Introduction of Lean Supply Chain
Management strategy
Lean Supply chain
management is referred to as the removal of the unwanted component waste
materials while producing something or any product even from the process. This
process can be related to the manufacturing, procurements, and even it involves
the transferring or logistics of the goods (Myerson, 2012). But particularly,
the process of the Lean Supply chain can be applied to the manufacturing; meanwhile, the suppliers can
be ordered whatever they are needed during the manufacturing and Lean Supply chain
process.
The suppliers
must be or5der for the products when they needed despite saving the materials
in inventory. The concepts of the Lean Supply chain is not only for those companies
that are engaged in the operation of the manufacturing industries, but it can be
utilized for that business who are keen to streamline their processes through
reducing their non-value added activities or waste. There are several areas
that companies have for their supply chain where the waste can be identified in
various forms, such as; inventory, time and cost (Martínez-Jurado, 2014).
There are wide
ranges of companies that can be selected to present and explains the process of
the supply chain, but for this paper, General Mills is selected as the best-suited
firm that can be utilized to perform the entire criteria related to the lean supply
chain management. General Mills, Inc. is a well known organization, and it is
also considered as an American multinational manufacturer as well as the
branded consumer’s marketer. It is engaged in selling foods through various
retail stores. The headquarter of General Mills is located in the Golden Valley,
Minnesota, a suburb of Minneapolis. James
Ford Bell is known as the founders of this company. According to the statics
of the 2017 roundabout 38000 employees are working under this organization. The
sales statics of the General Mills are represented in the below-given graphs
that re-adopted from the website of the General Mills (General Mills, 2019).
Net sales of
General Mills
Source: (General Mills, 2019)
Identify a specific opportunity or problem to address for your
client
General Mills is
interpreting the problem related to the process of the Green procurements. No
doubt, General Mills is a well known firm that is producing the foods and then
sold it through various retailing stores. But General Mills wants to introduce
the concepts of the green procurements in its manufacturing plants or procedures
because the company is not running ethically and faced the high public backlash (Carter, 2015). The company
situation was extremely deteriorated that the senior executive decided to hire
the consultant in order to develop a LEAN Supply Chain Management strategy for
green procurements projects. The company will be taking the fresh start in an
ethical and socially responsible manner. This paper discusses the LEAN Supply
Chain Management strategy to make it successful along with the particular strategies
and procedures.
The concepts of
the green procurements will be implemented for the production process of
General Mills. Because currently, the implementation of green procurements has
become one of the most important requirements for General Mills (Bentahar, 2018). In order to
introduce the concepts of the green procurement in General Mills, the
consultant must develop lean supply chain management in the General Mills, and
it is leading towards the elimination of the waste during the entire process of
the supply chain, such as; procurements, manufacturing, distribution. In order to eliminate the sources of the
wastes, it is necessary to observe that where the wastes exist in General Mills.
There are the five stages in processes of the General Mills at where the waste
does exist. Their stages are;
Planning
Sourcing
Manufacturing
Delivery
Returns
Key items for the strategy of Lean
Supply Chain Management strategy
The lean supply
chain management strategy can be developed by focusing on these three major
steps, and these steps are one of the most important key steps in order to
develop the strategies for the lean supply chain management in the General
Mills (Basu, 2015). These three steps
are;
Identify waste of Lean Supply Chain
Management strategy
This is the first
step for the lean supply chain management in which the consultant must have to
pay attention to the areas or source where the waste is occurring. It is
important to know what kinds of waste is occurring in these particular stages or
sources. In order to determine this the VSM (value stream mapping will be
used). VSM is usually utilized to focus on the entire process that is utilizing
by General Mills. These process includes; to get products for customers, source
and plan the raw materials. It includes; returns, sales, and delivery as well.
By using this tool, the multiple types of the wastes can be observed in General
Mills, and probably it tough to solve all of them.
Analysis of waste to identify the causes
of Lean Supply Chain Management strategy
In the secede
step of the lean supply chain strategy, the waste will be critically analyzed
in order to measure its particular reason. By evaluating these roots cause the strength
of the waste resources can be weakened easily. After the identifications of the
sources of the waste, these sources must be discourses by analyzing the reason for
the occurrence of these wastes. In numerous cases of the General mills, it has
been observed that the outdated processes can be one of the most important root
causes. The common forms of the wastes are also known as the paper-based
processes in the entire process of the supply chain.
Repeat the cycle by solving the root cause
This is the
third stage of the lean supply chain strategy, and it is one of the most
important stages. In this stage, after the identification of the root cause of
the waste, the consultant must have to address this root cause for the project
of introducing the concepts of the green procurements in the General Mills.
There is numerous problem-solving methodologies that can be adopted or utilized
for General Mills in order to identify the solutions to the root causes of the
waste. This complete process is simply contained on the identifications of the
problems, evaluation of the alternative solutions and evaluation and selection of
the alternatives for particular problems.
Set of short- and long-term objectives
It is essential
to develop or set the long term and short term goals for the green procurements
as well as green manufacturing. It is necessary to integrate these goals into achievable
and meaningful plans. It is alluded by the target setting of the organization
to develop reasonable smart gaols that are reliable with the basic, advance or
intermediate approach. Finally, these gaols are lead towards that the kinds of
purchasing performance can be utilized for the improvement measures of General
Mills in order to achieve the goals. There are the numerous long term and short
term goals of the green procurements project of the General Mills that can be
achieved by implementing the appropriate lean supply chain strategy.
These objectives
are given below;
To improve and
attain the financial savings
To create
positive PR
To improve the
health of employees
To attain the
climate and environmental protection benefits
To reduce the
operating cost by saving the amount from taxpayers.
To introduce the
concepts of the sustainable organization.
To be a part of
the Green economy.
To implement the
lean strategy in the entire operations of General Mills.
How will the performance of your client likely improve by developing
a Lean Supply Chain Management strategy?
There are seven
major factors that are particularly involved in the Lean Supply Chain
Management strategy of the General Mills, and all of these factors entirely can
be utilized to improve the performance of the Green procurements projects of
the General Mills. These factors are the most important while consulting and implementing
the concepts of the lean in any industry, and these factors are given below,
along with its waste and measures.
FACTOR
|
WASTE
|
MEASURE
|
Transport
|
It includes the Transportation
of materials that are usually utilized in the fiction and operation of the
green procurements of General Mills. Such as cost, time and energy (Wibowo & Handayani, 2017).
|
It is utilized for the prevention
of waste and being more sustainable in its particular operations.
|
Inventory
|
It alludes the cost of the
storage products can be increased due to the Excess Stock.
|
It can be predicted or measured
by Moving goods within the limited time periods towards the outlet of the Customers
in order to prevent operational cost such as Storage cost
|
Motion
|
It contains the people's movement
and traveling excessively and Unnecessarily (Martichenko & Grabe, 2018).
|
It can be predicted or measured by using the
effective planning of the project in the Performance management.
|
Waiting times
|
It referred to as the Continuous
improvement in the customer's time and cost related to the employees of the
waste.
|
It can
be evaluated by proper planning, by considering the work in Milestones
,by creating the Timelines according to the Lead-times that is designed properly and planned ahead
|
Over-processing
|
It includes the Repetitions of
the various activities as well as cost time that leads towards the time-wasting
in numerous operations of the green procurements in General Mills (Fourie & Umeh, 2017).
|
To reduce the unnecessarily as
well as the repetitions of the required operations in the process of work
|
Overproduction
|
It includes the Excess of the Stock
that has an extra cost which attached with it
|
The infrastructure and modeling
of IT must be utilized in order to manage the inventory in General Mills. It can
be utilized to helping to maintain the track of raw materials as well as
stock as needed
|
Defects
|
It contains on the Reworking
wastes materials and time
|
It is possible by Designing a product
along with the utilization of Computer modeling. It includes the Segments
results in extra delays and expenses.
|
Importance of performance metrics
The importance
of the performance metrics for this particular lean supply chain strategy can
be measured by explaining the few factors related to the supply chain. This
performance has measured according to the two various aspects as Cost Elements
of General Mills and Customer services.
Cost
Elements of General Mills
|
Performance
of the elements
|
Inventory
|
This
element is similar for dropping the shipping.
|
Transportation
|
Dropshipping
is the cause of lower transportation somehow.
|
Information
|
Dropshipping
is the basic reason for the higher investment in some features.
|
Handling
the facilities
|
The
cost of handling is mostly higher than drop shipping at the stage of the
carrier due to this. They receive lower costs from the customer.
|
Customer service
Elements of Nestle
Customer
service Elements of Nestle
|
Performance
|
Time
of Response
|
It
can be marginally higher because mostly it's similar to drop shipping
|
Variety
of the Product
|
It
is mostly similar to drop shipping
|
Availability
of the product
|
It
is mostly similar to drop shipping
|
Experience
of customer
|
This
element is better than drop shipping due to receiving the single orders
|
Time
for Market
|
It
is also similar to drop shipping
|
Visibility
of order
|
It
is similar to drop shipping as well
|
Cross-cultural issues need to be included in the strategy
Yes, the cross-cultural
issues need to be included in the strategy because the lean realization
contains the changings of the 4Ps as people, products, processes, and philosophies.
It also includes the behaviors, attitudes, perspectives, and commitment of the individuals.
The local culture is more concerned about the strategies while these are
implementing in particular countries. The issues related to the cross-culture
that can be raised it must be considered while developing and implementing the
lean supply chain strategy in the green procurement project of the General
Mills. The importance of the cross-cultural issues for the strategy can be
measured by this particular example as; VPS (Volvo Production System) is used
by the Vivo Groups for the utilization of the 60 plant world widely. Although
their objectives are the same, the local conditions, history, and culture
govern the roadmap towards Lean implementation (Promporn Wangwacharakul, 2014)
Key metrics of success for your client
There are
several measures that can be utilized to measure success for the customers. The
clients are engaged in utilizing the various metrics measures in order to attain
success regarding particular projects. These success metrics are included as;
Client Success of Lean Supply Chain Management strategy:
The success of
the client can be considered as one of the most important metrics or measures
that can be utilized as metrics of the success for any organization or even the
clients of this particular project General Mills. The success of General Mills can be measured
by its sales and revenue. The rapid growth of General Mills leads towards the
increase in the leads and revenue of General Mills that is entirely is one of
the biggest cause of the success.
Client Satisfaction of Lean Supply Chain Management strategy:
This is another
most important success factor that can be utilized to measuring the success of
any organization or even business. If
the authorities and management of the General mills will be satisfied with the
work or projects of the green procurement, it means the organization is moving
towards success.
Client Feedback of Lean Supply Chain
Management strategy
The feedback
from the clients is the most important metrics while it is required to measure
the performance of the client in the entire market. Clients must feel that they
have a voice for their rights. By offering the chance to give feedback for the
particular projects is a great way in order to build meaning full and long-lasting
relationship.
There are numerous
other metrics that are particularly utilized by General Mills in order to measure
success, but the details of these matrices cannot be explained here due to the shortage
of time. These are; Client Churn, Monthly recurring and revenue, Customer retention
cost and lifetime value of the Clients.
The client can gain a competitive advantage of Lean Supply Chain Management strategy
As discussed
earlier this project of green procurements and green manufacturing is established
for General Mills. General mills can attain a competitive advantage by
initializing this project in the market. Due to the rapid growth of pollution
in the environment, this society and experts of the climates and environmental
sciences are strictly seeking for the positive changes in the environment and
reducing the effects that are occurring due to the industrial sectors. General
Mills can grow in the market of its competitors with the concepts of green
manufacturing and green procurements (Mavi, 2017). By giving priority
to a sustainable environment and introducing the ideas of sustainability in
this climate.
How can change management be used to address potential conflict that
arises from your recommended strategy?
Potential sources of conflict
There can be
various potential conflicts that are expected during the ideas of the project,
and these conflicts must be solved by the management in effective manners. The
change management is responsible for solving these conflicts in good ways these
conflicts are related to the various source, and it is also known as the
disruption among the particular processes (Ambulkar, 2015).
Due to a shortage
of raw materials disruption of operations in the manufacturing process
The disturbance
that is impacting the infrastructure of IT
Increase the
cost of sustainable raw materials
During the
operations Risk of waste
Managerial
issues/ Conflicts
The accurate and
particular recommendation is developed in order to solve these conflicts
issues.
Prepare a conflict management strategy for each conflict
Conflicts
|
RECOMMENDATIONS
|
Due to a shortage of raw
materials disruption of operations in the manufacturing process
|
It is solved by the constant
collaboration with the partner’s contractors and suppliers by staying within
the General Mills along with the utilization of regular monitoring, sound
policies, controls, and processes in order to ensure the high‑quality of the
products. It is also utilized for the prevention of health risks that are arising
from the storage, handling, and preparation process throughout the value
chain (Ambulkar S. B., 2015).
It can be solved by KYS (knowing
your suppliers)
• Govern the relationship
with suppliers to know the information of the market
To monitor, improve, and spot
the sustainability for the entire operations of the supply chain.
Workforce management and
training.
Implement the social and
environmental compliances
The entire source of the risk
must be mitigated after its identifications within the supply chain.
|
The disturbance that is
impacting the infrastructure of IT
|
Implement the proper contingency
plans by using particular policies. The control must be placed in order to
ensure and protect the compliance of data and infrastructure both (Kamalahmadi, 2015).
|
During the operations Risk of
waste
|
The lean principals must be
adopted by General Mills for improving the efficiencies of the operational
cost for their entire manufacturing and procurements activities. It is
particularly utilized for the just just-in-time supply chain. Yet, the
significance of this policy makes the transportation network from the local
supply chain time-critical (Mo, 2018).
In the entire areas of the
operation process of the Re-engineering must be applied to the all lean
strategy to be constantly completive
|
Contingency plan of Lean Supply Chain
Management strategy
A realistic timeline for implementing of
Lean Supply Chain Management strategy
This strategy
can be implemented by General Mills in various time spans. The lean supply
chain strategy must be implanted in various time span by indicating the results
of the previous steps with the further one. The below-given bar chart is
representing that timeline for these projects.
In the first six
months for the developments of the strategy these process must be applied;
Timeline for implementation of a lean strategy
References of Lean Supply Chain
Management strategy
Ambulkar, S. B. (2015). Firm’s resilience to supply chain
disruptions: Scale development and empirical examination. Journal of Operations
Management, 33-34, pp, .111-122.
Ambulkar, S. B.
(2015). Firm’s resilience to supply chain disruptions: Scale development and
empirical examination. Journal of Operations Management, 33-34, pp.111-122.
Basu, R. (2015).
’A strategic approach to improve sustainablilty in transportation service
procurement’. . Transport Res. Part E Logistics Transport.Rev. 74(1) pp., 152
-168.
Bentahar, O. a.
(2018). Sustainable supply chain management: Trends and challenges. . Transportation
Research Part E: Logistics and Transportation Review.
Carter, C. R.
(2015). Toward the Theory of the Supply Chain. Journal of Supply Chain
Management, 51(2), pp., 89-97.
General Mills.
(2019). About Us. Retrieved from
https://www.generalmills.com/en/Company/Overview
Kamalahmadi, M.
a.-P. (2015). Developing a resilient supply chain through supplier flexibility
and reliability assessment. International Journal of Production Research,
54(1), pp, .302-321.
Martínez-Jurado,
P. J.-F. (2014). Lean management, supply chain management, and sustainability:
a literature review. Journal of Cleaner Production, 85, 134-150.
Mavi, R. G.
(2017). Sustainable third-party reverse logistics provider selection with fuzzy
SWARA and fuzzy MOORA in the plastic industry. The International Journal of
Advanced Manufacturing Technology, 91(5-8), pp., 2401-2418.
Mo, J. a.
(2018). Quantitative lifecycle risk analysis of the development of a
just-in-time transportation network system. Advanced Engineering Informatics,
36, pp., 76-85.
Myerson, P.
(2012). Lean supply chain and logistics management. New York, NY: McGraw-Hill.
Promporn
Wangwacharakul, M. B. (2014). Cultural aspects when implementing lean
production and lean product development – experiences from a Swedish
perspective; QUALITY INNOVATION PROSPERITY/KVALITA INOVÁCIA PROSPERITY .