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    Lean Thinking and Supply Chain Management: Thomas J. Goldsby and Sebastián J. García-Dastugue

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    Lean thinking in supply chain management uses lean principles to align activities across corporate functions within a firm and manage relationships with customers and suppliers. It aims to eliminate waste and create the greatest value for the end customer. Lean thinking was originally developed for manufacturing but can also be applied to supply chain management through tools that align the supply chain and eliminate waste that results from a lack of alignment.

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    Lean Thinking and Supply Chain Management: Thomas J. Goldsby and Sebastián J. García-Dastugue

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    Lean thinking in supply chain management uses lean principles to align activities across corporate functions within a firm and manage relationships with customers and suppliers. It aims to eliminate waste and create the greatest value for the end customer. Lean thinking was originally developed for manufacturing but can also be applied to supply chain management through tools that align the supply chain and eliminate waste that results from a lack of alignment.

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    Lean thinking in supply chain management uses lean principles to align activities across corporate functions within a firm and manage relationships with customers and suppliers. It aims to eliminate waste and create the greatest value for the end customer. Lean thinking was originally developed for manufacturing but can also be applied to supply chain management through tools that align the supply chain and eliminate waste that results from a lack of alignment.

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    © All Rights Reserved
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    Download as pdf or txt
    49 views1 page

    Lean Thinking and Supply Chain Management: Thomas J. Goldsby and Sebastián J. García-Dastugue

    Uploaded by

    cp3y2000-scribd
    Lean thinking in supply chain management uses lean principles to align activities across corporate functions within a firm and manage relationships with customers and suppliers. It aims to eliminate waste and create the greatest value for the end customer. Lean thinking was originally developed for manufacturing but can also be applied to supply chain management through tools that align the supply chain and eliminate waste that results from a lack of alignment.

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    of 1

    CHAPTER

    Lean Thinking and


    12 Supply Chain Management

    Thomas J. Goldsby and Sebastián J. García-Dastugue

    Overview
    Lean thinking provides principles and tools used to eliminate waste and to
    strive for perfection through continuous improvement. Though lean thinking was
    conceptualized to apply to all activities within the firm and across companies in
    the supply chain, usually lean is employed in operational settings within a single
    Lean thinking in firm. Lean thinking in supply chain management is the use of lean principles to
    supply chain align activities across corporate functions within the firm and to manage business
    management is the relationships with customers and suppliers. We show how lean principles and
    use of lean principles tools can be used in the context of the supply chain management framework. Also,
    to align activities we describe forms of waste that result from the lack of alignment in the supply
    across corporate chain – wastes that need to be eliminated in order to create greatest value for the
    functions within the end-customer.
    firm and to manage
    business relationships
    Introduction
    with customers and
    suppliers. The term “lean” first appeared in The Machine that Changed the World1 in
    reference to Toyota and its much heralded Toyota Production System (TPS). The
    book detailed the considerable differences observed between Toyota and its
    automotive rivals in an industry-wide study, where Toyota managed to achieve
    higher quality and greater output with less material, less space, and less equipment
    in less time– and was, hence, “leaner” than the competition. The study also
    documented the company’s discipline and relentless pursuit of perfection through
    continuous improvement, or kaizen. Out of the original research conducted by
    Womack and Jones and others, a movement was born.
    Since the mid-1990s, lean manufacturing has gained much attention in trade
    publications, industry reports, and case studies, where companies cite the benefits
    achieved through lean implementations. While reported benefits vary, a sample
    shows that lean principles successfully deployed in manufacturing can result in a
    90% reduction in lead time, doubling of productivity, 75% reduction in inventory,

    1
    Womack, James P., Daniel T. Jones, and Daniel Roos, The Machine that Changed the World: The Story
    of Lean Production, New York: Harper Perennial, 1991.

    SUPPLY CHAIN MANAGEMENT 217

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