A lean supply chain is a very big part of the whole lean strategy and from using this organizations can get lot of advantages and effective, resourceful in supply chain management development with the minimum of waste. First of all we will look what is the meaning of supply chain management. Supply chain management is a method network in an organizations, people and activities with produce value in the form of products and services from supplier to consumer. Lean manufacturing is the way of remove waste and increase efficiency in manufacturing company. Lean manufacturing is becoming a benefit for not only manufacturing. It’s also importance for the retailers and wholesalers. Waste is defined as any additional use of resources will not add to the value of consumers perspectives. Lean supply need to decrease transportation charge and shipping cost and because of that there are not any extra transportation cost. The main aim of a lean supply chain is the correct production, the right amount, in the right condition, at the right location, at the right period. This is also known as 5R’s.In lean manufacturing we should recognize three points. The first point is lean need a strategy.
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The second one is lean chain above the four panel of the storeroom or company. It goes outside the business company boundaries of the factory and the supplier and to customer. The last point is there must be the foundation of the lean supply chain:
- Resolve the value from the view point of customer.
- Not the view of the organization.
- Create the product and the data flow.
- Control toward quality with regular advance.
Lean chain developed from the Just-In-Time (JIT). Lean manufacturing is occasionally called the Toyota manufacture system because Toyota Company’s Eiji Toyoda and Taiichui Ohno are agreed credits for its approach and revolution. Just in time JIT is an inventory plan which benefits to employ to rise efficiency and reduce wastage. In this situation company ordered goods only for required process. Balancing the inventory system is the main goal of this method.
Lean manufacturing point from the Toyota manufacturing system aiming on removing waste named “Muda” with in a manufacturing strategy. There is some waste in this structure including waste of extra human motion etc. Under the lean manufacturing system seven wastes are recognized overproduction, inventory, defects, motion, over-processing, waiting, and transport.
Overproduction: over production is to production an item previous it’s truly necessary. Overproduction is extremely expensive to a manufacturing side because it blocks the smooth flow of resources and truly degrades value and output. The Toyota manufacture system is also recognizing to as “Just in Time” since every item is ended just as it is required. It makes added charge and high storage charge. This concept is scheduled to produce what need to be quickly sold and recover machine changeover.
Transporting: transporting is moving resources from one place to another place. Transportation didn’t add value to the goods. So organization needs to reduce the transportation cost immediately. So company need to closer the one plant to another in the manufacturing chain or organization have to minimize the transportation cost using the efficiency methods. Sometimes waste of waiting can happen because of the inefficiency transportation. In that time supply lane has to wait for the materials. Waiting: when products are not providing the waste of waiting happens. Most of companies have to face this problem. Because companies’ material run is low, productions runs are too lengthy and gap between plant points are very long. Also talking about the environment issues wasted labor and energy from lighting, heating during the waiting period. Additionally resources can be damaged and components can be damaged because of an ineffective workflow.
Over-processing: over processing is placing more effort in to manufacturing the product than the consumer value. In organization time, energy etc. are wasted when they are producing the product.
To overcome from this problem, organizations need to be effective. Inventory: Inventory waste means the waste created by unrefined inventory. This contains the waste of loading, the waste of transporting stocks, the waste of investment and the storage space. The problems need to be solved. If organizations unable to solving these matters they have to cut their inventory stocks. It will affect to the supply chain process.
Unnecessary Motion: motion means movement of equipment or people. There are also health and safety problems. This kind of excess can be damage to the equipment, product or workers.
Defects: having defects with product need to be rework. Detective product need to be replaced. They want employees and paperwork to do that.
Sometimes they lost their customers. Producing more efficient production strategy cuts defect wastes and increase the resources in the plant.
Lean Management Strategies
5S is a cyclical methodology. This system use for reduce and improve output and organizations can be achieve effectively, efficiency and wellbeing. By using this system organizations can keeping their factory clean and its helps to workers to their day today work easily without wasting their time. 5s used for the Toyota manufacturing company and later this system introduce to as lean manufacturing to the world, aiming to increase the worth of products and services for the clients. Also it helps to find the waste of production. The 5s are sort, set in order, shine, standardized and sustain. Now we will look at one by one.
- Set in order
- Six Sigma
- Define: Selection of the issue.
- Measure: measure the issue. Use appropriate data collection and find the matter.
- Analyze: Analyzing the problem and implementing the suitable process.
- Improve: Improve the process.
- Build the change: Implement the process.
- Control: control the overall process.
- Quick change over (SMED)
- Measure changeover period
- Recognize internal and external basics
- Transfer as many basics as possible to the external
- cut internal elements
- cut external elements
- order and continue new procedure.
- Grow employee morale
- Increase the team work
- Try to increase the customer satisfaction.
- Theory of constraints
- Find the system constraints
- Choose how to exploit the constraints
- Subordinate the whole thing else
- Elevate the constraints
- Repeat the process.
- Visual workplace
This strategy helps organizations to remove unnecessary things from the factory that are not required for the present production process. Those unnecessary items are called as red tagging. All red tagging items are not importance for the production process and once these red items recognized, then transfer to the recycling or reassignment department.
This strategy aiming on is to build effective and efficient process such that anybody can find these equipment, tools and dealers they want and anyone can return those tools, resources to the right place. By using this theory workers can find equipment’s, tools easily. Because of that they can reduce their extra time working hours.
It means building a clean workplace, tools and equipment’s, without dust and garbage. Working in a cleaning factory allows employees to do their work effectively and efficiency. That’s mean organization can reduce their cost and waste time by using this theory. There are some advantages for the company by using this theory. Always equipment’s will be in good conditions and set to use any time.
If company is following above these first 5S’s three they good in workplace. All the additional material is gone, everything is planned, spaces are prepared and tools are working in good. By using this theory factories able to keep each zone dependable with one another, easy to transfer workers into different places and make it simple for everyone to find the state of normal.
It means continuing actions and habits to maintain the settled principles over the lengthy period and building the factory organization process successfully. Sustain is making 5S a long term process, not just a short term plan. Why should implement the 5S system for a company, because of improved incomes, more efficient labor force, safe workplace, less defects, and better communication
This strategy used to improve process and build efficiency in the industrial process. This theory also use for remove waste, increase process and maximize manufacturing value. There are six tools in this strategy.
Quick changeover is the development of converting a machine from changing one product to another. Single minute exchange dies is a method of decreasing the total of period to change a process from one product to another product. The main target from this tool is increase the manufacturing flexibility. There are 6 steps in SMED
Kaizen is a process where workers at all standard of a workplace, work together to accomplish regular additional developments to the industrial process. There are some advantages by using this strategy.
Theory of constraints is a business organization system that is use for income developments. There are 5 steps in theory of constraints,
Visual workplace means how to use the visual communication to make a clear, safe and supportable atmosphere for labors and visual machine maintenance. Visual communication is a system of communication created to share data fast. Visual workplace tool helps to fill the information gaps and its helps workers to find tools fast, deliveries, at the impression of use.