How lean supply chain effects product cost and quality - A case study of the ford motor company

Purpose - Explore how Toyota can continuously and consistently achieve its dramatic success through its competences - continuous waste elimination and the objective of long term philosophy. Design/methodology/approach - This paper will use case base approach and follow four-step problem solving process to demonstrate how lean supply chain effects product cost and quality. Findings - Use value stream mapping (VSM) as lean supply chain tool, we show all the measurable indices that are helpful for cost reduction, quality enhancement and lead time reduction through P-D-C-A improvement cycle. Research limitations/implications - Since the demonstration of VSM implementation is likely to be both expensive and time-consuming. This paper will use a case study from the Ford Motor Company in Taiwan. Practical implications - However, if the development of lean production is the key to Toyota´s success, why have its competitors struggled despite adopting similar principles? It seems that there is a special ingredient within Toyota Production System (TPS) under exploration, which also causes managers have been hesitant to adopt lean production tools. Originality/value - This paper not only shows the value of VSM as a supply chain tool for implementing lean production; but also provides industrial insight for those hesitant companies to follow four-step problem solving process to effectively implement lean supply chain.