The Lean Supply Chain Fact or Fiction ? Robert Martichenko President, LeanCor LLC
Slide: 1 © copyright September 2005, LeanCor LLC
Simple in Talk…Tough in Walk… “If you are determined, and try hard enough, you can squeeze water from a dry towel” Eiji Toyoda Past President Toyota Motor Corp. “Toyota, our exemplar company, continues to march from victory to victory…” Jim Womack President and Founder, Lean Enterprise Institute
“We’re not Toyota” ….spoken to me personally by 6 VP’s, 13 Directors, 20 GM’s and 27 Material Managers
Slide: 2 © copyright September 2005, LeanCor LLC
The Road to Lean
1900: Craft Production 1908: Frederick Taylor – Scientific Management 1908: Ford Model T – Mass Production 1920’s: GM – Mass Production – Labor-Options 1940’s: WW2 – Japan Reconstruction - Deming 1950’s: Eiji Toyoda visits Ford River Rouge- More Deming 1960’s-70’s: Toyota Production System –, Taiichi Ohno-TQM 1980’s-90”s: Womack/Jones– Lean Thinking – Motorola Six Sigma 2000 + : What's Next ?
Slide: 3 © copyright September 2005, LeanCor LLC
Lean House Customer Focus
Jidoka
JIT
Just in Time
1. 2. 3. 4. 5. 6.
Collaboration Best Practices Go See Time and Motion Continuous Improvement Visual Management
Quality at the Source
Standardization Stability Adapted from : Pascal Dennis- LPS
Slide: 4 © copyright September 2005, LeanCor LLC
River of Waste
Space
Inventory
Lost Sales
Waiting
Correction
Transportation
Motion
Overproduction Slide: Packaging 5
Knowledge
Energy
Time
Inventory = Water Level
The Learning Organization
© copyright September 2005, LeanCor LLC
Supply Chain & Logistics Management Supply Chain Management Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
Logistics Management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.
Source CSCMP Slide: 6 © copyright September 2005, LeanCor LLC
Supply Chain & Logistics Management Supply Chain Management Transportation
Inventory Mgt.
Cross-Docking Supplier Mgt Warehousing
Logistics
Parts Ordering Customer Mgt. Purchasing Logistics Engineering
Import/Export
Slide: 7 © copyright September 2005, LeanCor LLC
What part of Lean Logistics don’t you understand? Right Part ● Right Quantity ● Right Time ● Right Place ● Right Price ● Right Quality ● Right Source ● Right Service Order Mgt
Customer Bases
RDC’s
Customer Mgt Supplier Mgt
Supplier Bases Pooled Volumes
Logistics Design
Traffic Mgt
Reverse Logistics
Yard Mgt Shipping Mgt Receiving Mgt
Delivery Frequency Network Ownership Delivery Verification Network Optimization Shipping Schedule Window Times Carrier Performance Customer Compliance Feedback Mechanism Reduced Lead Time
Planned System Event Mgt Pull Replenishment Visibility & Stability Trailer Activity.
Cross Docking Yard Control Receiving Schedule Leveled Flow Delivery Frequency
Pick Up Frequency Pick Up Verification Supplier Compliance Feedback Mechanism
Slide: 8 © copyright September 2005, LeanCor LLC
Lean Logistics Concept 1 of 3 – Lot Size
Plant Daily Requirements = x75 100
75
100
75
100 75
25
Day 1
Day 2 Day 3
75
75
75
75
Day 2
Day 3
Day 4
Day 5
25
Day 4
Day 5
Day 1
Order Lot Size = 25
Order Lot Size = 50
What Happens Here ? What are the Implementation Challenges ? Slide: 9 © copyright September 2005, LeanCor LLC
Lean Logistics Concept 2 of 3 - Frequency
500 SQ/FT
1 /week
Mon
Tues
Wed
Thr
Fri
10AM
12PM
2PM
4PM
100 SQ/FT
1 /day
8AM 25
SQ/FT
4 /day
8AM
10AM
12PM
2PM
4PM
What is the Effect on Inventory? What is the obvious challenge? Slide: 10 © copyright September 2005, LeanCor LLC
Lean Logistics Concept 3 of 3 – Level Flow
7AM
9AM
11AM
1PM
3PM
One Shift Material Handling
Where can we use this concept tomorrow ? Slide: 11 © copyright September 2005, LeanCor LLC
Unload Takt Time & Work Planning Calculation Takt Time = Available Time / Demand Demand 40 Trailers
Daily Demand - Trailers Schedule Work Minutes / Shift Number Shifts Per Day Lunch Minutes Breaks Total Downtime Per Shift Total Working Time / Day
480 2 30 30 60 840
Takt Time - Trailer Unloading
21
Standard Work - Trailer Unload Process Time Total Work Demand Minutes - Per Day Avialable Time Per Team Member - Per Shift
45 1800 420
Minutes Minutes Minutes Minutes Minutes Minutes Minutes Per Trailer Minutes Minutes Minutes
What if ? Demand Demand Demand 60 60 80 480 2 30 30 60 840
480 2 30 30 60 840
480 2 30 30 60 840
14
14
10.5
45 2700 420
30 1800 420
60 4800 420
Optimal Number of Team Members
4.3
Team Members
6.4
4.3
11.4
Optimal Team Members Per Shift
2.1
Team Members
3.2
2.1
5.7
# Unloading Doors Required
2.1
Doors
3.2
2.1
5.7
# Lift Trucks Required
2.1
Lift Trucks
3.2
2.1
5.7
What Can we Learn from This ? Slide: 12 © copyright September 2005, LeanCor LLC
Process and the Value Stream “Brilliant Process Management is our Strategy” “We get brilliant results from average people managing brilliant processes”… “We observe that our competitors often get average (or worse) results from brilliant people managing broken processes” Toyota Motor Manufacturing
Slide: 13 © copyright September 2005, LeanCor LLC
Continuous Improvement
Slide: 14 © copyright September 2005, LeanCor LLC
The Measurement Head Shake…
Slide: 15 © copyright September 2005, LeanCor LLC
Lean Starts with a Plan !
Slide: 16 © copyright September 2005, LeanCor LLC
Thank You
[email protected] 859-283-7590
Slide: 17 © copyright September 2005, LeanCor LLC