Lean Supply Chains Sample

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Lean Supply Chains Sample

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Lean Supply Chains Sample

  1. 1. Superfactory ® Lean Enterprise Series Lean Supply Chains
  2. 2. Outline <ul><li>Introduction to Lean Supply Chains </li></ul><ul><li>What is a Lean Supply Chain? </li></ul><ul><li>Components of Lean Supply Chains </li></ul><ul><li>Benefits of Lean Supply Chains </li></ul><ul><li>Moving Toward a Lean Supply Chain </li></ul><ul><li>Seven Steps for Building a Lean Supply Chain </li></ul><ul><li>Critical Success Factors </li></ul><ul><li>Summary </li></ul>
  3. 3. Components <ul><li>Lean Suppliers </li></ul><ul><li>Lean Procurement </li></ul><ul><li>Lean Manufacturing </li></ul><ul><li>Lean Warehousing </li></ul><ul><li>Lean Transportation </li></ul><ul><li>Lean Customers </li></ul>
  4. 4. Lean Warehousing <ul><li>Warehousing waste can be found throughout the storage process including: </li></ul><ul><ul><li>Defective products which create returns </li></ul></ul><ul><ul><li>Overproduction or over shipment of products </li></ul></ul><ul><ul><li>Excess inventories that require additional space and reduce warehousing efficiency </li></ul></ul><ul><ul><li>Excess motion and handling </li></ul></ul><ul><ul><li>Inefficiencies and unnecessary processing steps </li></ul></ul><ul><ul><li>Transportation steps and distances </li></ul></ul><ul><ul><li>Waiting for parts, materials and information </li></ul></ul><ul><ul><li>Information processes </li></ul></ul>Each step in the warehousing process should be examined critically to see where unnecessary, repetitive, and non-value-added activities might be so that they may be eliminated.
  5. 5. Lean Transportation <ul><li>Lean concepts in transportation include: </li></ul><ul><ul><li>Core carrier programs </li></ul></ul><ul><ul><li>Improved transportation administrative processes and automated functions </li></ul></ul><ul><ul><li>Optimized mode selection and pooling orders </li></ul></ul><ul><ul><li>Combined multi-stop truckloads </li></ul></ul><ul><ul><li>Crossdocking </li></ul></ul><ul><ul><li>Right sizing equipment </li></ul></ul><ul><ul><li>Import/export transportation processes </li></ul></ul><ul><ul><li>Inbound transportation and backhauls </li></ul></ul>The keys to accomplishing the concepts above include mapping the value stream, creating flow, reducing waste in processes, eliminating non-value-added activities and using pull processes.
  6. 6. Competitive Weapon <ul><li>The synthesis enables even small firms to participate in the results of lean efforts </li></ul><ul><li>Competitive advantage and leadership in the global marketplace can only be gained by applying lean principles to the supply chain </li></ul><ul><li>These elements are required for success: </li></ul><ul><ul><li>Thought </li></ul></ul><ul><ul><li>Commitment </li></ul></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Collaboration </li></ul></ul><ul><ul><li>Path Forward </li></ul></ul>A strong supply chain enables the member companies to align themselves with each other and to coordinate their continuous improvement efforts.
  7. 7. Path Forward The challenge is to bring all of these areas out of their traditional silos and make them work together to reduce waste and create flow. Development Quality HR Marketing Finance Purchasing Distribution Reduce Waste & Create Flow
  8. 8. Seven Steps <ul><li>Develop Systems Thinking </li></ul><ul><li>Understand Customer Value </li></ul><ul><li>Value Stream Mapping </li></ul><ul><li>Benchmark Best Practices </li></ul><ul><li>Design to Manage Demand Volatility </li></ul><ul><li>Create Flow </li></ul><ul><li>Performance Metrics </li></ul>There are seven steps to developing lean supply chains.

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