Identify Improvement Areas in Supply Chain Coordination : An exploratory methodology development

Abstract: Lean production and Lean philosophy have been developed, studied and implemented over the world since it was know from Toyota Production System. International manufacturers/OEMs have more or less developed their own Lean production systems. Over the years, arising challenges from new technology and internationalization have force the OEMs to understand and evaluate the design of supply chain to support their lean production system, and to manage the SC and compete as a whole against other supply chains. When apply Lean principles to the level of Supply Chain, coordination is an essential element to success. Today, researches have been done on joint efforts on decision making among supply chain actors, and applying Lean tools such as VSM on an extended level, namely a supply chain. Whereas the methods to improve SC coordination when implementing Lean through SC remain undeveloped. By interviewing Lean supply chain experts, experienced personnel in Supply Chain Management, and Lean experts from various organizations, a methodology to identify and visualize the improvement areas in supply chain coordination was designed. The methodology was then tested in a European OEM’s supply chain. Value Stream Mapping, as the base, was adapted to support identification and visualization of improvement areas in supply chain coordination. Several misalignments in the SC coordination were found in the current state, then visualized in current state map and approved by various SC actors. The methodology was then improved according to the process of testing. The purpose of this thesis is to develop a methodology to identify and visualize the improvement areas in (manufacturing) supply chain coordination within a Lean perspective.