An introduction to distribution operational efficiency

The Lean Manufacturing approach for waste elimination can be applied in all sorts of operations. In this project is applied for the improvement of a supply chain and to achieve high levels of chain efficiency. The identification of warehousing and transportation waste at the chain level is aggregate being difficult its identification within both processes. This work provides an introduction to the concept of distribution operational efficiency and proposes a scheme for eliminating waste in a distribution operation. The Operational Effectiveness Index used in TPM is adapted and used as the main performance measure. Availability, performance and quality wastes are identified using Value Stream Mapping. The scheme is exemplified by applying it on distribution networks of several Mexican companies.