Industries

• Aerospace
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• Metal Casting & Foundry
• Pharma, Biotech, Medical
• Service & Administration
• Supply Chain

Industries

Supply Chain

When Mr. Taiichi Ohno of Toyota visited America in 1956, he visited a supermarket and observed how it operates - shoppers browse and select from a variety of products, and stock clerks replenish the shelves. This basic system was implemented in the automobile factory to make Toyota one of the top producers of vehicles in the world. Mr. Ohno believed that reducing inventory through a customer-driven "pull" system was the key to a powerful and efficient supply chain.

How does a "pull" system benefit the supply chain? Since production or delivery is initiated by consumption, this prevents overproduction and balances the flow of goods based upon actual market conditions instead of planning and speculation. Since the priority is placed on replenishment, workers are more engaged in the process of standardizing procedures.

Although perfection may never be achieved, the goal of a lean supply chain is to complete one unit just in time to be delivered. This gives a company the speed and agility to keep in touch with customer needs while minimizing the inefficiencies of excess inventory.