Theory of Base6© - Successfully Implementing the Lean Supply Chain - Part II

In Theory of Base6© - Successfully Implementing the Lean Supply Chain - Part II, Robert Martichenko and Dr. Thomas Goldsby elaborate on their Theory of Base6 reviewed in a previous post. In the previous post, they summarized the common themes that find their way into the Theory of Base6:

1. Customer Focus


2. Vision Deployment


3. Process Management


4. Teamwork


5. Quality at the Root


6. Continuous Improvement

In this part, they expand further on their Theory of Base6 by highlighting what they believe to be at the core of lean supply chains - lean processes and lean process management. They begin by outlining eight Rights with respect to lean supply chains:

1. Right Part


2. Right Quantity


3. Right Time


4. Right Place


5. Right Price


6. Right Quality


7. Right Source


8. Right Service

Further, they define a Process as:

a series of tasks or operations that transform a product or service from one state to another

and effective processes as generally composed of four main components:

1. Standard Inputs


2. Standard Procedures


3. Standard Timing


4. Standard Outputs

They have an important point to make about walking down the path of standardization and benchmarking. Benchmarking introduces a sort of starting point from where continuous improvement can be employed. The rationale offered by the authors is that cost reduction can rarely be a direct action (except perhaps when workers are fired or entire activities are outsources) but that it is better thought of as an activity occurring within the context of a process.

This is a fundamental point that many organizations don't completely understand: we don't directly reduce costs; rather, we eliminate waste from processes and the net result is cost reduction. Discipline of process must be our priority.

In the next installment, the authors promise to elaborate on how the Theory of Base6 can be practically used to help uncover and eliminate process waste. I really cannot find anything more substantial than the material that is already available on lean thinking on the web out there. Look at Gemba for one.

Categorized as: Lean_, Supply Chain Management_, Review_
Tags: Lean, Supply Chain Management, Lean Thinking, Theory of Base6

posted by AJ @ 5:01 PM