(lean)Supply Chain and Operations Management Essay

(lean)Supply Chain and Operations Management - Essay Example Many large corporations have intricate purchasing and supplying operations that inevitably create waste and foster non-value added activities. In order to minimize waste and reap maximum profits, corporations exercise lean management practices. One such corporation that practices lean management is Toyota Motor Corporation. It has remained one of the key practices in Toyota (KERBER AND DRECKSHAGE, 2011). One of the key steps in lean is to recognize which steps create value and which do not. By breaking down all activities in to the two aforementioned categories, concrete steps can be taken to promote the former and eradicate the latter. The lean management identifies seven activities as the â€Å"seven wastes†, they are as follows: Over-production: This occurs when more products are produced than what is demanded by the consumer. One common erroneous practice is the production of goods in bulk, as often transpires that customers need change over long periods that products in bulk require. This practice is considered the worst source of waste, as it begets all the other wastes, as more inventory and expenditure is required for the storage and preservation of goods; this does not benefit the customer nor generates income (TAYLOR AND BRUNT, 2001). Continuously improve: This is the mindset which a company is required to adopt. It must always work on the incremental enhancement of processes, services and products over time, with the aim of reducing waste and maximizing