Lean Supply Chain and Logistics Management, page 26
first attempt at integrating, 188–189
kaizen for, 189–190
lessons from, 190–192
refining, 189–190
tools, 73, 74f
Lean supply chain fat reduction:
approach by, 213
case study, 210–213
customer benefits, 212–213
customer challenge, 210
solution, 210–212
The Lean Supply Chain Report (Aberdeen Group), 7–8
Lean tools:
supplier reviews as, 126
visual material management as, 126
VMI as, 126
in warehouse, 90
Lean Warehousing, 221–225
Lessons, 175–176
on cross-training, 191
on flexibility design, 191–192
on input quality, 190
from Lean Six Sigma, 190–192
on pace, 191
Level strategy, 110
Line balancing, 90
LOA. See Lean opportunity assessment
Logistics:
distribution and, 87
fourth party, 179
global supply chain and, 95–104
international, 97–100
JIT and, 77–85
Lean, 49, 217–220
Lean opportunities in, 27–39
managing costs, 96
Menlo, 49, 90–93
metrics, 158–160
Ryder, 93
supply chain and management, defined, 3–5, 4f, 14–16
third party, 179
Loops, 128
Lower control limits (LCL), 73
Make:
case studies, 201–209
as management process, 5, 33–36
Make-to-order (MTO), 138
MTS compared to, 33–34
Make-to-stock (MTS), 33–34
Management processes:
deliver as, 5, 36–38
functional responsibilities, 27–39
for Kaizen event, 132–133
make as, 5, 33–36
manufacturing, 142
plan as, 5, 27–30
return as, 5, 38–39
source as, 5, 31–32
of supply chain, 4–5, 4f
Management support, 106
Managers:
co-located, 181–182
value stream, 119
Manufacturers, 151–153
Manufacturing execution systems (MES), 136
Manufacturing history, 11–13, 12f
Manufacturing management process, 142
Mass customization, 1, 13–14, 149
in global supply chain and logistics, 96
through software, 180
Master data management, 138
Material flow, 143
mapping, 90–91
Materials, repairs, and operations (MRO), 20
McKesson case study, 226–228
Menlo Gets Lean (Forger), 92
Menlo Logistics, 49, 90–93
MES. See Manufacturing execution systems
Metrics and measurement:
balanced scorecard, 160–161
dashboards to display and control metrics, 163–164
finance and, 162
Lean supply chain and logistics metrics, 158–160
policies and procedures, 157–158
selection of, 161–162
Metrics framework, 162
Milk runs, 91
Mistake proofing, 115
LOA, 240
tools, 91–92
Mixed strategy, 110
Motion studies, 11
Motion waste, 22
in kitting, 208
MRO. See Materials, repairs, and operations
MTO. See Make-to-order
MTS. See Make-to-stock
Multiple sites, 138
Need for Speed, 13–14
Network design, 79
Nike, 27–28
Non-value-added activities:
value-added activities compared to, 17, 17f
value stream and, 118
as waste, 18
Norfolk Southern, 229–234
NXT machine, 205, 207–208
OEE. See Overall equipment effectiveness
On-the-job training (OJT), 166
as improvement, 176
by workforce training grants, 169–170
Operations Management (Schroeder), 7–8, 177–179
Operator flexibility, 115
LOA, 238
Operators:
front-line, 171
training for, 170
OPW Fueling Components, 221–225
Orders:
accurate order fulfillment, 159
assembling, 88–89
cycle time of, 88
delay of, 88–89
EOQ, 63
ETO, 138
fill rate of, 159
MTO, 138
perfect measure, 159
performance of, 112
Organization:
analytical tools for, 72
standardization and, 48–55
workplace, 115, 238
Organizational performance, 160–161
Organized office case study, 187
Outsourced kitting, 203–204
Outward bound, 167
Overall equipment effectiveness (OEE):
calculation of, 69f
observation form, 70f
TPM, 68–71, 69f, 70f
Overprocessing waste, 24
Overproduction waste, 23–24
Pace, 191
Packaging optimization, 91
Paper airplane simulation, 171
Pareto charts, 69, 71f, 72
Pareto principle, 21, 28, 73, 139, 178
Parsley, Stephen, 222–223, 225
Perfect order measure, 159
Performance measurement, 116
LOA, 245
Pickers, 89
Plan:
case studies, 187–195
as management process, 5, 27–30
Planning and execution flow, 103
Planning effectiveness, 156
Planning production, 142
Point-of-sales (POS), 28, 80
Point-of-use storage (POUS), 22, 64
Poka Yoke, 65, 66, 81
Policies and procedures, 157–158
POS. See Point-of-sales
Postponement, 33–34
POUS. See Point-of-use storage
Presentation training method, 166
Problem identification, 72–75
Process chart, 44, 44f
Process simplification, 178
Processing:
cycle time compared to, 16–18, 16f
steps, for kitting, 207
Procurement, 5, 31–32
Cessna E-, 198–200
Product family:
selecting, to create VSM, 120
value stream and, 118
Product redesign, 178
Production:
activities, 120
batches, 138
control, 202
Products:
evolution of, 139
imitative, 7
innovative, 7–8
The Progress Group, 222
Provia Software, 224
Pull system, 116
benefits of, 63
customers in, 88
kanbans in, 62–64, 62f, 64f, 90
LOA, 244
Pulling, John, 224–225
Purchasing, 126
Push process, 12, 62
QR. See Quick response
Quality, 115
competing through, 177
of input, 190
LOA, inbound, outbound, and administrative, 241
at source, 64–65
Quick changeover:
batch size reduction and, 57–62
LOA, 240
setup analysis chart for, 60, 61f
SMED, 59
Quick response (QR), 8, 149
benefits of, 152
defined, 151–152
ECR compared to, 152–153
Radio frequency identification (RFID), 80–81
WMS and, 143–144
Rail yards, 231–234
Raw materials, 20
Real-time collaboration, 155
Real-time information, 145
Red tag strategy, 50, 51f
Relationship management technology, 156
Relationships, 179
Reliability, 83–84
delivery, 159
Remstar International, 223–224
Reorder point, 36
Reorder time, 36
Representative customers, 120
Resources:
human, 176–177
for JIT, 79–80
Responsiveness, 160
Retailers, 153
apparel, 151–152
Return:
case studies, 235–236
as management process, 5, 38–39
Return merchandise authorization (RMA) process, 38–39
Reverse engineering case study, 235–236
RFID. See Radio frequency identification
RMA. See Return merchandise authorization process
RMT Robotics, 215–216
Role playing, 167
Romaine, Ed, 223–224
Ryder Logistics, 93
Safety stock, 34, 36
Safety time, 36
Sales and Operations Planning (S&OP):
APS relating to, 142
defined, 109
inventory control through, 109
keys to success, 109–113
Lean and, 111–113
objectives of, 109
performance criteria for, 112
process of, 110–111
scorecard review during, 162
as solution to break barriers, 181
supply and demand options, 110
Sales data, 30
Sardar, David, 104
SAScom Magazine, 138–140
Savings cost calculation, 101
Scatter diagrams, 72
Scheduling production, 142
Schroeder, Roger, 7–8, 177–179
SCM. See Supply chain management
SCOR. See Supply Chain Operations Reference Model
Scorecard:
application areas of, 163–164
balanced, 160–161
review of, during S&OP, 162
SCP. See Supply chain planning
Seasonal demand, 140
Self-directed learning, 166
Sell-in metric, 158
Sell-through metric, 158
Seminars, 169
Set in order, 52
Setup analysis chart, 60, 61f
Setup reduction, 240
Seven wastes, 19, 223
Shadow board, 52
Shared arrival status, 145
Shine, as 5S, 52–53
Shipment data, 30
Simulation games, 166
paper airplane as, 171
Single minute exchange of dies (SMED), 59
“The Skinny on Lean” (Bradley), 87–88, 93
SKU accuracy, 30
SMED. See Single minute exchange of dies
SMEs. See Subject matter experts
Smyre, Mark, 231–234
Software:
customization, 180
development for visibility, 181
IFS, white paper, 137–138
Provia, 224
as service, 147
S&OP. See Sales and Operations Planning
SOPs. See Standard operating procedures
Sort out, 50–51
Source:
case studies, 196–200
as management process, 5, 31–32
quality at, 64–65
SPC. See Statistical process control
Standard operating procedures (SOPs), 42
Standard work, 116
Standardization, 48–55
Standardize, as 5S, 53–54
Standardized parts, 11
Standardized work, 42–46, 172
LOA, 244
Starting Lean:
kaizen events, 131–133
LOA, 115–116
VSM, 116–130
Statistical process control (SPC), 72–73
Steering committee, 119
executive, 181–182
Strahan, Bruce, 222–223
Strategic alignment, 156
Strategies:
chase, 110
to improve structure, 177–178
level, 110
mixed, 110
red tag, 50, 51f
Structure:
as barrier, 177–179
Lean, 106–107, 128
strategies to improve, 177–178
Structured judgment, 139
Subject matter experts (SMEs), 107, 128
Success, keys to:
KSF, 105–107
S&OP, 109–113
teamwork, Lean and, 107–108
Success measurement, 172–173
Supermarket-based kitting, 203
Supplier:
controlled kitting, 203
integration, 156
reviews, 126
Supply and demand, 110
Supply chain, 1, 115, 150
advisory boards, 181–182
analytics, 183–184
barriers to integration of, 176–182
characteristics, 32t
as competitive tool, 7
LOA, 241
logistics management and, 3–5, 4f, 14–16
management processes of, 4–5, 4f
network, 178
performance, 157, 161
potential obstacles to, 184
Supply chain and logistics:
global, 95–104
JIT in, 77–85
Lean opportunities in, 27–39
Supply chain and logistics metrics, 158
asset management, 160
cost, 160
delivery reliability, 159
flexibility, 160
perfect order measure, 159
responsiveness, 160
Supply chain management (SCM), 1, 6–9
“C” suite executives, 181
in global supply chain and logistics, 96
inventory in, 97
JIT relating to, 77
transportation in, 97
Supply Chain Operations Reference (SCOR) Model, 4, 4f, 159
Supply chain planning (SCP), 1
Supply planning, 110
Sustain, as 5S, 54–55
Sweeney, Rob, 224–225
Synchronization, 224–225
Takt time, 17–18
to balance work cells, 66
importance of, 191
VSM relating to, 119
Team:
charter, 129, 130f
cross-functional, 181–182
key management, 168–169
leader, 129
Lean, 128–130
makeup, 129–130
training, 167
Teamwork:
executing, 108
Lean and, 107–108, 128
in Lean teams, 128–130
team member assignment, 120
training for, 167
Technology:
APS as, 142–143
background of Lean and, 135–137
as barrier, 179–181
best-in-class use of, 136
demand forecasting as, 138–140
DRP as, 140–142
ERP as, 137–138
Lean and, 135–145
relationship management, 156
TMS as, 144–145
waste reduction through, 139–140
Textile manufacturers, 151–152
Thelen, Gerhard, 230–231, 234
Third-party logistics (3PL), 46, 104, 131, 179
The TIC Way, 211
Time:
cycle, 16–18, 16f, 88
dock-to-dock, 18
dwell, 122
function maps, 116
observation form, 67, 67f
processing, 16–18, 16f
safety, 36
studies, 11, 132
takt, 17–18, 66, 119, 191
travel, 132
Time-phased planning, 140
TMS. See Transportation management systems
Tools:
analytical, 72–75
Lean, 90, 126
for Lean Six Sigma, 73, 74f
mistake-proofing, 91–92
tips and, 170–172
for TQM, 65
Total cost, 78. See also Cost purchasing and, 126
Total delivered cost management, 101
Total product identification, 102
Total productive maintenance (TPM), 90, 115
LOA, 243
OEE, 68–71, 69f, 70f
Total quality management (TQM), 12
with quality at source, 65
seven tools for, 65
Touch-once principle, 223–224
Toyota Production System (TPS), 13, 42
seven wastes relating to, 19, 223
TPM. See Total productive maintenance
TPS. See Toyota Production System
TQM. See Total quality management
Traditional training method, 165
Train-do method, 3, 165, 171
Training:
cross-, 191
for executive group, 171
for front-line operators, 171
general workforce for, 169–170
grants for, 169–170
handouts, 171
key management team for, 168–169
Lean, 105–106, 128–129
major methods for, 165
OJT, 166, 169–170, 176
for operators, 170
self-directed learning, 166
seminars, 169
tools and tips, 170–172
videos, 172
Training methods:
action learning, 168
behavioral modeling, 167
case studies, 167
group-building, 167
hands-on, 166
presentation, 166
role playing, 167
selecting, 168
simulation games, 166
team, 167
traditional, 165
Transactional costs, 137
Transportation:
cost, case study, 229–234
kitting, 208
operations, 36–37
routes, 91
in SCM, 97
systems operation and infrastructure, 5
warehouse and, 91
waste, 21–22, 208
Transportation management systems (TMS):
benefits of, 144–145
functions of, 144
as Lean technology, 144–145
Travel time, 132
Trends, 182
Upper control limits (UCL), 73
Value-added activities:
non-value-added activities compared to, 17, 17f
value stream and, 118
Value-added networks (VANs), 148
Value stream, 116
employees in, 120
manager, 119
plan, 126, 127f, 128
product family and, 118
Value stream mapping (VSM), 3, 41, 43f
benefits of, 118
Current state value stream map, 120, 121f, 122–123
data collection for, 120, 122–123
defined, 116, 117
5S and, 89
