ABSTRACT
Most companies beginning a Lean journey focus on the assembly process, without trying to link value creation to the entire supply chain. Figure 2.1 illustrates a simplified view of a typical supply chain. Orders come in to a company with unpredictable frequency. There is usually some kind of order management logic built into the enterprise system that releases orders in a logical sequence. Orders then get dispersed to various manufacturing sites. The manufacturing sites then release material requirements to their supply
base receiving components to build the order. Because multiple manufacturing sites are involved, the customer order goes to a Distribution Center (DC) where orders are consolidated and shipments are prepared and sent to customers. This lead time can be as long as five to six weeks or more.
