The supply chain is composed of all the parts of the enterprise
and its associated trading partners. The Lean Green Supply Chain is
made up of two major components: external and internal. There is a
synergy between these two parts. The internal savings can, in some
cases, be equal to the external supply chain savings. To exclude the
internal improvements that supplement the productivity of the External
Lean Supply Chain is to miss out on a major component of longterm
The Navy Enterprise has evolved over the past decade to achieve various objectives from improving efficiencies through lean, six-sigma efforts to producing the workforce of the future. This evaluation of the participation of organizations within the Navy Enterprise in the Planning, Programming, Budgeting and Execution (PPBE)
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As technology and globalization have disrupted traditional operations along the supply chain, the relationship between suppliers, customers, and competitors has changed dramatically.
Six Sigma is a data-driven management system with near-perfect performance that is a statistical target of operating with no more that 3.4 defects per one million chances. Six sigma has both created avid interest and raised concerns among executives and its practioners.
While it is reasonable to believe that raising capital in public markets creates strong
incentives to provide earnings that reflect economic performance, we recognize that there
are many tradeoffs and potentially countervailing effects. For instance, Leuz et al. (2003)
argue that private control benefits and expropriation from outside investors create hiding
incentives for corporate insiders. That is, public firms with agency problems between
controlling insiders and outside investors may mask firm performance by managing
reported earnings to prevent outsider intervention.
Although based on a limited set of examples, the Boeing case studies suggest that, while Lean thinking is
redefining the manufacturing landscape and the way production activities take place on the factory floor,
the regulatory system -- which grew up and evolved regulating a batch and queue, mass production
environment -- continues to be structured and operate with batch and queue processes in mind and operate
itself as a batch and queue enterprise.
The Boeing case studies provide an interesting window into the dramatic shift in manufacturing paradigms
taking place in response to the highly competitive market of the 21st century. Like many companies today,
Boeing has placed Lean Manufacturing in the forefront of its efforts to eliminate continually all non-value
added aspects of the enterprise and ensure optimal competitiveness.
Companies embrace Lean Manufacturing for three fundamental reasons. First, the highly competitive,
globalized market of the late 20th and early 21st century require that companies lower costs to increase
margins and/or decrease prices through the elimination of all non-value added aspects of the enterprise.
In other words, companies need to key in on Ford’s production efficiency ideals. Second, customer
responsiveness is key.