Operations and Supply Chain Management The Core

LEAN SUPPLY CHAINS chapter 12 401
the elimination of non-value-adding
activities that are part of the value
stream. In the next section, the value
stream analysis tool is discussed.
In the following paragraphs, we
discuss the different components of
a supply chain and what would be
expected using a lean focus:
Lean Suppliers Lean suppliers
are able to respond to
changes. Their prices are generally
lower due to the efficiency
of lean processes, and their quality
has improved to the point that
incoming inspection at the next
link is not needed. Lean suppliers
deliver on time and their ©4774344sean/Getty Images RF
culture is one of continuous
improvement. To develop lean suppliers, organizations should include them in their
value stream planning. This will help them fix problems and share savings.
Lean Procurement A key to lean procurement is automation.
The term e-procurement relates to automatic
transaction, sourcing, bidding and auctions using Webbased
applications, and the use of software that removes
human interaction and integrates with the financial reporting
of the firm. The key to lean procurement is visibility.
Suppliers must be able to “see” into the customers’ operations
and customers must be able to “see” into their suppliers’
operations. The overlap of these processes needs to
be optimized to maximize value from the end-customer
perspective.
Lean Manufacturing Lean manufacturing systems
produce what the customers want, in the quantity they
want, when they want it, and with minimum resources.
Applying lean concepts in manufacturing typically pre sents
the greatest opportunities for cost reduction and quality
improvement.
Lean Warehousing This relates to eliminating nonvalue-added
steps and waste in product storage processes.
Typical functions include the following: receiving material;
putting-away/storing; replenishing inventory; picking
inventory; packing for shipment; and shipping. Waste
can be found in many warehousing processes including
shipping defects, which creates returns; overproduction
or overshipment of products; excess inventory, which
requires extra space and reduces warehouse efficiency;
excess motion and handling; waiting for parts; and inadequate
information systems.
HERE A WORKER VISUALLY CHECKS CARTONS OF KETCHUP AS THEY
MOVE ON A SPIRAL CONVEYOR AND REPLACES BOTTLES THAT ARE
NOT PERFECT. THIS PROCESS COULD PROBABLY BE MADE MORE
EFFICIENT.
©Ingo Wagner/picture-alliance/dpa/AP Images