1. MSQA
School of Industrial Engineering and Technology
Southern Polytechnic State University, Marietta, GA -USA
November 14, 2012
Supply
Chain
Lean

2.  What is Lean?
 What is Supply Chain?

3. Supply
Chain
Lean
Lean can be described as doing
more with less -Mehrjerdi, Y. Z (2012).
 supply chain is a technique
whose component parts include
material suppliers, manufacture
facilities, delivery services, and
clients, all connected by a feed-
forward run of materials and a
feedback run in sequence.
- Mehrjerdi, Y. Z (2012)

4. Lean + supply chain = Gives
organizations ability to leverage
their own lean journey more
easily.
Lean Supply Chain delivers better
customer value by responding
more efficiently, quickly, and
predictably to customer needs.
–Gordon. R. S (2008)

5.  Lean supply chain running is not
absolutely for those companies who
manufacture goods and products, but
by businesses who want to streamline
their processes- Mehrjerdi, Y. Z (2012).

6.  System thinking
o Introduced when companies put into
practice internal initiatives and high-
performance systems together.
o The lack of a systems perspective makes it
very difficult to institute long-term
partnerships with the organization's
suppliers.

7.  The supply chain formed within
lean companies may not be lean
after all, due to lack of
cooperation and synchronization
among participating companies.
-Pham, D.T et al (2007)

8.  Customer Value
o Extending the value
stream from a lean
company to its associates
thereby allowing the
company to broaden the
quest for perfection to the
entire supply network.

9. ...Customer Value
•Displays weaknesses and
strength links in the value
stream
•Identifies opportunities for
removing wastefulness from
unnecessary non-value added
activities, unevenness in
quality, sales and production
or overburdening
- Pham, D.T et al (2007).

10.  Design to Manage Demand Volatility
o Products or goods are produced in different
ways for different customer according to
demand and characteristics.
o Every supply chain structures orients its
production and logistics processes
differently based on its strategic priorities.
- Stavrulaki, E & Davis, M (2010)

11.  Customers will have more faith in your capability to
deliver and likely to pad their actual requirements or
their desired due dates if action is taken quickly to
demands
 “To manage demand volatility a high volume, low
demand uncertainty products should be matched
with lean supply chains enabled by efficient
processes, whereas a low volume, high uncertainty
products should be matched with agile supply chains
enabled by flexible processes.”
- Stavrulaki, E & Davis, M (2010).

12. Metrics Using a Systems Perspective
o Metrics are tracked in
performance of a supply
chain results in policies and
measures.
o Lack of Metrics
•Cost
•Waste
•lack of responsiveness
•long cycle times is not in
place.
-Gordon S. R.(2008).

13. o lean characteristics like as schedule
stability should be viewed as
competitive characteristics of an
organization.
o Metrics must be agreed as a condition
to impact on competitive strategy and
the tradeoffs that are involve, knowing
that elimination of waste is not an
absolute standard for metrics of
leanness. - Harrison, A. (1998).

14. Haven illustrated the concept of
leanness and factors companies
need to consider for lean
supply chain.
It is worthy to note that the
integration of supply chain
management and lean thinking
covers both local and in general
leanness, which leads to a
really lean supply chain.

15.  Mehrjerdi, Y. Z (2012). MEASURING THE LEANNESS OF SUPPLIERS USING
PRINCIPAL COMPONENT ANALYSIS TECHNIQUE. South African Journal Of
Industrial Engineering, 23(1), 130-138.
 Pham, D. T., Hosang, J., Rivera, L., Hung-da, W., Chen, F., & Woo Min, L
(2007). Beyond Partnerships: The Power of Lean Supply Chains. In, Trends in
Supply Chain Design & Management (p.241)
 Stavrulaki, E., & Davis, M. (2010). Aligning products with supply chain
processes and strategy. International Journal Of Logistics Management,
21(1), 127. Doi;10.1108/09574091011042214
 Gordon, Sherry R(2008) Supplier Evaluation and Performance Excellence: a
guide to Meaningful Metrics and Successful Results. J.Ross Publishing, Fort
Lauderdale Fl. ISBN-13: 978-1-932159-80-6
 Harrison, A. (1998). A Comparative Study of Lean Production Metrics in an
Automotive Assembler. International Journal Of Logistics: Research And
Applications, 1(1), 27.

16. Thank You