Lean Supply Chain Management and Lean Manufacturing: What are the differences?

Filed in archive Practical Tips on February 11, 2008

With the rise of Lean Supply chain Management as a new concept, this question comes to the mind that what are the differences and similarities between Lean Manufacturing and Lean SCM? Or are they the same? Here is my answer. You can also mention in the comment part what you think:

Lean Manufacturing and Lean SCM are both trying to reduce the amount of waste and the lead time. However they are not the same in terms of tools, approach and maturity requirements they are pursuing. My quick comments are:

1) Lean Supply Chain can't start unless you have a good level of lean maturity in your operations. In other words, you have to start with lean manufacturing.

2) Tools and concepts such as SMED, SPC and quality circles can not be applied easily to a supply chain due to the fact that scope now is different companies with different cultures.

3) Usually for the supply chain side, Six Sigma combined with lean philosophy is applied.

4) In supply chain collaboration's role is more important: the way company works with the suppliers and the partners to reduce the waste.