The ultimate objective of Lean purchasing is to understand costs. In this video, Steven explains the key goals of Lean purchasing and several ways to achieve those goals.
- When it comes to the purchasing function,…it's not all about negotiating price.…It's all about understanding cost.…I learned that from Professor Phil Carter,…who was the head of Arizona State's Research Center…on Purchasing and Supply-Chain Practices for many years.…In traditional purchasing organizations,…the goal is to contract for the lowest price possible…for the service or the item being purchased.…Recognizing that whatever is being purchased…must meet your specifications.…And I agree this is an important goal.…
But lean purchasing goes beyond just cutting costs.…A lean purchasing organization only buys…what you need when you need it.…In addition to getting the best price possible,…lean purchasing has several other goals.…One goal is to prevent shortages.…For example, your responsibility is to ensure…high quality from suppliers so that…your factory does not shut down due to raw material defects.…And you also must ensure your delivery service is reliable…so that the material arrives at the factory on time.…
Lean concepts have been successfully applied to every aspect of doing business. In this course, learn the principles of lean and how they are used in processes, production, and services. Instructor Steven Brown also explains how lean thinking impacts the organization, from the overall business culture to day-to-day work activities.
- Cite the focus of a lean strategy.
- Explain what a “rule of complexity” is.
- Name the three key measures of inventory.
- List the 5S tools.
- Define a lean transportation system.
- Describe the characteristics of a lean purchasing organization.
- Identify the characteristics of a lean company.
Skill Level Beginner
Enterprise Agile: Disciplined Agile (DA) versus Spotifywith Doug Rose1h 11m Intermediate
1. Lean Defined
2. Lean Processes
3. Lean Manufacturing
4. Lean Services
5. Lean Thinking
Next steps1m 43s
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