DEVELOPMENT OF LEAN CONSUMPTION CONCEPT IN IMPROVING PROCUREMENT PROCESS OF NEW ITEM AND PROJECT PROCUREMENT

Abstract

The concept of Lean Consumption Map was first popularized by (Jones, 2005). Lean consumption is how to emphasize a new focus on “performing more than less”. Many organizations seek to avhieve effeciency and effectivity in their supply chain. One method that organizations use to achieve efficiency is the adoption of clean processes in their supply chain function. These processes aim to identify and eliminate the futile activities of operations and emphasize the need to continually improve performance. The concept of Lean Consumption Map is a development of Lean concept that comes from Toyota Production System (TPS), was popularized by Taiichi Ohno and assisted by Shigeo Shingo in 1956 at Toyota company and later combined with the Six Sigma method introduced by Motorolla company after thirty years later, making Lean Six Sigma so popular as a method of improvement in accordance with the demands of the business world. Initially known as Lean Production, now many have been developed to be applied in various other industrial sectors such as Lean Manufacturing, Lean Supply Chain, Lean Service, Lean Hospital, Lean Finance, Lean Human Resource, Lean Municipal, Lean Office, Lean Military. Along with the need for lean development concept, by seeing the successful implementation of Lean consumption in the service sector, the same can also be applied to the procurement process. Based on the results study, Lean consumption can be applied with the aids of DMAIC (Define, Measure, Analyze, Improve, Control) and LCM (Lean Consumption Map) in improving the procurement process for the procurement of new items and projects.

Keywords

• Lean consumption
• procurement
• DMAIC
• public service