LEAN THINKING

Lean Thinking



Lean Thinking

Question 1

The journal article discusses approaches to achieving time compression in the supply chain. How similar are those approaches to the application of lean principles to elimination of waste through channelling value stream flows? Support your argument with real examples where possible.

The market in recent years has become extremely saturated with businesses. Consequently, there has been a high increase in competitiveness within industries. Each business vies to give the best possible customer service in order to increase customer turnover and survive in the market. This requires the businesses to stream line business process, especially the supply chain system.

The lean principle to eliminate waste through channelling value stream flows suggests that organisations can reduce the entire process from the time that the customer places and order till the time the customer is able to use the product or service. It basically on focuses on reducing time for non-value added activities in order to accelerate the entire process. (Knowles et al. 2005, pp. 53). Moreover, it also aims to provide top quality product to the customer at the right time in the first go of production.

The approaches discussed in the journal article are similar to the lean principle in a way that both aim to reduce time at each step from order to the delivery of the product through JIT (Just In Time). All these approaches have the same objective: to accelerate and streamline the supply chain process through elimination of waste activities.

This requires a complete synchronised supply chain system which means that all tiers in the supply chain are well aware of changes on a continuous basis. From the retailer, distributor and the manufacturer, all three tiers should be well informed about any changes in the amount of orders to ensure shelf replenishment and ...