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Lean techniques unit 2
Lean supply chain case study
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KAIZEN APPROACH TO SUPPLY CHAIN MANAGEMENT: FIRS STEP FOR TRANSFORMING SUPPLY CHAIN INTO LEAN SUPPLY CHAIN. Chains are usually series of entities established for the sole purpose of offering services and goods to the market and the management mechanisms for supply chains vary significantly. One of the most prominent management approach employed in chains is the lean supply chain management. Kaizen approach to boost the lean control mechanism is an integral part of the process, usually applied at the early stages of the lean management strategy.
To establish the effectiveness of the daily Kaizen approach when identifying the limitations of the supply chain, a case study was conducted. The subject of the study was an assembling company that
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Alternatively, the diagram is also known as fishbone drawing or the cause and effect illustration. Individual participants filled their Ishikawa diagrams which were later evaluated to establish the most voted cause of the problem. Four main causes of the frequent delays were identified through the application of the Ishikawa diagram. Inefficient communication, surplus supplies, complex purchasing procedures, and supplier related issues were attributed to the constant delay of deliveries to …show more content…
An observation was made that three-quarters of the challenges were as a result of the company’s processes and so an improvement was needed in the company’s procedures. Through brainstorming, various participants suggested various corrective measures and how to apply those particular measures. After conclusive discussions and analysis, simplification and reduction of the purchase procedure were resolved as the most viable method to counteract delay issues.
Lean management mechanisms as well as the one day Kaizen approach are very useful tools in the identification of all problems and their causes in supply chains. Other simple application tools such as the fishbone diagram, brainstorming, and the 5XWhy are useful instruments in the process of problem identification for supply chains. These devices are accurate since they help in the focus shift for the suppliers to improve their purchase procedures. These tools are appropriate for problem evaluation and identification of the most suitable remedy actions for chain
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Metalcraft’s scorecard was developed to address control issues in the supply-chain. The scorecard was a tool that provided Melalcraft a single reference point on supplier performance over a period of time along three dimensions: quality, timing and delivery. There were several business functions that utilized the scorecard; buyers, plant engineers, supplier development engineers, suppliers and various other users within the Metalcraft organization. The scorecard was also used to evaluate supplier performance at both the individual plant level as well as the aggregate supplier level. The scorecard classified supplier performance metrics with color recommendations indicating the degree in which Metalcraft would base future sourcing based on their “color” quality rating.
“Quality of lean systems is based on kaizen, the Japanese term for “change for the good of all” or continuous improvement” (Russell & Taylor, 2013, pg. 737). Continuous improvement involves “every employee at every level” (Russell & Taylor, 2013, pg. 737). It is the process of employees identify “quality problems, halt operations when necessary, generate ideas form improvement, analyze processes, perform different functions, and adjust their working routines” (Russell & Taylor, 2013, pg. 737). “The idea focuses on improving processes and products while using employee creativity to help define the way procedures and systems can be improved” (Wagner, N., 2015). The kaizen approach encourages an organization to achieve better operational excellence and improve their productivity. The key component to achieve a successful kaizen “is finding the root cause of a problem and eliminating it so the problem does not reoccur” (Russell & Taylor, 2013, pg. 738). One of the techniques for achieving the root cause of a problem is asking the “5 Why’s”: “repeatedly asking “why?” until a root cause is identified” (Russell & Taylor, 2013, pg. 738). Kaizen is that big results from many small changes accumulated over time. This does not mean that kaizen means small changes. What is does mean, is that everyone involved is making improvement for a more streamline process. Kaizen is part of the quality of source that involve; visual control,
A supply chain is a quality network of manufacturers, suppliers ,distributors, warehouses and retailers who by planned and coordinated activities develop products by converting raw materials to finished goods.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
The successful supply-chain management focus solely on the consumer demand rather than imposing a product into the market which may or may not succeed. The companies are adopting to speed ways of market techniques to gain a good cons...
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We...
UK Morepeth facility, the company’s ability to integrate over seas businesses and ramp up of
In this essay we will talk about the supply chain of a product from raw materials to its arrival to customers. First, we will have an overview about textile industry, overview of Oriental Weavers Company, overview of manufacturing of carpets&rugs and its major competitors.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
Kaizen is the most important concept in Japanese management. It means continuous improvement in every aspect of life, including social life, working life and home life. A wide range of production techniques and working practices must be carried out for it to be effective. This approach argues that a day should not pass without some kind of improvement being made, no matter how small, and achieving the lean goal eliminating all waste that adds cost without adding value.