Lean Supply Chain Final Research Paper Presentation QA6640 - Quality Cost and Supplier Evaluation By Ikechukwu Nwamuo (IKE)

Lean Supply ChainFinal Research Paper PresentationQA6640 - Quality Cost and Supplier EvaluationBy

Ike NwamuoMSQASchool of Industrial Engineering and TechnologySouthern Polytechnic State University, Marietta, GA -USANovember 14, 2012

1

What is Lean?

What is Supply Chain?

DEFINTIONS:

2

Lean can be described as doing more with less -Mehrjerdi, Y. Z (2012).

supply chain is a technique whose component parts include material suppliers, manufacture facilities, delivery services, and clients, all connected by a feed-forward run of materials and a feedback run in sequence.- Mehrjerdi, Y. Z (2012)

3

Lean + supply chain = Gives organizations ability to leverage their own lean journey more easily.

Lean Supply Chain delivers better customer value by responding more efficiently, quickly, and predictably to customer needs. Gordon. R. S (2008)

4

Lean supply chain running is not absolutely for those companies who manufacture goods and products, but by businesses who want to streamline their processes- Mehrjerdi, Y. Z (2012).

Organizations and Lean Supply Chain

5

System thinking

Introduced when companies put into practice internal initiatives and high-performance systems together.

The lack of a systems perspective makes it very difficult to institute long-term partnerships with the organization's suppliers.

Factors to consider for a leaner supply chain

6

The supply chain formed within lean companies may not be lean after all, due to lack of cooperation and synchronization among participating companies.-Pham, D.T et al (2007)System thinking

7

Customer ValueExtending the value stream from a lean company to its associates thereby allowing the company to broaden the quest for perfection to the entire supply network.

Factors to consider for a leaner supply chain

8

Factors to consider for a leaner supply chain

...Customer Value

Displays weaknesses and strength links in the value stream

Identifies opportunities for removingwastefulness from unnecessary non-value added activities, unevenness in quality, sales and production or overburdening - Pham, D.T et al (2007).

9

Design to Manage Demand VolatilityProducts or goods are produced in different ways for different customer according to demand and characteristics.

Every supply chain structures orients its production and logistics processes differently based on its strategic priorities. - Stavrulaki, E & Davis, M (2010)

Factors to consider for a leaner supply chain

10

Customers will have more faith in your capability to deliver and likely to pad their actual requirements or their desired due dates if action is taken quickly to demands

To manage demand volatility a high volume, low demand uncertainty products should be matched with lean supply chains enabled by efficient processes, whereas a low volume, high uncertainty products should be matched with agile supply chains enabled by flexible processes.

- Stavrulaki, E & Davis, M (2010).

Factors to consider for a leaner supply chain

.Design to Manage Demand Volatility

11

Factors to consider for a leaner supply chain Metrics Using a Systems Perspective Metrics are tracked in performance of a supply chain results in policies and measures.

Lack of MetricsCostWastelack of responsivenesslong cycle times is not in place. -Gordon S. R.(2008).

12

lean characteristics like as schedule stability should be viewed as competitive characteristics of an organization.

Metrics must be agreed as a condition to impact on competitive strategy and the tradeoffs that are involve, knowing that elimination of waste is not an absolute standard for metrics of leanness. - Harrison, A. (1998).

Factors to consider for a leaner supply chain Metrics Using a Systems Perspective

13

Conclusion

Haven illustrated the concept of leanness and factors companies need to consider for lean supply chain.

It is worthy to note that the integration of supply chain management and lean thinking covers both local and in general leanness, which leads to a really lean supply chain.

14

Mehrjerdi, Y. Z (2012). MEASURING THE LEANNESS OF SUPPLIERS USING PRINCIPAL COMPONENT ANALYSIS TECHNIQUE.South African Journal Of Industrial Engineering,23(1), 130-138.Pham, D. T., Hosang, J., Rivera, L., Hung-da, W., Chen, F., & Woo Min, L (2007). Beyond Partnerships: The Power of Lean Supply Chains. In, Trends in Supply Chain Design & Management (p.241)

Stavrulaki, E., & Davis, M. (2010). Aligning products with supply chain processes and strategy. International Journal Of Logistics Management, 21(1), 127. Doi;10.1108/09574091011042214

Gordon, Sherry R(2008) Supplier Evaluation and Performance Excellence: a guide to Meaningful Metrics and Successful Results. J.Ross Publishing, Fort Lauderdale Fl. ISBN-13: 978-1-932159-80-6Harrison, A. (1998). A Comparative Study of Lean Production Metrics in an Automotive Assembler. International Journal Of Logistics: Research And Applications, 1(1), 27.

References:

15

QUESTIONS?

Thank You

16