Lean Management and Supply Chain
Management: Common Practices

SCM and Lean #

Lean # #

Value Stream Management

Common practices #

Work practices

Culture

Production methods

Just in time

Total productive maintenance

(TPM) Autonomation

Value stream focus

Continuous improvement

This work is devoted to a particular comparison between two specific approaches, Lean and Supply Chain Management (SCM)

Standardization, discipline and control

Continuing training and learning

Team-based organization

Participation and empowerment

Common values

Compensation and rewards to support Lean

Decisions at the lowest level

Strategy of change

Supplier relationships

Focus on the customer

Lean leadership

Long term commitment

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 Supply Chain (LSC)

LSC consists in applying the Lean concepts to the whole supply chain.

Continuos improvement and cultural aspects

Relations management

VSM #

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

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

The comparison is presented as an example of the relation between two sets of practices and is also interesting in itself.