Wednesday, March 08, 2006

The Skinny on Lean

The Skinny on Lean

DC Velocity: The concepts of lean manufacturing, which revolutionized auto manufacturing in the 1990s and has since been used successfully in a number of other industries, are beginning to spread to distribution and logistics. Lean isn't about incorporating automation or pushing employees; it's about designing good processes. Two of its tenets are knowing exactly where items are at all times and replenishing them frequently. Process flaws show up quickly during these short supply cycles. This article includes a mini-case history of automotive parts supplier Menlo Worldwide, where productivity at a lean warehouse increased 32 percent in 2005 and defects dropped by 44 percent; shipments went out on time in eight out of 11 months. Even better, a Menlo Worldwide executive says start-up costs for the project were zero.

http://ct.itbusinessedge.com/t?ctl=DA88CC:3C5015E

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