You're struggling to cut costs in your supply chain. How can you pinpoint and eliminate wasteful processes?

Value stream mapping (VSM) is not only giving a visual representation of Value added (VA) and non-value added(NVA) of entire supply chain but also shows the clear picture of inventory (Cost) which is either moving slowly or not moving. Balancing the bottleneck and Under utilised operation will help to speed up the flow and reduces the lead time. This also helps to unhide other wastes like defect, over processing or over production .

Always remember a very simple but fundamental philosophy when mapping out your processes; ask yourself (and your team) "Is this something my customer is willing to pay for?"

"Any system (or structure) will work as long as people are committed to making it work". Therein lies the secret, the system may be imperfect, needing propping up and interventions. If you have a committed team then you will find and implement the fixes. Another important aspect of systems is that a good design is crucial as it effects everything that follows. In addition spend time on designing not only the product or service but also the system. Once implemented refine the system with short feedback loops, detect corrections early, make changes and measure the results of the change. Over time with commitment you can achieve a great system that can function at volume with consistency.

Try to get to know your client and your supplier in depth. Check with your supplier for their ability to meet your requirements and what can be reduced without impacting the quality of the raw material and reducing costs. Dedicate time to your product on what is really perceived as value by your customer. Avoid excesses and activities that impact cost and delivery time. Train your team and keep track of their needs. Do it right the first time ! You won't always have another opportunity to correct it. Plan, discuss, establish controls and monitor.

The "Just in Time" (JIT) approach minimizes surplus and idle inventory by aligning orders with production schedules and demand. It also enhances efficiency and reduces waste but requires precise inventory planning and management to avoid disruptions…!

Lean Manufacturing aims to eliminate 'muda' or waste, categorized into the said seven types: overproduction, waiting, transporting, inappropriate processing, unnecessary inventory, excessive motion, and defects. Systematically addressing each type reduces costs. For instance, just-in-time (JIT) production minimizes inventory and holding costs. Regularly reviewing and adjusting processes to eliminate waste is an ongoing effort that yields significant benefits, enhancing efficiency and cost-effectiveness. Continual waste reduction leads to improved operations and long-term savings.

The approach describing the creation of a continuous flow is called Theory of Constraints. Theory of Constraints is a methodology based on the fact that the effectiveness of ANY activity depends on the ability to find and manage the “bottlenecks” of the system, its weaknesses, focusing resources on solving these bottlenecks. They are the ones that hinder the achievement of maximum performance and reduce productivity. There are restrictions: - internal - people, material resources - external - political, economic situation , and restrictions always exist, even if the company’s business is growing rapidly. In this case, there may be several problems, but only one of them is a limitation - the weakest point, which you need to work with.

Continuous flow is very important when bulk order in place. Then it’s reduce the inventory and improve the efficiency of production system. But on the other hand flexibility is very less.

Outro aspecto importante é garantir a colabora??o e comunica??o eficaz entre os diferentes departamentos envolvidos na produ??o, como compras, produ??o, logística e vendas. Todos devem trabalhar juntos para garantir que o fluxo de produtos seja eficiente e eficaz.

Eliminando tiempos de espera , re trabajos y trabajar one piece flow creo que es de las mejores prácticas que brindan beneficio para reducir el ciclo operativo

In the fight against bloated supply chain costs, Pull Systems are your secret weapon. Unlike traditional "push" systems that churn out products based on forecasts, Pull Systems listen to the customer's demand. They only produce what's needed, when it's needed. This minimizes inventory waste, frees up cash flow, and keeps you agile in a dynamic market. Imagine a car driving only when you press the gas – that's the efficiency Pull Systems bring to your supply chain, reducing costs and keeping you responsive to customer needs.

A integra??o de sistemas pull pode melhorar a comunica??o e colabora??o entre os diferentes parceiros da cadeia de suprimentos. Ao operar de forma sincronizada e alinhada com a demanda real, os fornecedores podem prever suas necessidades de produ??o de forma mais precisa e ajustar seus níveis de estoque de acordo. Isso resulta em uma cadeia de suprimentos mais ágil e eficiente, reduzindo os custos de armazenagem e desperdício.

From a retailer perspective, an optimally integrated system is one where it is fully in horizontal integration with its suppliers. Then, inventory management is optimal, waste from product expirations are almost totally eliminated. Also, its need for inventory space is optimised leading to significant savings in storage, leverage and scalability. At some point In the future, it will be insightful to witness the extent of economies of scale provided by a fully integrated retail industry.

Lo importante de técnicas como Kanban es que para su aplicación no hay necesariamente que invertir en tecnologías caras porque se puede utilizar desde sistemas informáticos muy sofisticados, que generalmente lo usan grandes industrias, hasta con tarjetas y pizarrones que lo podría aplicar una peque?a industria y le representaría una peque?a inversión que le generaría un impacto positivo.

O sistema puxado é a forma de controlar a produ??o e sincronizar as etapas internas e entre as instala??es. Existem diferentes tipos de sistema - Puxado com supermercado, Puxado sequenciado e Puxado misto. Por isso, é preciso entender qual é o melhor para a situa??o. Para implementar o sistema puxado é necessário definir os estoque de matéria prima, material em processo (wip) e produtos acabados e Dimensionar o número de Kanbans. Depois disso, passar a implementar primeiro internamente e depois de entre as instala??es da cadeia.

This is true, but only for Lean Manufacturing, not for the Lean Supply Chain Management approach. SCM is extremely complex in nature, and includes various types of activities, multiple work teams, flows, endless lists of options at each stage that are needed to respond to the constantly changing and difficult to predict level of demand - that is, Lean SCM cannot rely only on corporate and management culture. Lean SCM differs from Lean Manufacturing in that the task cannot be solved only through a management approach, which is aimed mainly at relations with employees. The human brain is not enough to solve the problem of reducing waste in supply chains-here should be involved information technologies and tools, change management in the team

Exemplo muito vivo, alinhe a Cultura da Empresa. Colaboradores se sentem parte do propósito e buscam a excelência, focados nos resultados e alavancando as entregas

investir na capacita??o e treinamento dos funcionários em práticas enxutas pode trazer benefícios significativos para a empresa, ao fornecer ferramentas e conhecimentos necessários, os funcionários podem identificar oportunidades de melhoria, implementar solu??es e contribuir para a redu??o de desperdícios e custos

Leveraging technology is essential for enhancing lean efforts in removing waste. Modern supply chain management software provides real-time data and analytics, enabling informed decisions on inventory levels, production scheduling, and demand forecasting. Automation reduces labor costs and minimizes errors, while AI significantly boosts productivity by tenfold. For example, AI-driven predictive maintenance can anticipate equipment failures before they occur, reducing downtime and further eliminating waste. By investing in the right technology, organisations gain greater visibility into their supply chain, accelerating their journey towards a truly lean operation.

To reduce cost in supply chain technological advancement to be done at vendor plant and end user plant .This may require huge collaboration and transparency with respect to investment ,order continuity and business continuity . Overheads are one which can be controlled

Leveraging technology in internal logistics is crucial for addressing bottlenecks. Understanding the current state through Value Stream Mapping (VSM) helps identify these critical areas. Improving non-bottleneck processes only increases the strain on existing bottlenecks. By using VSM, you can propose targeted technological solutions and create a Value Stream Design to visualize reduced lead times and the new streamlined processes (future state). This approach ensures efficient investments and provides a clear future vision for stakeholders, facilitating change management and advancing towards a truly lean operation.

Automation. You can always start with simple but effective Automation Solutions. Today Memory, Photographs and Lasers are cheap to create Effective Bullet Proof Solutions.

The key to your supply chain is its resilience. Which maintenance SLA did you secure for your most critical site? Do you rely on a single supplier for your cardboard boxes? Do you pay your subcontractor enough so that your quality is understood by them? Paying the lowest is not as nearly important as paying the right price. So my recommendation is to break down costs for each of your operations and compute the unit cost of performing operations (internally or externally). If you notice that the hourly wage necessary to achieve your cost target is lower than industry average, you're likely to run into troubles as you or your subcontractor will not be able to sustain this cost at the right quality level. So think twice, pay fair.

Review your designs, manufacturing processes, supply chain efficiency, and how you inspect or tests. Process which are giving you cPk of better than 1.6 do not bother but concentrate on the processes which are yet to hit 1.6. Design, try to optimise by considering which of the features are not used or found to have practically higher margins. Inspection and testing can be reduced to gauges and fixtures than the first principles. Use IoT for scanning 100% of the parts automatically and only those which are on boarder shall be inspected . same way randomly pick up 13% of your batch for final test.

All previously mentioned items are valuable, But in my opinion, I found Value Engineering (VE) to be the most important concept for reducing product costs, even in the supply chain. For example, if I have trouble allocating a component or a group of components, Why not conduct a study on its function and assess its importance to the entire product? If I can find an alternative from an engineering perspective without eliminating or affecting product performance, we can make significant improvements to the product and, subsequently, the supply chain as well.

Para cortar custos na cadeia de suprimentos e no processo produtivo, é crucial focar no 8o desperdício: o desperdício de talento humano. Engajar as pessoas é essencial para identificar e eliminar outros desperdícios, através do pensamento científico do uso de dados e outras técnicas é possível reduzir custos aprimorar processos, porém quem fará toda transforma??o? Pessoas! Considere alguns fatores importantes que suporte este processo: 1. Treinamento contínuo: Ensinar os princípios Lean e como aplicá-los. 2 Empoderamento: Dar autonomia para decis?es que reduzem desperdícios. 3. Comunica??o aberta; Práticas que aumentam a eficiência, motiva??o e compromisso dos colaboradores, resultando em um ambiente de trabalho mais produtivo e econ?mico.