Reducing global supply chains’ waste of overproduction by using lean principles: A conceptual approach

This paper aims to present a lean management approach to reduce waste generated by overproduction within a global supply chain setting. Statistics register a considerable increase in inventories which has increased waste because of the overproduction/oversupply throughout the global supply chain, and there has been insufficient research targeting on it.

This study develops a conceptual approach based on the practices of Toyota Production System (TPS). The analysis is performed on four segments of a business: “R&D”, “Production”, “Logistics” and “Service/retailers”. The proposed approach adopts the pull-based lean management system by two modules, “Intra-lean management” and “Inter-lean management”.

A case study is conducted to demonstrate how the proposed approach can be used in a real situation. The ideas and benefits of the proposed approach are also discussed.

The proposed solution can be applied in manufacturing and service industries, as well as in industries where production and R&D are interconnected.

The paper provides a conceptual approach that explains how intra- and inter-lean management can be effectively integrated to achieve a smooth flow in the business. This paper innovates in developing a pull-based driven flow relationship among the four segments of a business, as a response to the lack of integration among them and the increase of inventory in the hands of businesses.