Sunday, July 19, 2009

Lean is Not Lean without a Lean Supply Chain

Lean is Not Lean without a Lean Supply Chain

Many companies believe they have implemented Lean within the “4 Walls” of their factory, but have not enjoyed the benefits they expected from all the efforts and start wondering why. The simple answer is they have not developed a Lean Supply Chain, and therefore continue to suffer, as there is little or no linkage outside their “4 Walls”. In Lean terminology, this means they do not have linkage within the total Value Stream.

Many companies are struggling to find the resources to implement and sustain Lean in their own factory, and do not have enough resources to go out and train and help implement Lean within their Supply Chain. Leanovations has developed strong partnerships with a number of large corporations and family run companies to assist in developing linkage between their Lean efforts and vision with their supply base. Leanovations provides the training, coaching and mentoring to an organization’s Supply Chain, to leverage their own Lean journey more easily; which delivers better customer value, business needs and translates to superior financial performance for all organizations linked in the Value Stream.

To develop Lean suppliers, organizations need to include suppliers in their value stream mapping analysis. They should encourage suppliers to make the Lean transformation and involve them in Lean activities. Leanovations’ 7 Steps for developing Lean Supply Chains:

1) Develop a Lean Thinking Supply Chain Partnership
2) Understand Customer Value
3) Manage Demand Volatility
4) Create Flow of information and a Pull of Products
5) Implement Plan-Do-Check-Act (PDCA) Process
6) Establish Key Performance Metrics
7) Benchmark Best Practices (know the competition)

Lean Suppliers are able to respond to changes quicker due to the efficiencies of Lean processes and their quality improved to the point that incoming inspection at the next link is not required. Lean suppliers deliver on time and their culture is one of continuous improvement. The key to Lean supply chain is communications and visibility. Suppliers must be able to "see" into their customers' operations and customers must be able to "see" into their suppliers' operations.

Leanovations helps organizations map a value stream with supply chain linkage, and together create a future value stream in the procurement process, creating a flow of information while establishing a pull of products. To learn how Leanovations may assist your organization develop a Lean Supply Chain or become a Lean Supplier please visit our website at www.Leanovations.com.