Reduced demand combined with disrupted supply presents peculiar challenges to lean manufacturing efforts, but proponents of the no-waste management approach see lean methods as particularly well suited to the demands of the current economy.

Since lean ideas are closely linked to reducing inventory, unnecessary shipping costs, and idle capacity, disruptions in supply have been particularly troubling to manufacturers as they struggle to respond to uncertain supply schedules resulting from heightened security at key links in the transportation network. How can production continue to rely on just-in-time principles when needed materials and supplies may not in fact arrive in time?

These concerns about supply chain management are in fact consistent with lean manufacturing ideas, advocates insist. Since the lean philosophy is built on tying production to demand, proponents say, an effective lean strategy may actually require greater safety stock during periods of uncertain supply — if that’s what it takes to meet consumer demand. (See "Just in Time or Just in Case?" on page 2.)

Software applications for customer relationship management, or CRM, can help tie demand forecasts to production. Programs for enterprise resource planning, or ERP, help manage materials and production schedules and standard costing, finance, and procurement data. Many enterprises find activity-based costing, or ABC, a particularly suitable cost accounting approach for lean manufacturing. (See "Lean Production Calls for a New Approach to Costing" on page 3.)

Other key applications recommended to tailor lean operations to current demands focus on improving the flexibility of supply chain management and logistics operations.