Lean Manufacturing's Potential Impact on the Supply Chain: An Analysis
Efficient Inventory Management With Just-In-Time (JIT) in Lean Manufacturing
From the outset, it might appear that lean manufacturing processes hold little relevance for individuals without expertise in these methods. However, implementing lean manufacturing principles can greatly improve a supply chain's productivity and efficiency. Let's delve into the connection between the two.
A Brief Introduction to Lean Manufacturing
Lean manufacturing operates on a series of principles that can improve any manufacturing process's productivity, profitability, and cost-effectiveness. The central tenet revolves around defining the value of a product from the customer's perspective. By understanding customer expectations, manufacturers can eliminate unnecessary steps and deliver the defined value swiftly. This is an ongoing, cyclical process of evaluations, reassessments, and improvements.
Superior Inventory Management via JIT
One of the last core principles of supply chain management emphasizes eliminating resource wastage in the manufacturing process itself, which aligns directly with the Just-In-Time (JIT) strategy. By anticipating demand and manufacturing accordingly, businesses can avoid overproduction and excess inventory. With a clear understanding of demand, managing the supply chain becomes more manageable, and deliveries can be planned effectively, ensuring smooth operations even on busy days.
Say Goodbye to the Mad Rush
A manufacturer adhering to lean principles will already be aware of the orders they need to fulfill during busy periods, such as the holiday season. By using data analytics, they can accurately project demand, producing only what they anticipate will be ordered. The stocks and orders are then sent to the appropriate stores in advance, making last-minute deliveries possible even in the midst of a rush.
By manufacturing only what is needed, manufacturers can alleviate the stress on their supply chain and eliminate unnecessary rushes, saving money on overtime and preventing product loss due to accidents during rush hour trucking during the holiday season. This approach also allows for a seamless workflow within the supply chain, another core principle of lean manufacturing.
Education and Training Are Key to Implementation
Understanding the concepts of lean manufacturing may seem intuitive to those working in manufacturing or the supply chain. However, effectively applying these principles in a real-world setting requires proper education and training. The Manufacturing Systems Engineering Course developed by Kettering Global and GM is tailored for this purpose, aimed at experienced executives in charge of operations and decision-making.
Syncing Lean and Supply Chain Technology
While lean is rooted in manufacturing, some principles can be directly applied to the supply chain as well. By knowing precisely what to deliver, when, and where, supply chain managers can optimize routes utilizing AI-assisted GPS systems. Real-time traffic information enables trucks to take the shortest, least congested routes, reducing delays and minimizing the risk of congestion, delays, or accidents.
Although no system is perfect, adopting smart technology and lean principles can significantly reduce the chances of issues arising in the supply chain.
The original article was written by Zaklina for Click Intelligence and is published here with permission. It was initially published on September 30, 2021.
For more insights into managing manufacturing and supply chains, check out our articles on selling a manufacturing business, supply chain challenges in plastics manufacturing, and strategies for new business success in New Hampshire.
- Optimizing the supply chain is essential for manufacturers, and one approach is leveraging Lean Manufacturing principles, such as the Just-In-Time (JIT) strategy, to improve productivity and promote efficiency by eliminating wasted resources in the manufacturing process.
- To implement these principles effectively, ongoing education and training are required, as demonstrated by the Manufacturing Systems Engineering Course developed by Kettering Global and GM, designed for experienced executives responsible for operations and decision-making.
- By combining Lean Manufacturing practices with smart technology, such as AI-assisted GPS systems, businesses can enhance their supply chain management by optimizing routes and minimizing delays, leading to improved delivery services and reduced risks.
