This paper focuses on Evaluating Process and Supply Chain Design. What is the lean concept and why is it important to study? How can lean be applied to manufacturing and service processes?
What is the lean concept and why is it important to study?
How can lean be apply to manufacturing and service processes?
Will lean work in service environments? Why or why not?
Discuss ways to use lean to improve one of the following: a pizza restaurant, a hospital, or an auto dealership.
Why is lean hard to implement in practice?
Explain the relationship between quality and productivity under the lean philosophy.
Supply chain management does not have a long history relative to other business disciplines such as accounting or economics. The term supply chain management was first introduced by Keith Oliver of Booz Allen Hamilton in 1982, but did not gain significant traction until the turn of the 21st century (Heckmann, Dermot, & Engel, 2003). However, concepts that underpin supply chain management have been in existence for many decades. For example, today’s supply chain strategies continue to draw upon the customer focus of early 20th century catalog retailers and the military’s logistics goal of “getting the right people and the appropriate supplies to the right place at the right time and in the proper condition” (U.S. Department of the Army, 1949).
From a business perspective, the origins of supply chain management lie in a wide variety of related but initially fragmented activities. As Figure 1-3 indicates, purchasing, inventory management, warehousing, order processing, transportation, and related functions were conducted independently. Each one had its own budget, processes, priorities, and key performance indicators, but this disaggregated approach was suboptimal and did not lead to lowest total costs.