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    Concepts of Supply Chain Management

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    Bhanuprasad sridhara
    The document discusses lean manufacturing and just-in-time manufacturing. It defines lean manufacturing as minimizing waste and maximizing productivity. It outlines the differences between just-in-time manufacturing and lean manufacturing, and discusses their histories which originated from ideas implemented by Henry Ford and later refined by Toyota.

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    Concepts of Supply Chain Management

    Uploaded by

    Bhanuprasad sridhara
    9 views2 pages
    The document discusses lean manufacturing and just-in-time manufacturing. It defines lean manufacturing as minimizing waste and maximizing productivity. It outlines the differences between just-in-time manufacturing and lean manufacturing, and discusses their histories which originated from ideas implemented by Henry Ford and later refined by Toyota.

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    © © All Rights Reserved

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    The document discusses lean manufacturing and just-in-time manufacturing. It defines lean manufacturing as minimizing waste and maximizing productivity. It outlines the differences between just-in-time manufacturing and lean manufacturing, and discusses their histories which originated from ideas implemented by Henry Ford and later refined by Toyota.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    9 views2 pages

    Concepts of Supply Chain Management

    Uploaded by

    Bhanuprasad sridhara
    The document discusses lean manufacturing and just-in-time manufacturing. It defines lean manufacturing as minimizing waste and maximizing productivity. It outlines the differences between just-in-time manufacturing and lean manufacturing, and discusses their histories which originated from ideas implemented by Henry Ford and later refined by Toyota.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Lean manufacturing is a methodology that focuses on minimizing waste

    within manufacturing systems while simultaneously maximizing productivity. Waste is seen


    as anything that customers do not believe adds value and are not willing to pay for.

    Five Principles of Lean Manufacturing

    1) Value
    2) Value stream
    3) Flow
    4) Pull
    5) Perfection

    JIT and Lean Manufacturing


    Many confuse the concepts of Just In Time (JIT) and Lean Manufacturing. Scott
    Thompson, journalist for the Houston Chronicle outlines the differences between the
    two. Thompson writes, “Just-in-time manufacturing is focused on efficiency, while lean
    manufacturing is focused on using efficiency to add value for the customer. Just-in-time
    manufacturing can be practiced on its own or as one step in the lean manufacturing
    process.”

    There are other ways JIT and Lean differ. Lean is a complete system that can be used
    across business departments including manufacturing, production, marketing,
    distribution, etc. You can use Lean to create a JIT process but JIT is the piece of the
    Lean method that eliminates the waste of excessive inventory.

    JIT and Lean manufacturing have an interesting history based on the auto industry.
    Before the JIT concept, manufacturers created their products in surplus and often, well
    in advance of need. Henry Ford implemented JIT at a plant in Michigan. Iron ore was
    delivered on Monday and was part of a finished car three days later. Ford saw the
    savings in having just the right amount of inventory arriving at just the right time.
    Ford’s work influenced Taiichi Ohno, a Toyota executive who studied the manufacturing
    process of the Model T. Ohno was also impressed with American supermarkets and how
    they stocked inventory. He thought it was much more efficient than the auto industry.
    Taiichi Ohno built on Ford’s idea of keeping only the inventory necessary for production
    and developed a comprehensive strategy for reducing waste, adding value, and
    bolstering profit.

    Upon returning to Japan, Ohno identified the categories of wasteful manufacturing


    practices which became to be known as the seven wastes:
    1. Overproduction
    2. Waiting
    3. Transportation
    4. Inappropriate Processing
    5. Excessive Inventory
    6. Unnecessary Motion
    7. Defects
    Just In Time production and the identification of the seven wastes, along with other tools
    and techniques, became collectively known as the Toyota Production System. The
    Toyota Production System was successful and the term “lean production” was later
    coined by an MIT research team to describe the “revolutionary production and
    management system” they identified at Toyota. Thanks to two automobile icons and their
    implementation of JIT and Lean, organizations have two tools to create more efficient
    and productive processes.

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