Low Inventory Lean Production and Service System

The word lean system was coined in the context of inventory held as work in process or progress by companies. Lean systems hold less inventory in comparison to bulk inventory systems. Toyota initiated the lean inventory or JIT inventory system. They made many modifications to their production system to develop a low inventory that delivered products at less cost at lower production batch quantities.

Now, we explain that lean enterprises deliver maximum performance and minimum resource consumption. A win win situation for the consumer, producer and therefore the society (economy).

The lean enterprise concept was developed by Toyota through a trial and error method to produce automobiles at low volume with high productivity. In Japan, others copied slowly as they learned about the system and implemented its practices. As Japanese companies started producing in various other countries, the practices started diffusing.

IMVP, a research study on automobile industry, codified the Japanese production and enterprise system into the concept of Lean Production System and Enterprise.

__________________

___________________

PWC – Companies have scope to reduce their working capital

PWC’s Annual Global Working Capital Study – 2018/19

1.3 trillion Euros can be released by global listed companies by improving working capital management.

The three items of working capital that need to be managed

1. Inventory
2. Assets Receivable
3. Assets Payable

Inventory Reduction Methods and Techniques

Lean and Agile Supply Chain Strategies
Global Coordination (Supply chain management activity)
Forecasting techniques
Production planning
Inventory tracking (Use of IoT and RFIDs)
Balancing Cost, Cash and Service Level Considerations
Inventory parameters and controls defining target stocks (SMED, Poka Yoke)
Inventory Replenish Methodologies (Kanban)

Lean Systems in Practice
Lean System in Lantech – 2004 Onwards
https://nraomtr.blogspot.com/2014/02/lean-system-in-lantech-2004-onwards.html

The Lean Revolution in Lantech – 1992-2003 – Womack and Jones
http://nraomtr.blogspot.com/2014/02/the-lean-revolution-in-lantech-1992-2003.html

Popular Post of A to Z April 2019 Blogging

Industrial Engineering and Operations Management – Distinction and Combination
https://nraomtr.blogspot.com/2019/04/industrial-engineering-and-operations.html

Updated on 20 May 2019, 13 April 2019