ABSTRACT
This chapter discusses the purchasing process steps in terms of their basic mechanics, as well as how and where Lean thinking concepts can be applied. Issuing purchase orders involves the execution of the master schedule and materials requirements planning recommended purchasing requirements to ensure good use of resources, minimize work in process inventory and provide the desired level of customer service. The principles are: specify value, identify the value stream, flow, pull, and seek perfection. Purchasing processes such as ordering, supplier selection, supplier evaluation, supplier development, strategic decisions, and other internal activities need to be analyzed to identify and eliminate non-value-added activities and to focus on adding more value. Purchasing should make sure that ordering and payment routines are simplified to use minimal resources. Participants in the event mapped the current purchasing process in region one and analyzed the process map to develop streamlined procedures.
