How the Supply Chain Benefits from a Lean approach?

There is More Competition Than Ever:  

As a matter of facts, it does not (or will not soon) exists any more unique companies on their market (Rockets, aircrafts,  electrical cars, electronics…).

Even niche markets are threatened by competition if profitable.

 

It is a Global Marketplace: 

Competition is not limited to local, to frontiers… Even for medium and small companies now, the competition is coming from everywhere; It is a global market and we need to be prepared for it.

 

Dynamics are Changing: 

The World is changing fast, Customers needs are changing with it. Companies need to be  flexible enough to survive, adapt and evolve in this changing environment.

 

The global market can be describded like a round about …  as the demands on your products and processes increase, they evolve and adapt accordingly, which often results in processes that end up inefficient and wasteful compared to what the competition is doing. Lean is about challenging the way things are done and  identifying and removing waste and inefficiencies to become more competitive. The environment in which an organization operates will continue to change; Lean is helping organizations to become more competitive, to improve their profitability and to deliver more value to customers.

 

Benefits form Lean - Industry examples :

• 99.9% Customer Schedule Attainment
• 15 PPM or Better
• 4-6 Inventory Days of Supply
• 92%+ Operational Availability
• Leveled, Sequenced Production
• Order to Customer Use - 4 1/2 Hours
• Functioning Supplier Partnership
• Strong Production Control Function

Lean versus traditional :

• Half the hours of engineering effort
• Half the product development time
• Half the investment in machinery, tools and equipment
• Half the hours of human effort in the factory
• Half the defects in the finished product
• Half the factory space for the same output
• A tenth or less of in-process inventories

 

Building a Lean Supply Chain - Roadmap derived from Lean Principles :

• Focus on the supplier network value stream
• Eliminate waste
• Synchronize flow
• Minimize both transaction and production costs
• Establish collaborative relationships while balancing cooperation and competition
• Ensure visibility and transparency
• Develop quick response capability
• Manage uncertainty and risk
• Align core competencies and complementary capabilities
• Foster innovation and knowledge-sharing

 

Building a Lean Supply Chain - From Lean Principles to deployment elements :

 

Design supplier network architecture

Develop complementary supplier capabilities

Create flow and pull throughout the supplier network

Establish cooperative relationships & effective coordination mechanisms

Maximize flexibility & responsiveness

Optimize product development though early supplier integration

Integrate knowledge and foster innovation

Key enablers & practices :

 

 Examples of Lean benefits from a synchronised production & delivery as key enabler to a Lean Supply Chain :