syn lean and agile supply 1 © the delos partnership 2005 lean and agile applying the ideas to the...

Syn Lean and Agile supply 1 © The Delos Partnership 2005

Lean and AgileLean and Agile

Applying the ideas to the Supply side


The Delos ModelThe Delos Model

VisionVision

StrategyStrategy

PrioritisationPrioritisation

InnovationInnovationDemandDemand

SupportSupport

SupplySupply


Value Stream MappingValue Stream Mapping

• Map out the flows of order information and physical goods for a product family as they happen now

• Picture and plan future states that leave out wasted steps and introduce smooth ‘stream-like’ flow

• Plan how to increase the value offered to customers e.g. increased responsiveness, easier to use packaging


Draw the current stateDraw the current state

• The “current state” shows what is really happening right now

• It identifies wasteful steps and provides opportunity to visualise and plan a “future state”

METALSUPPLIER

PRODUCTION PLANNING

SAPManugistics

WeeklyProduction

Plan DailyDespatchSchedule

500 ft coils

18 days

2 permonth

WELDINGPRESSINGSTAMPING

WeeklyFax

6 weekForecast 60 + 30 day

Forecasts

EPE = 2 weeks

C/O 1-2hrs

OEE = 61%

C/T 1 second

EPE 1 week

C/O 0.3-2hrs

OEE = 57%

C/T 3 seconds

EPE 1 week

C/O 0.3-1hrs

OEE = 76%

C/T 10 seconds

EPE 1 week

C/O N/A

Capacity 70%

C/T 440 seconds

ASSEMBLY TEST

EPE 1 week

C/O 10 mins

Capacity 35%

C/T 34 seconds

DESPATCH

CUSTOMER

1 second

4 days 2 hours 30 days

Current State Map

Production Lead Time = 60 days

Value Added Time = 8 min 8 sec

Daily Order

1 xDaily

3 seconds 10 seconds 440 seconds

4 days4 days

34 seconds

5 variants 5 variants 5 variants 156 variants 156 variants

METALSUPPLIER

PRODUCTION PLANNING

DailyDespatchSchedule

500 ft coils

VendorManagedInventory

STAMP + PRESS

60 + 30 dayForecasts

EPE shift

C/O 10 mins

OEE = 77%

C/T 6 seconds

EPE shift

C/O N/A

Capacity 70%

C/T 300 seconds

WELD + ASSY 1

EPE As required

C/O N/A

Capacity 55%

C/T 164 seconds

CUSTOMER

6 hours

Future State Map

Production Lead Time = 1.3 daysValue Added Time = 7 min 50 s

Daily Order

1 xDaily

6 seconds 300 seconds

1 day

164 seconds

5 variants 156 variants5 variants

ASSY 2 + TEST + DESPATCH


Extended mappingExtended mapping

Joint mapping - with suppliers and customers - will help to identify the potential and opportunities for new ways of working– e.g. collaborative planning and supply

chain re-designs.


Extended map – Potato snacksExtended map – Potato snacks

POTATOGROW

WHSE

ProductionControl

SNACK COMPANY

ProductionControl

PROCESS COMPANY

RDC

RETAILER

WHSEWHSEPOTATOPROCESS

SNACKPRODN.

ProductionControl

GROWING COMPANY

SEEDSUPPLIER


Potential…Potential…

• Manufacturing Value Adding Time = 1%• Total Supply Chain Value Adding Time = 0.01%

Supplier Factory Distributor Customer

• Not just more efficient, but more effective… How can waste be removed? How can value be increased?


PP 321 MapPP 321 Map

DELOS Worshop

Key update: May 2005

Suppliers RMIn-house Man./Form.

Toll Man./Form. KG AI VALUES $AI Production BELGIUM X1000$

Re-Pack UNITS

Destination Bulk formulation Dilution Alternative By trucks GERMANY 'KARATE ZEON 12 x 1 l DES 9,419 8,891 Supply Route By trucks 'KARATE ZEON 4 x 5 l DES 13,440 12,520

45 t AI 450 tes FRANCE 'KARATE ZEON 10CS 4x5 l FRS 9,969 8,287 AI 7% total AI sales 'KARATE ZEON 10CS 12x1 l FRS 6,149 5,827

MinitanksFRANCE

R113a (China)

FRANCE KARATE K 6,657 13,157By trucks

Pentenoate(Kuraray) HUDDERSFIELD

Lambda AI

USA3-PBA AI

(Suzhou, Bilag,) Drums Bulk formulation Dilution Fill&Pack NFC 'WARRIOR 15 gal USS 4,520 1,628'WARRIOR 4x1 gal USA 19,927 7,179

OMNIUMSt Jo PM 'WARRIOR 4x1 gal USA 14,113 5,154

By seafreight 110 t AI By trucks220 tes Karate 490 tes Warrior SFC KARATE W/ZEON TEC 4x1 gal USA 14,575 4,492

16% total AI sales 'WARRIOR 4x1 gal USA 55,620 11,812

Core Component K25 CS NoDOT

Seneffe

SENEFFE Karate 10 CS

AIGUES VIVES Karate K

Core Component K25 CS RD & ND

St Gabriel

ST GABRIEL Warrior-Karate


Value Stream MappingValue Stream Mapping

How to do it in your business


Steps for a current state Steps for a current state mapmap1. Identify the family2. Pick which component to follow3. Complete a quick walk through to identify

the main processes 4. Fill in process information5. Document customer information6. Document supplier information7. Establish information flow (how does each

process know what to make next?)


1.1. Identify the familyIdentify the family

What product family? Products that:

• Share the same designs, tools and fabrication/formulation processes

• Follow roughly the same fabrication/manufacturing/formulation steps


HomogenisingOil

Maizeflour

Salt Flavouring Pack Multibag

FriedSnack

FryingOil

• Look at the BOM and choose a key, long lead time component:

2. Pick which component to 2. Pick which component to followfollow


3. Identify the main processes 3. Identify the main processes and how ‘deep’ and ‘long’ to lookand how ‘deep’ and ‘long’ to look

PACKINGFRY/FLAVOURBULK/MIXING

PRIMARY CASING

HMB CASING

PALLETISING DESPATCH

Decide how much detail and how broad a scope is appropriate for the time and resources available:


4. Fill in process information 4. Fill in process information

Typical information:

• Cycle time / Operation time• Number of operators• Working time (minus breaks)• Process reliability (uptime)• Scrap/Rework/Defect rate• Changeover time and responsiveness (Every

Part Every…)• Number of product variations at each stage• Production batch sizes• Pack sizes


5. Document customer 5. Document customer informationinformation1. How many product variants are there?2. What are the demand patterns?3. What lead time do they require and would they like?4. How and how often do they want deliveries? (include

batch/pallet sizes, barcoding etc.)5. What collaborative planning is there?6. Are there problems, e.g. obsolescent stock or stock

outs?7. What other value is given, in addition to the product

(e.g. advice, package sizes, responsiveness)?8. What is their opinion of your product/service?


6. Document Supplier 6. Document Supplier informationinformation1. Lead times2. Delivery frequency / flexibility / responsiveness3. Batch sizes4. Capacity5. Scrap levels / quality problems6. Delivery problems / reliability7. Information requirements8. What other value is given, in addition to the product

(e.g. advice, package sizes, responsiveness)?


7. Establish the information 7. Establish the information flowflow

• How does each process know what to make next (does it use Works Orders or Kanbans or look and see what’s needed to make)?


Steps for a future state Steps for a future state mapmap1. Reassess the Value Position

2. Reassess the Make / Buy position

3. How best to make and stock?

4. How best to schedule?

5. Improve process capability

6. Organisational issues


1. Reassess the Value 1. Reassess the Value PositionPosition

Customer Intimacy

•Responsive and reliable deliveries•Configurable product / service solutions•Customer partnerships•Service support

Product Leadership

•Product / service reliability•Premium product functionality

Operational Excellence

•Cost effective products•Source product from lowest cost area


Downstream vertical integration

Raw materials supplier

Component maker

Assembly operation

Wholesaler Retailer

Raw materials supplier

Component maker

Assembly operation

Wholesaler Retailer

Upstream vertical integration

Stages owned by the organisation

2. Reassess the Make / Buy position2. Reassess the Make / Buy position


3. How to make and stock?3. How to make and stock?

• What is the production lead time compared to the customer required (or desired) lead time?

• Which planning model (MTS,ATO, MTO etc) is most appropriate?

• Where can improved collaboration over planning and schedules help reduce uncertainty and improve responsiveness?

• Should new planning systems (e.g. Vendor Managed Inventory or direct line feed) be used?

• How can value be increased along the chain at minimum cost? (e.g. pack sizes, technical advice)


4. How to schedule?4. How to schedule?

EPE…• Should the process be batch build or build to

customer Takt (or vary by process)?• Takt time? (How do you understand customer

demand?)• Where can you flow? • Where should you use supermarket-based pull? • At what single point in the production chain do you

trigger production?• How much work do you release and take away?• How do you level the production mix?


5. Improve process 5. Improve process capabilitycapabilityWhich problems (e.g. bottlenecks, inventory,

long changeovers) to focus on improving ?

Each step in the process should be:– Valuable – of value to the customer – Capable – right every time – Reliable – always able to run– Flexible – able to change mix and volume in line

with demand– Adequate – with capacity to avoid bottlenecks


6. Organisational issues6. Organisational issues

• How appropriate are the following areas currently to the future value stream?– Management / value stream structures– Cultures and behaviours– Performance measures– Financial measures

• What changes are required?


PP321 Supply MapPP321 Supply MapLambda Cyhalothrin164528Global Planner- Adrian WaitesHuddersfield plant planner-Jayne TackBasel CS-Oli RitterBrand Manager-Scott ReasonsGSC Manager-Henri Dadon

RepackSites Omnium St Joe(0580)

Lambda Cyhalothrin TechnicalID 164528PP321-91% strength200 LT drum(185 kg)HuddersfieldPO's in multiples of 3151 KG

Lambda Tech A32523(old code 28809)Industry Sales (cm-Jerry Pauley)plant 0024(ASF364L)19 day LT for firm orderscs -Brenda Ball

Karate 25CS WIP(no dot)1450902000 gal/batch/dayplant 00247 days weekcan produce 1.5 batch/day with overtime

Warrior WIP145092plant 0024(A12838B)9600 ga/day/batch1 day mfe LT

Warrior 15GL SS RT RE B28154Z454-UAP Midwest KasotaZ453-UAP Pueblo

Warrior 110 GL Repack B28151Z454

Warrior 4x1 Gallon A28157plant 0580144 gal/palletmax 5000 ga/day-5 day/wk

Warrior 15 GL EZHNDL C28152plant 058060 Ga/pallet5000 ga/day-5 day/wk

Karate 25CS WIP(red dot)145261plant 0024(A12871A)2000 gal batch/day-7 day/wkCan produce 1.5 batch per day with OT

Karate 4x1 gallon A28159plant 0580192 ga/palletmax 5000 ga/day-5 day wk

Karate 15GL EZHNDL C28160plant 0580Phase out-0% ss60 gl/palletmax 5000 ga/day-5 day/wk

Omnium(0580)plant planner-Walt ZielkeAnalyst-Daryell Bass

Karate EC WIP144865plant 0580(A12975A)tech spec procurement from 0024

Matador 120EC 4x3.78 LT B32862(old code 74463)plant 0580-XSTJ48 cases/pallet

Matador 120EC 8x1 LT32857(old code 73411)Bplant 0580-XSTJ48 cases/pallet

St. Gabriel, LA(0024)Production PP - Melanie LeeOper Manager-Mike BianchettiNote-Red dot and no dot in same unit. 3 day cleanout btw campaigns

tech to Gowan(0640) for Impasse-see separate flow chart

Global Inv Targets:Avg Inv- $32.3mYr End 04- $28.3mUS= 34% world mktUS YE target=$2.0m

Karate EC 15 Gallon A15335TX, OK, NM-Will take mkt sh from 28159

Lambda CS145153SeneffePO Qty-full cont. 14400 LTHacco(0433)A12690A

Scimitar GC 8x1 Qt B7341948 gal/pltTOChuck Buffington

Battle GC 8x1 Qt B7342348 ga/pltTOChuck Buffington

Demand CS 12x8x8 oz B7365424 ga/pltPCORandy Moser

Scimitar CS 8x1 Pt B7342024 ga/pltphase out-end 2003TOChuck Buffington

Demand CS 8x1 Qt B7395448 g/pltPCORandy Moser

fld supervisor Kurt BowdleBrand Managers Randy Moser Chuck BuffingtonGSCM Henri DadonGSCP Adrian WaitesBasel CS Andree Remy

Lambda CS is a formulation not straight tech180 LT per drumHacco production 4x/yr: Jan April July and Oct. 3000 ga/wk

Demand CS 47.6 Ga B32157

PCORandy Moser

Lambda CS17276- 1000 ltSeneffePO Qty-full cont.Hacco(0433)A12690A

Warrior w/Zeon 8x1 Qt B281480580

Warrior W/Zeon 8X1 QT C20051plant 05805000 ga/day-5 day/wk


WorkshopWorkshop

Review the current supply chain and identify where waste exists, and

how the Supply Chain can now be organised to provide a continuous

flow to the customer within the value stream.

Review the current supply chain and identify where waste exists, and

how the Supply Chain can now be organised to provide a continuous

flow to the customer within the value stream.


Syngenta WorkshopSyngenta Workshop

Backup illustrations


The Value ChainThe Value ChainCo-op/dealerCo-op/dealer

Farmer

Food Chain

CustomerDistribution

CustomerDistribution

Europe

Americas

Far East

Europe

Syngenta AIAnd Form’n

Syngenta AIAnd Form’n

Raw MaterialRaw Material TransportTransport

GOODSGOODS

CASHCASH

Shareholders/Stakeholders

INFORMATIONINFORMATION


ExampleExample

Customer Demand = 100,000 100 ml bottles of 10 % AI strength product = 5,000 litres of formulationPacking plant packs 100,000 unitsFormulation plant packs 10,000 litresAI Plant 1,000 kgs ai

Packing plant operates 7 hours a day for 20 hours per month

Formulation plant operates 7 hours per day for 20 hours per month

AI plant operates 7 hours per day for 30 days in the month.


ExampleExample

Product Quantity Minutes available

Rate per minute

One piece every

Packed product 100,000 8,400 11.90 5.09 secs

Formulation 10,000 8,400 1.19 0.509 secs

Active Ingredient

1,000 kgs 12,600 79 grams 1gm every 0.75

seconds


Information flow using ERP Information flow using ERP systemssystems

Periods 1 2 3 4 5 6 7 8 9

Forecast 25 25 25 25 25 25 25 25 25

Order

PAB 25 0 0 0 0 0 0 0 0

Planned order release 25 25 25 25 25 25 25

Planned Order Receipt 0 25 25 25 25 25 25 25 25

On hand 50 Lead Time = 1 period Order Quantity = 5,000 units

Periods 1 2 3 4 5 6 7 8 9

Demand 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5

Order

PAB 5 2.5 0 2.5 0 2.5 0 2.5 0

Planned order release 5 5 5

Planned Order Receipt 5 5 5 5

On hand 5 Lead Time = 1 period Order Quantity = 5,000 litres

Periods 1 2 3 4 5 6 7 8 9

Demand 0.5 0.5 0.5 0.5

Order

PAB 0.5 0.5 0 0 0.5 0.5 0 0 0.5

Planned order release 1.0 1.0

Planned Order Receipt 1.0 1.0

On hand 0.5 Lead Time = 1 period Order Quantity = 5,000 litres


Information flow using Information flow using KanbansKanbans

Kanban Card

250 grams

AI

Kanban Square

Packing Plant

Formulation plant

Kanban Square

AI plant

Kanban Square

Kanban Card

5,000 litres

Formulation XYZ


TaktTakt

Definition:“The stroke in keeping time”

(Chambers’s Dictionary)

The frequency at which parts should be produced in order to meet the customer’s requirements; the ‘heartbeat’ of the process.

Takt Time = Available Working TimeNumber of pieces required

Takt Time = Available Working TimeNumber of pieces required


Scheduling systemsScheduling systems

• Make to Forecast/Stock– MRP/Works Orders

• Make to Demand– Kanban trigger signals– CONWIP trigger signals

• Supermarkets (and FIFO lanes) control production between points of flow without a written schedule

• Pacemaker process


5. Improve process 5. Improve process capabilitycapabilityWhich problems (e.g. bottlenecks, inventory,

long changeovers) to focus on improving ?

Each step in the process should be:– Valuable – of value to the customer – Capable – right every time – Reliable – always able to run– Flexible – able to change mix and volume in line

with demand– Adequate – with capacity to avoid bottlenecks


ValuableValuable

– of value to the customer

1. Waste elimination

2. Leadtime reduction (Flow)

© The Delos Partnership 200504/21/23

The Seven Forms of WasteThe Seven Forms of Waste

1. Over production

2. Motion

3. Transportation

4. Waiting

5. Over Processing

6. Storage/Inventory

7. Defects


WaitingWaiting


Defects / Rejects / Re-workDefects / Rejects / Re-work


CALL IT CALL IT TWENTY?TWENTY?

……22 TO BE 22 TO BE ON THE SAFE ON THE SAFE

SIDE!SIDE!

TEN TEN PLEASE!PLEASE!

Over - ProductionOver - Production


MotionMotion


TransportationTransportation


Over-ProcessingOver-Processing

How do you spell that?


££££

££££££

££££

££

££

££££££

Storage / InventoryStorage / Inventory


Throughput Efficiency (TE) = Work content x 100%Time in system

5 Weeks

15 hours total work

Minimise lead timesMinimise lead times


Sort outSort out

Get rid of all unnecessary items


CapableCapable

– Right every time

Process quality:

- Specialist Quality Control (e.g. 6 )

- Workplace Management (Genba Kanri)


What is 6 sigma?What is 6 sigma?

Simple:- Eliminate defects- Eliminate the opportunity for defects

Complex- Vision - Measurement of performance - Philosophy - Tool for:

> Customer focus> Breakthrough improvement> Continuous improvement > People involvement


PPM % Non Defective

2 308,537 69.1%3 66,807 93.32%4 6,210 99.379%5 233 99.9767%6 3.4 99.99966%

EffectivenessEffectiveness


Workplace ManagementWorkplace Management

Real OperationalTeamwork

StandardOperating

Procedures

SOS / EOSTeam

Meetings

TeamPerformance

Targets

The Role of the Supervisor


ReliableReliable

Always able to run

Machine reliability:

• 5S

• TPM


The 5S’sThe 5S’s

1. Sort out

2. Simplify

3. Sweep

4. Standardise

5. Self discipline


Total Productive MaintenanceTotal Productive Maintenance

TOTAL - Business wide

PRODUCTIVE - Improve equipment performance

MAINTENANCE - Machine systems support


Pillars of TPMPillars of TPM

OEE IMPROVEMENT

AUTONOMOUSMAINTENANCE

PLANNEDMAINTENANCE

SKILLSDEVELOPMENT

MAINTENANCEPREVENTION

STANDARDISATION

5S (WORKPLACE ORGANISATION)

RELIABILITYRELIABILITYAND AVAILABILITYAND AVAILABILITY


Autonomous MaintenanceAutonomous Maintenance

‘Maintenance is like looking after children. On a day to day basis you don’t require a doctor. In a factory your machines don’t require a technician. Production operators should think of their machines in the same way as a mother thinks of her children.’

Senior Japanese Maintenance Adviser, Nissan (U.K.) 1986.


FlexibleFlexible

– to change mix and volume on demand

Machine flexibility

SMED = Single Minute Exchange of Die

Manpower flexibility


SMED – how to achieveSMED – how to achieve

• Take a video• Record all activities related to change-over• Record as internal or external• Set up group of operators• Brainstorm ways to reduce internal, or

convert internal to external• Implement• Do it again and again


Set Up ReductionSet Up Reduction

Stage Step Time Changeover Type Improvements

Total Step Internal External Waste

Startup 0’.00”

1 Clean Hopper with air blower

32’00” 32’00” A smaller hooper than 150kg ?

2 Get cleanser to put in hopper

34’00” 2’00” Relocate cleanser

3 Keep cleaning injector

52’00” 18’00” Avoid walking to switch

4 Feed ABS pigment to hopper

60’00” 8’00” Unnecessary?

5 Use air blower to clean hopper

67’00” 7’00” Cassette type min-hoppers ?

6 Do a free shot to inject plastic into mould

96’50” 29’50” Moulds with 25 kg too large. Unnecessary step

Process Colour Change Responsible A Jones Item Housing

Machine Mitsubishi Measured By B Brown Changeover time 96’50”


PurposePurpose

1.To increase equipment availability and efficiency through less machine downtime

2.To increase process flexibility and responsiveness through smaller batch sizes and reduced lead times

3.To increase capital productivity through reduced stock levels


V. Jones

P. Daniels

R. Hope

B. Crosby

Op. 1 Op. 2 Op. 3 Op. 4

Manpower flexibility - ILUDOManpower flexibility - ILUDO


AdequateAdequate

– with capacity to avoid bottlenecks

Machine Capacity (OEE)


Operating Equipment Operating Equipment EffectivenessEffectiveness

0

20

40

60

80

100

%

Shift

Component

OEE

Total Time

Availability

Performance

Quality

OEE

Operating Equipment Effectiveness

= Availability

X Performance Efficiency

X Quality

440 / 480 hours = 91.67 %

Actual Run Rate/Planned Run Rate = 90 %

Quality = 119/126 = 94.4 %

OEE = 77.9 % [91.67x90x94.4]


0

20

40

60

80

100

120

140

160

Cutting Grinding Drilling Printing Furnace

Ho

urs

in

wee

k

Planned Non-run

Breakdown losses

Changeover losses

Quality losses

Good Running

Capacity mappingCapacity mapping


Extended capacity Extended capacity mappingmapping

Capacity per weekin equivalent units

raw materialsupplier

first tier supplier

Time

finalass

paint

subass

press blank

pickle

cold roll

hot roll

servicecentre

secondtier supplier

syn lean and agile supply 1 © the delos partnership 2005 lean and agile applying the ideas to the...

Documents

long lead time component

weekco nacapacity

current state mapidentify

current statethe current

seconds epe

total supply chain value

secondsepe shiftco nacapacity

supply chain redesigns