Lean is an approach to supply chain management that originated with Toyota, which is why you may hear it referred to as the Toyota Production System (TPS). The idea behind Lean is that you use the least amount of time, effort, and resources by maintaining smooth and balanced flow in a supply chain.
Learning Points •Lean supply chain management represents a new way of thinking about supplier networks •Lean principles require cooperative supplier relationships while balancing cooperation and competition •Cooperation involves a spectrum of collaborative relationships & coordination mechanisms
This means creating new parts and paying for the labor associated with the repair, not to mention the inconvenience caused to the customer. Lean vs agile supply chain is really the difference in emphasis. Agile supply chain management focuses on the changing environment of business while lean supply chain is focused on quality control.