Line-back principle: thinking backwards along the value chain?
An ideal material flow is crucial for achieving competitive advantages and optimally coordinating processes. In the highly competitive automotive industry in particular, it is important to establish efficient processes in production logistics. This is reflected, among other things, in stock ranges of less than one day's production, which is considered the benchmark.
The line-back principle plays a decisive role here. It thinks the supply chain based on the requirements that arise in production. This results in optimized processes that focus exclusively on value-adding activities.
Definition of the line-back principle: That's what it's all about!
The supply of materials as part of internal logistics is crucial, as this is where the margin is largely determined by efficient processes. One approach to focusing exclusively on value-adding activities is the line-back principle. The aim is to optimize the use of required materials by rigorously reducing or relocating tasks that do not add value.
For example, a German automotive supplier needs to optimize every single aspect of the material flow in order to achieve competitive conditions. To achieve this goal, the supply of materials is being placed on a completely new footing. All non-value-adding activities, for example the processes to the load carrier or routes, are shifted to upstream segments such as the picking areas.
The line-back principle is characterized by the step-by-step processing of individual workstations. At the beginning of this chain is the factory employee, at the end there is the respective supplier. Continuous analysis, starting from production, focuses on aspects of the value chain where unnecessary or other non-value-adding activities are eliminated.
Visible signs: How does the line-back principle manifest itself in practice?
Production processes are always dynamic; after all, they essentially depend on the demand situation. In the context of warehouse and materials management, it therefore makes sense not just to take average or mean values, but to organize the processes in such a way that each work step can be carried out independently of others.
This means that logistics planning in line with the line-back principle starts directly at the workplace and looks backwards at all stages of the value chain right through to the supplier. Based on this, optimizations can be carried out that relocate all or significant non-value-adding activities.
Details that characterize warehouse planning according to the line-back principle:
- Short distances for assembly or plant personnel
- Reduction of the necessary work steps
- Ergonomic alignment along the value chain
- Reduction in inventories
- Higher production cycle
