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LEAN SUPPLY CHAIN                                                     MANAGEMENT                                          ...
OUTLINE       OVERVIEW [Lean in Toyota]       ◙N MANAGEMENT STRATEGY <simple Concept>     ◙    Sample of LEAN IMPLEMENTATI...
OVERVIEW      ◙ GOAL of LEAN ACTIVITY                  COST REDUCTION PROFIT      INCREASE      ◙    In TOYOTA CASE ,     ...
OVERVIEW                                                                           MUDA OVER PRODUCTION                   ...
OVERVIEW Continuous Flow Production      Material                                                                         ...
LEAN MANAGEMENT STRATEGY < SIMPLE CONCEPT >          Lead     Lead      Lead     Lead           Lead          Lead     Lea...
SAMPLE of LEAN IMPLEMENTATION              SUPPLY CHAIN IN MANUFACTURING        VENDOR                         MANUFACTURI...
SAMPLE of LEAN IMPLEMENTATION        VENDOR                         MANUFACTURING              DEALER   CUSTOMER        L...
SAMPLE of LEAN IMPLEMENTATION   Domestics Logistics / Conveyance       SINGLE DELIVERY                                   ...
SAMPLE of LEAN IMPLEMENTATION    Domestics Logistics / Conveyance                             (D)     SINGLE             ...
SAMPLE of LEAN IMPLEMENTATION        VENDOR                         MANUFACTURING              DEALER   CUSTOMER         L...
SAMPLE of LEAN IMPLEMENTATION  Internal Logistics      Simplify Process  Re-arrangement of Process                      ...
SAMPLE of LEAN IMPLEMENTATION    &           Linked between internal and vendor STOCK REDUCTION USING KANBAN ( Kanban C...
SAMPLE of LEAN IMPLEMENTATION        VENDOR                         MANUFACTURING              DEALER   CUSTOMER         L...
SAMPLE of LEAN IMPLEMENTATION   Process                         PRODUCTIVITY UP with elimination MUDA                    ...
SUMMARY         TOYOTA Indonesia utilize Toyota Production System as the base of          manufacturing process, and Lean...
CHALLENGE LEAN MANAGEMENT                                                                             IMPLEMENTATION      ...
Items to be Considered for Lean                                      Management Implementation Supply Chain Management is...
POOR METHODE of CONVEYANCE and                                                     LOGISTICS        ◙ Poor method results ...
SUPPLY CHAIN (1) SUPPLY CHAIN MANAGEMENT BECOMING MORE IMPORTANT        1. Grasp Current Situation Accurately ( Time and V...
SUPPLY CHAIN                                   Goal   REDUCE LOT SIZE                               1 Pieces Production   ...
INVENTORY   What is Needed to Reduce Inventory   (2)   Reduction ofProduction      Lead Time                    Lead      ...
SUPPLY CHAIN IN MANUFACTURING        VENDOR                         MANUFACTURING              DEALER   CUSTOMER         L...
LEAN MANAGEMENT STRATEGY      Long lead time conveyance/Logistics [Import parts]    √Lot Based                           ...
LEAN MANAGEMENT STRATEGY     Delivery ~ Customerseduction the Stock with giving Flexibility for absorbing miss forecast  ...
SUPPLY CHAIN IN MANUFACTURING        VENDOR                         MANUFACTURING              DEALER   CUSTOMER         L...
Lean manufacturing toyota indonesia 2011_2
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Lean manufacturing toyota indonesia 2011_2

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Transcript of "Lean manufacturing toyota indonesia 2011_2"

  1. 1. LEAN SUPPLY CHAIN MANAGEMENT [Toyota Indonesia Case] Sharing on 6th Indonesia Supply Chain and Logistics Conference and Expo 2011 (ISCL)  “New Era of Indonesia Supply Chain and Logistics : Center of South East Asia J akarta, Novem 3rd, 2011 ber J.F. Ferry YantoSafety awareness : I will not use hand phone during drive the car
  2. 2. OUTLINE OVERVIEW [Lean in Toyota] ◙N MANAGEMENT STRATEGY <simple Concept> ◙ Sample of LEAN IMPLEMENTATION ◙ ◙ SUMMARYLLENGE LEAN MANAGEMENT IMPLEMENTATION ◙e Considered for Lean Management Implementation ◙ 1/17 THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  3. 3. OVERVIEW ◙ GOAL of LEAN ACTIVITY COST REDUCTION PROFIT INCREASE ◙ In TOYOTA CASE , No Cost Reduction , , No Profit Increase No Cost Reduction No Profit Increase as Basic Philosophy (1) SALES PRICE = COST + PROFIT (2) PROFIT = SALES PRICE - COST Sales Price Determined by CUSTOMERSPROFIT ( ) = SALES PRICE ( = ) – COST ( ) 2/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  4. 4. OVERVIEW MUDA OVER PRODUCTION MUDA OVER PRODUCTION TO REDUCE COST ELIMINATE WASTE ( MUDA ) [ Reduce Non Added Value Work ] WAS THE WORST ! ! WAS THE WORST [ 7 TYPE OF MUDA] (1) OVER PRODUCTION HIDE PROBLEMS and MAKE IT IMPOSSIBLE TO BE SOLVED ◙ COST DEPENDENT ON PRODUCTION METHODE (-) Excess Man Power or machine capacity ? ◙ COST BREAKDOWN ANALYSIS IMPACT TO COST INCREASETraditional Production Material Operator A Finished Products Operator B Operator C 3/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  5. 5. OVERVIEW Continuous Flow Production Material Finished Products Operator A Operator B Operator C  Comparison as the traditional way production & continuous flow production: - √ Eliminate MUDA stock - √ Eliminate MUDA move - √ Save more space In TOYOTA PRODUCTION SYSTEM : Always “CUSTOMER FIRST” Attitude ( Produce Good Products with Low Cost in a Timely Manner ) 4/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  6. 6. LEAN MANAGEMENT STRATEGY < SIMPLE CONCEPT > Lead Lead Lead Lead Lead Lead Lead Lead Time Time Time Time Time Time Time Time TOTAL LEAD TIME TOTAL LEAD TIME (1) SHORTENING LEAD TIMESimplifying the Process ● ● Continuous Flow ( One Piece Flow Process ) (2) REDUCE INVENTORY LEVEL 5/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  7. 7. SAMPLE of LEAN IMPLEMENTATION SUPPLY CHAIN IN MANUFACTURING VENDOR MANUFACTURING DEALER CUSTOMER  Loca l Part s     Receiving PC store Production Dealer Customer Import Parts Dock 6/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  8. 8. SAMPLE of LEAN IMPLEMENTATION VENDOR MANUFACTURING DEALER CUSTOMER  Loca l Part s Receiving PC store Production Dealer Customer Import Parts Dock 7/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  9. 9. SAMPLE of LEAN IMPLEMENTATION  Domestics Logistics / Conveyance SINGLE DELIVERY MILK RUN Stock Stock 4 1 4x / day (A) Hour (A) Hour 2 1 8x / day Hour Hour 12x / day (B) (B) 1 16 1x / day Hour Hour (C) (C) Variety 1 Hour Running Stock 2 ~ 16 Hour Stock Reduction 8/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  10. 10. SAMPLE of LEAN IMPLEMENTATION Domestics Logistics / Conveyance (D) SINGLE Plant 1 DELIVERY (E) Plant 2 (F) (D) MILK RUN Plant 1 X-DOCK and (E) X-Dock INTERPLANT Plant 2 (F) MILK RUN (D) Plant 1 , INTERPLANT (E) Plant 2 (F) 9/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  11. 11. SAMPLE of LEAN IMPLEMENTATION VENDOR MANUFACTURING DEALER CUSTOMER Loca l Part s  Receiving PC store Production Dealer Customer Import Parts Dock 10/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  12. 12. SAMPLE of LEAN IMPLEMENTATION  Internal Logistics Simplify Process  Re-arrangement of Process 11/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  13. 13. SAMPLE of LEAN IMPLEMENTATION &  Linked between internal and vendor STOCK REDUCTION USING KANBAN ( Kanban Cyclic )  SEQUENTIAL PARTS DELIVERY  etc. 12/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  14. 14. SAMPLE of LEAN IMPLEMENTATION VENDOR MANUFACTURING DEALER CUSTOMER Loca l Part s  Receiving PC store Production Dealer Customer Import Parts Dock 13/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  15. 15. SAMPLE of LEAN IMPLEMENTATION  Process PRODUCTIVITY UP with elimination MUDA Reduce MP with same output ► Others Example how to proceed ? MP : 10λ : 9λ Output : 200 Unit : 200 Unit Yamazumi Chart MP Process Line #1 Highest CT Target Reduce Problem : Process Analysis Unbalance Loading MP in Process Line #1 Improvement / Kaizen Achieve Target 14/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  16. 16. SUMMARY  TOYOTA Indonesia utilize Toyota Production System as the base of manufacturing process, and Lean was blend inside of TPS as the focus point in TPS Basic Philosophy : Cost Awareness with Customer First and Quality as priority.  Currently, Continuous Improvement/Kaizen is implemented with PDCA cycle . 15/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  17. 17. CHALLENGE LEAN MANAGEMENT IMPLEMENTATION NEW CHALLENGE … …  Flexible Market Demand 4 WEAK In INDUSTRIAL RELATIONSHIP ( Coy VS . Union ) SAME DIRECTION / VISION ( Mutual Understanding ) Need Support From Government 1 2 2 nd TIER and 1 st TIER are NOT MUTUAL UNDERSTANDING in BUSINESS . . CENTRALIZED (LEAN) Base on Demography or Mapping Area Gap of Knowledge ● Good Infrastructure Development and Growth Together ● Optimizing Current Ideal Condition : All in 1 Area 3 5 COMMITMENT MANAGEMENT OTHERS . . Inconsistency Condition ► Government Regulation / Policy in Industrial How to link with Lean Concept ► IT / SYSTEM Development  Readiness Company Adopt ? Be a Coy Culture & Reflected in People Development ► Less Localization ?  Enhance Localization 16/17THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  18. 18. Items to be Considered for Lean Management Implementation Supply Chain Management is one complete cycle and have synergy with oneanother  Skillful RESOURCES is the key point • Knowledge and break through idea/creative idea • Good TEAM WORK  Strong COMMITMENT Management • Top Management concern and monitoring required  Business Relations [company with vendor] • Mutual understanding  Spirit of Efficient Process • Good relationship between company and employee (union)  Infrastructure [road condition, others facility etc]  Force LOCALIZATION , as a big opportunity for reducing Lead time  CR 17/17 THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  19. 19. POOR METHODE of CONVEYANCE and LOGISTICS ◙ Poor method results in stagnationasically : Conveyance is NON ADDED VALUE operations Eliminating conveyance is the best way■ If Conveyance is Needed,  Best possible way is to make JIT material flow When it is needed Only what is needed In the amount needed THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  20. 20. SUPPLY CHAIN (1) SUPPLY CHAIN MANAGEMENT BECOMING MORE IMPORTANT 1. Grasp Current Situation Accurately ( Time and Volume Stagnation included ) 2. Procure Parts from Supplier close by (2) SIMPLIFY THE FLOW a) Macroscopic Flow a) Microscopic Flow ( Demerits of Complicated Flow )THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  21. 21. SUPPLY CHAIN Goal REDUCE LOT SIZE 1 Pieces Production  No Stagnation  Guarantee Quality Kanban Pulling System Production = + Lead Time Processing Time Lot Size 1 Hour 10 Lot = 10 days Productivity Up ( Improve Chance ) 1 Lot = 1 hoursTHE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  22. 22. INVENTORY What is Needed to Reduce Inventory   (2)   Reduction ofProduction Lead Time Lead Time S h ipping Customer Customer production line (1)    Logistics Kaizen              物流改善   (3)   Increase reliability of    (1)   Logistic Kaizen Production Line • Leveled frequent supply  Leveled Frequent Delivery 平準化した多回納入   (4)   Reduce and Limit  Leveled Frequent Pick UpvarietyTHE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA 23
  23. 23. SUPPLY CHAIN IN MANUFACTURING VENDOR MANUFACTURING DEALER CUSTOMER Loca l Part s  Receiving PC store Production Dealer Customer Import Parts DockTHE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  24. 24. LEAN MANAGEMENT STRATEGY  Long lead time conveyance/Logistics [Import parts] √Lot Based √PxP Based a f Part No. Order Box AA AA-2 10 Part No. b g a 10 5 c h b 20 6 d i c e j d e 15 Part No. a f k AA-1 b g l f Minimum = 5 ~ 10 % reduction c h m g h d i n e j o i j Order 1 lot = 10 Unit 1 box 1 box : 10 pcs : 12 pcs √X-DockTHE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  25. 25. LEAN MANAGEMENT STRATEGY  Delivery ~ Customerseduction the Stock with giving Flexibility for absorbing miss forecast → Monthly Firm to Monthly Firm with Weekly Order Change THE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
  26. 26. SUPPLY CHAIN IN MANUFACTURING VENDOR MANUFACTURING DEALER CUSTOMER Loca l Part s  Receiving PC store Production Dealer Customer Import Parts DockTHE CHALLENGE IN IMPLEMENTING LEAN MANAGEMENT IN INDONESIA
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