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General Manager

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Submitted By lucygaga
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Lean Supply Chain and its Effect on Product Cost and Quality: A Case Study on Ford Motor Company
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This paper mainly focuses on reviewing the implementation of lean supply chain (LSC) in manufacturing industries by using four-step problem solving process. Also, taking Ford Motor Company as a typical case to address how companies follow the Toyota steps to apply LSC in their daily management. First of all, the author introduces the background of how LSC developed in the Toyota Motor Corporation’s big success. Three presents perfect and develop the concept of eliminate wastes and reduce non-value added (NVA) operations, and improve the value added (VA). “ The VA activities are those that customers are willing to pay money for tangible goods or intangible functions.” Meanwhile, the NVS work mostly contains wastes. The author throws out a very critical method in LSC, which is Value Stream Mapping. VSM, as a tool to identify VA and NVA in the process, plays an important role in Lean Supply Chain. Since, it can provide a visual flow to decision making, highlight and expose wastes, explain the link between information and material flow, and finally come up with a plan that can reduce the wastes and benefit the future improvement. In the following part, the author uses four-steps problem solving process to label the problems, define the tasks, highlight the obstacles, and propose the solutions. During the whole process, there are some key factors to impact the decision-making and evaluation performance. First, the priority is to collect the measurable, such as FTT, OEE, C/T, W/T, from current circumstances. After locating the three key issues, Ford Motor root causes transfer to deliverable tasks. Then, they use Five-Why analysis for dealing with these issues, and build the road map. Based on the analysis of obstacles and tasks, they are able to formulate the solution scheme for achieving real future state map (FSM), which can be updated to real FSM and changed back to current state map (CSM) again. The most interesting funding is not only how the lean supply chain tool in the VSM case affects the product quality and cost, but also raises up a question: since LSC already spreads out the manufacturing industries, how Toyota keeps its edge on its industry? The author explaines that the implementation in VSM needs a long term running and perfecting. “The needed fundamental changes are built into the enterprise’s system and working culture with a long term philosophy.”

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