Lean Manufacturing Techniques for Supply Chain Management

This literature review discusses the application of lean manufacturing techniques in supply chain management to minimize waste and improve efficiency. It covers the various processes of lean management principles, the role of lean supply chain, and the challenges faced in implementing lean principles. The review concludes that lean manufacturing techniques can bring improvements in the supply chain system.

Running head: Supply chain management
LR
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Supply chain management 1
Introduction
Supply chain management can be defined as managing the flow of products and services within
the organizations. It comprises the movement of the raw materials, works in progress and
finished goods from their origin to consumption (Lee and Nelson, 2010). So, it comprises of
planning, designing, monitoring the supply chain activities with the intention to create net value,
executing, controlling ,building a competitive infrastructure, coordinating the demand and supply
activities and measuring the performance of the company according to the global standards.
One of the techniques of production is the lean manufacturing techniques. Lean is the method for
minimizing the waste within the manufacturing system without surrendering the productivity of
the organization. It considers the wastage arising from the overburden and through ununiformed
workloads. It is a technique of manufacturing which adds value to the processes by decreasing
everything which is not doing the value additions.
Value-added activities comprise of the techniques to verify the wants of the consumers in the
entire supply chain since comprehending the requirements of the consumers is essential for
minimizing the wastages in the supply chain systems (Rose, Deros, Rahman and Nordin, 2011).
Literature review
As per Manzouri et al., (2014) the businesses have been attempting to minimize the total cost
and waste throughout their supply chains in order to be competitive and expand themselves in
the international market. The influence of lean management principles on the supply chain of the
businesses cannot be ignored. The lean procedures and techniques assist the businesses to be
flexible and lucrative. The lean management comprises of quality development processes, pull
production techniques, focus on the processes, continuous improvement, worker empowerment
and value stream management.
The aim of the lean management principles is to fulfill the demands of the consumers with the
help of reducing the waste. Reduction of wastages can be considered in the supply chain
processes of human resources, design and production and activities associated with inventory
and distribution. As per the concept of lean management principles application of its tools and
techniques can assist in the minimization of such wasted efforts (Anvari, Ismail and Hojjati,

Supply chain management 2
2011). The personnel involved in the supply chain should comprehend the concepts of lean
management and apply its practices through cooperation and coordination.
The various processes of Lean management principles are Total Quality Management (TQM),
Just –In –Time (JIT), value stream mapping, human resource management, total preventive
maintenance programs and vendor development. Lean is a concept which applies a series of
activities for removal of wastages and retaining the worth with less of work. In this context, the
lean concept has been used in the production systems (Bicheno and Holweg, 2016). Lean
enterprise or lean production arises when the business integrates the elements of a supply chain
with the lean production, procurement, manufacturing, and distribution together.
However, if the organization overlooks the strategy of lean production, it would not be able to
confront the worldwide competition in terms of fast delivery, high quality, and fewer costs. The
lean management principles can be categorized into six areas viz. planning and control,
manufacturing, product design, process and equipment, supplier and consumer relationships and
human resources (Poppendieck, 2011). The lean principles can further be dividing into three
classes viz. identification of problems, assessment of their causes and resolve the issues. When
waste and problems are recognized in the supply chain, the personnel try to resolve the problems
and implement them to develop the system.
In this context, the lean supply chain (LSC) recognizes and removes all kinds of waste in the
supply chain. While handling the supply chain, they target on the undertakings which deliver the
raw materials, manufacture the final product and transport them to the end consumers in an
efficient manner. The function of LSC is to focus on each activity which generates wastages and
attempting to minimize them. The supply chain management is a total system which requires
assimilation and optimization which are achieved through procedures and techniques of lean
manufacturing (Taleghani, 2010). The combination of LSC and supply chain management
strategy creates the successful and dynamic strategy.
The various aspects of LSC can be classified into the following areas viz. role of suppliers,
nature of competition, source decision, supply structure, supplier development, interchange and
interaction of data and production techniques (Rajenthirakumar and Thyla, 2011). The

Supply chain management 3
competition is amongst the various supply chains. Furthermore, the quantity of sources shall be
kept low as probable. Adapting the principles of lean management is more complicated.
To overcome this, the members of the supply chain must apply the principles of lean
management and recognize new methods to improve their internal techniques such as
improvement of inventory, quality, costs, and transportation and then apply those improvements
at all the levels of the supply chain. So, all the techniques shall be implemented on the whole of
the supply chain. The activities adding value should be described on the basis of advantages
derived by the partners of the supply chain.
For implementing the LSC, the organizations have to pass seven steps viz. development of the
system thinking, understanding the value of the consumers, benchmarking best practices, value
stream mapping, creating flow, designs which manage demands and measuring the performance
metrics (Gothelf, 2013). The companies also follow the steps regarding network process and
design: integrating the internal and external activities with the supply partners, assimilation of
the supply chain within the enterprise and creating an internet connection amongst the partners of
the supply chain to make a single virtual enterprise.
However, some of the companies are able to successfully implement the LSC in spite of their
benefits. Some of the failures include misinterpretation the idea and the aim of the LSC and
accessibility of resources such as time, cost and skilled workers. Another reason might be the
cultural differences arising in the translation and transitions of the techniques and principles of
lean management (Modi and Thakkar, 2014). For its adoption, the lack of availability of
resources proves to be serious hindrances. Lack of support of top management is another issue in
this regard.
Since all the processes in the company starting from preparation to application are executed
under the direction of the top management, lack of their support will cause the failure of
application of lean tools and techniques (Womack and Jones, 2010). The concept of lean
management initiated in the locomotive industries, their advantages have been perceived and
recorded in these industries. The benefits of the lean management have been recorded in other
industries too. With the implementation of the LP, the reduction in the time of material flow in

Supply chain management 4
the construction companies has been observed. Additionally, improvements are recorded in the
transportation and storage of animal food industry has been observed.
The demand variations and fluctuations of the orders can be accomplished through supply chain
collaborations. Through the management of the demand volatility, the organizational
performance is improved and the consequence of the whole supply chain is recovered (Aziz and
Hafez, 2013). So, demand collaboration and signal are considered to be crucial LSC application
tools to comprehend demands throughout the whole supply chain.
As per Junior and Mendes (2017) the utilization of lean management principles can contribute to
the processes of waste reduction. The organizations using the lean principles in its supply chain
are expected to minimize the waste from the production activities with the help of environmental
management practices and minimization of costs. A company using the lean management
practices utilizes some alternative approaches which help in managing and organizing the
relationships of the company with its consumers, supply chain, production and product
development operations.
Here the utilization of resources means minimization of wastages in all the aspects including the
natural resources. Thus lean manufacturing processes help in improving the environmental
management practices. With the help of reduction of internal wastages through lean management
techniques, the management of environmental wastage can be done. The lean management
principles also target the financial improvements along with aiming at productivity and quality
through the operational procedures.
Lean management targets at processes, technology, operations, physical arrangement, quality,
supply chains, inventory and resource planning procedure. Lean management principles can be
described as a framework of practices which aim at minimization of wastages and non-value
adding actions from the industrial activities of the company. A lean company aims at the
sustainability advantages through the operational practices. Thus the lean approach aims at all
the organizational activities at all the levels which are related to environmental and economic
sustainability.
According to the opinion of Saleh et al.,(2016) supply chain operational reference (SCOR) is a
methodology has been considered as a measuring tool that can be utilized in the supply chain

Supply chain management 5
system for serving the performance indicators, business process framework and distinct
mechanisms and technologies for supporting the communication and collaboration among the
supply chain management process within the business organization. The further review is
focused on measuring the supply chain management performances by making use of SCOR
version for production typology for MTS and MTO in the Indonesian Banking sector.
Modi and Thakkar, (2014) has observed and noted that the idea of lean manufacturing is
concerned about the end or decrease of the wastage done amid the assembling and other related
procedures, subsequently if the standards of lean generation if actualized to the administration
capacities can bring a diminishment and cut the blunder rates and which will convey
improvement to responsiveness and shoppers fulfillment. In any case, at that point likewise, the
business enterprises are discovered moderate in the execution of the lean standards and the
purpose behind the same is that the waste and wastefulness that can meddle with administrations
are once in a while self-evident (Goetsch and Davis, 2014). If there should be an occurrence of
the production lines where the sit still laborers and the heaps of merchandise and stock are the
prime reason of the broken procedures and waste is considered as covered up in the event of the
administrations. It creates prowl between the functionalities, offices or the locales and because of
which the business associations can look only a section or segment of the issue. Another issue is
with the cushy representatives which are each much hesitant towards the idea that their work
could be managed. What's more, this absence of institutionalization of consistency in the
administration procedures can be demonstrated exorbitant. The procedures which are perplexing
and wasteful are slower and furthermore have a higher rate of mistakes, which will likewise
acquire lessening the general responsiveness and fulfillment level of shoppers, this will likewise
bring about an expansion in hazard and risk consistency (Lee and Nelson, 2010). The standards
of lean assembling and industrialization can be actualized to the administration and also creation
functionalities yet with one major contrast .i.e. the costs are to be handled come from the
workforce, overheads, and declining fulfillment level of purchasers however not the physical
stock. The procedure of Lean execution includes the choice of a suitable set apparatus and
hardware's from the lean storehouse for accomplishing the greatness in the procedures
(Taleghani, 2010). Anyway, there are odds of hazard from over concentrating on the advantage
picked up from the apparatuses and are likewise striving for the procedure flawlessness,
however, the supportability of the lean instruments has additionally been ignored inside that

Supply chain management 6
particular work culture. A probability of a presentation of hazard for the business association is
there with the execution of new techniques each time and furthermore, there are odds of the two
openings and risk for Nike Inc.
Conclusion
After summing up and analyzing the above executed review it has been concluded that supply
chain management is one of the crucial operation within an organization so as to make smooth
in-flow and out-flow of the goods. The review is focused on the lean manufacturing techniques
that aids in bringing improvements in the supply chain system.

Supply chain management 7
Referencing
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Aziz, R.F. and Hafez, S.M. (2013) Applying lean thinking in construction and performance
improvement. Alexandria Engineering Journal, 52(4), pp.679-695.
Bicheno, J. and Holweg, M. (2016) The Lean toolbox: The essential guide to Lean
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