Research Question:
How do Lean Operations and Supply Chain differ from traditional approaches? Describe the main characteristics of each approach and their strengths and weaknesses then discuss the main issues involved in managing the transition from traditional to lean operations.
Operations & Supply Chain- Lean Approach Characteristics
The lean approach to operations and supply chain management has been the accepted mode of functioning in many industries and services some many years now and was adopted from the Japanese automotive manufacturing and production company, Toyota (TPS). Comparatively speaking this approach is in vast contrast to what was traditionally accepted as the way to manage organizations and businesses. According to an …show more content…
It creates value- particularly from the customer’s perspective when an organization meets or exceeds their expectations.
2. It focuses on the identification of a value stream within the operations and supply chain.
3. Creates a seamless flow in production which ultimately contributes to eliminating waste (eg. delays, excess motion, transportation, excess inventory etc). This also involves what is known as the pull principle; whatever is needed at this time is pulled- nothing more or less.
4. The people- within any operation the workforce are the backbone. Transformation of an organization would be next to impossible without their ‘buy in’ and adoption of the lean principles, which include the presence of good leadership and people being multi-skilled in their capacities as well as committed also to continuous …show more content…
Cost Reduction – Organizations save money and reduce their cost by not mass producing their goods. This means that they operate on a ‘pull’ principle and produce what the customer wants when the customer places the order.
2. Fast & Efficient – When the organizations function by the pull principle, by only being responsive to customer demands, they are able to reduce any excess volume of unnecessary production and labour. This translates to the organizations being able to make the supply chain move more quickly and efficiently, through the ‘just in time’ principle, which result in the customers need being met on time and to their satisfaction.
3. Risk Reduction – Through the process of outsourcing. According to Carr (2011) outsourcing is the process by which an organization moves its internal activities to external providers. In doing this, companies essentially shift the risks that may be incurred by their organizations carrying out these specific activities, to a third party entity who is generally understood to be an
How do Lean Operations and Supply Chain differ from traditional approaches? Describe the main characteristics of each approach and their strengths and weaknesses then discuss the main issues involved in managing the transition from traditional to lean operations.
Operations & Supply Chain- Lean Approach Characteristics
The lean approach to operations and supply chain management has been the accepted mode of functioning in many industries and services some many years now and was adopted from the Japanese automotive manufacturing and production company, Toyota (TPS). Comparatively speaking this approach is in vast contrast to what was traditionally accepted as the way to manage organizations and businesses. According to an …show more content…
It creates value- particularly from the customer’s perspective when an organization meets or exceeds their expectations.
2. It focuses on the identification of a value stream within the operations and supply chain.
3. Creates a seamless flow in production which ultimately contributes to eliminating waste (eg. delays, excess motion, transportation, excess inventory etc). This also involves what is known as the pull principle; whatever is needed at this time is pulled- nothing more or less.
4. The people- within any operation the workforce are the backbone. Transformation of an organization would be next to impossible without their ‘buy in’ and adoption of the lean principles, which include the presence of good leadership and people being multi-skilled in their capacities as well as committed also to continuous …show more content…
Cost Reduction – Organizations save money and reduce their cost by not mass producing their goods. This means that they operate on a ‘pull’ principle and produce what the customer wants when the customer places the order.
2. Fast & Efficient – When the organizations function by the pull principle, by only being responsive to customer demands, they are able to reduce any excess volume of unnecessary production and labour. This translates to the organizations being able to make the supply chain move more quickly and efficiently, through the ‘just in time’ principle, which result in the customers need being met on time and to their satisfaction.
3. Risk Reduction – Through the process of outsourcing. According to Carr (2011) outsourcing is the process by which an organization moves its internal activities to external providers. In doing this, companies essentially shift the risks that may be incurred by their organizations carrying out these specific activities, to a third party entity who is generally understood to be an