'My House is Clean' syndrome

Organizations undertake improvement initiatives. The expected outcome of the improvement initiatives is to bring about a positive change in the performance of the entity. The initiatives range from incremental and consistent to breakthrough improvements. The initiatives are titled differently. Sometimes it is a radical BPR, in some other instances it is adoption of Lean practices or in some other it may be Six sigma. All these lead to a structural change in the processes and in certain instances policies of the organization undertaking the initiative. 

In most of the cases, these initiatives would impact the entity which initiates the improvement initiative. e.g. a large OEM undertaking an initiative to be 'Lean'' or some OEM implementing a 'Pull Based Replenishment system'. These systems bring about a change in the way the organization now plans the flow of the product.

The initiatives like pull based system or vendor managed inventory or Kanban put the 'supply' side under a new way of functioning. Deploying world class philosophies & techniques the OEM implements a system which streamlines process parameters for his organization e.g. Reduced inventory or his On Time Delivery to his customer. 

The deployment of such techniques in turn would need the supplier to plan his supplies to the OEM (his customer) differently. The shift of requirements from the customer leads to increased stress on the Supplier. Many a times the OEM has an extremely mature process which the supplier is expected to adapt. Question is what is the process maturity of the supplier to meet the new system requirements? Most of the suppliers have no sophisticated systems to cater to the new system.

All that it means is that one entity passes on the 'waste' from itself up the supply side.  The entity 'cleans up its own house'. The question is the house being clean doesn't mean that the 'universe' is clean. 

Current state of improvement initiatives hence look like that the 'stronger' link of the Suppl Chain strengthens itself but the reality is that the strength of the chain is as good as the weakest link.