willing to pay for. Basically, lean is centered around preserving value with less work. Lean manufacturing is a generic process management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as “Lean” only in the 1990s.[1]  [2]  It is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved. The steady growth of Toyota, from a small company to the world’s largest automaker,[3]  has focused attention on how it has achieved this.

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