Lean Supply Chain Management

LEAN SUPPLY CHAIN MANAGEMENT PPT

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Lean Supply Chain Management

LEAN SUPPLY CHAIN MANAGEMENT PPT

Uploaded by

Rogen Darell Aban

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Available Formats

Download as PPTX, PDF, TXT or read online on Scribd

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LEAN SUPPLY CHAIN

MANAGEMENT RE P O R T
“What exactly is lean, and how can it
help supply chains work better?”
ORIGINS OF LEAN
MANUFACTURING:
Lean manufacturing,
Unlike mass production, it
initially called the Toyota
focuses on smaller batches
Production System,
and lower inventory costs.
emphasizes reducing waste
and errors.
LEAN SUPPLY PRINCIPLES:
Comparison with Mass Toyota’s Value-Adding
Production: Criteria:

Mass production involves a

Physical changes, customer
broad supply base, whereas lean
consideration, and getting it
supply focuses on eliminating
right the first time are the core
waste (materials, time, and
value-adding activities. Anything
processes) and adding
else is waste.
consumer-perceived value.
DRIVERS FOR LEAN
DRIVER 1
SUPPLY CHAIN:
DRIVER 2 DRIVER 3 DRIVER 4 DRIVER 5 DRIVER 6

WASTE DEMAND PROCESS CONTINUOUS

REDUCTION: MANAGEMENT: STANDARDIZAT ENGAGING COLLABORATIO IMPROVEMENT:
ION: PEOPLE: N:
Eliminating Involves Ongoing
waste is a key precise Standardizatio Lean Internal and efforts to
tenet of lean management n ensures emphasizes external improve
supply chain of demand, smooth worker collaboration is processes and
management. often through continuous involvement, essential for products.
POS data. flow in both unlike efficiency.
the company traditional
and the supply production
chain. systems.
COMMON LEAN
TOOLS:
1 VA L U E S T R E A M M A P P I N G 6 P R O D U C T I O N VA R I E T Y F U N N E L

T I M E - B A S E D P R O C E SS
2 7 Q U A L I T Y F I LT E R M A P P I N G
MAPPING

D E M A N D A M P L I F I C AT I O N
3 P R O C E SS A C T I V I T Y M A P P I N G 8
MAPPING

S U P P LY C H A I N R E S P O N S E
4 9 VA L U E A D D I N G T I M E P R O F I L E
M AT R I X

5 LO G I S T I C S P I P E L I N E M A P
VALUE STREAM
MAPPING
Value Stream Mapping is a visual
tool used to map out the flow of
materials and information
throughout the entire production
process, from supplier to customer.
It helps to identify all value-adding
and non-value-adding activities in
the supply chain, making it easier to
pinpoint inefficiencies, waste, or
delays. The goal is to create a
streamlined flow that eliminates
bottlenecks and improves overall
efficiency by focusing on customer
value.
TIME-BASED PROCESS
MAPPING
Time-Based Process Mapping
focuses on tracking the time spent
in each step of a process to
distinguish between value-adding
and non-value-adding activities. By
"walking through" the entire
process, from material acquisition
to final delivery, this tool highlights
where time is wasted and how long
each step takes. This map provides
a clear visual of how much time is
actually adding value versus how
much is being lost in delays, wait
times, or unnecessary processes.
PROCESS ACTIVITY
MAPPING
Process Activity Mapping breaks
down the production process into
four key activity types: operations,
transportation, inspection, and
storage. Each of these activities is
represented visually, allowing
businesses to identify inefficiencies
in how materials are handled and
processed. By optimizing the flow of
materials and minimizing
unnecessary steps like excessive
transportation or inspection, the
map helps improve overall process
efficiency and reduce costs.
SUPPLY CHAIN
RESPONSE MATRIX
The Supply Chain Response Matrix
is a tool used to evaluate how long
it takes and how much inventory is
required to meet a specific level of
customer service. By mapping out
lead times and inventory levels
across the supply chain, this tool
helps managers identify where
excess inventory or time delays are
holding up the process. It is useful
for assessing the balance between
customer service levels and
operational efficiency, helping
companies reduce lead times and
optimize inventory management.
LOGISTICS PIPELINE
MAP
A Logistics Pipeline Map tracks the
accumulation of both process time
and inventory within each operation
of the supply chain. On the
horizontal axis, it shows the time
required for each step, while on the
vertical axis, it displays the
inventory levels at each stage. By
visualizing how time and inventory
pile up, this tool helps businesses
identify bottlenecks or inefficiencies
and shows where improvements in
logistics can be made to reduce
delays and inventory holding costs.
PRODUCTION VARIETY
FUNNEL
The Production Variety Funnel is a
technique that maps the variety of
products produced at different
stages of manufacturing. It visually
represents the point in the
production process where a product
becomes more customized for the
customer. By understanding where
product variety increases,
companies can streamline
processes and make decisions about
when and where customization
should happen, allowing them to
better balance efficiency with
customer-specific requirements.
QUALITY FILTER
MAPPING
Quality Filter Mapping identifies and
visualizes where quality issues or
defects occur within the production
or order fulfillment process. This
map breaks down the production
stages and highlights areas where
errors, rework, or defects arise,
whether in the supply chain or
within internal operations. The tool
helps to pinpoint the root causes of
quality problems, making it easier
to implement targeted
improvements to reduce waste and
ensure a smoother, more reliable
supply chain.
DEMAND AMPLIFICATION
MAPPING
Demand Amplification Mapping is
used to track the amplification of
demand variability as it moves
through the supply chain. By
graphing product quantities over
time at various stages of
production, this tool helps visualize
how small changes in customer
demand can lead to
disproportionately large
fluctuations in production and
inventory levels. This tool is
essential for understanding how
demand changes affect supply chain
operations and how to mitigate the
VALUE ADDING TIME
PROFILE
The Value Adding Time Profile maps
the accumulation of both value-
adding and non-value-adding costs
throughout the production process.
It shows how time and costs
accumulate at each stage and
distinguishes between steps that
contribute value and those that do
not. This tool is particularly useful
for identifying areas where time
and resources are being wasted,
allowing businesses to compress
timelines and focus more on
activities that directly contribute to
customer value.
CONCLUSION: