Lean Systems

     Lean systems are designed to eliminate wastes and delays from operations within companies thus adding value. There are eight types of wastes that are in lean systems and they are overproduction, inappropriate processing, waiting, transportation, motion, inventory, defects, and under utilization of employees.

     
 Our company, American Estate Wines, uses some of the characteristics of a lean system. In the supply chain aspect, American Estate Wines makes small orders or batches in order to prevent wastes. If the company ordered too much of a wine and could not sell it in time, the product could lose its value thus resulting in a loss for the company. American Estates Wines also uses standardized components and work methods. In order to ensure products get stocked, American Estates wines uses the same truck delivery drivers who are reliable and knowledgeable of their job duties. By having the same drivers, processes are efficient and daily operations are able to commence with little to no delay.

Lean System Layout

     American Estates Wine currently adopts a technique called one-worker, multiple machine (OWMM) for creating a lean system layout.  The one-worker, multiple machine technique is a working station in which a worker operates several different functions or machines simultaneously to achieve a line flow. In American Estates Wine, whoever receives the orders  via phone or email will check the inventory for sufficient funds. That person will then check the pricing and make sure the correct price is posted. The same employee will then finish the process by sending the order to the warehouse where either American Estates Wine sends the shipment via a third party or the buyers themselves pick it up. By limiting the amount of employees processing the order, the company creates a line flow that eliminates waste by reducing the frequency of setup, simpler handling, and reduced labor cost.