Lean manufacturing is all about reducing waste and creating increased value for customers through the implementation of intentional processes that are designed to create improved continuity in supply chain management. Understanding lean manufacturing as it relates to the supply chain, as well as understanding the concepts that it embodies, can help organizations shed excess "weight" and improve their overall supply chain operations.
The main objective behind lean manufacturing is to eliminate the waste generated through various supply chain processes, but it's important to note that waste can have several meanings. In the broader sense, manufacturing waste might pertain to material use, energy consumption or several other definitions, but lean manufacturing specifically speaks to the efficient flow of products from the production stage through to the delivery of those products to end users.
To achieve this, supply chain organizations must have a solid understanding of their supply and demand data. Manufacturers mass-produce products pursuant to the demand from these organizations, which makes forecasting paramount. Inaccurate forecasting can lead manufacturers to stop producing abruptly, thereby incurring waste for repeatedly starting and stopping their processes. However, when supply chain organizations have a strong handle on their data, they can accurately convey demand to manufacturers so that a consistent flow of products can carry on in continuity.
The concept of lean manufacturing was introduced by automobile manufacturer Toyota in the 1930s, though the term wasn't coined until around 1988. Toyota understood that the ability to maintain a consistent flow of manufacturing lessened the waste generated by stopping and then starting up again. As a result, the company created the just in time (JIT) system and perfected its ability to produce automobiles on a consistent basis. The enabled harmony through all aspects of the manufacturing process, from receiving customer orders to producing vehicles efficiently to delivering finished vehicles quickly.
There are four key concepts that enable supply chain organizations to achieve lean manufacturing standards:
With the help of ASCM education, Ingersoll Rand implemented an enterprise sales inventory operations planning and materials management strategy that enabled the company to make materials management a core competency within their organization. Through valuable training and education via the ASCM CPIM program, Ingersoll Rand created a push-pull system that leveraged organizational design and lean manufacturing principles.
Organizations looking to improve their processes to incorporate lean manufacturing should first look to technology and training. Using purpose-built enterprise resources planning software to track inventory waste can help advance supply and demand planning. In addition, achieving ASCM’s Certified in Planning and Inventory Management (CPIM) designation can help supply chain professionals better understand the nuances of inventory management and develop ways to optimize and streamline processes accordingly.
