Organizations are always looking for ways to eliminate waste while maintaining product or service quality. There has been a lot of discussion, both in print and online, about how companies can improve supply chain efficiency and effectiveness. But how have organizations actually accomplished this?
APQC recently took a look at companies that have won the Shingo Prize, which recognizes organizations that have adopted a culture focused on operational excellence. For these companies, the goal is to eliminate waste and continuously improve their performance to achieve results. In our study, we focused on how these organizations have adopted Lean practices in their supply chains. We looked at three companies:
Although each of these organizations is in a different industry has a slightly different take on applying Lean to the supply chain, they all strive to find ways they can perform better. This has led to some impressive benefits.
Lycoming provides engineering, manufacturing, service, and support to the general aviation industry. Its adoption of Lean practices in its supply chain has enabled it to improve the reliability of its products from suppliers onward. It keeps its employees engaged in Lean efforts by making improvement part of the organization’s standard work from the top down. This has enabled its employees to take ownership of quality and continuous improvement efforts.
Rexam is a global consumer packaging group and beverage can maker headquartered in London. It applied Lean to its manufacturing operations, which has allowed it to eliminate unnecessary waste and increase safety for employees. By making manufacturing excellence part of the company’s culture, Rexam is able to increase efficiency, reduce costs, increase profits, and increase customer satisfaction.
US Synthetic manufactures diamond inserts that are used in drilling tools for oil and gas exploration. The company aims to improve the lives of its employees, customers, shareholders, and community. This attitude has enabled it to improve the performance of its organization as well as develop the capabilities of its staff. It encourages employees to view improvement as a journey. The emphasis is not on attaining perfection but rather on quickly identifying opportunities for improvement, making the changes necessary, and then moving on to focus on other opportunities.
Has your organization adopted Lean in its supply chain? How has this changed your culture and supply chain performance?
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