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How do you identify and eliminate waste from your supply chain?

How do you eliminate 'waste' from your supply process? What steps do you take to identify and effectively create lean processes?

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Hi Jason,

I can try to give you an answer; I worked 4 years in SAP in SCM development team. One of my roles requested to receive a Lean Coach training, so that is a perspective from which I try to answer.

Standard answer would be to do a value stream map and then analyze it step by step.

1. decide what you want to analyze (product, process etc.),
2. draw a value stream map for a subject you were choosing,
3. analyze it (material flow, information flow, etc.),
4. create a drawing of ideal flow,
5. start with changes toward ideal flow. (ideals are there for never to be reached)

Common mistake people make is that they do not clarify what is a value and what is a waste. One of the problems is to understand what is needed waste and what is not, for sure different people have different opinions and maybe something you consider a waste some of your customer can consider a value, so in that case it is a needed waste for you, not only for example: education, administrative activity etc.

Before creating a value map stream please clarify this question in yourself, so to be sure what to show on map. Missing on map means missing in analysis. ☺

Regards, Daniel

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Ray Smith
Solutions Analyst, Trinity Customized Logistics
Posted on April 8, 2011
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I'm a big believer in taking advantage of technology to automate time consuming manual processes. So many times we spend time we don't have on projects that could be automated.

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Hi Ray,

it is not so simple that you can solve all the problems by automation. Idea is to have your processes synchronized (takt) on a way that you do only such activities which brings value expected by customer (waste).

Automatisation usually influences cost side (by increasing them long term) and moves the bottlenecks from one place to other.

Redesigning the flow of material and information by taking care of the lean principles brings the results the customers expect from us (lower price, better quality, just on agreed time, etc.).

Regards, Daniel

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Hi there,

The very first thing you need to acquire, is a firm understanding of what your capacity and volume fluctuations are going to be

Regards Kerrie

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