Tuesday, 29 January 2013

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:
    manufacturing and supply
  1. Identify what doesn’t create value for the customer rather than the company
  2. Specify each individual step that will need to take place in design, order and production
  3. Remove actions that create scraping and waster, backflows, interruptions and detours
  4. Make the products that are pulled by customers just in time
  5. 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. 

No comments:

Post a Comment