Chapter 3: Lean Manufacturing - Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance نسخه متنی

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Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance - نسخه متنی

Daniel L. Gardner

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Chapter 3: Lean Manufacturing



Overview




A quick return to the definition of supply chain management provided in Chapter 1 will remind the reader that it is a business discipline built upon a core philosophy. The development of most philosophical schools of thought is usually a continuation of or variation on an existing theme, and nearly all are a reflection of the times in which they were conceived. Most shifts in thought are based on experience, not theory, and are a phenomenon that can be observed in any area of human endeavor.


The supply chain management school is no exception to this belief, as it was influenced by several political, demographic, technological and commercial events during the course of the last century. Most definitely a product of globalization, the development of new supply chain tactics has been motivated by the market's demand for innovation, quality, availability and price. A familiar refrain is that the combination of sophisticated customers and brutal competition has engendered a sort of "commercial Darwinism" where supply chain velocity determines what species of company will advance.


There is no disputing the fact that mass production dominated the development of supply chain management in the first half of the 1900s. Of equal historical merit, it has been the principles of lean manufacturing that have most influenced global supply chain management since the 1950s. While this is a true statement, it is important to mention that lean itself was born of the work done by men like W. Edwards Deming in the areas of total quality management and statistical process control. This is but one example of how disciplines borrow the best that each has to offer in an effort to continually improve supply chain performance. Many Six Sigma tools (to be discussed in Chapter 8) have been borrowed from its predecessors, including lean manufacturing and statistical process control.


While recognizing the contributions of its predecessors, the original principles of lean manufacturing, along with further developments in lean thinking, have afforded a commanding view of the supply chain panorama. However, for any business philosophy to defy conventional wisdom, it has to stack up against the vigor of the marketplace. In order for this to happen, said philosophy has to be based on a value system that can be translated into action in the real world. In essence, if a company wants to create value, it must first be able to articulate what its own values are.


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