LEAN is an enterprise journey, right? Actually, the uncharted value of LEAN lies in the EXTENDED enterprise – the Total Supply Chain. It is estimated that fully 75% of the actual waste in the supply chain lies outside the boundaries of operations controlled by any single “enterprise.” A new approach, coined “Extended LEANTM” by innovative LEAN practitioner Total Insight, examines the “whole” supply chain, both manufacturing and logistics, to “connect” end-to-end value streams, and uses actionable intelligence to ensure adoption of change. EXTENDED LEAN is characterized by three guiding principles:
- Data Driven
Eric Lail, Vice President of Continuous Improvement at Transportation Insight, presented the concept of EXTENDED LEAN at IndustryWeek’s Best Plants conference April 22nd-24th in Greenville, South Carolina. Eric is also Vice President of LEAN Performance Solutions at Total Insight, a sister company of Transportation Insight that focuses on LEAN consulting and process improvement. He is one of 200 Shingo Prize Examiners.
“Most companies today are looking at the value stream within their four walls,” said Lail. “While we continue to see huge gains from those efforts, the reality is that portion of the value stream is typically a very small piece of their total supply chain. EXTENDED LEAN looks at the entire value stream from the originating supplier through manufacturing and distribution to the end consumer. Ultimately, linking supply chain value streams from multiple customers creates industry-wide value networks, which is where true competitive advantage is realized.”
Listen to a recorded EXTENDED LEAN presentation from Eric at the Operational Excellence Conference at Utah State University, to learn about how this approach can change your thinking on LEAN in your supply chain. Learn what other companies have achieved by adopting this model.