Lean Supply Chain

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Lean Supply Chain

  1. 1. Lean Supply Chain
  2. 2. Create a lean supply chain <ul><li>Eliminate Waste </li></ul><ul><li>Add Value </li></ul>
  3. 3. Waste Management <ul><li>Overproduction </li></ul><ul><li>Waiting </li></ul><ul><li>Unnecessary transport </li></ul><ul><li>Overprocessing </li></ul><ul><li>Excess inventory </li></ul><ul><li>Unnecessary movement </li></ul><ul><li>Defects </li></ul>
  4. 4. Waste Management <ul><li>Overproduction </li></ul><ul><li>Waiting </li></ul><ul><li>Unnecessary transport </li></ul><ul><li>Over processing or incorrect processing </li></ul><ul><li>Excess inventory </li></ul><ul><li>Unnecessary movement </li></ul><ul><li>Defects </li></ul>
  5. 5. <ul><li>Overproduction has counterparts in over-ordering at both the macro and micro levels of supply chain operations. </li></ul>
  6. 6. <ul><li>Waiting , for example, can be seen in the way trucks sitting idle awaiting their turn at the dock. </li></ul>
  7. 7. <ul><li>The unnecessary movement of products can occur within a warehouse, within a factory, or throughout a distribution network. </li></ul>
  8. 8. <ul><li>Quality inspections, redundant approvals, and order reviews at the conclusion of pick/pack are examples of overprocessing . </li></ul>
  9. 9. <ul><li>Ineffective inventory control is seen in excess inventory based on bad inventory data. </li></ul>
  10. 10. <ul><li>The unnecessary movement of people can be seen in warehousing. </li></ul>
  11. 11. <ul><li>Defective parts translates to supply chain errors of all kinds—from picking errors to incorrect order quantities. </li></ul>
  12. 12. Add Value
  13. 13. Sheep Herding
  14. 14. Manage the slow
  15. 15. Manage the Fast
  16. 16. Cost Savings
  17. 17. Cost Savings
  18. 18. Cost Savings <ul><li>• One-time vs Ongoing </li></ul><ul><li>• Soft vs Hard </li></ul><ul><li>• Category of savings </li></ul><ul><ul><li>Revenue </li></ul></ul><ul><ul><li>Expenditure </li></ul></ul><ul><ul><li>Asset </li></ul></ul><ul><ul><li>Process </li></ul></ul><ul><li>• Savings achieved to goal </li></ul>

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