Lean Supply Chain Optimization Research In ST Ltd

Since China opened to the world in1980’s, there are a lot of enterprises in China have been developed and growed with sound company management system, and people live have been great improved during the30years. But in another way, the labor cost and other associate costs for an enterprise have been increased a lot and China will be no more a Low Cost Country. For the time being, we will still be a "so-called" World Manufacturer it’s become our supply chain are very sound, but we will lose these opportunities in near future. For the enterprises to be survived in the global competition markets, the only way for us is to improve our production efficient, conduct lean manufacturing and innovations. With the supply chain strength, we hopefully can remain as a Competitive Cost county.The core of lean thinking is to eliminate the wastes, the lean manufacturing is mainly focusing on the internal management and control inside the enterprise while the lean supply chain is extended the lean manufacturing process from inside the core enterprise to it’s whole supply chain. In this paper, I will introduce the background of the lean supply chain, the lean manufacturing, the theories of the supply chain management and the4tools (JIT,6Sigma, Postponement and Block-based Design) to achieve lean supply chain. Using JIT to improve ST’s On-time delivery, using6Sigma to improve quality and eliminate the waster, using Postponement to reduce production cost and lower inventory, and using Blok-based Design to shorten lead time and make supply chain more flexible.By implemented the lean supply chain management tools, it’s proved that the lean supply chain management is a more efficient and lean supply chain model to ST Co. Ltd. It has achieved the targets of the lean supply chain management, i.e. JIT on-time delivery, good quality (lower PPM), Lower TCO cost, short lead time, flexible delivery, and lower inventory and continue improvement. These experiences will help other enterprises who are in the similar situation as well.