By Dreckshage, Brian J.; Kerber, Bill
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Additional resources for Lean supply chain management essentials : a framework for materials managers
Example text
The traditional definition of takt time is effective available work time divided by demand. This suggests a chase strategy, in that demand and production will be the same. So planning and measuring production based on the demand rate (again, the same as the production rate in a chase strategy) is what we are doing with the traditional definition of takt time. Obviously, for value streams where a chase strategy is employed, this will be fine, but for those with a leveling strategy this will not work well.
As we have stated from the beginning, Lean is meant to be a complete system and philosophy for running a company. For many companies, though, Lean is still just the set of TPS tools that assist in the identification and then steady elimination of waste (muda), which improves quality, reduces lead time, and reduces costs. And while this is not a bad set of results, muda is only one of three wastes that should be addressed.
Remember that one of the main objectives of forming E x ecu ti v e S & OP, F o rec a s tin g , a n d Cus t o m er Rel ati o nship s 3 9 partnerships with customers and suppliers is to eliminate forecasts on dependent demand items in the supply chain. In this chapter we have dealt with long-term planning issues, reviewing executive sales and operations planning, forecasting, and customer-supplier partnerships. Our conclusions can be summarized by saying that the executive sales and operations planning process is most suitable for long-term strategic planning in a Lean environment, as long as it is recognized that the product families that both rely on should, in most cases, be different.