Reducing global supply chains’ waste of overproduction by using lean principles

Purpose: This paper aims to present a lean management approach to reduce waste generated by overproduction within a global supply chain setting. Statistics register a considerable increase in inventories which has increased waste because of the overproduction/oversupply throughout the global supply chain, and there has been insufficient research targeting on it. Design/methodology/approach: This study develops a conceptual approach based on the practices of Toyota Production System (TPS). The analysis is performed on four segments of a business: “R&D”, “Production”, “Logistics” and “Service/retailers”. The proposed approach adopts the pull-based lean management system by two modules, “Intra-lean management” and “Inter-lean management”. Findings: A case study is conducted to demonstrate how the proposed approach can be used in a real situation. The ideas and benefits of the proposed approach are also discussed. Practical implications: The proposed solution can be applied in manufacturing and service industries, as well as in industries where production and R&D are interconnected. Originality/value: The paper provides a conceptual approach that explains how intra- and inter-lean management can be effectively integrated to achieve a smooth flow in the business. This paper innovates in developing a pull-based driven flow relationship among the four segments of a business, as a response to the lack of integration among them and the increase of inventory in the hands of businesses.