Lean production, manufacturing transportation

In lean manufacturing implementation approach by this company, the level of inventory is visualized similar to the level of water in a river. When they reduced the level of inventory, this means that they will be able to lower down the level of water in the river. Consequently, this action will highlight other wastes hiding at the lower level. The other wastes at the lower level are namely over production, waiting times, excessive transportation, excessive processing, excessive motion, and defective products. This scenario of reducing inventory level can be best illustrated by the authors as shown in Fig. 27.2. 

This case describes the role of consolidation centers in the lean supply chain. The description here articulates the rules for designing a consolidation center, a supply chain middle man that makes the total chain more effective. Consolidation centers are playing an increased role in many supply chains, particularly as feeders to manufacturing operations that produce complex products with many components. Every supplier cannot or will not link its operations with its customers. The consolidation center enables this linkage — at least until better suppliers can be found. In some cases, consolidation centers are under the control of third-party logistics providers responsible for ordering material, its transportation, and its preparation for the manufacturing center. 

In the top left-hand box where lead times are long but demand is predictable then a lean type approach will be appropriate. Materials, components or products can be ordered ahead of demand and manufacturing and transportation facilities can be optimised in terms of cost and asset utilisation. Conversely the bottom right-hand corner is the real domain of the agile supply chain. Here demand is unpredictable but lead times are short, enabling quick response type solutions -the extreme case being make-to-order (but in very short time-frames). 

Cellar manufacturing is another popular lean method. It involves organizing production stations and equipment into a logical flow, reducing transport and delay. 

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