ABSTRACT

This chapter focuses on how to apply Lean Enterprise Operational Management System (LEOMS) principles and tools to assess, design, and improve supply chains. The LEOMS must be applied to entire supply chains to continuously improve their design, operation, and performance, ensuring continued delivery of unmatched value to customers. In reality, typical supply chain designs remain unchanged for many years even as they evolve with more products, customers, and suppliers. It presents a strategy-driven Lean supply chain design, operations, and improvement example: the Minnesota Manufacturing Company (MMC). MMC's product leadership value discipline and product innovation value proposition requires advantage in delivery reliability, parity performance in supply chain responsiveness, advantage performance in supply chain adaptability/flexibility, and superior performance in cost of goods sold and asset management performance. Setting strategic supply chain targets should be an integral part of strategic planning using knowledge of market trends, competitors, and benchmarking analysis.