backdrop – jit foundation understanding your business … kpi’s value streams … ‘true...
TRANSCRIPT
Lean Practices for Supply Chain Optimization
by: Bill Mazurek
Backdrop – JIT foundation Understanding your Business … KPI’s Value Streams … ‘True North’ Lean Partnerships to drive cost
improvement Design for LeanSigma opportunities …
manufacturability Lean Supply Chain Management … value
add Best Practices Sharing
Talking Points …
1950’s – Japan … 1980’s - USA Productivity Index
Focused on waste elimination and productivity gains (flat BOM’s / less WIP warehousing)
Visual Signals .. drive the behavior (walk and see) JIT implementation & design principles
◦ Design flow processes◦ Total quality control◦ Stabilized schedule – production smoothing◦ Kanban pull system (replenishment) ◦ Work with vendors / suppliers◦ Inventory Optimization (Inventory Turns)◦ Improved product design
Backdrop – JIT foundation
Factory verse Cell Based Strategy
Continuous Improvement Opportunities
Backdrop – JIT foundation
ProcurementLean Mfg.WarehousingTransportation
Integrated supplier lead times and delivery schedules
Flows from suppliers pulled by customer demand (using takt time, production smoothing, line balancing, single piece flow)
Minimized inventory through all tiers of the supply chain (warehousing / manufacturing / distribution)
On-time supplier delivery (to point of use) Minimal inspection Striving for zero quality defects essential to success Effective two-way communication links to
coordinate production & delivery schedules
Backdrop – JIT foundation
What are you Key Performance Indicators? What are the most significant improvement
opportunities? What KPI is the Biggest Impact to your Business
or Customer? How do you measure you improvement? What are the counter measures? What is the Strategic Planning Methodology for
your Business? Is your Strategy tied to operational tactics? What is your Strategic Planning Methodology?
Understanding your Business … KPI’s
Supplier > Manufacturing > Customer
Value Streams … ‘True North’
Enterprise-wide analysis to identify what activities to engage with each supplier.
Value measurements (supplier report card) Meaningful countermeasures
Self-enforcing agreements for continuous improvement
Target costing Sharing of cost savings
Strategic supplier partnerships with selected suppliers
Trust-based relationships; long-term mutual commitment Close communications; knowledge-sharing Blank Purchase Order … contract management
Lean Partnerships to drive cost improvement
Early supplier integration into design ◦ Early and major supplier role in design ◦ Up-front design-process integration ◦ Leveraging supplier technology base for innovative
solutions
Design for LeanSigma opportunities … manufacturability
Design for LeanSigma opportunities … manufacturability
1) Establish a supply chain steering group (waste elimination) … Value Stream Focus
2) Alignment and staffing for success (education component)
3) Invest in ‘value added’ technologies4) Establish alliances / supplier partnerships5) Focus on total cost of ownership (not price alone)6) New Products Development – suppliers early in the
process7) Optimize Inventory Turns by Cell (ROWC)8) Establish risk based controls / measurements9) Leveraging ‘Green’ based initiatives
Best Practices Sharing
