Lean Manufacturing: A Systematic and Performance-Based Approach for High Productivity

As a systematic and performance-based approach aiding in the identification and elimination of waste through the improvement of processes, lean manufacturing is being used for various functions today. Through the identification of organizational value, the value stream, creation of a steady process in corporate operation, development of pull process, and alignment of activities, lean manufacturing ensure that companies maintain a continuous process likely to yield high productivity and performance (Gothelf, 2013). However, significant challenges are based on how companies can apply lean manufacturing to develop a performance-based culture that will deliver long-term benefits and commitment from top-level managers down to all employees. Besides the challenge, the supply chain process in most organizations can significantly benefit from lean operations and activities. In this paper, I will address the supply chain process by providing a comprehensive recommendation of how lean principles can aid in the process. Also, the paper will analyze various obstacles managers could encounter while adopting the proposal in their organizations.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The supply chain process in companies involves the management of the flow of services and goods as they are transformed from raw materials into finished products. In companies such as retail companies, the supply chain process is involved in controlling the quality of products, expenses, and the levels of inventory as well. According to Mellat-Parast and Spillan (2014), other activities concerned with the supply chain process include manufacturing, production, transportation, packaging, refining, design, among others. In most cases, the management of the process is critical to companies since it helps in increasing customer satisfaction as well as the competitiveness (Mellat-Parast & Spillan, 2014). Today, supply chains are crucial in determining the success of companies.

Recommendation to Improve the Supply Chain Process

To improve the supply chain process, various actions should be undertaken by interconnecting the supply chain with lean. As such, this recommendation will include five significant steps. First, all the functions and different departments involved with the supply chain process should collaborate to develop a proper interaction within the organization. Here, the objectives of the company should be aligned as per the organization's value to create an appropriate flow of activities so that the waste is eliminated in the supply chain. For example, some of the primary aspects that can be considered include the transport - the movement of products should be limited to the essential purposes, space - unnecessary stock should not be held, packaging - recyclable containers can be used, and inventory - useless and inactive raw materials should be eliminated or avoided. Also, energy - get rid of wasteful energy with the supply chain by using renewable energy and other utilities, system complexity - complementary steps and of no value addition to the supply chain should be eliminated, human effort and lead time should be considered to ensure that organizational is identified across the supply chain process (Gothelf, 2013; Zylstra, 2012). Within the activities of this stage, it aligns with the corporate value principle defining lean.

Next, the valuable aspects of the supply chain process should be considered to ensure that they are improved. For instance, advancements in technology can be implements with the process. Some of the technologies include Electronic Data Interface for the supply chain management, customer management, management of the workforce, along with other technologies that are likely to ensure waste reduction and streamline the activities of the supply chain by improving customer value (Cudney & Elrod, 2010). Also, by reducing various operations such as the lead time, this brings the activities of the supply chain close to consumer demand (Zylstra, 2012). As a result, it is likely to result in the reduction of overproduction and increase flexibility within the process. Through such implementation and integration of technology, lean can be used to ensure that value is maintained, which is critical in ensuring that the supply chain process delivers value beyond the expectations of the consumers.

As outlined by the value stream principle in lean, this will support the identification of activities that offer value to the products and the supply chain as a whole, while at the same time supporting the elimination of waste (Cudney & Elrod, 2010). After identifying the supply chain process value, and the value stream, the nest point of action should involve the creation of a constant level flow within the process. Shown in the flow principle of lean production, this consists of the development of the value-creating process meant to happen in a specific sequence to guarantee a smooth flow of the process (Taylor et al., 2001; Gothelf, 2013). In this process of leveling the flow of the supply chain with the involved practices and products, it helps in maintaining that waste is significantly reduced.

Within the fourth step of the recommendation on the improvement of the supply chain through lean, velocity can be increased, and variation reduced. By this, the Kanban pull systems can be used to ensure that wasteful complexity is eliminated in the planning that might occur within the process (Cimorelli, 2013). Specifically, the application of such a pull system in the supply chain process allows the visual control of activities and the flow of products (Cimorelli, 2013). In extreme cases, within the supply chain, it can be improved by focusing on filling customer needs with activities like ship-to-use (STU) systems (Cudney & Elrod, 2010). Through this, it reduces the lead time and inventory, allowing the creation of ways consumer value can be achieved along with the increase of velocity and reduction of variation.

In the final stage of the recommendation, collaboration through the entire supply chain process can be used to align to realize consumer satisfaction. For instance, when involved individuals in the supply chain process recognize their goal of meeting customer expectations, they are likely to collaborate in the identification of problems, determination of causes, and development of appropriate solutions to resolve the issue (Taylor et al., 2001). Also, to ensure that the procedure is aligned with lean, the Lean Value Stream Mapping (VSM) can be used to develop the supply chain process by providing more opportunities to build an effective method (Grewal, 2008; Cudney & Elrod, 2010). Through the five steps, they can significantly help in the improvement of the supply chain process.

Influencing Senior Leaders to Accept the Recommendation Through the Use of a Business Case

Often, the management and senior leaders really on prior information, especially when it involves recommendations. In this case, the use of a business case could influence the leaders into accepting the proposal since it offers an actual and tangible representation of the recommendation's effectiveness. Business cases might be different. However, to ensure that the senior leaders can understand the application of the proposal, the involved steps should be visible from a practical point of view. By providing a business case, it means that the leaders can identify critical steps in the recommendation. A business case functions as a management tool since it serves as an evidence-based representation of what the proposal entails and promotes transparent decision making. Finally, the use of a business case could influence the decision-makers to accept the recommendation since it presents the opportunities, threats, and different risks that could be incurred in case they decide to invest in the recommendation. In one way or the other, business cases are meant to educate decision-makers and convince them to make a confident decision based on projections or anticipation about the possibility of success in the future.

Potential Barriers in Adopting the Recommendation

As the senior leaders adopt the recommendation, they could have insufficient management time to focus on lean, which might result in misunderstanding of the lean principles and objectives. Within, the leaders might perceive the lean as a cost reduction strategy, which should not be the case since it means that internal costs may be reduced. However, the total supply chain costs remain the same. Also, as the leaders implement the recommendation, the conflict with other initiatives might deliver significant barriers. For instance, if the company is involved with different approaches such as the total quality management or Six Sigma, this could result in conflict with lean methodologies and even cause more damages.

While the recommendation might be easy to implement, ERP implementation could pose significant barriers to the process. With the differences in terms of concepts, it becomes challenging to tune lean principles with the implementation of a robust ERP program. In other cases, the lack of a broad organizational involvement could deliver significant challenges to the implementation of the recommendation. Often, companies tend to leave the application of lean initiatives to a particular group of specialists with minimal support from top-level managers, which is likely to result in problems, particularly with the creation of lean corporate culture. Thus, such activities pose a significant threat to the implementation of the recommendation.

References

Cimorelli, S. (2013). Kanban for the supply chain: fundamental practices for manufacturing management. CRC Press.

Cudney, E., & Elrod, C. (2010). Incorporating lean concepts into supply chain management. International Journal of Six Sigma and Competitive Advantage, 6(1-2), 12-30.

Gothelf, J. (2013). Lean UX: Applying lean principles to improve user experience. " O'Reilly Media, Inc."

Grewal, C. (2008). An initiative to implement lean manufacturing using value stream mapping in a small company. International Journal of Manufacturing Technology and Management, 15(3-4), 404-417.

Mellat-Parast, M., & Spillan, J. E. (2014). Logistics and supply chain process integration as a source of competitive advantage. The International Journal of Logistics Management.

Taylor, D., Taylor, D. H., & Brunt, D. (2001). Manufacturing operations and supply chain management: the lean-approach. Cengage Learning EMEA.

Zylstra, K. D. (2012). Lean distribution: applying lean manufacturing to distribution, logistics, and supply chain. John Wiley & Sons.