10/12/2021

Fresh Start

Continuous Improvement can serve as a driving force in every decision about supply chain design and operations. When designing or redesigning a supply chain, supply chain managers need to research and identify how each process within the supply chain can be optimized from the very start. As supply chains are implemented, CI can then be used to further enhance capabilities to meet changing needs.

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Elements of JIT for continuous improvement

Some supply chains have always included a JIT component. Fine restaurant supply chains are an example. Perishable items for consumption must be delivered on time with minimal variability and waste if they are to be served fresh to high paying customers

Continuous Improvement Tools

Seven basic tools of quality, which are the tools that help organizations understand their processes to improve them: Process mapping, Control chart analysis, Pareto chart, Cause-and-effect diagram, Histogram, Check sheet, Scatter chart.

“Inventory is evil,” in the words of Japanese JIT guru Shigeo Shingo. In some instances inventory may be a necessary evil, but Shingo’s strong statement captures the spirit of JIT. With no “safety stock”, everything in the systems has to work almost perfectly to avoid breakdowns. Continuous improvement finds ways to eliminate variability and defects so the system will work without inventory buffers. Los sizes must be kept small to avoid accumulation of inventory, and that brings down the costs of holding and handling items in storage or in queues. However, as holding costs go down, setup costs tend to rise – small, frequent lots mean more setups and increased frequency of order entry. So reducing setup time is another JIT improvement project.

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