Material flow management of industrial enterprise on lean principles

The material flow is characterized as a component of the value stream, where a material form of production stocks changes to a finished product, while creating value for the consumer. The model of the material flow management of an industrial enterprise on the lean basis is proposed with the use of a process approach (on the basis of a set of agreed interrelated purchase/supply processes, production/processing, sales/consumption), a functional approach and a system approach (using specific lean methods within an individual management function) to ensure lean transformations in the material flow. The relevance of the use of a combination of lean production methods in the implementation of individual management functions (analysis - VSM, 5W, planning and organization - 5S, VSM, SOP, JIT, accounting - VSM, SOP, JIT, Poka-Yoke, control - 5S, VSM, Visual Management, JIT, Jidoka, Andon, SOP, regulation and coordination - VSM, JIT, SOP, Kanban, Heijunka, Kaizen) with the material flow of an industrial enterprise with a focus on continuous improvement of value creation for the consumer. The indicators of the effectiveness of material flow management are proposed, the key ones being: average days-in-inventory (days), level of reliability of suppliers (%), number of permanent suppliers (units), level of attracting new suppliers (%), level of vendor loyalty (%),age of accounts payable (days), average duration of the development of a new product (days), average duration of preparation for the launch of a new product in production (days), average duration of the technological process work hours (hours), average cost and unit cost of production (UAH), material consumption of products (UAH/UAH), material output (UAH/UAH), profit level per UAH of material costs (%), average duration of flow reconfiguration (hours), percentage of rejections for certain types of products (%),cost of rejection repairing (UAH), average duration of one order (hours), average days’ sales uncollected (days), working capital DAYS (day). In order to efficiently manage the material flow, the owners and top management of the manufacturing company need to revise the value stream daily, focusing on the future well-being of key players: suppliers and consumers, ensuring the adoption of joint lean management decisions in the "supplier-producer-consumer" chain.