Introduction
Supply Chain Processes
The Lean *Operations* Process
‘Just-in-time means that in a flow process, the right parts needed in assembly reach the assembly line at the time they are needed and only in the amount needed’ (Ohno, 1988, p. 4).
JIT aims to attain zero inventory (Ohno, 1988; see figure 1) and improved throughput throughout the supply chain (Heizer and Render, 2008; Lambert, 2008).
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Elimination of Wastes
Throughput Improvement
Throughput refers to the time necessary to move orders from receipt to delivery through the transformation process, and it can be improved by reducing manufacturing cycle time. The ‘Kanban’ system (Japanese term for ‘pull’; see figures 4, 5, and 6) is a JIT scheduling technique that can also help to achieve this (Barnes, 2007). It causes the TPS to move smoothly by simultaneously eliminating waste and inventory, drawing small lots to where they are needed just as needed (Heizer and Render, 2008; Ohno, 1988).
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*Figure 6*: Kanban Signals ‘pull’ Material Through the Production Process
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Source: Adapted from Heizer and Render (2008)
Just in Time Techniques
*Figure 7: The JIT Techniques B*enefits *F*irms *b*y *C*reating *C*ompetitive *A*dvantage
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*Toyota P*roduction System
Another aspect of TPS is the philosophy that every part of an operation can be improved, and this improvement is meant to be incrementally sought and imparted into people’s minds as a value (Delbridge, 1998; Ohno, 1988). ‘Kaizen’ is the Japanese term used to describe the never ending process of improvement, and it can be interpreted in the form of the PDCA cycle (see figure 8). It also emphasises concern for people and standard work practices.
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Strategic Implication of Lean Operations Process
Lean operations process employs the ‘pull’ system (which responds to actual...