Lean Procurement Process

Introduction
Lean practices can be beneficial for all types of organizations. The primary objective of lean is to improve organizational efficiency by eliminating waste, which in turn will lead to increased profitability. Organizational efficiency is directly linked to profitability. Often times growing businesses can find their organizations facing challenges due to inefficiencies, causing their bottom line to take a hit. According to Lancaster 2011, some of the strategies that organizations could use to improve efficiency include Lean, Just-in-time (JIT) and Six Sigma. Implementing lean practices can help organizations improve operations and increase profitability. This paper will discuss implementing lean concepts to address wasteful procurement
…show more content…
Implementing a Lean procurement process using the Lean Six Sigma approach will yield several desirable outcomes for the NRC. First, it will make conducting business with the federal government faster and less expensive for NRC and the contractors by examining how the procurement process could be accelerated. The second desired outcome is to enhance the procurement process to capture information to be used by the NRC when making budget decisions that will reduce expenses during the coming fiscal years, to align with budget cuts. Additionally, by eliminating non-value added activities, the NRC can redirect staff time to other activities more related to their core mission. By implementing lean tools, the NRC expects to decrease the complexity of processes and eliminate wasteful steps, improve the quality and consistency of contracting activities across the agency, allocate more staff time to mission critical work, enhance process transparency, and reduce lead times by at least fifty …show more content…
The analysis phase deals with identifying the critical factors embedded in the current operation that could be improved to minimize waste. Prior to starting this phase, the project champion reviews the collected data to filter out any type of noise and disturbance. Data mining is then used to identify main types of wastes for each process to perform the corrective actions. Design alternatives are developed to identify the best combination of requirements to provide value within constraints, conceptual designs are then developed, evaluate and select the best components before developing the best available design. During this phase the team analyzes the alternatives available for meeting project aims by evaluating the behavior of comparable best-in class designs. This helps firms to become more flexible and open to thinking differently, which will lead to experimenting with new methods, ideas, and tools to improve their efficiency. (Pendokhare, Quazi, & Kulkarni

Related Documents

Related Topics