Things you should know about lean logistics Lean principles is a buzz word which has been thrown around the manufacturing and engineering industry for about 3 decades, however despite the TPS Toyota Production System being the way forward to becoming a market leader, companies and its workforce aren’t really implementing JIT to the fullest and are continuously failing to grasp the key ingredients necessary to reap the rewards. JIT is a process by which a company improves its return on investment (ROI) by reducing inventory and all associated carrying costs. Working alongside other Lean systems and principles such as kanban, it only aids in a healthier ROI, it improves efficiency as well as quality. In order for a business to implement JIT, it needs flexible willing and driven workforces who are all aiming for one goal which is continuous improvement in all areas of the business. Through the right training, communication and management structure, a company can create cohesion and an agile team who can concentrate on customer integration, quality, customer relationships and product innovation. With the latest services MRP and ERP software, companies are able to keep better track off inventory, manage the logistics and supply chain more meticulously, and most importantly improve communication and therefore reduce error another thing that JIT can do is reduce warehousing space which may equate to cost savings. However it is essential that companies do not go too far in that they do not have enough of a buffer zone when market demands change quickly. Again it all comes down to planning and forecasting and being AGILE. Now there is no question that JUST IN TIME if it’s put to work properly can reduce unnecessary inventory, reduce lead times and help with bottlenecking issues. It may be a word that has been thrown around for 30 years and may have taken a back step with the latest LEAN manufacturing principles such as KANBAN, 5'S, SIX SIGMA, but it is still a vital ingredient of becoming a leader in the market. Lee Child is joint Managing Director and co-founder of Dudley Child Executive Recruitment Ltd and has in excess of 10 years’ experience recruiting, specifically within the Manufacturing and Engineering sectors.
Published on May 27, 2014
Lean principles is a buzz word which has been thrown around the manufacturing and engineering industry for about 3 decades.