Lean management is a way of approaching organizational problems that is characterized by continuous

improvement and the use of proven, problem-solving methodologies. The goals of Lean Problem Solving
include: ... Using data and process flow to focus on a problem. Developing practical and detailed
solutions.Lean includes a wide range of principles and tools with the goal of identifying and removing
waste to increase process velocity. Put in plainer terms, Lean practises seek to maximise value to the
customer or client, whilst minimizing waste of all kinds.Simply, lean means creating more value for
customers with fewer resources. A lean organization understands customer value and focuses its key
processes to continuously increase it. The ultimate goal is to provide perfect value to the customer
through a perfect value creation process that has zero waste.

supply chain management is the management of the flow of goods and services and includes all processes
that transform raw materials into final products. It involves the active streamlining of a business's supply-
side activities to maximize customer value and gain a competitive advantage in the marketplace.Retail
companies become involved in supply chain management to control product quality, inventory levels,
timing, and expenses. ... Examples of supply chain activities include farming, refining, design,
manufacturing, packaging, and transportation..SCM is important because it increases competitiveness and
customer satisfaction. In this day and age, SCM plays an integral part of a firm's success. Efficiently
running supply chains allow firms to quickly deliver products to the end-user for a low cost.A supply
chain involves four general activities, including

1. purchasing,

2.production,

3.inventory management, and

4.transportation and distribution

In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which
consists of five parts:

1.The plan or strategy.

2.The source (of raw materials or services)

3.Manufacturing (focused on productivity and efficiency)

4.Delivery and logistics.

5.The return system (for defective or unwanted products)

Eight of the most important benefits of effective supply chain management.

1.Better collaboration. ...

2.Improved quality control. ...

3.Higher efficiency rate. ...

4.Keeping up with demand. ...

5.Shipping optimization. ...

6.Reduced overhead costs. ...

7.Improved risk mitigation. ...

8.Improved cash flow.

The Five Pillars are of SCM:

1.Value for Money. In short this means that it is not necessarily the tender with the lowest price that is
going to win the bid. ...

2.Open and Effective Competition. ...

3.Ethics and Fair Dealing. ...

4.Accountability and Reporting. ...

5.Equity.

The basic purpose of the supply chain is to fulfil demand, drive customer value, improve responsiveness,
facilitate financial success and build a good network.

What is Just-In-Time (JIT)?

The Just-In-Time (JIT) concept is a manufacturing workflow methodology aimed at reducing flow times
and costs within production systems and the distribution of materials.

The concept was popularized by the productivity of Japanese industry in the early 1970s within the
Toyota manufacturing plants that would meet consumer demands with minimum delays using an
approach focused on people, plants and systems.

The prime goal of JIT is for zero inventories across the organization and its supply chain. This completely
utilizes the organizational capabilities and maximizes ROI. The system was so successful in Japan it was
copied by many US companies, notably Hewlett-Packard.

Successfully implementation is dependent on creating a business wide initiative, encouraging staff

engagement and formulating a policy and strategy that can be mobilized.

How can Just-In-Time (JIT) JIT be applied successfully?

Create a stabilized work schedule.

Establish long-term supplier-customer relationships.

Create a purchasing philosophy on supporting frequent small purchases.

Encourage and ensure employee discipline.

Identify value-added and non-value added items in shop floor activities.

Ensure top management commitment for effectiveness and successful implementation.

What are the advantages of Just In Time (JIT)?

JIT can be applied to a wider variety of business processes including HR, accounting, supply chain,
operations management and relationship management.

JIT can achieve better product quality through elimination of waste in production.

The JIT approach can reduce the cost of inventories and inventory requirements.

What are the disadvantages of Just In Time (JIT)?

The JIT system does not cope well with sudden changes to demand and supply.

Implementing the system can be challenging and time-consuming.

Can a Just In Time manufacturing process prove effective?

In order to make supply chains more effective the concepts of Lean and Agile have been adopted by many
organisations, which incorporate a Just-in-time approach.

The lean and agile paradigms, though distinctly different, can be and have been combined within
successfully designed and operated total supply chains.

Lean means developing a value stream to eliminate all waste, including time, and to enable a level
schedule. Waste is defined as any activity which does not add value, but becomes integral to the
production. This is an example of supply chain cooperation in action.

Agility means using market knowledge and a virtual corporation to exploit profitable opportunities in a
volatile market place, and the focus is on customer responsiveness and time-based competition.

Is Just in Time (JIT) right for my business?

The Just in Time process is not a solution for all organisations and determination if this is the best fit for
your organisation is essential, it may be that this process can only be applied to certain areas of category
management.

To find out more about this subject read the full knowledge paper: Just In Time (JIT)