The Supplier Performance Management Of Lean Production

Market competition can promote enterprises’ development in production technologies and management methods.Under the current market environment with various customers’ demands and more transparent costs,an enterprise has to respond rapidly,reduce costs and raise efficiency to be ahead of competitors.In order to achieve this goal,it’s a wise choice to using lean production.Lean production is aim to continuously improve and eliminate waste in the enterprise and raise the production efficiency.It regards the satisfying customers’ demands as the first goal and uses customers’ demand to pull the production.Meanwhile,the development of enterprises are along with the gradually refinement of social division.More and more enterprises focus on their expertise fields and outsource the parts which they are not good at from professional suppliers.The development of enterprises are closely related to suppliers’ performance.In this background,this paper mainly studies how to use lean production’s idea and tool to apply to supplier performance improvement and how suppliers cooperate enterprises to implement the lean production.It discusses the core of the lean production,“zero inventory” as well as the relationship between JIT and supplier performance management.By analyzing cases from author’s company and demonstrating the processes of analysis,it eventually concludes the theory of three key supplier performance improvement’s indicators including delivery,quality and cost,and demonstrates the theory systematically and practically.Different from previous supplier management theory,this paper introduces the lean production’s three core ideas and five basic tools and discusses how to guild by the core ideas and apply the tools to the supplier performance management’s practice.It also contributes a new practical idea to adapt the nowadays business environment and improve supplier performance.