Operations and Supply Chain Management - Lean Methodology

Full course: https://www.udemy.com/operations-and-supply-chain-management/?couponCode=PROMONOW


Value-Added Methodology
Lean production is a value-added methodology that aims to eliminate waste and bottlenecks in a process to improve process flow and reduce cost.
Lean methodology dates back to the beginning of the Toyota Motor Company. In the 1930s, Toyota decided to build based on the processes of the Ford Motor Company. It also aimed to pinpoint areas in which Ford's business model could be improved.
In doing so, Toyota discovered that emphasizing the importance of the flow of its entire process, as opposed to individual parts of it, would help it to manufacture cars more efficiently while saving on costs.
This allowed Toyota to focus on efficient process time, product quality, and reduced levels of inventory.
Workflow
By looking at the company's workflow as a whole, it was able to avoid stockpiling its raw material, in-process, and finished product inventories and could improve overall efficiency.
Toyota's approach to manufacturing not only helped the company achieve success, but it also developed the characteristics of Lean production. These have since been adopted by other companies – both in manufacturing and service industries – and applied to businesses all over the world.
Lean Production Characteristics
There are two main characteristics of Lean production: the elimination of waste and the pull approach to production. Each of these characteristics is used to streamline the supply chain management process and help to improve efficiency.
Elimination of waste
The elimination of waste through a Lean production strategy allows for greater efficiency by, for example, removing the steps of the process that don't add value to it. This enables companies to consolidate the production process and find more efficient methods of producing goods without sacrificing the quality of their products.
It also helps companies to avoid many pitfalls in their processes. For instance, by avoiding overproduction, they're able to reduce inventory and avoid resources and capital being locked in unsold products.
Pull approach to production
The pull approach to production is when products are pulled down the production line only when the stock needs to be replenished. In a push system, products are pushed out to customers based on projected sales figures.
With the pull method, products are made to order and don't spend a long time in warehouses waiting to be processed.

Full course: https://www.udemy.com/operations-and-supply-chain-management/?couponCode=PROMONOW