Lean, manufacturing supply chain management

Through these innovative practices, Toyota s lean production system formed a complete supply chain from source to user. Its system integrated suppliers and distributors with manufacturing and involved them in product development. In so doing, the lean production model has provided a prototype of the business paradigms of concurrent engineering and supply chain management. For an examination of the implementation of lean production in North American companies, see Liker (1998) and Liker et al. (1999). 

Experience shows that adopting the principles of lean manufacturing from assembly industries can be a powerful operational improvement lever. Lean management, first introduced by Toyota, appeals because it holds out a promise no other approach can make not only does it cut costs and improve quality, but it also stabilizes operations and matches supply with demand. A companywide lean transformation program structured around the improvement of Overall Equipment Effectiveness (OEE) may unearth a hidden capacity that is equivalent to adding another plant to the manufacturing network. Lean, however, should not only be applied in production, but across the entire value chain. 

Quadrant n. In this scenario, volume is high and demand error is low. This is the easiest manufacturing process within the supply chain to manage through traditional supply chain practices. It is the perfect scenario to apply Lean process thinking. 

This refers to a process by which the value stream between consumer and raw materials is systematically mapped and then managed on the basis of waste reduction and optimisation tools and techniques. Similar in many ways to the lean manufacturing and production models used within the operations and production function but extended beyond the focal firm into the supply chain. 

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