La Lean Supply Chain
Lean Supply Chain
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La Lean Supply Chain Miglior Qualità – Costi Inferiori - Lead Time brevi Riducendo il Production Flow Eliminando gli sprechi
Just in Time “Qualità intrinseca”
“le parti richieste al momento richiesto nelle quantità richieste”
Precondizioni • Flusso Continuo • Sistema Pull • Takt Time • Produzione Livellata
Manodopera Flessibile, abile, Altamente Motivata
• Line Stop - Manual - Automate • Error Proofing • Visual Control
Stabilità Operativa Lavoro Standardizzato Total Productive Maintenance
Processi e Prodotti Robusti Coinvolgimento dei Fornitori
Lean Supply Chain
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Lean Thinking • The objective is to manage the business backwards from the consumer definition of value - not forwards from your organisation and your assets • To create lean primary processes to design, deliver and support this value - with minimum wasted effort and time – and the necessary lean support processes • And to build a lean management system to develop, sustain and improve these processes over time • Be clear about consumer Purpose, before designing the Processes and then organising the People
Lean Supply Chain
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Lean Principles • Specify value from the standpoint of the consumer (not from your assets and organisation) • Identify the value stream through the steps required to create each product - from concept to launch and order to delivery - and remove the wasted steps • Make the process of value creation flow smoothly and quickly to the customer • But only in line with the pull of the consumer • While pursuing perfection by constantly improving the product and the value stream
Lean Supply Chain
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The Dynamics of Lean No created demand amplification Separate capacity planning from production instructions
Reflexive Pull all the way back to raw materials
Every Product Every Interval capability
Combine steps where you can to flow
Levelled and released in small quantities
Production pulled from every upstream step
To only one pacemaker process
Every step is:Valuable Capable Available Flexible and Adequate
Demand signals direct from the customer’s point of use
FIFO
With just the right Standard Inventory of:Cycle stock Buffer stock and Safety stock Lean Supply Chain
Uninterrupted flow back to the customer’s point of use
No warehouses, only Cross-Docks and Mixed-model Milk Runs
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Implementing Lean
Current State Value Stream Production Control
Forecast Michigan Steel
Weekly Order
MRP
Forecast State Street Assembly
Daily Order
Check progress and stabilise
Weekly Schedule Daily Ship Schedule
Future State Value Stream
2 x Week
Daily
Production Control
Forecast
I
Stamping
I
S. Weld 1
I
S. Weld 2 Michigan Steel
I
Assembly 1 Daily Order
I
Forecast Shipping
State Street Assembly
Daily Order
Production Daily Order Lead Time = 23.5 days V S ManagerValue Jim Date 03/02/2003 Added Time = 184 secs Product Value Family Stream Business Objective Weld and Objective Assembly Cell
Value Stream Plan
Daily
Stamping
Ask the key questions
I
Assembly 2
Pacemaker *Continuous flow from weld to assembly *Kaizen to 168 secs *Eliminate weld changeover *Uptime weld #2 *Finished goods pull Improve Profitability *Materials handler routes In Steering Brackets Stamping *Stamping Pull *Stamping changeover
Supplier *Pull coils with daily deliveryr
Lean Supply Chain
Daily
Measurable Goal Shipping
Zero WIP < 168 s/t
daily delivery < 1.5 days of coils at press
Person in Charge
Monthly Schedule 1
2
Production Lead Time = 4.5 days < 30 sec c/o Value 100% Added Time 2 days FG = 166 secs Pull Schedule
1 day inventory + pull schedule batch size 300/160 pieces c/o < 10 min
Product Family Steering Brackets
3
4
5
6
7
8
9
John Dave Sam Mike Sue James
Fred Tim
Graham
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%
Current State
30 20
Across the Value Stream
ppm
Amplification
40
2000
Quality & Delivery
10
1500 1000
10
500
0
0
F E D C B A
5 0
F
%
%
E
C
A
ppm
Amplification
40
20
F % 40
Cross Dock
Wipers
10
73 8
0
C
A
Ideal State
ALPHA MOTORS F E D C B A
Quality & Delivery
2000
1000
Time Value Stream Compression 44d
5
500 0
0
Dist. Centre
55m
% 10
1500
Assembly
20
BETA WIPERS
E
ppm
Amplification
Cross Dock
30
Steps
0
0
Warehouse
GAMMA STAMPING
5
Dist. Centre
F E D C B A
DELTA STEEL
10
1000
0
Stamping
%
1500
Flow and Pull between Plants500
10 Steel
Quality & Delivery
2000
Future State 2
30
Time reduced from 24 to 3 days
F
E
C
A
Steel
F
E
D
C
DELTA STEEL
B
A
Stamping
Wipers
GAMMA STAMPING
BETA WIPERS
Assembly
Time Steel
ALPHA MOTORS
Steps
Time reduced from 44 to 24 days
39 8
F
E
D
C
B
Dist. Centre
16d 55m
A Stamping Cell
Wiper Cell
Assembly
Time
EPSILON STEEL
SUPPLIER PARK
ALPHA MOTORS
Steps
30 8
Lean Supply Chain
F
E
D
C
B
3d 55m
A
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Lean vs. Tradizionale • Metà tempo per l’ingegneria • Metà tempo sviluppo prodotto • Metà investimento in macchine, utensili ed equipaggiamenti • Metà impegno della manodopera in azienda • Metà difetti nel prodotto finito • Metà spazio in azienda a parità di output • Un decimo del WIP Lean Supply Chain
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Lean vs. Tradizionale • • • • • • • •
99,9% Customer Schedule Attainment 15 PPM or Better 4-6 Inventory Days of Supply 92%+ Operational Availability Leveled, Sequenced Production Order to Customer Use - 4 1/2 Hours Functioning Supplier Partnership Strong Production Control Function Lean Supply Chain
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Changing Costing Methods Principles of Cost Plus: SALES PRICE = COST+ PROFIT Profit
SALES
Profit
Traditional View
Profit Sales Price
Mfg. Cost
Mfg. Cost Mfg. Cost
Sales Price
Principles of Cost Reduction: PROFIT = SALES PRICE - COST Profit
Modern View
Profit Profit
Sales Price
Mfg. Cost
Mfg. Cost Mfg. Cost
Lean Supply Chain
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Lean Supply - Global Purchasing Strategies • Common Strategy – Buy Cheapest in the world – Support with dual sourcing
• Toyota Strategy – – – – –
Buy to achieve lowest total cost Buy in country where manufacturing is performed Minimize Number of Suppliers Keep supply chain short as possible Toyota is as strong as its weakest supplier Lean Supply Chain
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Consequences of Cheapest Price • Long Distance Supply – Long lead times – increases structural cost: people, travel, premium freight, packaging, obsolete material, scrap due to handling damage
• Buying cheapest restricts buying from best supplier and achieving total lowest cost vs • Buying from best supplier, then get lowest cost Lean Supply Chain
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Consequences of Long Supply Chains • Long Value Streams Result in: • High Risk – Quality Spills – Availability of Supply – Engineering Changes
• High Cost – Transportation (Premium and Standard) – Engineering Support/Supplier Development – Plant Overtime Lean Supply Chain
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The Lean Enterprise ap r e L ng ty e s i L, E uali r p er PC& ce, Q t En ns, nan n a io Fi Le rat g, e in Op has rc Pu
World Class Lean Supply Chain Implemented Full Benefits of Lean Supply Chain
Traditional Manufacturing & Support Functions
Lean Supply Chains are not just a Materials Management Effort Lean Supply Chain
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Demand/Schedule Variance Causes Planning/Scheduling System Mechanics: Push Scheduling PRODUCTION FLOW
All production operations receive same schedule
Sc he du le
Machining le ule Schedu Sched
Supplier
Assembly
ule ed h Sc
Production Scheduling
Customer ule d e Sc h
Reaction to Changes Occurs Only Weekly Lean Supply Chain
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Typical Demand/Scheduling Model OEM
Schedule
Tier #1
Tier #2
Actual Demand
Traditional Scheduling Systems 1. Demand and schedule are usually different 2. Noise increases moving down stream 3. Affected most by changes in order quantity, delivery time and lead time Lean Supply Chain
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Decoupling points and strategic inventory
Driven By Demand Driven By Forecast
Plants
Distribution Centres
Warehouses
Lean Supply Chain
Depots 17
Two key de-coupling points Order Driven
Forecast Driven Less uncertainty due to enrichment of undistorted data Material de-coupling point
Push
Pull
Market sales
Factory Information de-coupling point
Assembler
Finished goods Stock
Retailer
Direct market sales information
Lean Supply Chain
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Lean Supply Chain - Pull Production System Ship
Ship
Raw Material
Ship
Customer Machining
Pull Schedule
Assembly
Leveled Production Plan
Pull Schedule Assembly Schedule Lean Supply Chain
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OEM’s Lead Supply Chain Management Process Process: Smoothing Production to Reduce Supply Chain Cost
O.E.
Ship
Ship
Tier 1
Tier 2
Leveled Sequenced Pull Leveled Sequenced Pull Signal Signal Production Production
Action Steps-All Customers 1. 2. 3. 4. 5.
Smooth production build and communicate plan to suppliers Maintain daily production levels as planned (maintains smooth flow) Minimize parameter changes in system (lot size, quantity, & lead time) Convert from push scheduling to pull scheduling Maintain open communications with supplier - Provide Supplier access or view of actual demand Lean Supply Chain
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Takt Time Vs. Cycle Time An Important Distinction Takt Time =
Time (Available seconds per working day) Volume (Daily production requirement)
Sets pace of production to match pace of sales.
Cycle Time =
Actual time required for a worker to complete one cycle of his job process Lean Supply Chain
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Implementing the Lean Supply Chain • Level Sequenced Production –
–
producing a repeatable pattern by volume and mix within each day of the monthly production plan Characterized by: • a smoothed production plan over an extended time • every model made every day • daily adjustment can be made • a predictable production process Lean Supply Chain
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Implementing the Lean Supply Chain Summary – – – –
– –
Find the best supplier and engage early in the design process Partner with key suppliers that have high capability for design and supply Suppliers should be located in the country where you build your product Shorten the supply chain by having suppliers close, frequent deliveries, and leveled production plans Develop pull systems with suppliers Know production capacity by comparing effective cycle times with Takt times. Lean Supply Chain
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Impact of Agile Manufacture
Waste Waste Reduction Reduction
Vendor Vendor Managed Managed Inventory Inventory
Standardisation/ Standardisation/ Modularisation Modularisation
Synchronised Synchronised Operations Operations
Economies Economies of of Scale Scale
Lean Lean Production Production
Agile Agile Supply Supply
Capacity Capacity Management Management
Set-up Set-up Time Time Reduction Reduction
Flexible Flexible Response Response
Postponed Postponed Fulfillment Fulfillment
Agile Agile Supply Supply Chain Chain
Rapid Rapid Replenishment Replenishment
Process Process Management Management
Organisational Organisational Agility Agility
Principles Process Process Re-engineering Re-engineering
Demand Demand Driven Driven
Quick Quick Response Response
Cross Cross Functional Functional Teams Teams Visibility Visibility of of Real Real Demand Demand
Programmes Non-Value-Adding Non-Value-Adding Time Time Reduction Reduction
Impact of Agile Logistics
Continuous Continuous Replenishment Replenishment Programmes Programmes
Actions
Lean Supply Chain
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