Tuesday, May 29, 2012

Lean Supply Chain Video

About 6 years ago, Productivity Press published my book on Lean Supply Chain, Improving the Extended Value Stream: Lean for the Entire Supply ChainSince then, much more has been written on this topic, but very few organizations have successfully created lean supply chains.   Many organizations have created "supplier kanban" systems that have resulted in frustration for their suppliers.  The problem in many cases is that these organizations that claim to be "lean" have not created level pull in their own value streams.  Instead of having a pacemaker process that runs smoothly to takt time, their production schedule represents wild changes in mix and volume.  This is a sure recipe for lean supply chain failure which will leave suppliers with a significant misunderstanding of lean thinking.  If your organization is considering creating a lean supply chain, make sure that you have created a lean internal value stream first.  This includes creating operational stability including leveled production and connecting flow throughout the value stream.  It is only then that you can truly create a lean supply chain. 

Following is a brief animated video about a gentleman from a company that is meeting with a representative from a key supplier.  He explains to her how he would like to have a "lean" supply chain by dictating price reductions and forcing the supplier to hold inventory for them. The supplier, who has some knowledge of lean, sets the customer straight on what lean means to a supplier relationship.

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