A Company Case Study Of Lean Logistics Operation Management

Lean concept is derived from Toyota Production System promoted by Toyota company after World War II:the core thinking of TPS is to produce the high quality product meeting customer expectation via most efficient process, lowest cost, and also on time delivery based on customer demand orientation and also continuous improvement, at the same time, to promote more profit and company growth.Lean logistics is derived from Toyota production methodology, lean production. By seeing the huge success of lean implementation in manufacturing, and logistics management theory development, lean logistics has been discussed a lot in relevant academia. The core of lean logistics is lean concept; lean logistics is lean concept real implementation in logistics operation and management.Implementing lean in logistics which is "the3rd profit source" will help company overcoming the current difficulties in logistics area, increase logistics operation efficiency, reduce logistics cost, reduce logistics cycle time, thus increase company capability in logistics and also supply chain, then increase the overall company business competency.A company is one international chipset manufacturing company, by strategic plan the corporation built two plants in Place B and Place C in China for wafer manufacturing and wafer assembly and test, there were some issues for its production wafer logistics operation from Place B to Place C due to China Customs regulations and also A company internal process problems, the operation cycle time was long, the efficiency was low, and also the cost was high. In order to solve the problems, A company formed a project team for improvement, by implementing lean methodology and tools, the logistics operation performance had been greatly improved, lean logistics got realized in A company.The improvement project team in A company implemented Kaizen and Direct Observation methodology, conducted value stream mapping,5S and scene management,5why analysis, fishbone analysis to systematically solve the issues and problems in A company logistics operation, set up new logistics process with efficiency improvement and also cost reduction.This paper makes a case analysis on lean logistics implementation in A company, analyzes the successful implementation of lean methodology and tools like Kaizen,7waste, value stream mapping etc in A company, and summarizes the successful experience, then to discuss how big manufacturing company logistics department to implement lean logistics in their logistics operation, further to strengthen its logistics competence, and to keep sustainable competitive advantage for the company.