Lean Thinking Sample Clauses

Lean Thinking. This term was developed to make a distance between the more Japanese Just-in-time production method, and the mass production methods more common among the western manufacturers. Here Xxxx thinking refers to the elimination of waste in all aspects of the business, which is an endless cycle seeking perfection by eliminating waste, and there through increase the value in the perspective of the end customer. Whom should not be the bearer of the cost, time and quality penalties of wasteful processes in the supply network (Xxxxxxxx and xxx Xxxx 2005). Figure 7-2: Principles of lean thinking (muda is the Japanese word for waste)(Xxxxxx and Xxxxx 1996) In seeking perfection there are four principles. First is specifying value, where value of a product is specified by the end customer and the value is created along the supply chain, resulting in the finished product reaching the end customer. Second is identifying the value stream, where all processes along the supply network are identified. Thirdly is to make value flow, by minimizing delays, inventories, defects and downtime, thereby supporting the flow of value in the supply network. Forth is to use pull scheduling which only responds to actual demand. In lean thinking there are seven types of waste, these are; the waste of overproduction, the waste of waiting, the waste of transporting, the waste of inappropriate processing, the waste of unnecessary motions, the waste of defects. All unnecessary contributions of these are waste. (Xxxxxxxx and xxx Xxxx 2005) Just-in-time Purchasing This requires the suppliers to deliver components to the purchaser as they are required in the production, either delivered to receiving docking, or directly to the production line. This is a widely used technique in Japan. Suppliers are often located near or sometimes have storage on the purchaser’s property. This relationship is often regulated with a long- term contract, and reduces the purchaser’s work in process (Xxxxxxx, Xxxxxxxx, and Xxxxxxxxxxx 1989). Resulting in the elimination of waste in the purchasing activities, and inventory holding costs, an increase in customer service and improving overall profits. Vendor managed inventory is one way of implementing this. Vendor-managed inventory (VMI) Historically the firms have maintained arm’s-length relationship with suppliers. The selection of suppliers has often been chosen on the basis of price only, rather than their responsiveness. A major opportunity for reducing inbound le...

Lean Thinking. The term ‘Lean’ goes back to the 1990s when a book called ‘’The Machine That