Reducing global supply chains’ waste of overproduction by using lean principles: A conceptual approach

PurposeThis paper aims to present a lean management approach to reduce waste generated by overproduction within a global supply chain setting. Statistics register a considerable increase in inventories which has increased waste because of the overproduction/oversupply throughout the global supply ch...

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Bibliographic Details
Published in:International journal of quality and service sciences 2019-12, Vol.11 (4), p.441-454
Main Authors: Chen, Chi-Kuang, Palma, Fernando, Reyes, Lidia
Format: Article
Language:English
Subjects:
Costs
Globalization
Inventory
Inventory management
Lean manufacturing
Literature reviews
Logistics
Manufacturers
Manufacturing
Productivity
Profits
R&D
Raw materials
Research & development
Supply chains
Wholesalers
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Summary:PurposeThis paper aims to present a lean management approach to reduce waste generated by overproduction within a global supply chain setting. Statistics register a considerable increase in inventories which has increased waste because of the overproduction/oversupply throughout the global supply chain, and there has been insufficient research targeting on it.Design/methodology/approachThis study develops a conceptual approach based on the practices of Toyota Production System (TPS). The analysis is performed on four segments of a business: “R&D”, “Production”, “Logistics” and “Service/retailers”. The proposed approach adopts the pull-based lean management system by two modules, “Intra-lean management” and “Inter-lean management”.FindingsA case study is conducted to demonstrate how the proposed approach can be used in a real situation. The ideas and benefits of the proposed approach are also discussed.Practical implicationsThe proposed solution can be applied in manufacturing and service industries, as well as in industries where production and R&D are interconnected.Originality/valueThe paper provides a conceptual approach that explains how intra- and inter-lean management can be effectively integrated to achieve a smooth flow in the business. This paper innovates in developing a pull-based driven flow relationship among the four segments of a business, as a response to the lack of integration among them and the increase of inventory in the hands of businesses.
ISSN:1756-669X
1756-6703
DOI:10.1108/IJQSS-03-2018-0024