The Lean Supply Chain Fact or Fiction?

The Lean Supply Chain Fact or Fiction ? Robert Martichenko President, LeanCor LLC Slide: 1 © copyright September 2005, LeanCor LLC Simple in Talk…T...
1 downloads 2 Views 1016KB Size
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