UNDERSTANDING OF THE LEAN PRODUCTIVITY – THE SOURCE OF SCM PRODUCTIVITY GROWTH IN THE METALLURGICAL INDUSTRY

1 HOLMAN David
Co-authors:
2 JIRSÁK Petr 1 LENORT Radim 1 STAŠ David 1 WICHER Pavel
Institutions:
1 SKODA AUTO University, Mladá Boleslav, Czech Republic, EU, david.holman@savs.cz, radim.lenort@savs.cz, david.stas@savs.cz, pavel.wicher@savs.cz
2 Univerisity of Economics, Prague, Czech Republic, EU, jirsakp@vse.cz
Conference:
24th International Conference on Metallurgy and Materials, Hotel Voronez I, Brno, Czech Republic, EU, June 3rd - 5th 2015
Proceedings:
Proceedings 24th International Conference on Metallurgy and Materials
Pages:
1939-1944
ISBN:
978-80-87294-58-1
ISSN:
2694-9296
Published:
12th January 2015
Proceedings of the conference were published in Web of Science and Scopus.
Metrics:
334 views / 132 downloads
Abstract

The productivity of the Supply chain management (SCM) system is strongly influenced by the stability of either the production or the delivery processes. Commonly, unpredictable customer demand is understood as the root cause of instability. However, this is not the only source of instability and rigid production and logistics processes and conservative production planning are responsible for it at least in a similar way. Actual competitive markets create strong pressure on productivity which is generally reached by big production lot sizes focusing on unit costs reduction. Nevertheless, the consequences of big production lot sizes create overproduction, which is the source of all kinds of waste, well-known from LEAN production, reducing productivity in the production and delivery processes as a whole. The aim of this article is to propose conceptual framework enabling the quantification of Lean productivity benefits ensuring productivity growth of the whole SCM in the metallurgical industry.

Keywords: productivity growth, production levelling, metallurgical industry

© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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