Manufacturing and Supply #2 Reducing Waste to Save Money
Suppliers
have been looking at ways of reducing waste in manufacturing. The system of
lean management was created and recorded in a book called The Machine that
Changed the World. Inside there are five waste management systems that have
been taken on within various industries:
- Identify
what doesn’t create value for the customer rather than the company
- Specify each
individual step that will need to take place in design, order and production
- Remove
actions that create scraping and waster, backflows, interruptions and detours
- Make the
products that are pulled by customers just in time
- Strive for
eliminating waste as and when discovered to reach perfection.
Logistics
have to be fast paced due to these issues and changes in manufacturing:
- Short life
cycles
- Variety in
colour and styles
- Obsolete
build-up of stock
- Direct
selling such as online shops
The just in
time approach relates to logistics who enable a fast speed supply chain.
Companies need to meet the demands of the customer in time so that all produce
is created and shipped. This speed improves customer service, creates room for
flexibility and focuses on the importance of the customer – the most important
person in the cycle.
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