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Supply Chain Management

Supply Chain Management

This article is the second part in a two part series on supply chain management and Lean Manufacturing. In the first article, we established that lean manufacturing was an approach towards improving manufacturing process performance by minimizing non-value-added tasks and instead focusing on maximizing value. In this second article we will dig deeper into the Lean approach and identify its key components. We will also discuss some of the challenges involved in implementing Lean Manufacturing and how to overcome them. Finally, we will conclude by discussing the future of Lean.

In the previous installment, you learned about the three main elements of Lean supply chain management and why they are so important to the success of a company's operations. Now that you understand what you can anticipate from this series of articles, so keep your eyes open for the third installment, where you will learn about what you can do to improve your inventory management and your other supply chain processes. In part 3, focus on introduction training-content specific to staff and managers from other disciplines like finance, marketing and sales.

Implementing an effective Supply Chain Management system requires consistent improvement across an entire enterprise-wide network of activities. Because it is so complex, organizations cannot afford to engage in one-off improvements to single components of their Supply Chain. Organizations need continuous improvement and that means that they must establish an enterprise-wide supply chain training program. A well-structured training program will allow even seasoned personnel to quickly assimilate new information and to implement changes as the needs arise.

It should start with a formal education in which the employee gets a basic understanding of how the organization works and what the different functional areas are for which the organization performs work. This includes learning about the 5Ds of Supply Chain management, such as customer, product, channel, order and distribution. Next, the employee should be trained in selecting, managing and implementing the strategies used for achieving excellence in each of these areas. The next step involves implementing the selected strategy using the designated tools and procedures in a timely manner. The employee should also learn how to monitor and measure the success of these strategies. Finally, he or she should be trained in maintaining adequate levels of productivity and efficiency in operations planning and materials management.

Waste, however, is perhaps the most difficult element to track and control. It's necessary to first identify sources of waste before determining appropriate methods of dealing with them. In addition, there is a need to ensure that enough supplies are available to meet end-customer demand during normal business hours, as well as in times of significant increases in demand, such as on holidays and over Christmas and New Year's Eve. In many cases, organizations have inadequate internal resources to meet demand in both situations. The purpose of a supply chain management guide is to assist an organization in identifying and managing waste.

It must be understood, however, that the goal of this process isn't simply to reduce waste, but to improve the quality of the goods produced by the organization. Supply chain improvement, including countermeasure efforts, must be combined with efforts aimed at improving the organization's production processes. A guide will discuss some common problems facing organizations today and recommend ways to overcome them. The guide will also indicate what companies can do to increase efficiency.

One important strategy for reducing waste is to carefully plan for end-of-life activities. Strategic planning should begin at the strategic and operational levels of the enterprise-wide level. This planning must provide a description of the sources of waste, the nature of the waste and the locations of waste in operations. Additionally, it should describe plans for eliminating waste, for storing waste in an appropriate way and for addressing the causes of waste through proper identification, assessment and elimination. Finally, strategic and operational planning should include a description of the company's anticipated future needs and capabilities.

Companies need to be aware of their capabilities, their vulnerability to waste, and their strategic vulnerabilities. Strategic and operational planning and analysis must be conducted on a regular basis and should provide guidance for addressing and eliminating waste. End-of-life processes must be properly documented and included in the evaluation of current and future needs and capacities. Finally, efforts to counterpoise new technologies to current or emerging threats must be coordinated and anchored in a strategic framework that considers the entire enterprise, from CEO to regional managers to frontline employees.
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