Abstract
The core of the lean concept is expressed not only in eliminating waste and losses but also in the pursuit of continual improvement and creating greater value. Although lean management is commonly linked with industrial production processes, this research illustrates the application of lean techniques to optimize warehouse management operations. In this context, the research in an SME of the Import and Export sector in Portugal intends to describe the use of lean tools in warehouse optimization. The outcomes of the lean tool deployment meet the specified objectives and emphasize the need to integrate various approaches to achieve a better pursuit of the optimization strategy. The organization can respond to customer needs more effectively and efficiently through improved warehouse flow and continuous improvement.
TopBackground
Lean Concept
The lean concept represents the ability to do more with less, using minimal effort, energy, equipment, time, floor space, materials, and capital - while providing customers exactly what they want (Womack & Jones, 1996).
Despite the evolution of the concept, its original definition remains clear, reflecting the importance of creating a production system that can produce a customized product after the customer's order, reducing or eliminating intermediate stocks, through the following basic principles: identify and deliver value to the customer, eliminating what does not add value; organize production as a continuous flow; refine the product and create a reliable flow, removing the existence of inventories; distribute information for decision making; and continuously seek perfection, providing a product that meets the customer's requirements (Howell, 1999).
Lean principles first define the product’s value as perceived by the customer, followed by aligning the flow with it, striving for perfection through continuous improvement to eliminate waste, and classifying value-added and non-value-added activities (Sundar et al., 2014). Activities that do not add value are considered waste, where waste represents a vital obstacle to value creation. According to Taiichi Ohno, there are seven types of waste: transportation, inventories, movements, waiting, overprocessing, overproduction, and product defects (Womack & Jones, 1996). However, Womack and Jones (1996) add an eighth waste: goods and services that do not meet customer needs, and other authors also consider the underutilization of people's capabilities.
Key Terms in this Chapter
Swimlane: It corresponds to a classic tool, which contains the graphical representation of a process, allowing the understanding of the information transition in an accessible and prompt manner.
Value Stream Mapping: It constitutes a lean tool, which allows the identification of the flow of materials and information along the value chain to identify the activities that generate value and the activities that do not create value and thus propose improvements with a view to the future.
5S: It represents a lean tool whose objectives are the organization of the workplace, the standardization of work processes efficiently, and the transformation of employees' attitudes, values, and behavior.
Spaghetti Diagram: This lean tool is intended to perform layout definition for industrial or administrative purposes, using the analysis of the distance covered by employees.
Visual Management: A lean tool that helps employees identify their tasks and when to perform them through visual resources. Thus, it provides a faster understanding of the information and allows the standardization and maintenance of the processes by constantly updating them.
Lean Management: It aims to create value and eliminate waste through the involvement of all employees of the organizations to promote permanent continuous improvement.
Waste: It refers to what does not add value for the customer. From the organization's perspective, it is composed of overproduction, waiting times, unnecessary transport and handling, process waste, excess stock, and defects.