Lean Supply Chain Management

Production practices have had an important role in satisfying the dynamic market. Many approaches have being developed in order to respond effectively to specific business requirements. In fact, some areas of management have focused its study on the overseeing, designing, and controlling the process of production in an effort to find the best methodology that ensures the business success and performance. However, complexities arise in this field because many variables such as costs, inventory, scheduling, suppliers, etc have to be considered in any business. Lean approach and the traditional approach are two points of view that aim to address this complexities, and those will be examined in this essay.

Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand

| Source:International Journal of Advanced Manufacturing Technology, May2010, Vol. 47 Issue 1-4, p381-393, 13p, 2 Diagrams, 10 Charts, 1 GraphChart; found on p384

The lean and agile paradigms, while particularly different, can be and have been joint within effectively designed and operated total supply chains. In the Wings and Legs case, cost is an important market winner and this is reduced by leanness. In the case of agility the key point is that Wings and Legs operate in an extremely volatile marketplace. Therefore the solution is to develop a hybrid supply chain.

Company’s goals and mottos are crucial determinant expressions that indicate the business nature and value through different combinations of business operation along with demand profiles which identify the diverse functionalities of business enterprises. To begin with, Tesco’s motto emphasizes the focus on customer’s value and long-term loyalty. As Christopher and Towill (2001) suggested that the critical principles of agility are the total value and service level offered to customers, therefore, Tesco’s are likely to adopt agility as the essence of their key business strategies. Furthermore, from demand profile perspective, Tesco also offers their customers a wide variety of products including food and non-food categories. Therefore, such characteristic of the high product variety available to customers exhibited the concept of agility suggested by Basu and Wright (2008).

Inventory stratification also affects the ship and store segments of the 7S process group. With the knowledge that can be obtained from the data slow moving items can be removed from branch inventory and a Regional Distribution Center (RDC) may be implemented. This allows the branches to carry more A or B items, or simply to reduce their inventory cost. RDC’s are usually able to operate with less inventory by sales volume. Labor expense is also reduced driving profitability to the shareholders.

Lean is defines the manufacturing philosophy that reduces the time between the shipping and customer demand, which based on the systematic method by eliminating waste, that means giving the customer what they want when they want it, and don 't waste whatever. Rahmana, Sharif and Esa (2013) suggested lean production is mentioned to improve the company 's performance from the philosophy in reducing waste in order. That means, lean system destination is the decrease cost by removing the non-value activities, which they are applying a category of tools and techniques for checking and eliminating defective in the production process. In the Evenort Company should emulate the five overriding principles of lean thinking in terms of implementing lean that there is guarantee the company has been driving correctly in the lean manufacturing (Cardiff 2015) as can show in table 1.

Lean supply chain management is all about the reduction of cost and waste as much as possible. The aim of this method is to focus on efficient, streamlined operations. In this approach, anything in the process that doesn’t add value for customers is eliminated. When implementing a lean supply chain, you’re constantly looking for ways to remove layers of waste and only take steps that add value to a product or service. One characteristic of a lean supply chain is that products are made on an as-needed basis so there’s no unnecessary inventory or overproduction. Additionally, companies with high volumes of low variability purchase orders, such as food items, benefit their efficiency greatly by utilizing the lean supply chain methodology.

This report has been prepared to analyze the supply chain management process, design and planning of this particular Domino’s location. Theoretical parts have been used to evaluate the company’s supply chain process in terms of its product and service offering. This report also focuses on the daily operations of this franchise. The focus has been placed on the daily operations processes of the Dominos store located on lakeshore Blvd. (w), Toronto, ON. This report is a result of team research, case study analysis, a store visit, interviews and insights from Dominos existing employees, application of theoretical concepts, models and prior experience. This study shows how Dominos has been able to position itself as a market leader in its segment. Finding various aspects of the company’s processes, provides as an token of appreciation to the company’s efforts to continuously grow in the changing market conditions by taking new product design into consideration and being innovative against its competition.

The purpose of supply chain management is to supply an extreme rapid flow of superior quality relevant information that will allow suppliers to offer a continuous and accurately timed flow of materials to customers. However, unexpected demand variances, including those caused by stockouts, in the supply chain operations process create abnormalities which

Various definitions of the term ‘Supply Chain’ exist and with differing Interpretations and understanding. As stated in Horch (2009), many regard the supply chain as combination of inbound materials, manufacturing finished products, inventories and distribution. Pioneering work which led to the creation of Lean originated In the 1970s when Toyota Motor Company completed a productive system with a distinct competitive advantage known as the ‘Toyota Production System’ (Leseure, 2010). Lean Production involves a disciplined approach to manufacturing (Waller, 2003). A core concept of lean philosophy is waste elimination. ReVelle (2001) defines waste as “…any activity that absorbs resources such as cost and time but adds no value”. Waste can be classified in numerous ways. Organisations reduce and eliminate waste in their operations through waste management. Companies incur wastes in a supply chain through internal or external processes. Causes of waste in a supply chain context include: forecasting errors, inefficient processes, communication breakdowns and lack of responsiveness. Money and time wasted through production and supply chain processes can be reduced by the optimisation of supply chain activities. In order to successfully eliminate waste, organisations must develop lean supply chain management methods and apply them in supply operations (Albu and

Leanness means developing a value stream to eliminate all waste, including time, and to ensure a level schedule. Agility means using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile marketplace. Leagile is the combination of the lean and agile paradigms within a total supply chain strategy by positioning the decoupling point so as to best suit the need for responding to a volatile demand downstream yet providing level scheduling upstream from the marketplace. The decoupling point separates the part of the organisation (supply chain) oriented towards customer orders from the part of the organisation (supply chain) based on planning. In this report, I attempt to prepare the literature review of

One of the most important aspects to consider when comparing the current purchasing strategy with the proposed one is the impact of direct deliveries from external suppliers to the central warehouse on the lead times of spare parts which are ordered by the warehouse planners. Lead times have a big influence on inventory planning and replenishment policies and lead time savings can be very beneficial for the business of a warehouse and the performance of a SPSC (de Treville et al. 2004). Hiller and Liebermann (2001) regard unnecessarily long lead times as a form of waste and minimizing or avoiding waste as a key component of superior inventory management. In the current setting, three stages of the SPSC are involved in the purchasing