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Management

In Lean Management, there are 7 types of waste (non-value add) that are identified: Overproduction, overprocessing, excess inventory, transportation, defects/rework/scrap, excess motion, and waiting. However, if I have a global supply chain, I have to have transportation of goods between suppliers, processors, distributors, retailers, and customers. Which of the following best describes how to think about transportation in terms of Lean principles?

a

Transportation should be paid for by customers and suppliers, so it is not a “real” waste.

b

Transportation is just necessary and it doesn’t count as a “real” waste.

c

Transportation will eventually be eliminated by teleportation.

d

Transportation should be examined for the potential minimization. This could include optimizing delivery routes, optimizing shipments, or positioning inventory closer to the point of use.

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