|
VELOCITY     Accelerating Your Supply Chain Success
The leader in global supply chain solutions

The Limits of Lean

NO RATINGS
View comments: newest first | oldest first | threaded
Clairvoyant
User Rank
Supply Network Guru
Re: Lean
Clairvoyant   7/29/2012 6:36:36 PM
NO RATINGS

Lean doesn't work well for all company types. Has anyone here had experience or heard of QRM (Quick Response Manufacturing)?

Strive4Excellence
User Rank
Stock Keeper
Re: The Limits of Lean
Strive4Excellence   7/25/2012 10:56:43 PM
NO RATINGS

I think Barbara missed the mark on this article.  What is the root cause?  According to the article, the root cause is that companies implemented too much lean thinking and when the flood came through, being too lean crippled the supply chain. But this is not correct. There was no mention if these high tech factories were built in a flood zone.    There was no mention on how companies assess risk when looking for low cost sourcing and whether or not they knew that there was a risk of tsunami's and floods.  Rather than providing sound advice on how to improve the robustness of the supply chain, Barbara spun a story about how a philosophy of continual improvement has limits.  This is nonsense.  A better article would have been to focus on developing secondary supply sources as a strategic initiatve or maybe how low cost sourcing correlates to high supply chain risk.  I see this article as a lost opportunity to properly educate the supply chain community. 

stochastic excursion
User Rank
Stock Keeper
Re: The Limits of Lean
stochastic excursion   7/25/2012 12:31:59 AM
NO RATINGS

Economic adversity too can be a condition where lean is not desirable.  Observers of the sluggish centrally-planned Soviet economy during the post-glasnost collapse cite high inventory as one of the things that helped the society deal with the inevitable shortages.

cruz_ncatx
User Rank
Stock Keeper
Re: The Limits of Lean
cruz_ncatx   7/24/2012 11:07:06 AM
NO RATINGS

The real issue(s) arise when a company randomly reduces inventory (raw material, WIP or finished good) without properly analyzing their processes. By that I mean understanding the math / formulas (yes math) required to properly calculate the inventory levels you need in your supply chain to meet demand. The rewards of lean are great but properly implementing it takes a tremendous amount of effort and commitment. More than most American companies are willing to stomach. Toyota did not develop the Toyota Production System over night. It took years and years....

Bolaji Ojo
User Rank
Blogger
Lean
Bolaji Ojo   7/24/2012 8:50:27 AM
NO RATINGS

Lean is a way. It's not an end goal and companies therefore must use it as a tool to help them achieve clearly specified objectives. That's why even if people are not talking about it today, it remains a valid tool, one of many that a company can use in pursuit of their goals.

I wouldn't say Lean is losing grounds. It is just now like an old, worn hat and even though it's lost its shine, can still provide protection against the harsh sunlight.

prabhakar_deosthali
User Rank
Supply Network Guru
re:
prabhakar_deosthali   7/24/2012 7:41:03 AM
NO RATINGS

The recent natural disasters have taught us all a lesson that being too much lean in the supply chain context can be sometimes disastrous to our businesses.

 

Also shedding some of the side activities in the name of being lean can also become a stumbling block in the organization's growth.  For growth you need to widen your horizon and for that you need to spend some money on experimenting, trying new things, new methodologies, new technologies - all of which may not bear fruit.

Eldredge
User Rank
Supply Network Guru
Circumstances drive the conversation
Eldredge   7/24/2012 7:06:03 AM
NO RATINGS

Lean has definitely increased the efficiency of the supply chain and has rendered many companies financially strong. But experts continually call for a reassessment of supply chain strategies, and lean doesn't come up in these conversations as much as it used to.

As one should expect, circumstances drive the conversation. When supply is adequate, companies can focus on driving out cost by implementing lean practices at their own facilities and their suppliers. When supply is critically short, lean is not the focus, and in some cases, is not possible to implement. A lean   line does no goods if major portions of it sit idle.

   

elctrnx_lyf
User Rank
Supply Network Guru
Re: The Limits of Lean
elctrnx_lyf   7/24/2012 5:09:14 AM
NO RATINGS

Automotive and consumer elctronics giants faced huge disruption in supplychain and it has created havoc in order fulfilment during natural disasters like Tsunami and floods. The agile and resilience are given more importance to reduce any risk associated with particular region natural calamities. 

FLYINGSCOT
User Rank
Supply Network Guru
last event
FLYINGSCOT   7/24/2012 4:02:43 AM
NO RATINGS

I suppose it depends upon recent history and because we just experienced a natural disaster the downside of lean has become apparent.  Once the tsunami is a distant memory I imagine lean will become key again to reducing costs which is always the foundation of most sucessful companies.

_hm
User Rank
Supply Network Guru
The Limits of Lean
_hm   7/23/2012 8:46:07 PM
NO RATINGS

These are very valuable lessons learned. Lean and other tools are good, but organization should fine tune it with their own need and sensitvity to supply / demand. Japanese have suffered most and sholud come out with innovation in lean strategy.

 



More Blogs from Barbara Jorgensen
Electronics vendors are starting to use big-data in supply chain management, but they can do a lot more with the technology.
Electronics makers are looking to leverage the advantages of big-data in forecasting and demand planning. How successful will they be?
Like other catalogue distributors, Allied is moving beyond the catalogue model and taking the "multichannel" approach to distribution.
Manufacturers use software and data for varied purposes in supply chain management, but key goals such as visibility remain paramount.
Gartner envisions a world where tablets become the personal device of choice and PCs become a shared resource.
Twitter Feed
EBN Online Twitter Feed