what is the best measurement of Lean across a supply chain
Lean measures are well estblished for manufacturing companies- but what are lean measures in Supply Chain Management?
Answers (10)
Ramesh K.
CTO & Human Search Engine
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The following may give you some inputs:
http://www.leanqad.com/resources/d4d/abdereen_lean_strategies_benchmark_report.pdf
Ramesh
The Human Search Engine
http://www.computerbasedexams.com
Rick F.
Supply Chain Management & Manufacturing
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Richard, I've found that the best overall enterprise measure of supply chain effectiveness and efficiency is the cash-to-cash cycle.
Hope this helps Richard.
Kim B. suggests this expert on this topic:
It is my understanding that the primary purpose of an effective supply chain is to increase through put.
T C Girivasan P.
SCM, Logistics - 3PL, 4PL & Project Logistics, Business Process & Learning Professional
Supply Chain Flexibility
Supply Chain Adaptability
Cash to Cash Cycle TIme
Gen F.
Supply Chain Optimisation
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Hi Richard,
In my view lean does not necessarily provide the best measures for supply chain operations. It is often too restrictive in its application to encompass the flexibility demanded in truly efficient and effective supply chains.
If you're looking for measures, try the SCOR model (Supply Chain Operations Reference) through the link below..
There are a significant number of measures provided in that forum, however - when measuring anything, remember the golden rules:
* all measures in an organisation (whether supply chain, sales, finance - anything) need to contribute toward, not pull away from a set of no more than 4 or 5 key measures
* measurement drives behaviour... whatever you choose to measure will improve...
Hope this is helpful - please feel free to contact me for further information.
Links:
David M.
★★★★★ Results driven executive coach, consultant, interim executive, dynamic keynote speaker and facilitator.
Best Answers in: Quality Management and Standards (1)
Manufacturing Cycle Effectiveness = Processing time / Throughput time
Throughput time = processing time + inspection time + movement time + waiting / storage time
Bruno V.
Business Development - Sales - CEVA Logistics (+32 499987037)
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Lean across a supply chain = abscence of waste in the chain. What types of waste should be avoided and therefore measured? Handling cost - Defects - Delays - Talent wasted - Inventory - transport costs - carbon footprint etc..
The supply chain is an important piece of the value stream and the same measures that apply to the internal value stream of Lean manufacturing companies apply to the broader value stream that includes suppliers. The goals of reducing waste by eliminating silos along with idea generation and problem solving by the entire value stream should be included throughout the supply chain as it is done internally in Lean companies. Low piece part cost alone will ultimately be more costly if quality, manufacturability, lead time, and inventory levels are not considered. To achieve this, suppliers must be included in the design and value stream mapping processes.
Lean measures internally and across the supply chain should include order to delivery cycle time, throughput, inventory levels, operating expenses, and customer satisfaction.
