The Manufacturer July 2011 issue

Page 79

L E A N S U P P LYC H A I N

with important activities such as rationalising the

involves developing relationships with the bigger

supplier base so that meaningful relationships

transporters in order to reduce costs and improve

can be formed with suppliers. Also, changes are

delivery performance.

implemented that reduce the time and cost involved supply so that the processes are neither starved

Challenges in the lean supply chain

nor flooded with stock. Procurement is a two-way

The first and most obvious problem that people

process – it involves suppliers and customers.

face when attempting to make improvements

Making communication easier between the two,

across an entire supply chain is a lack of robust

combined with selective introduction of technology

and professional relationships with suppliers and

to improve ordering and the introduction of

customers. Another main problem is the chaotic

changes reduces costs and increases the flexibility

and undefined processes that are the driving forces

of the entire supply chain.

behind the wrong behaviours in every one of the Big

in placing orders, while introducing flexibility in

Lean in procurement leads to reduced

Five elements. This is often compounded by a history

purchasing costs, greater flexibility and fewer stock

of adversarial management styles that have created

emergencies; meaning that the rest of the supply

a supply chain culture that resists change, does not

chain is lean-enabled.

allow for open discussions and inhibits innovation.

Lean in manufacturing

challenges is not easy�. There is no quick fix or a

Lean in manufacturing is extremely common.

magic wand. Instead, we propose that there are

What is less common is the consideration that lean

seven elements to a lean supply chain that build up

manufacturing can be applied not just to factories,

over time to deliver improved performance, reduced

but also to areas such as production engineering

costs and greater flexibility for all organisations that

and planning.

are involved.

We emphasize the phrase: “Overcoming these

When lean is applied in manufacturing, it has a positive impact on the lead-time of the whole supply chain, as well as on product costs and quality.

Lean in warehousing The lean concepts applicable to warehousing include reducing stock levels, increasing pick rates and accuracy and reducing damage, whether it be to staff or to products. The effective introduction of lean in the warehouse will incorporate concepts such as reducing movement distances and handling activities, eliminating delays in unloading and loading and focusing on delivering parts on time, in full (OTIF). Lean-enabled warehouses

1. Remain focused on the voice of the ultimate customer. Think about what they would say was value-adding, and then eliminate anything else. 2. Understand the true end-to-end supply chain using value stream mapping. 3. Create a supply chain that flows, with activities being triggered only when required. 4. Design processes that are able to respond to volatility. 5. Introduce a culture of continuous improvement that is based on measures that drive the right behaviours and create openness and collaboration. 6. Find the suppliers that you can work with and

tend to have higher pick rates, lower returns and

change or eliminate as many of the rest of them as

improved staff motivation.

you can.

Lean in transportation Counterintuitively, efforts to improve customer service can have a major impact on the quality

7. Build the capability of your team and those of your supply partners to enable them to understand how to get the benefits of a lean supply chain.

using multiple shipping channels and a tendency

How the Institute of Operations Management can help

towards expensive delivery options are symptoms

The Institute of Operations Management (IOM),

of poor communication between the manufacturer

in partnership with Amnis and Unipart provides a

and the transporter, and inefficiency in the

wide range of training and support options to help

transportation process.

you develop a lean supply chain. Examples of the

of shipping decisions. Failure to combine orders,

Lean transportation is about introducing concepts

workshops we are running in 2011 that will help you

like combined multi-stop loads, cross-docking, right

benefit from the seven elements of a lean supply

sizing equipment and packaging solutions. It also

chain are detailed below:

77


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.