Lean Inventory: Using Lean Initiatives To Manage Inventory

Cerasis

What is Lean Inventory Management? More firms are implementing lean inventory management techniques to reduce costs, improve flexibility and have more time to focus on their customers. Lean supply chain and inventory management enable Small Medium Businesses (SMB) to improve efficiency and increase profits. What is Lean Inventory Management? Pull (Lean principle: Kanban) : Move inventory only when requested by customer.

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When is Inventory Too “Lean”? Finding the Right Balance

ToolsGroup

I learned about “lean manufacturing” (or simply “lean”) back in the 1990s when I met James Womack and read his book “ The Machine that Changed the World ”. Based on MIT's five-year, fourteen-country study – one of the largest and most thorough ever undertaken -- the book describes the entire managerial system of lean production. In the last twenty plus years “lean thinking” has fundamentally changed the way many companies, and sometimes whole industries, operate.

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Lean Manufacturing

LeanCor

As a result, warehoused inventory increased from one to seven warehouses due to lack of a defined inventory and replenishment strategy. Recognizing a need to extend its lean manufacturing program in o rder to tackle problem areas in the warehouse, the motor company partnered with LeanCor to optimize material flow and reduce production time losses due to parts shortages. Additionally, right sizing of the inventory strategy allowed for anticipated production growth.

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Lean Warehousing

LeanCor

Lean Warehousing – From Paradox to Operational Excellence. Before we start talking about Lean Warehousing, can you tell us a little bit about LeanCor Supply Chain Group? We want to help our customers succeed in their quest for lean and operational excellence. Relative to our topic today, Lean Warehousing, is it a big part of your operations? What we know for sure is that lean warehousing, just by the nature of the term itself, can be a paradox at best.

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Using Lean to Manage Inventory!

Supply Chain Game Changer

Check out A “Don’t Touch” Strategy will Dramatically Lean out your Supply Chain! What is Lean Inventory Management? Lean supply chain and inventory management enable Small Medium Businesses (SMB) to improve efficiency and increase profits.

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Lean Transportation: Are you Using Lean Thinking for Transportation Management? If not, Why?

Cerasis

Lean is a new way of doing business. For shippers, culture and behavior have to change to apply Lean Transportation thinking. Lean thinking focuses on the elimination of all waste (where waste is defined as any non-value added process) and bringing value to the customer , beyond the customer’s expectations. The “Them (company leadership) versus Us (shop floor associates)” mentality also needs to change for Lean Transportation to " WE.

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Understanding Lean and the 8 Wastes

The Logistics of Logistics

Understanding lean and the 8 wastes is important for all operations people including logistics and supply chain folks. The concept of lean (and the 8 wastes) originated in the manufacturing sector where it was first recognized that eliminating waste in the system led to much bigger profits. Henry Ford and his team at Ford Motor Company discovered lean along with the assembly line, even though they didn’t necessarily use the term lean. Excess Inventory.

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Lean Thinking Revisited

Operations and Supply Chain Management

One landmark in the lean revolution for retailers was Walmart ’s decision in 2006 to thin out inventory by $6.5 The supply chains for consumer goods in the U.S. remain under strain months after pandemic lockdowns triggered a range of sudden and surprising shortages.

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How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

Today I will discuss how a company can sustain a lean culture once they have implemented lean practices in order to achieve continuous improvement. Your company has started the lean journey, but how do you sustain it? Let's first talk about first setting the stage, then give you practical practices and tactics to achieve a sustainable lean culture, and then provide core key performance indicators (KPIs) to track your progress. Lean Culture by Creating "Standard Work".

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Lean Manufacturing

LeanCor

A Systems Approach to Inventory Management. Inventory Management. Lean principles focus on eliminating waste from business processes. Inventory is not isolated to raw materials and finished goods. Companies will carry inventory masquerading as service parts, repair items, administrative suppliers, automobile fleets, and a host of other types of assets that are managed by setting and maintaining certain levels. Inventory Management Processes.

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Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”

Cerasis

Lean systems have provided a formidable operating strategy for leaders determined to achieve and maintain optimal operational systems and customer satisfaction levels. There are multiple good models for lean manufacturing operations. Who Needs Lean Manufacturing? A company in need of lean manufacturing practices tends to be easy to identify, typically displaying multiple of the following symptoms of operational deficiency: Inventory amasses in buffer stocks.

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9 Steps to Establish the Lean Supply Chain: A System of Interconnected & Interdependent Partners

Cerasis

Top management knows that lean can add value , but many still haven’t moved past the initial education stage into full-scale lean supply chain implementation. One reason may be that they haven’t made the paradigm shift as to how to implement lean. The Lean Supply Chain is a system of interconnected and interdependent partners that operate in unison to accomplish supply chain objectives. o Space—holding places for unnecessary inventory.

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Lean Six Sigma

LeanCor

What is Lean Six Sigma Logistics? Lean Six Sigma is the combination of two methodologies that complement one another when applied to logistics and supply chain management. Lean Six Sigma Logistics: Lean and the Logistician. The impact of Lean on the logistician is significant. A common misconception of Lean philosophy is that it only finds application in manufacturing settings. Lean Six Sigma Logistics: Six Sigma and the Logistician.

Lean Principles and Sales & Operations Planning (S&OP)

Logility

Many companies have high hopes when they set out to establish a Lean operating environment. A growing body of knowledge and experience indicates that advanced Sales & Operations Planning (S&OP) may be the key ingredient for Lean success. Lean applied to supply chain operations is all about creating capabilities that efficiently move materials from raw through finished product, and then to the customer.

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Warehouse Cost Reductions: 3 Understandings Driven By Inventory Management & Lean Principles

Cerasis

Today, I will now address how a focus on inventory will allow for warehouse cost reductions as well. A Focus on Inventory Control Begets Warehouse Cost Reductions. First, look at inventory as MONEY/CASH. Inventory cost is defined as the cost of holding goods in stock. If you are looking for warehouse cost reductions, chances are you are stocking too much inventory. Understand Data Integrity to Reduce Inventory Costs. Lean is a new way of doing business.

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Applying Lean 6 Sigma Principles to the Supply Chain

Logility

Fifteen years ago, I worked for a company that embraced Lean 6 Sigma as a core operating fundamental. Just about every member of the management team was a Lean 6 Sigma Black Belt and many had attained a level of Master Black Belt. Shortly after joining the company I underwent an intensive Lean 6 Sigma training program and completed my Lean 6 Sigma Black Belt certification. Today, Lean is a concept, a philosophy, a practice and a set of tools all wrapped in one.

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Lean versus EOQ? What’s best for your organization?

Kinaxis

In no time at all we were debating between lean versus EOQ. EOQ attempts to optimize lot size by balancing manufacturing cost ( Fixed + variable costs) with things like inventory holding costs and capacity utilization. Lean relies on minimization of, among other things, lot sizes, inventory and waiting. Master schedulers can manipulate the planning parameters to create lean or EOQ optimized schedules, but how do you decide which way is right for your organization?

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26 Best Practices in Lean Warehousing

LeanCor

Many people may think the term “lean warehousing” is an oxymoron. Let’s face it, most lean purists believe that all transportation and warehousing functions are pure waste. The fact is, particularly with the growth of the global supply chain and extended lead times, lean warehousing is necessary and plays a critical role and must be integrated into the entire supply chain. At LeanCor, we look at the term lean warehousing from two vantage points, or two cases.

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Leaning Towards S&OP/ IBP

Logility

Many companies have high hopes when they set out to implement a Lean improvement program. A growing body of knowledge and experience indicates that Integrated Business Planning (IBP) may be the key ingredient for lean success. Lean is all about creating a physical environment that enables material to flow efficiently from raw through finished product to the customer. The perfect enabler for Lean success is called Integrated Business Planning.

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Introducing Lean In Retail … Start in the Backroom!

Supply Chain Game Changer

Check out 10 Signs You Should Reboot Your Lean Program! I decided that I would introduce Lean process improvement techniques to this company. I came from a Manufacturing, Operations and Supply Chain background so I spent a career surrounded by the application of Lean methodologies.

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Using Lean Management for Inventory!

Supply Chain Game Changer

Why Agility is Trumping Lean! Lean management article originally published by Veridian at [link] Permission to publish here provided by Jason Rosing. What is Lean Inventory Management? What is Lean Inventory Management? Subscribe Here! Email Address.

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Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

The Value of Lean Supply Chain Management

LeanCor

Lean Supply Chain Management. Lean supply chain looks to reduce waste and inventory levels so that the volatility and risk is minimized with shorter lead time(s). As companies have sourced suppliers further and further from operations, there has been an increase in lead time and inventory trapped within the supply chain, as this happens, the bull whip affect occurs. What recent changes in your industry have shown you that lean supply chain management is valuable?

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Multi-echelon Inventory Optimization and Lean/Six Sigma

Supply Chain Action Blog

How Lean Thinking Helps. Lean principles are applied to drive out waste. One of the most predominant lean tools used for identifying waste is Value Stream Mapping which helps identify eight wastes, including overproduction, waiting, over-processing, unnecessary inventory, handling and transportation, defects, and underutilized talent. In inventory management, this often happens through a reduction of lead times and lot sizes.

Multi-echelon Inventory Optimization and Lean/Six Sigma

Supply Chain Action Blog

How Lean Thinking Helps. Lean principles are applied to drive out waste through a reduction of lead times, lot sizes, and activity that does not increase the value of the whole. Lean principles have been encapsulated by the five S’s, taken from the transliteration of five Japanese words, which, in turn, have been translated into English counterparts. Seiri (Sort) – sorting, i.e., proper arrangement of all items, storage, equipment, tools, inventory and traffic.

Do Lean and Six Sigma have a place in tomorrow’s supply chain?

The Network Effect

Before I answer the title question, let’s have a quick refresher on what exactly Lean and Six Sigma are. Lean , on the other hand, analyzes process flow and related outputs, including waste. Core events within a lean program are Kaizens, which are focused, high energy, cross functional design sessions whose goal is to create standardized solutions which can then be implemented in a step wise fashion. The term most commonly used today is “Lean Six Sigma”.

Applying Lean Principles to Supply Chain Planning

Logility

Today, Lean is a concept, a philosophy, a practice, and a set of tools all wrapped in one. For more than 50 years, organizations have invested time and money adopting the principles of Lean (while originated at Toyota Corporation for manufacturing operations, the principles of Lean have since spread to many types of businesses and functional areas). The two primary principles of Lean, Just in Time and Jidoka, are referred to as the pillars of the lean philosophy.

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Lean Supply Chain: The Culture That Must Be Fully Embraced

LeanCor

By: David Sherman – Lean Logistics Specialist. By maintaining lean practices and instilling lean cultures into their employees and work environment firms are able to realize this success. These lean practices and cultures lead to firms transforming their habits based on customer demand rather than by supplier constraints. What is the lean supply chain? There are three key principles to understand and utilize throughout the lean supply chain processes.

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Lean Manufacturing Driven by Rapid Return on eKanban Technology Investment

synchrono

Lean Manufacturing relies heavily on trusted relationships with suppliers and pre-negotiated terms of engagement. Through the use of supplier quality certifications and blanket (long-term) purchase orders, a manufacturer can accurately and effectively calculate the optimal level of inventory needed to fulfill demand requirements through the duration of replenishment lead time. Eliminating inventory waste.

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Embrace Lean Warehousing Practices in 2017

Talking Logistics

From the electricity powering the lights to the labor costs of each order picked, embracing “lean” principles is one of the few proven ways that a company can fight back from its bottom line. One of the core concepts behind lean is the need to look closely at operations within your warehouse, and never fall into the trap of complacency — even if things seem functional at the moment. Apply Lean to Your Physical Assets. Apply Lean to Your Processes.

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Lean Logistics and Material Flow: The Importance of Continuous Improvement

LeanCor

Manager, Lean Supply Chain Operations. Lean logistics aims to reduce inventory levels and create flow within supply chain networks. For supply chains looking to obtain one-piece flow lean logistics processes must be in alignment with purchasing and inventory strategies among other processes within a firm or supply chain network. Lean Logistics Journey. As firms begin their lean journey it is paramount to align all processes within the logistics function.

Inventory Management

LeanCor

Inventory management, network infrastructure, and labor deployment are all critical components necessary to meet this intense customer demand. Inventory Management Strategy. If we’re going to get inventory into consumer hands the same day they place the order, the inventory has to be 1) available and 2) less than 8 hours away. This requires us to push the boundaries of current inventory management practices, or hold lots of inventory network-wide.

Supply Chain Shifts From Lean Model

AB&R

With the supply chain’s lean model, many retailers were not able to respond to the sudden changes in demand. ” As new warehouses are developed and supply is increased, having visibility into what inventory and assets companies have, and where they are located will become even more vital. The post Supply Chain Shifts From Lean Model appeared first on AB&R. Blog Company News Inventory Management Uncategorized Video industry news supply chain warehouse

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The Power of Collaboration within the Lean Supply Chain

LeanCor

By: David Sherman – Manager, Lean Supply Chain Operations. The lean supply chain consists of many moving parts, multiple processes, and countless people. Lean supply chain partners must be able to successfully collaborate in order to realize and accomplish their shared goals together that will facilitate in the success of their ventures. Understanding each customer’s actual demand is key to successful collaboration in the lean supply chain.

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How Lean Warehousing Can Ease Your Carrier Capacity Pain

LeanCor

Lean Warehousing: By: Clint McCrystal – Team Leader of Operations. One specific type of lean warehousing that one of our customers has available to them comes in the form of a cross-dock. Just-in-time delivery – Cross-docking allows for just-in-time delivery of inventory to a customer’s manufacturing facilities without driving up transportation cost by way of postponement. Being able to reduce the inventory levels at the plant is a huge benefit from lean warehousing.

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