The purpose of this thesis is to conceptually address that while implementing Lean principles in the supply chain may have positive effects for a focal production company such as achieving value added services and products along with low cost competitive advantages it also involves considerable risks which affects business and supply chain contingency. The methodology used involves defining key characteristics of the Lean supply chain using the GSCF model and the Lean production principles. Furthermore supply chain risk management theories are used to identify the risk sources for the Lean supply chain leading to the creation of a risk profile which enables an evaluation and assessment of the risks which were identified and then choosing risk management strategies accordingly. The analysis of risk associated when choosing a Lean supply chain design considers empirical evidence for the Lean supply chain from major manufacturer Toyota which have experienced several disturbances in their supply chain network. The thesis implies that the Lean supply chain design for which Toyota is famous also makes the company more vulnerable to both internal and external risk sources which need to be addressed with supply chain risk management strategies. Boeing, another major manufacturer is also considered in the empirical evidence in regards to their long awaited Dreamliner aircraft carrier which have encounted numerous delays. There are numerable reasons for the delay, but one especially was that the company tried to accommodate their already Lean manufacturing operations with outsourcing several production and development processes to their suppliers. The thesis concludes that risks in the Lean supply chain needs proper identification and management evaluation and a sole risk management strategy is not necessarily sufficient in addressing the numerous risks involved when implementing Lean in a supply chain context and furthermore estimates which supply chain risk strategies should be used. The findings of thesis are then used in a perspective for the Danish manufacturing companies to address if in fact they should avoid implementing Lean in their supply chains in which it is acknowledged that before taking external action on Lean initiatives they as a first need to align their internal activities and processes.
|Educations||Graduate Diploma in Supply Chain Management, (Diploma Programme) Final Thesis|
|Number of pages||61|