Lean supply chain and lo.., p.25

Lean Supply Chain and Logistics Management, page 25

 

Lean Supply Chain and Logistics Management
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relationships, 179

  solutions for breaking, 181–182

  structure, 177–179

  technology, 179–181

  Batch size reduction:

  benefits of, 58

  production and, 138

  quick changeover and, 57–62

  SMED, 59

  Before pictures, 50

  Behavioral modeling, 167

  Behavioral waste, 25

  Bjorklund, Jakob, 137–138

  Bottlenecks, 66, 125

  BPR. See Business process reengineering

  Bradley, Peter, 87–88, 93

  Budgeted forecasts, 29–30

  Bullwhip effect, 6, 6f, 138, 151

  Business forecasting problems, 139

  Business process reengineering (BPR), 116–117

  “C” suite executives, 181

  Carrying costs. See Holding costs

  Case studies:

  automotive Lean supply chain, 196–197

  Cessna E-procurement project, 198–200

  deliver, 210–234

  Goodyear’s Automated Warehouse puts customers on top, 214–216

  Heinz gets to one number forecasting, 193–195

  Lean kitting, 201–209

  Lean logistics in Gorton’s, 217–220

  Lean-Six Sigma duo for office, 188–192

  Lean supply chain reduces fat, in Fujitsu Services, 210–213

  make, 201–209

  McKesson moves medicine, 226–228

  Norfolk Southern, on transportation cost, 229–234

  organized office, 187

  plan, 187–195

  return, 235–236

  reverse engineering, 235–236

  as training method, 167

  Warehousing gets Lean, 221–225

  Cash-to-cash cycle, 112

  Cause-and-effect diagrams, 72

  Central stockroom, 202

  Certification programs, 169

  Cessna E-procurement project:

  benefits from, 200

  case study, 198–200

  challenges of, 199

  initiative of, 198–199

  solutions to, 199

  value proposition by, 199

  Changeover, 115

  quick, 57–62, 61f, 240

  Chase strategy, 110

  Check sheets, 72

  Chief supply chain officer (CSCO), 177

  Ciepichal, Tom, 221–223, 225

  Cleaning, 52–53

  Cloud-based supply chain solutions, 181

  Co-located managers, 181–182

  Collaboration:

  real-time, 155

  workshops, 181

  Collaborative planning, forecasting, and replenishment (CPFR), 149

  benefits of, 153, 155

  defined, 153

  Collaborative strategy meetings, 18

  Communication:

  customer, 246

  internal, 115, 237

  poor, 30

  Competing, through quality, 177

  Configure to order (CTO), 138

  Consultants, 168

  Consumer preferences, 151–152

  Continuous improvement, 239

  Control chart, 73

  Control metrics, 163–164

  Cost:

  calculation of savings, 101

  eliminating, 178

  holding, 20

  leadership, 8

  management, 96

  as measurement of supply chain, 160

  reduction implementation form, 131, 131f

  transactional, 137

  transportation, case study, 229–234

  Council of Supply Chain Management Professionals (CSCMP), 4

  Countermeasures, 69–70

  CPFR. See Collaborative planning, forecasting, and replenishment

  Craig, Tom, 97–100, 103–104

  Critical thinking, 167

  Cross docking:

  advantages of, 85

  in DC, 37

  in JIT, 84–85

  by Walmart, 80

  Cross-functional teams, 181–182

  Cross-training, 191

  CSCMP. See Council of Supply Chain Management Professionals

  CSCO. See Chief supply chain officer

  CTO. See Configure to order

  Current state assessment, 171

  Current state value stream map, 120, 121f, 122–123

  Customer service, 5

  communication, 116

  level, 123, 125

  Customers:

  communication, 246

  consumer preferences, 151–152

  of Goodyear, 214–216

  in pull system, 88

  relationships to, 179

  representative, 120

  requirements for, 120

  Customization. See Mass customization

  Cycle-counting process, 132

  Cycle time:

  of orders, 88

  processing time compared to, 16–18, 16f

  DA. See Data analytics

  Daifuku America, 222–223, 225

  Dashboards:

  application areas of scorecard, 163–164

  control metrics, and, 163–164

  indicators, 163

  Data:

  entry, 132

  management, 138

  sales, 30

  shipment, 30

  warehouses, 139

  Data analytics (DA), 182–183

  Data collection:

  for creating VSM, 120, 122–123

  sheet, 122, 123f

  as training handout type, 171

  DC. See Distribution center

  Defect wastes, 24–25

  in kitting, 208

  Delay, of orders, 88–89

  Deliver:

  case studies, 210–234

  as management process, 5, 36–38

  Delivery performance, 159

  time, 178

  Delivery reliability, 159

  Dell Computers, 13–14

  as example of JIT, 81–83

  Demand, 140

  chain, 150

  management, 155

  planning, 110

  predicting, 110

  seasonal, 140

  Demand forecasting:

  as communication tool, 137

  as Lean technology, 138–140

  Demand pull, 12, 13, 149

  based ERP, 138

  DRP and, 140, 142

  Diagnostic indicators, 163

  Differentiation, 8

  Disposition list, 50, 51f

  Distribution:

  facilities management, 5

  logistics and, 87

  Distribution center (DC), 68, 85, 178

  cross docking in, 37

  inventory in, 122

  Distribution requirement planning (DRP), 34, 35f, 36

  demand pull and, 140, 142

  inventory relating to, 140–142

  as Lean technology, 140–142

  screen and description, 141f

  DMAIC model, 75, 189

  Dock-to-dock time, 18

  Documents, 148

  DRP. See Distribution requirement planning

  Dynamic routing, 102

  E-commerce, 87

  benefits of, 149

  driven by EDI, 149

  small- to medium-sized enterprises, 150

  Economic Order Quantity (EOQ), 63

  Economies of scale, 12

  ECR. See Efficient consumer response

  EDI. See Electronic data interchange

  Education and training. See also Training:

  measuring success, 172–173

  tools and tips, 170–172

  training methods, 165–170

  Efficient consumer response (ECR), 149

  benefits of, 150

  QR compared to, 152–153

  Eight wastes:

  behavioral, 25

  defect, 24–25, 208

  inventory, 20–21, 208

  motion, 22, 208

  overprocessing, 24

  overproduction, 23–24

  transportation, 21–22, 208

  waiting, 23, 208

  80/20 rule, 21, 28, 72, 178

  Electronic data interchange (EDI), 1, 12, 91

  web-based, 148–149

  Employee empowerment, 12, 108

  Employees:

  as leaders, 168–169

  tools and tips for, 170–172

  training methods for, 165–170

  in value stream, 120

  Engineer to order (ETO), 138

  Engineering, 116

  LOA, 245

  reverse, case study, 235–236

  Enterprise resource planning (ERP), 1, 13

  demand-pull based, 138

  functions of, 137

  JIT relating to, 137

  kitting by, 202–203

  as Lean technology, 137–138

  Enterprises:

  Lean, 3

  small- to medium-sized, 150

  EOQ. See Economic Order Quantity

  ERP. See Enterprise resource planning

  Error-free rate, 159

  Error reduction, 143, 149

  ETO. See Engineer to order

  Executive group training, 171

  Executive steering committees, 181–182

  Fill rate, 159

  Finance and metrics, 162

  Financial supply chain management, 103

  Finished goods, 20

  Five whys, 72

  5S:

  area map, 49

  audit, 50

  as organization and standardization, 48–55

  before pictures, 50

  set in order, 52

  shine, 52–53

  sort out, 50–51

  standardize, 53–54

  sustain, 54–55

  VSM and, 89

  Flanders, R. E., 65

  Flexibility, 155

  design, 191–192

  to improve structure, 178

  LOA, 238

  as measurement of supply chain, 160

  traits, 156

  Flowchart, 116

  Forecasting, 27–28

  accuracy, 112

  accuracy targets, 28

  collaborative, 111

  demand, 137, 138–140

  by Heinz, 194–195

  problems, 138

  screen, 28, 29f

  wastes in, 29–30

  Forecasts:

  adjusting, 30

  budgeted, 29–30

  Forger, Gary, 92

  Forms and handouts, 171

  Fourth-party logistics (4PL), 104, 178

  Fujitsu Services:

  approach by, 213

  case study, 210–213

  customer benefits, 212–213

  customer challenge by, 210

  expertise of, 213

  solution by, 210–212

  Fulfillment, 155

  accurate order, 159

  Functional responsibilities:

  deliver, 5, 36–38

  make, 5, 33–36

  plan, 5, 27–30

  return, 5, 38–39

  source, 5, 31–32

  Future, of Lean, 184–185

  barriers to supply chain integration, 176–182

  DA, 182–184

  in Goodyear, 216

  lessons learned, 175–176

  trends in Lean supply chain, 182

  “The Future of Forecasting Software” (SAScom Magazine), 138–140

  Future state value stream map, 123, 124f, 125

  international logistics, 99–100, 100f

  Games:

  Lean Jeopardy, 172

  simulation, 166, 171

  training, 171

  Gantt charts, 11

  General workforce, 169–170

  Global supply chain and logistics:

  addressing waste in, 103–104

  areas to reduce waste in, 100–101

  ASN in, 102

  automation in, 101

  dynamic routing in, 102

  financial supply chain management in, 103

  increasing importance of, 95–96

  international logistics current state value stream map, 97–98, 98f

  international logistics future state value stream map, 99–100, 100f

  keys to excellence in, 101–103

  Lean manufacturing in, 96

  mass customization in, 96

  planning and execution flow in, 103

  SCM in, 96

  total delivered cost management in, 101

  total product identification in, 102

  variability management in, 102

  visibility in, 101–102

  VSM and waste in, 96–100

  Goodyear:

  case study, Automated Warehouse puts customers on top, 214–216

  concept of, 215–216

  future of, 216

  Gorton’s, 217–220

  Grants, 169–170

  Gross profit margin, 112

  Group-building training method, 167

  Handouts and forms, 171

  Hands-on training method, 166

  Harriman Safety Award, 234

  Heinz:

  case study, 193–195

  forecast accuracy by, 194–195

  switch to bottom up, 194

  Histograms, 73

  History, manufacturing, 11–13, 12f

  Holding costs, 20

  House of Lean, 41, 42f

  IFS software white paper, 137–138

  Imitative products, 7

  Implementation plan, 126, 127f, 128

  Incremental change, 116–117

  Indicators, 163

  Information management, 5

  Innovative products, 7–8

  Input quality, 190

  Integrated quality management system, 137

  Internal communication, 115

  LOA, 237

  International logistics:

  current state value stream map, 97–98, 98f

  future state value stream map, 99–100, 100f

  “International Logistics” (Craig), 103–104

  Inventory:

  accuracy of, 143

  control, through S&OP, 109

  in DC, 122

  DRP relating to, 140–142

  dwell time, 122

  excess, 145

  flow scheduling and control, 5

  JIT, 83

  kinds of, 20

  on-hand levels of, 140

  in SCM, 97

  variability and, 20–21, 21f

  VMI, 63–64, 126, 154, 154f, 155

  in warehouse, 122

  Inventory waste, 20–21

  in kitting, 208

  JIT. See Just in Time

  Job cycle chart, 54, 54f

  Job enlargement, 66

  Just in Time (JIT), 12–13

  areas of focus for, 77–78

  cross docking in, 84–85

  Dell as example of, 81–83

  ERP relating to, 137

  integration of resources for, 79–80

  inventory, 83

  network design for, 79

  SCM relating to, 77

  stages of, 79

  in supply chain and logistics, 77–85

  visibility and reliability in, 83–84

  Walmart as example of, 80–81

  Kaizen:

  agenda, 107

  board, 133

  bursts, 122, 122f

  cost reduction implementation form, 131, 131f

  event management, 132–133

  events, 131–133, 192

  first workshop for, 190

  for Lean Six Sigma, 189–190

  at Norfolk Southern, 230–234

  second workshop for, 190

  validation, 190

  Kanban, 12–13, 47, 47f

  card, 63

  in pull system, 62–64, 62f, 64f, 90

  Key management team, 168–169

  Key performance indicators (KPIs), 163

  Key success factors (KSF):

  Lean structure, 106–107

  Lean training, 105–106

  management support, 106

  Kitting, 90

  in assembly line, 206

  benefits of, 201–202

  case study, 201–209

  from central stockroom, 202

  defect waste in, 208

  by ERP, 202–203

  extra processing steps for, 207

  goals, 205

  improvement of, 205, 206–207

  introduction to, 201–204

  inventory waste in, 208

  motion waste in, 208

  outsourced, 203–204

  overview of, 201

  as possible waste, 204

  problems of, 202–204

  process improvements, 208–209

  production control relating to, 202

  supermarket-based, 203

  supplier controlled, 203

  transportation, 208

  waiting waste in, 208

  KMart, 152

  KPIs. See Key performance indicators

  KSF. See Key success factors

  Labor, 143

  minimizing, 90

  specialization, 11

  Lagging indicators, 163

  Language barriers, 171

  Layout, 48

  LCL. See Lower control limits

  Leader selection, 168–169

  Leading indicators, 163

  Lean:

  certification, 169

  champion, 106, 128

  coordinators, 107, 128

  definition of, 1–2

  enterprise, 3

  evolution of, 11–13

  failure, 2

  House of, 41, 42f

  implementing, 2–3

  keys to success, 105–113

  office, 14

  S&OP and, 111–113

  starting, 115–133

  structure, 106–107, 128

  supply chain analytics and, 183–184

  teams, 128–130

  teamwork and, 107–108, 128

  technology and, 135–145

  training, 105–106, 128–129

  Lean Jeopardy, 172

  Lean logistics, 49

  case study, on Gorton’s, 217–220

  Lean manufacturing, 3

  in global supply chain and logistics, 96

  Lean opportunities:

  deliver, 36–38

  make, 33–36

  plan, 27–30

  in procurement, 32

  return, 38–39

  source, 31–32

  in supply chain and logistics, 27–39

  Lean opportunity assessment (LOA), 3

  areas evaluated by, 115–116

  balanced flow, 242

  continuous improvement, 239

  customer communication, 246

  engineering, 245

  internal communication, 237

  mistake proofing, 240

  operator flexibility, 238

  performance measurement, 245

  pull system, 244

  quality- inbound, outbound, and administrative, 241

  quick changeover/setup reduction, 240

  standardized work, 244

  supply chain, 241

  total productive maintenance, 243

  visual systems and workplace organization, 238

  Lean opportunity summary and graph, 247, 248f

  Lean Six Sigma, 15–16

  case study, duo for office, 188–192

  certification programs for, 169

  DMAIC model for, 75

 

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