Lean supply chain

While low inventory levels are a key outcome of the Toyota Production System, the story does not end there. An important element of the philosophy is to work intelligently and eliminate waste in the entire system. The elimination of waste is termed Muda. There are seven commonly accepted sources of Muda in the extended Lean supply chain ... 

Ayers (2006) advocates that the Demand-Driven Supply Chain changes many of the conditions that cause wasteful variation in supply chain production. He states that, it is the foundation of the lean supply chain, and its implementation helps establish the operating range for low-cost production supply chain. 

DDSC is the foundation of lean supply chain, allowing to operate in a low cost production environment... 

Operational Excellence (e.g., JIT, lean supply chains) versus Customer Closeness (e.g., customized and segmental logistics, agility)... 

Lean supply chain Delays, inventories, cycle times Bottom up 28... 

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. 

Synchronized supply chain A general vision of having all links in the supply chain producing at the same rate as customer demand. Obstacles include coordination, batch size limitations in production, and inability to share information. However, synchronization is a useful goal as it is likely to provide high levels of customer service at low cost relative to unsynchronized supply chains. The term is somewhat synonymous with a lean supply chain. 

From the supply chain network perspective, it is expected that the influence of lean supply chains focuses on establishing long-term links among the supply chain units and minimization of number of units and links. The lean supply chains aim towards simplifying and streamlining the supply chain network, while providing a high level of standardization and specialization. 

Vertical collaboration and lean supply chains (in the 20(X)s) Primary distribution focus, flow principles and lean principles, stockless distribution centers, sales-based ordering-driven system continuous replenishment eustomer focused from Clubcard data... 

These assignments perfectly match the orientations of the manufacturing strategies. As stated above, costs are the key criteria in an MTS environment (Olhager 2003). This manufacturing strategy can therefore be seen as part of a lean supply chain strategy (Stavrulaki and Davis 2010). 

Fig. 9.6 Competitive priorities matrix for agile vs. lean supply chain strategy, referring to Mason-Jones et al. (2000)...

A key component of this transformation process was the lean supply chain project for pineapple which was funded imder the Austrahan government s National Food Industry Strategy (AFFA,... 

Figure 3.6 Agile or lean supply chain. Source Adapted from Christopher (2000).

The methodology of lean thinking and lean supply chain has moved on since Toyota s Lean Manufacturing model and embraced additional tools and approaches. We have therefore included two more ... 

A brief description of frequently used tools and approaches in lean supply chain is given below. For further details please see ... 

The lean methodology as laid out by Womack, Jones and Roos (1990) is sharply focussed on the identification and elimination of mudas or waste and their first two principles (i.e. value and value stream) are centred around the elimination of waste. Their motto has been, banish waste and create wealth in your organization . It starts with value stream mapping to identify value and then identify waste with process mapping of valued processes and then systematically eliminate them. This emphasis on waste elimination has probably made lean synonymous to absence of waste. Waste reduction is often a good place to start in the overall effort to create a lean supply chain because it can often be done with little or no capital investment. 

The well pubhcized JIT approach is a key driver of Lean Supply Chain and, as we have indicated earlier, it requires materials and products flow like water from the supplier through the production process onto the customer. The capacity bottlenecks are eliminated, the process times of workstations are balanced, and there is little buffer inventories between operations. Smooth operation flow... 

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