Broken

Lean Thinking is an integrated system of standards, procedures, tools, and techniques that focus on harmonizing work flows, managing differences in production flows, and lessening waste. The process provides several standard solutions to common organizational problems like complexity reduction and visual management. The

With respect to the relationship with suppliers, organizations function as buyers and thus prefer to increase their own buyer power with suppliers (and create competitive advantage). In this situation, organizations want to work with a large pool of suppliers to potentially supply the desired good or service.

Lean Manufacturing system pursues optimum streamlining throughout the entire system by the elimination of waste (non-value added/ waste) and aims to build quality into the process while recognizing the importance of cost reduction.

The current business process can be summarized both verbally and visually. Currently raw materials are ordered and stockpiled. Once an order is received, the material on-hand is reviewed to ensure sufficient quantities are available. If sufficient quantities are not on-hand additional materials are ordered. Deliverables are manufactured and shipped to the customer. Review of raw materials on-hand is

As material resource planning (MRP) involves the initiation of the automation of planning needs for resources, ordering materials, and scheduling tasks to be completed on the shop floor; it is to be expected that certain functions of human resources will be directly affected with the implementation of the MRP system. The first of these would be job analysis which is the process of getting detailed information about the job and job design which involves defining the way work will be

Every order needed two type of raw materials (equipments) :1-electrical , 2- mechanical ,the top staff wrote the necessary equipments in a list that called (BOM) bill of materials list . The BOM sent by enterprise resource planning software (ERP) to the material planning department, mechanical equipments were existed inside of the company and electrical needed to order to the supplier.

In today’s business world, competition is fierce and manufacturers are struggling to squeeze out operational costs reductions. To stay in competition, more and more organizations are trying to determine what improvement method will work best and fit best with their culture. Each improvement methodology appears to be driving toward common tools and concepts. However, different methodologies begin the journey from different perspectives. Even though each improvement methodology contributes valuable concepts, ideas and techniques to every organization not all of them serve to the needs of organization if leadership doesn’t

NIST defines Lean as a “systematic approach to identify and eliminate waste through continous improvement; flowing the product at the pull of the customer in pursuit of perfection.” (p.1). (NIST, 2003)

Lean operations and supply chain originated from the Toyota Production System in Japan and have influenced manufacturing over the past two to three decades. Lean is described as the product of applying the Toyota Production System to all areas of an industrial process. Toyota’s strategies are based on Just in Time manufacturing, continuous flow, reducing lead times, eliminating non-value added waste, and excess inventory, a pull system centred on customer demand and continuous improvement (Liker, 2004). These integrated processes became the basis of Lean manufacturing and have recently extended to include all aspects of the supply chain process. Raw materials arrive Just in Time for production based on the demand of the

Lean suggests the need for the supply chain to exploit the limited resources for an efficient completion of the job. Inventory, trucks warehouses, laborers and the capital for working are the primary sources in the supply chain (Myerson, 2012). The lean supply chain is designed to include inventories in the framework, warehousing space that is minimal to keep these inventories. It will also design to the establishment of long term, supply contracts that are stable with a negotiated cost that is low, typically without any substantial ability to alter ordered quantities.it will also design the destination of delivery and design the date required after there is an order placed. All these factors will minimize the supply chain cost operations making it efficient in cost and will constrain the ability of supply chain for the adaptation of any demand and supply changes. The supply chains should manage variability and an exclusive aim on lean that prevents supply chains to design an effective to manage the natural variability and then from doing the work that are important to them. At many cooperations, they have several products to manage where these products vary widely in demand and lead time patterns, the supply chain enterprise should be designed to work on

The purpose of supply chain management is to manage the flow of goods and services from the procurement of raw material to the point of consumption. Furthermore, it deals with the storing of material, production, and distribution of a product that will maximize customer value and give a company a competitive advantage of the competition. Applying lean gives a company the ability to focus on constraints in the system that inhibit efficient product flow, eliminate waste and improve productivity and quality. For this to be successful its imperative companies seek to include suppliers, distributors and logistics into the process because lean requires integration, coordination and collaboration across the organization and throughout the supply chain (Agus & Hajinoor, 2012). As a result of increased transparency, companies will be more focused on performance and this will create a collective effort to reduce cost by eliminating waste and increasing productivity. Beyond the efforts to eliminate waste lean looks to incorporate customer value from the customers perspective. Simply, everything that is being done that ensures customer satisfaction is a value added step and any activity that fails to achieve customer satisfaction, which is something their willing to pay for, is a non-value added step and should be eliminated from the process. By simply knowing the process and eliminating

Lean Manufacturing is primarily concerned with removing waste from the production process. (Pham, Dimov and O 'Hagan, 2001)

• Often involve tight coupling (method of ensuring that suppliers precisely deliver ordered parts at specific time and to particular location, to ensure production process is not interrupted)

where and exactly how the implementation of lean should begin. The location was decided on the

Fifteen to twenty years ago companies only had purchasing departments. The procurement function was treated more as a need or necessary evil. So when companies use to procure their goods and services the main thing was to cut a purchase order and get that item or services delivered. Not much was thought concerning leveraging the suppliers or putting long-term contracts in place to protect both the company and the supplier. About ten to twelve years ago or so, companies starting getting smarter and reasoned that any good they bought it doesn’t make good business sense to have too many suppliers. They reasoned they should have a limited number of suppliers and should be able to manage it and understand what they were buying and how