Lean Manufacturing Strategy

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Lean manufacturing provides the promise of becoming more competitive in the 21st century by decreasing lead time, increasing quality, reducing cost and increasing customer satisfaction. As a matter of fact, lean is becoming more prevalent and part of most manufacturing practices. “Besides total quality management, supply chain management, and innovation & technology management, lean manufacturing strategy has been recognized as one of the most efficient and effective global operation strategies" (1). The principles of Lean manufacturing have become visible in many industries ranging from auto makers, to hospitals to mom and pop shops. A 2010 Compensation Data Manufacturing survey revealed that 69.7 percent of manufacturing companies utilize…show more content…
• Decreasing the level of non-value adding administrative burden. • Complying with global, regional and local trade rules and regulations. • Managing the constantly increasing complexity of the market in terms of fuel cost fluctuation, lack of carrier capacity or customer demand variance due to seasonality, E-commerce, or increasing expectations for value-adding JIT/JIS operations. 4. Focus Areas Waste in distribution processes may vary from the normal conception of waste found in a production environment, but it can be identified, classified and either be reduced or eliminated as well as creating tremendous savings potential by applying Lean principles, kaizen methods and reengineering in every phase of the supply chain. Worldwide distribution expenditures sum up to 10%-15% of the total world GDP, and if we focus on commodities, over 20%-25% of their cost is determined by the expense in…show more content…
An example of this is the need of the supply chain to compensate with inventory building a long delivery time. • Movement: This encloses any unnecessary movement of people, such as walking, reaching or stretching, due to un-optimized loading layouts or lack of material handling resources, like pallet-jacks or lift trucks. • Waiting / delays: People, systems and material delays due to badly integrated processes. Delays of ship arrivals to port, customs clearance processes, waiting for documentation approvals or goods that are not ready to be loaded in shipping areas are some examples. • Over processing / overproduction: Any duplication of efforts that due to uneven demand coming from high fluctuations in freight volumes. • Defects: Activities that cause rework, returns or adjustments, such as mislabelled orders delivered at wrong facilities, incorrect documentation or wrongly balanced loads that result in the damaging/falling of materials during the transit. • Space: any use of space that is less than optimal, accordingly to the measure and route, e.g. trailers, containers with low or excessive fill-up rate, paid FTL freights used as LTL shipments that are not completed with multiple stop milk

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