There are three legs to any Operation's stool. Most management teams only ever achieve improving two of these at one time, normally at the expense of the third. Why is this? Pete Austin, Director at Suiko gives his perspective.
A key philosophy of lean is about reducing throughput time from receipt of order to cash in the bank. To do this you need to understand in detail the end to end value stream and identify value added time from the customers’ point of view.... but how do you do it?
"Lean manufacturing practices can create efficiency and reduce waste, but smaller inventories put companies at risk for major supply chain disruptions. Many organizations are reconsidering their procurement strategies for emergency preparedness after discovering their operational vulnerability in the aftermath of the 2011 earthquake and tsunami in Japan, as well as the flooding in Thailand, according to Lloyd's."
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