Supply Chain Development For The Lean Enterprise

Four questions determine whether a company is using interorganizational cost management. Does your firm set specific cost-reduction objectives for its suppliers? Does your firm help its customers and/or suppliers find ways to achieve their cost-education objectives? Does your firm take into account the profitability of its suppliers when negotiating component pricing with them? Is your firm continuously making its buyer-supplier interfaces more efficient? If the answer to any of these questions is ""no"", your firm risks introducing products that cost too much or are not competitive. The full potential of the supply network can be realized only when the entire supply chain adopts interorganizational cost management practices. Competitive pressure has led many firms to try to increase the efficiency of supplier firms through interorganizational cost management systems, a structured approach to coordinating the activities of firms in a supplier network to reduce the total costs in the network. It is particularly important to lean enterprises for two reasons: Lean enterprises typically outsource more of the added value of their products than their mass producer counterparts. Lean enterprises usually compete more aggressively and must manage costs more effectively. Interorganizational cost management can reduce costs in three ways: through product design, through product manufacture and through cooperative approaches between buyers and suppliers to build smoother interfaces. However, more than just cost management must cross interorganizational boundaries. Suppliers are also a major source of innovation for lean enterprises. Successful supplier networks encourage every firm in the network to innovate and compete more aggressively. Read this book to learn to manage the supply chain to forge competitive advantage while reducing costs.

In the global marketplace, no business is a self-contained island. No matter how effective your internal material movement, to be a future-thinking business, you must go to the next step and develop long-term supplier partnerships built on a dedication to continuous improvement and the basic concepts of Lean implementation. Lean Supplier Development: Establishing Partnerships and True Costs Throughout the Supply Chain provides step-by-step instruction on how to build partnerships of mutual improvement and success through supplier development. Offering the same advice that they have successfully applied to corporations across the globe, award-winning consultants Chris Harris, Rick Harris, and Chuck Streeter — Provide criteria on how to choose suppliers that will make good long-term partnerships Demonstrate proven methods for employing Plan for Every Part (PFEP) to link your facility to the supply base Present a true cost model that eliminates guesswork when choosing suppliers to develop Show how to develop and maintain efficient information flow all along your supply chain Use real-world examples to cover likely contingencies Provide a sample quarterly supplier review that you can adapt for your own use Lean is a journey, not a destination. It requires flexible leaders at the helm who can readily adjust to ever-changing conditions and it requires like-minded partners all along the supply chain. Finding and developing these partners is not about good fortune, it is all about an uncompromising approach to continuous improvement and the application of systematic methods that will build working partnerships that broaden your definition of what is possible

The book is divided into three parts. Part I. The Rising economy of “one” gives an overview of what is changing in the social system of production, it refers to the weakening role of central planning and the rising power of individuation in the value creation chain. Part II. Lean Enterprise in theory refers to the principles of lean thinking, the transfer of lean philosophy from East to West and discusses the necessary adaptation to the Western way of thinking and practice. It presents a practice proven method for achieving a lean integrated demand and supply chain and analyses in detail the related implementation steps. Criteria for a successful displacement of a company to a lean state are presented. Part III. Lean Enterprise in practice provides a number of implementation cases in different types of production companies using the method presented in Part II. The goal is to help the reader comprehend how the method can be applied to real lean implementation situations in resolving various issues, ranging from production to the supply chain. A vision of implementation to lean electricity completes the book.

The book addresses a modern reorientation of Lean, abandoning the classical waste dogma that brings direct efficiency gains and substituting by a way to achieving indirect efficiency in a continuous and sustainable manner. Waste is the output of a process that cannot be of further use, while value is a matter of valuation, a process whose output we conceive to be of further use. Value and waste are not antithetical, they are just not comparable issues. We achieve added value to the modern Lean Enterprise through synergies that bring sustainable economic benefits to the company. Such synergies use the complementarity theory developed by Milgrom and Roberts in 1990 on the principle that we can achieve maximal gains via the joint investment on complement activities and not investing. Complementarity is not something specific to Lean Enterprises; however, Lean Enterprises can benefit the most from such a concept. The reason is that Lean uses the principle of achieving more with less effort. Less effort does not mean the use of fewer resources, but the use of resources in a complementary way in order to achieve more, rather than using them. Complementarity is a feature by design. Complementarity by design will help modern Lean companies have an easier transition in the digital era and the new world of Industry 4.0. In this second edition, we have preserved the method of how to achieve Lean and have enhanced it to show how to move towards modern Lean within Industry 4.0 paradigm. However, if a company has not yet made the Lean step, there is no need to make that step first before yielding the benefits. Technology is the key. Modern Lean Enterprise strengthens out of the old paradigm into the new one of Industry 4.0. Because of evolution, such an enterprise achieves optimal technological complementarity necessary for synergies that sustain increasing profits.

Learn how Lean IT can help companies deliver better customer service and value Lean Enterprise Systems effectively demonstrates how the techniques derived from Lean Manufacturing, combined with the thoughtful application of information technology, can help all enterprises improve business performance and add significant value for their customers. The author also demonstrates how the basic concepts of Lean Manufacturing can be applied to create agile and responsive Lean IT. The book is divided into three parts that collectively explore how people, processes, and technology combine forces to facilitate continuous improvement: * Part One: Building Blocks of the Lean Enterprise sets forth the essentials of Lean. Readers discover where, when, and how Lean IT adds substantial value to the Lean Enterprise through integrated processes of planning, scheduling, execution, control, and decision making across the full spectrum of operations. * Part Two: Building Blocks of Information Systems explores the primary components of an enterprise information system and how these components may be integrated to improve the flow of information supporting value streams. Readers learn how information systems help organize and deliver knowledge when and where it's needed. * Part Three: Managing Change with IT demonstrates how the skillful combination of process and information technology improvements empowers people to continuously improve the Lean Enterprise. Readers develop the skills to exploit emerging information technology tools and change management methods, crafting a Lean IT framework-reducing waste, complexity, and lead time-while adding measurable value. Executives, managers, and improvement teams across a broad range of industries, as well as IT professionals, can apply the techniques described in this publication to improve performance, add value, and create competitive advantage. The book's clear style and practical focus also makes it an excellent textbook for upper-level undergraduate and graduate courses in business, operations management, and business information systems.

The Lean Supply Chain: Managing the Challenge at Tesco explores how UK multinational grocery and general merchandise retailer Tesco addresses the challenge of managing its supply chains. The book examines how Tesco has used lean thinking, loyalty and simplicity to achieve its dominant position. It shows how Tesco's senior leadership made a simple but game-changing decision to focus the business on its customers rather than the conventional approach of 'competing with our competitors' and asks whether the approach to managing the supply chain needs to be adapted to deal with current challenges that Tesco faces. The authors look at how the retailer developed and maintains one of the most effective supply chains in the world. The Lean Supply Chain demonstrates Tesco's most successful strategies through real life examples, drawing upon the authors' deep knowledge of how Tesco has developed and succeeded from both an academic and practitioner perspective. It includes an assessment of how Tesco is dealing with current challenges and market changes, including its successful rollout of online shopping and convenience stores as well as how it is attempting to maintain its position as the UK's largest retailer.

WINNER: Les Plumes des Achats 2016 - Prix des Associations (1st edition) Over the last two decades Tesco has emerged as a dominant player in the UK market and a leading global retailer. The Lean Supply Chain explores how Tesco, over the last 20 years or so, has built its business around supply chain excellence. As a mega-retailer, Tesco has learnt to create a balanced supply chain system, supporting suppliers' needs as well as customers' requirements. This perspective, and an ambition to act sustainably, has underpinned a rebuilding of trust in the Tesco brand and a resurgence in commercial fortunes. This fully updated edition of The Lean Supply Chain contains new chapters on Tesco's current strategy, rebuilding brand trust and its CSR agenda. It charts the principles of lean thinking, customer loyalty and simplicity which were used by Tesco to frame its supply chain strategy and draws upon the authors' deep knowledge of how the retailer has dealt with challenges and market changes to provide lessons for other businesses, large or small, who wish to place how they manage their supply chains at the heart of their competitive strategy.