Lean Corner

How can we gain efficiency thanks to the “Lean Supply Chain”?

Part 1: What is the “lean” supply chain?
Part 2: 6 levers of Lean to improve the Supply Chain

In today’s environment, where the industry is constantly evolving, operational efficiency has become essential (vital even) for companies. At the heart of this operational efficiency are the challenges related to the “supply chain”.
In order to increase productivity, the essential principles & tools of Lean are used.
In this article, we will look at the notion of “Lean Supply Chain”, as well as the concrete ways in which Lean can improve the supply chain. We will see that many of these principles and methods are perfectly applicable to the supply chain.

Part 1: What is the "lean" supply chain?

1. Understanding Lean: An Essential Reminder

Originally, the term Lean was used with “Lean Manufacturing”. Popularized in the 1990s, this approach finds its origins in Toyota’s production system of the 50s. In a nutshell, the Lean philosophy is about optimizing processes to maximize customer value while decreasing costs.
Lean aims to reduce waste, costs and production times.
Its attention is focused on three categories of waste:

Muda: Concerns non-value-added tasks, such as overproduction, unnecessary material movement, or waiting times. For example, a company that produces more than necessary creates a surplus of stock.
Mura : refers to uneven processes, often due to irregular working hours or periods of inactivity followed by peaks in activity.
Muri : refers to excess resources. When we talk about resources, it includes employees, machines and systems.

We often hear about “Lean” tools, but to be exact, it’s not just a set of tools. In reality, it is an approach that is intended to be global and that impacts the cultural and managerial part. In this approach, leaders or managers promote standardization and simplification and engage employees in a continuous improvement process.

2. From Lean Manufacturing to the Lean Supply Chain

In reality, Lean concepts are not only applicable to Lean Manufacturing but can be extended to supply chains: we can then speak of Lean Supply Chain.

The goal here is to reduce waste as much as possible, and this throughout the supply chain, from the purchase of raw materials to the delivery of the final product to the customer. Implementing a “Lean Supply Chain” aims to streamline processes by improving inventory control and optimizing each step of the chain. This means a careful analysis of the flows to identify superfluous tasks (see part 2.1) that do not add value.

It is also necessary to focus on the use of essential resources, avoiding unnecessary expenditure. Each step of the process must be justified by its contribution to the final value of the product. By reducing non-essential tasks, companies have the opportunity to not only decrease their costs, but can also improve the quality of their products and services.

Part 2: 6 levers of Lean to improve the Supply Chain

Having fully understood what the Lean supply chain meant, we will now analyze 6 levers of lean to improve your supply chain.

1. Process Mapping: An Essential Tool

Considered one of the most important pillars of the Lean approach, process mapping makes it possible to visualize and analyze flows.

Value Stream Mapping (VSM) is one of the most frequently recommended tools in mapping processes. Indeed, it allows a graphical representation of the steps of a process, highlighting the interactions between the different activities.

One of the main advantages of this tool is that it makes it possible to clearly identify areas of waste (or non-added value).

By using the theory of constraints, teams can spot bottlenecks, which are points where the workflow is slowed down or blocked. If this theory is well applied, it makes it possible to identify the “bottlenecks” and therefore to target improvement actions.
By mapping processes, the goal is to gain a holistic view in order to improve the overall process. For example, we want to avoid that reducing the production time of one step leads to delays in delivery or increased costs at another step.

2. Eliminating Waste in the Supply Chain

As explained earlier, eliminating waste is at the heart of the Lean philosophy. This involves hunting down the eight wastes identified in Lean:

Overproduction
Waiting
Transportation
Overtreatment
Excess inventory
Unnecessary movements
Defects
Untapped human potential

In addition, the 5S method can also be used to limit this waste. As a reminder, it consists of five stages: Seiri (sorting), Seiton (tidying up), Seiso (cleaning), Seiketsu (standardizing), and Shitsuke (discipline). The objective is to set up a structured and efficient working environment, reducing the time spent searching for tools or information and increasing productivity.

3. Standardization

Standardization is a pillar of Lean. In order to avoid fluctuations and errors, it is essential for the supply chain to have precise procedures in place, thus ensuring consistent quality of products and services.
Standardizing makes it easier to train new employees through documented procedures. Documentation will allow efforts to be focused, not on understanding existing processes, but on identifying new opportunities for optimization.

4. Trust in employees

To ensure the success of Lean, trust between employees is essential. Visual management must be privileged. It helps foster that trust, by making information accessible to all team members. By having access to data, employees feel involved in solving problems and developing solutions. Continuous improvement, Kaizen, has an essential role in involving employees in the detection of problems and the implementation of solutions. It’s about making the most of each other’s skills and ideas.

5. Setting up just-in-time

As a reminder, Just-in-Time (JIT) is a production strategy that aims to reduce inventory levels and improve supply chain responsiveness. By using systems like Kanban , the supply chain can allow the production flow to be adjusted based on actual demand, rather than producing in advance. This minimizes storage costs, while at the same time avoiding over production.

6. Problem solving

Problem-solving is an essential component of the Lean approach, as it helps to identify and eliminate the root causes of failures. A widely used method in Lean Six Sigma is DMAIC (Define, Measure, Analyze, Improve, and Control). This structured method guides teams through a clear method for problem solving.

What to remember about the Lean Supply Chain?
The goal is to integrate the philosophy and tools of Lean in order to reduce waste, improve product quality and increase customer satisfaction.
Through the use of tools such as process mapping, standardization, and just-in-time, it is possible to design more efficient workflows. Additionally, the use of methodologies such as DMAIC helps structure problem-solving.
So don’t hesitate, apply Lean principles in your Supply Chain processes!

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