It takes a cereal carton more than three months to move from the factory to supermarkets (Simchi-Levi et al. 2000).
In 1997 supply chain issues in the United States consumed 10 percent of the U.S. Gross National Product (GNP)
Lead time reduction of increasing importance:
reduced inventory levels
improved response to customers
Supply Chain Example Johnson Controls Chrysler Ford General Motors Technotrim Milliken & Company Lear Favesa Soft Trim Suppliers Dudek & Bock Spring Rockford Spring R. R. Spring Hardware Suppliers Canadian Fab Douglas & Lomason Collins & Aikman Textileather Specialty Screw Excel/Atwood
Supply Chains Chrysler 30% Chrysler 70% Supply Chain Cost in the Average New Vehicle? Trend
Lean Guiding Principles PERFECTION PULL FLOW VALUE STREAM VALUE
Types of Waste Waiting - Time spent waiting on items required to complete task (i.e., Information, material, supplies, etc.) Unnecessary Motion - Any motion that does not add value to product or service. Processing - Effort and time spent processing information or material that is not adding value Inventory - Material or information that is waiting for processing Moving items - Transporting information or material by mail, cart, conveyor, or foot travel Making too much -Producing more information or product than the ultimate customer requires Fixing defects - Time spent repairing or reworking material or information
PROCESS C PROCESS B PROCESS A PROCESS C PROCESS B PROCESS A Lean Toolkit
Pull Vs. Push in Product Development Verification Design/ Code Requirements Definition Verification Design/ Code Requirements Definition This engineer could be helping with requirements definition This pile of system requirements goes through the process like a rat through a snake.
Process B Check A Check B Process C Process A SW Engineer A SW Engineer B SW Engineer C Process A Problems 1. 2. 3. Process B Problems 1. 2. Lean Toolkit
Review Participation Successive Checks in Product Development Software Design Peer Review Peer Review Code Requirements Definition Systems Engineer Software Engineer Software Team Member Engineers work with producers and customers of their processes in order to ensure a quality result. Systems Participation Verification Engineer … Prevent problems at end of development cycle. Also work with other experts and key end consumers to ensure that critical tasks can be accomplished. Verification, for example. Lean Toolkit