Lean Supply Chain

Create a lean supply chain

• Eliminate Waste

• Add Value

Waste Management

1.Overproduction 2.Waiting 3.Unnecessary transport 4.Overprocessing 5.Excess inventory 6.Unnecessary movement 7.Defects

Waste Management

• Overproduction

• Waiting

• Unnecessary transport

• Over processing or incorrect processing

• Excess inventory

• Unnecessary movement

• Defects

• Overproduction has counterparts in over-ordering at both the macro and micro levels of supply chain operations.

• Waiting, for example, can be seen in the way trucks sitting idle awaiting their turn at the dock.

• The unnecessary movement of products can occur within a warehouse, within a factory, or throughout a distribution network.

• Quality inspections, redundant approvals, and order reviews at the conclusion of pick/pack are examples of overprocessing.

• Ineffective inventory control is seen in excess inventory based on bad inventory data.

• The unnecessary movement of people can be seen in warehousing.

• Defective parts translates to supply chain errors of all kinds—from picking errors to incorrect order quantities.

Add Value

Sheep Herding

Manage the slow

Manage the Fast

Cost Savings

Cost Savings

Cost Savings

• One-time vs Ongoing

• Soft vs Hard

• Category of savingso Revenueo Expenditureo Asseto Process

• Savings achieved to goal