In-plant lean logistics management: Case study on Chinese automotive practices

Abstract

Chinese automotive firms, drive standardisation and continuous improvement in their operations to stay competitive in business. To achieve profitable results, the firms deployed in-plant lean logistics management to optimise the inventory level, flow of materials, components and sub-assemblies to produce the finished vehicles. The purpose of this paper is, to report in-plant logistics management of a Chinese automotive firm and its impact on improved operations performance. It also exhibits the use of mixed model vehicle assemblies, to achieve no part stock-out situation. It is evident from this study that lean techniques are able to increase organisation efficiency through waste reduction and improve fitness. This qualitative research is done by: 1) visit to the firm; 2) detailed observations; 3) using questionnaire and interviews of employees and third-party logistics (3PL) suppliers. For in-plant logistics performance, the study also suggests improving the standardisation and material movements across warehousing facilities and vehicle assembly plants.