"Lean Supply Chain Management"

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"Lean Supply Chain Management"

  1. 1. Cand.polyt. hovedopgave “Lean Supply Chain Management” - A Toyota Case Tirsdag den 15. marts 2005 af Birgitte Sten Jørgensen Elsemarie Knage-Rasmussen
  2. 2. Agenda • Baggrund og formål • Fremgangsmåde • Konklusion • Metoder, teknikker og værktøjer – Produktionsplanlægning – Outsourcing – Partnerskaber – Leverandørforum (Supplier Association) • Opsamling • Feedback fra Japan • Sidste bemærkning
  3. 3. Baggrund og formål Pre-Project Pre-Project “Lean Manufacturing – Benefits, Challenges & Limitations” “Lean Manufacturing – Benefits, Challenges & Limitations” Survey of Lean Production in Denmark Survey of Lean Production in Denmark -- Interview with ten Danish Companies Interview with ten Danish Companies Overall Objective of The Master Thesis Overall Objective of The Master Thesis “To examine how to create a lean supply chain” “To examine how to create a lean supply chain” A Case Study of Toyota A Case Study of Toyota ““ To examine Toyota’s approach toward SCM” To examine Toyota’s approach toward SCM” Primary Sources Primary Sources Secondary Sources Secondary Sources Interviews with Toyota & Denso Interviews with Toyota & Denso Books, Articles, Presentations, etc. Books, Articles, Presentations, etc. Analysis -- Comparison To Denmark Analysis Comparison To Denmark “To examine how Danish companies can benefit from “To examine how Danish companies can benefit from Toyota’s approach & how to adapt to Danish environment ”” Toyota’s approach & how to adapt to Danish environment Conclusion Conclusion Recommendations to Danish Companies Recommendations to Danish Companies Scope of Master Thesis
  4. 4. Fremgangsmåde Theoretical Framework Lean Production Lean Production SCM SCM Case Study Analysis Lean Supply Chain Management Lean Supply Chain Management Structure Processes Production Planning Method Technology “A Lean Supply Chain is a cost efficient supply Outsourcing “A Lean Supply Chain is a cost efficient supply chain achieved through elimination of waste chain achieved through elimination of waste Partnerships and continuous improvements” Mgt & Interaction Method and continuous improvements” Control Supplier Associations Lean Success Factors: Lean Success Factors: Cost, Lead-Time & Quality Cost, Lead-Time & Quality CREATE A LEAN ORGANISATION CREATE A LEAN ORGANISATION Optimise internally before going externally Optimise internally before going externally Conclusion Extend the lean principles to the supply chain TECHNOLOGY TECHNOLOGY INTERACTION METHOD INTERACTION METHOD Production Planning Partnership Partnership Production Planning CONTINUOUS Close &&Few Suppliers Pull/JIT Approach Pull/JIT Approach Close Few Suppliers IMPROVEMENTS Outsourcing Outsourcing Supplier Association Supplier Association Focus on Core Competences Exchange of Ideas Exchange of Ideas Focus on Core Competences Divide Work According to Cap. Joint Learning Joint Learning Divide Work According to Cap.
  5. 5. Fremgangsmåde Theoretical Framework SCM Analysis Framework Lean Production Supply Chain Management Supply Chain Management Lean Production “SCM is the integration of supply “SCM is the integration of supply “A means of attaining cost efficiency “A means of attaining cost efficiency chain activities through improved Structure Processes chain activities through improved achieved through waste elimination achieved through waste elimination supply chain relationships, to achieve supply chain relationships, to achieve and continuous improvements” and continuous improvements” a sustainable competitive advantage” a sustainable competitive advantage” Lean Supply Chain Management Mgt & Lean Supply Chain Management Control “A Lean Supply Chain is a cost efficient supply chain “A Lean Supply Chain is a cost efficient supply chain achieved through elimination of waste achieved through elimination of waste and continuous improvements” and continuous improvements” Lean Success Factors: Lean Success Factors: Case Study Cost, Lead-Time & Quality Cost, Lead-Time & Quality Best Practice Abstraction - How to Create a Lean Supply Chain?
  6. 6. Fremgangsmåde Analysis - Extraction From The Toyota Case Production Planning Method Technology Outsourcing Partnerships Interaction Method Supplier Associations Analysis – Elements of a Lean Supply Chain PRODUCTION PLANNING PRODUCTION PLANNING OUTSOURCING OUTSOURCING PARTNERSHIP PARTNERSHIP SUPPLIER ASSOCIATION SUPPLIER ASSOCIATION Pursue Pull/JIT Pursue Pull/JIT Work according to Cap. Work according to Cap. Pursue Partnership Supply Pursue Partnership Supply Establish Supplier Establish Supplier Spread to Suppliers Spread to Suppliers Focus on Core Competence Focus on Core Competence Few & Close Partners Few & Close Partners Association Association Efficiency Waste Elimination Foundation Spread of Lean Principles LEAN SUPPLY CHAIN LEAN SUPPLY CHAIN “A cost efficient supply chain “A cost efficient supply chain achieved through elimination of waste achieved through elimination of waste and continuous improvements” and continuous improvements”
  7. 7. Fremgangsmåde Conclusion CREATE A LEAN ORGANISATION CREATE A LEAN ORGANISATION Optimise internally before going externally Optimise internally before going externally Extend the lean principles to the supply chain TECHNOLOGY TECHNOLOGY INTERACTION METHOD INTERACTION METHOD Production Planning Partnership Partnership Production Planning CONTINUOUS Close &&Few Suppliers Pull/JIT Approach Pull/JIT Approach Close Few Suppliers IMPROVEMENTS Outsourcing Supplier Association Supplier Association Outsourcing Exchange of Ideas Focus on Core Competences Focus on Core Competences Exchange of Ideas Divide Work According to Cap. Joint Learning Joint Learning Divide Work According to Cap.
  8. 8. Produktionsplanlægning DK NOW ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS DK FUTURE Pursue Pull/JIT Pursue Pull/JIT Autonomy Autonomy Cost Reduction Chain Stability Cost Reduction Pull/JIT √ Traditional Push Spread to Suppliers Multiple Customer/Suppl. Spread to Suppliers Multiple C ustomers /Supp. C ustomers /Supp. Chain Stability Cost Reduction Chain Stability Whole SC √ • Metode – Customer Order Decoupling Point – Value Stream Mapping Product Family Current State Current-State Drawing Future-State Drawing Work Plan & Implementation Future State
  9. 9. Outsourcing DK NOW ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS DK FUTURE Primary on Cost Focus In-House Focus on Core Competence Work According to Cap. Focus on Core Competence Change of Focus from Change of Focus from Cost Reduction Cost Reduction Focus: Core Comp. √ Focus: Core Comp. √ Primary on-House Focus In Cost Work according to Cap. Work according to Cap. Focus on Core Competence Cost to Core Competence Cost to Core Competence Quality Improvements Quality Improvements Divide Work √ • Metode – Fremgangsmåde ved outsourcing • En 5-trinsmodel Relate toto Activities & Sourcing Monitoring && Relate Activities & Sourcing Sourcing & Monitoring Company Competence Strategy Sourcing & Evaluation Company Competence Strategy Cooperation Evaluation Strategy Mapping (Make or Buy) Cooperation (Improvements) Strategy Mapping (Make or Buy) (Improvements)
  10. 10. Outsourcing Relate to Activities & Sourcing Monitoring && Relate to Activities & Sourcing Sourcing & Monitoring Company Competence Strategy Sourcing & Evaluation Company Competence Strategy Cooperation Evaluation Strategy Mapping (Make or Buy) Cooperation (Improvements) Strategy Mapping (Make or Buy) (Improvements) Overall Strategy Overall Strategy Identification of: Identification of: What isisof importance of the company What of importance of the company Which technologies, competences, skills and alliances creates the company's competitive edge Which technologies, competences, skills and alliances creates the company's competitive edge On which level should the competences, technologies, skills, and alliances be carried out On which level should the competences, technologies, skills, and alliances be carried out
  11. 11. Outsourcing Relate toto Activities & Sourcing Monitoring && Relate Activities & Sourcing Sourcing & Monitoring Company Competence Strategy Sourcing & Evaluation Company Competence Strategy Cooperation Evaluation Strategy Mapping (Make or Buy) Cooperation (Improvements) Strategy Mapping (Make or Buy) (Improvements) • Top-Down segmentering • Bottom-Up analyse Mobile Phone Mobile Phone Battery Battery Electronic Electronic Software Software Cabinet Cabinet Power Cells Power Cells Plastic Molding Plastic Molding Plastic Molding Plastic Molding Vulcanization Vulcanization Same competence
  12. 12. Outsourcing Relate toto Activities & Sourcing Monitoring & Relate Activities & Sourcing Sourcing && Monitoring & Company Competence Strategy Sourcing Evaluation Company Competence Strategy Cooperation Evaluation Strategy Mapping (Make or Buy) Cooperation (Improvements) Strategy Mapping (Make or Buy) (Improvements) • Make-Buy Matrix High Wait & See In-House Performance Make & Buy Invest or Low Outsource Outsource Low Importance High
  13. 13. Outsourcing Relate toto Activities & Sourcing Monitoring && Relate Activities & Sourcing Sourcing & Monitoring Company Competence Strategy Sourcing & Evaluation Company Competence Strategy Cooperation Evaluation Strategy Mapping (Make or Buy) Cooperation (Improvements) Strategy Mapping (Make or Buy) (Improvements) • Retningslinier for indkøb • Klassificering af samarbejde High Complex Strategic Purchase Purchase Complexity Standard Important Low Purchase Purchase Low Importance High
  14. 14. Outsourcing Relate toto Activities & Sourcing Monitoring && Relate Activities & Sourcing Sourcing & Monitoring Company Competence Strategy Sourcing & Evaluation Company Competence Strategy Cooperation Evaluation Strategy Mapping (Make or Buy) Cooperation (Improvements) Strategy Mapping (Make or Buy) (Improvements) • Objektiv præstationskriteria • Benchmarking
  15. 15. Partnerskaber DK NOW ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS DK FUTURE Trad. Market Supply Pursue Partnership Supply Pursue Partnership Supply Long-Term Focus Long-Term Focus Cost Reduction Cost Reduction Partnership Supply √ Partnership Supply Vertical Integration Few & Close Partners Few & Close Partners Fear of Dependency Fear of Dependency Total Optimisation Total Optimisation Few Partners Few Partners √ • Metode Customer – Reducer leverandørbasen • ABC analyse • Direkte leverandører indirekte lev. Customer Purchasing Cost (%) Fraction of Suppliers (%)
  16. 16. Leverandørforum DK NOW ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS DK FUTURE Change of Mind -Set Change of Mind -Set Strategic Alignment Strategic Alignment No Supplier Ass. Establish Supplier Ass. Establish a Supplier Establish Supplier Ass. Supplier Ass. √ Suspicion Mutual Benefit Suspicion Mutual Benefit Continuous Improvement Continuous Improvement Association • Metode Customer – Den strukturelle model – Udvikling over 2 faser: • Få positivt indstillede leverandører • Udvid på baggrund af dokumenteret succes Suppliers – Møder på alle niveauer i organisationen Mødehyppighed S S Halvårligt T T Kvartalsvis O O Månedligt
  17. 17. Leverandørforum • Metode (fortsat) – Kvalitetspriser og audits • EFQM Excellence modellen – Policy Deployment • Nedbrydning af overordnet strategi European Foundation for Quality Management Targets for Organisation Time Quality High-Level Plan Cost Innovation Improvement? Who? Plan - Do Executive Staff Method? Target? Time? Work Plan by Item Action Check Manager/Supervisor Measurement Countermeasure Improvement? Method? Work Team Result? Countermeasure? Target & Time? All 3 Levels
  18. 18. Opsamling Theoretical Framework Case Study Lean Production Lean Production Supply Chain Management Supply Chain Management Structure Processes Lean Supply Chain Management Lean Supply Chain Management “A Lean Supply Chain is a cost efficient supply chain achieved “A Lean Supply Chain is a cost efficient supply chain achieved through elimination of waste and continuous improvements” through elimination of waste and continuous improvements” Mgt & Control Lean Success Factors: Lean Success Factors: Cost, Lead-Time & Quality Cost, Lead-Time & Quality Abstraction - How to Create a Lean Supply Chain? CREATE A LEAN ORGANISATION CREATE A LEAN ORGANISATION Optimise internally before going externally Optimise internally before going externally Extend the lean principles to the supply chain TECHNOLOGY TECHNOLOGY INTERACTION METHOD INTERACTION METHOD Production Planning Production Planning Partnership Partnership Pull/JIT Approach CONTINUOUS Close &&Few Suppliers Close Few Suppliers Pull/JIT Approach IMPROVEMENTS Outsourcing Outsourcing Supplier Association Supplier Association Focus on Core Competences Exchange of Ideas Exchange of Ideas Focus on Core Competences Divide Work According to Cap. Joint Learning Joint Learning Divide Work According to Cap. Comparison: Best Practice vs. Denmark Recommendations to Danish Companies DK NOW DK FUTURE ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS D K N O W DK NOW Production Planning D K N O W Pursue Pull/JIT Pursue Pull/JIT Autonomy Autonomy Cost Reduction Chain Stability Cost Reduction DK NOW Production Planning Traditional Push Pull/JIT Traditional Push Spread to Suppliers Spread to Suppliers Multiple Customer/Suppl. Multiple C ustomers /Supp. C ustomers/Supp. Chain Stability Cost Reduction Chain Stability Traditional Push Whole Supply Chain Outsourcing Outsourcing Primary In-House ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS Divide The Work Focus on Cost Focus on Core Competence Work According to Cap. Focus on Core Competence Change of Focus from Change of Focus from Cost Reduction Cost Reduction Focus on Core Comp. Work according to Cap. Work according to Cap. Focus on Core Competence Cost to Core Competence Cost to Core Competence Quality Improvements Quality Improvements Supply Relationship Trad. Market Supply ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS Supply Relationship Partnership Supply C H A L L E N G E S R E S U L T S Pursue Partnership Supply Pursue Partnership Supply Long-Term Focus Long-Term Focus Cost Reduction Cost Reduction Vertical Integration Few Partners P u r s u e P a r t n e r s h i p S u p p l y C o s t R e d u c t i o n Few & Close Partners Few & Close Partners F e w & C l o s e P a r t n e r s Fear of Dependency Fear of Dependency Total Optimisation Total Optimisation T o t a l O p t i m i s a t i o n Supplier Association Non-Existence ACTIONS ACTIONS CHALLENGES CHALLENGES RESULTS RESULTS Supplier Association Achieved Change of Mind -Set Change of Mind -Set Strategic Alignment Strategic Alignment Establish Supplier Ass. Establish a Supplier Establish Supplier Ass. Suspicion Mutual Benefit Suspicion Mutual Benefit Continuous Improvement Continuous Improvement Association
  19. 19. Feedback fra Japan • Hvordan overtales danske virksomheder til at følge vores råd? – Bundlinjeresultater – Teknologi kontra samarbejdsmetoder – Eksempler på at partnerskaber kan måles økonomisk • Koordinering • Kvalitetskontrol • Implementering – hvordan? – Rækkefølge – Extreme Programming • Kulturforskelle – National kontra virksomhedskultur – Win-win kontra zero-sum game – Optimering kontra rationalisering
  20. 20. Sidste bemærkning • Glem ikke… – Lean er: “Et middel til at skabe økonomisk effektivitet gennem, eliminering af spild og løbende forbedringer” • Helt centralt for lean er: Deming's PDCA-cirkel – Løbende forbedringer A P C D Plan Plan Hvad? – En vedvarende proces Næste skridt Hvordan? Hvem? – Der findes ikke én gylden løsning Act Act Do Do Reflektion Implementering Check Check Opnået vs. forventet resultater

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