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Lean Management and Supply Chain Management: Common Practices (SCM and…
Lean Management and Supply Chain
Management: Common Practices
SCM and Lean
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Level out the workload
Use “pull” systems to avoid overproduction
Respect your extended network of
partners
Create a continuous process flow to bring problems to the surface
Principal components of supply chain
Relationships/partnerships
Logistics
Strategic management
Best practices
Organizational behavior
Lean
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Work practices
Standardization, discipline and control
Continuing training and learning
Team-based organization
Participation and empowerment
Common values
Compensation and rewards to support Lean
Culture
Decisions at the lowest level
Strategy of change
Supplier relationships
Focus on the customer
Lean leadership
Long term commitment
Production methods
Just in time
Total productive maintenance
(TPM) Autonomation
Value stream focus
Continuous improvement
Value Stream Management
Value stream is defined as the sequence of activities that are made from the reception of the customer order to the
delivery of the product or service
Value stream encompasses the production flow from raw material into the arms of the customer, and the design flow from concept to launch
Focusing on value stream requires specific measures to be adopted
Performance measurement system based on value streams
Formal meeting system focused on value stream issues
Organizational units based on value streams, or, when not possible, the appointment of a manager that coordinates the value stream
Common practices
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This work is devoted to a particular comparison between two specific approaches, Lean and Supply Chain Management (SCM)
The comparison is presented as an example of the relation between two sets of practices and is also interesting in itself.
Lean Supply Chain (LSC)
LSC consists in applying the Lean concepts to the whole supply chain.
Continuos improvement and cultural aspects
Relations management
VSM
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A set of 6 principles has been established to define a value chain as Lean
Process and Product Standardization
Industry Standards Adoption
Waste and Cost Reduction
Cultural Change Competency
Demand Management Capability
Cross-enterprise Collaboratio