In applying the Lean and TPS concepts, our ultimate aim is to increase the value of the overall

value chain stream for JSC (Japan Shoes Center), because these improvements will eliminate the
non-value adding activities, lower costs and increase profit margins for JSC as well. Lean
concepts focus on eliminating waste in the processes to increase the efficiency, productivity and
reduce costs. We have learned that how Toyota was able to apply lean concepts to its production
line, now let us apply the underlying Lean principles such as: Just in Time (JIT), Jidoka (Quality
Control i.e. intelligent automation), and Heijunka ( Production smoothing) to our micro
enterprise Japan Shoes Center . Similarly, there are various other tool and techniques in lean
management that we can utilize such as: Value stream mapping (VSM), Kaizen, and Visual
management. But, our focus will be on those principles and tools which can be implemented to
our macro enterprise, keeping all his constraints in mind.

Value Stream Mapping (VSM):

Firstly, we would need to draw a detailed flow chart for all three business segments of JSC
which would clearly indicate the series of events that bring the products from suppliers to the
customers at the point of sale at JSC retail shop. If we apply VSM to our micro enterprise, we
will be to review the overall processes (material and information flow) that are involved and
identify the value adding (VA) and non-adding activities (NVA). The flow chart will present a
clear overall picture to the owner of all the steps involved in all three of his business segments
i.e. Shoes (both new and second hand), School bags, and Sunglasses. The current state can then
be analyzed to identify the opportunities where further value can be added and those activities
that are non-value adding can be eliminated and then design a new future state for the operations
of JSC.

Just in time (JIT):

Applying JIT to our micro enterprise will ensure that the products (shoes, bags, and sunglasses)
held in the shop exactly meet the consumer demands without any delays. This means that JSC
would require a system where if a consumer places demand, then the order should trace back all
the way to the supplier of JSC, and he should be ready to provide it to the shop. With JIT the
owner would only be procuring those items for which a customer initiates demand, and thus he
would not have any wastages and losses in terms of unsold inventory, furthermore he would also
not need to hold onto any extra inventory.
For used shoes, we cannot implement this lean concept as the owner has to pick the whole
imported batch without any customized selection, although for Procuring new shoes, school
bags, and sunglasses we can implement a more lean approach by buying the goods in small lots,
so that we get an idea of customer needs and requirements of the specific product, and adjust our
procurement