Supply Chain ManagementEnterprise Strategy/AW/07

Arj Wignaraja

Push (Traditional) vs. Pull Supply Chains

Raw material supplier

Manufacturer

Distributor RetailerEnd

customer

Elements of a Supplier Strategy

Sources

Cost, quality &

speed

Antagonism or

partnership?

Make or buy/

outsource

Number of suppliers

3 Stages of E-procurement

E-sourcing E-purchasing E-payment

Responses to Today’s Increasingly Challenging Environment

Competition

Globalization

Rapid change

Complexity

Perceived risk

Emergent planning

Sustainable strategies

Innovation

Quality

Cost reduction

Automation

Flexibility

IT & IS

LEAN SYSTEMS

Theory in Practice: Lean Manufacturing for the Boeing 737

• 367,00 parts, an equal number of bolts, rivets, and fasteners, 36 miles of electrical wire!

1. Reduced set-up times

2. Visual control systems – Andon lights

3. Layout – bays, and lines marked on floor

4. Limited inventory/JIT delivery

5. Standardized work process

6. Continuous production flow: aircraft moves, workers and parts are stationary

7. Action teams – for problem solving. Situated close to each other

8. Feeder lines – does not hold up the main production

9. Work balancing – between the 2 shifts

9

Steps