Lean Forward: Closing the Loop Between Planning and Execution

This is an excerpt of the original article. It was written for the December 2015 edition of Supply Chain Management Review. The full article is available to current subscribers.

December 2015

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Lean practitioners are often skeptical of the ability of demand and supply chain planning to drive improved performance across the supply chain, preferring execution and lean levers. The reality is that planning is mathematical and abstract, and too often the results do not reflect reality. Lean execution, on the other hand, is experiential and the results are often directly visible.

Yet the real truth is more nuanced and the case for planning more compelling than most practitioners and executives are able to make a case for. It calls for real investments in process capability development, tools, and technology, and requires an organization to engage cross-functionally to tackle tradeoffs across the supply chain.

Even more fundamental is that many lean operational techniques depend on robust forward demand and supply chain plans to deliver results. Too frequently we see our clients drive the supply chain and inventory positioning based on run rate or backward-looking data. Without a robust plan, lean execution quickly falls prey to parts chasing, production and sequencing bottlenecks, and loss of efficiency. Lean execution does what it’s designed to do—react. However, lean execution needs additional help in environments characterized by higher mix, seasonality, or life cycle ramps, where the ability to execute must be correctly sized based on anticipated market level demand.

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