Lean Logistics Summit Keynote Presentation

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In his keynote presentation at the 2010 Lean Logistcs Summit, Robert Martichenko, co-author of the Building a Lean Fulfillment Stream workbook, delineated the elements of a lean supply chain

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  • Processes alone will self destruct/fall apart. System left on own will move to state of chaos…Idea that business is a system, lean recognizes that…Whole point about PDCA
  • Lean Logistics Summit Keynote Presentation

    1. 1. Building the Lean Fulfillment StreamLean Logistics SummitJune 22, 2010<br />
    2. 2. Slide: 2<br />Process and the Supply Chain<br />“Brilliant Process Management is our Strategy”<br />“We get brilliant results from average people managing brilliant processes”<br />“We observe that our competitors often get average (or worse) results from brilliant people managing broken processes”<br />Toyota Motor Manufacturing<br />Oh No ! What happened !<br />
    3. 3. 3<br />Is Anything For Certain These Days ?<br />
    4. 4. Non-Value Added<br />Business-Value Added<br />Value Added<br />Adds value to the output and customer is willing to pay for.<br />Does not add value to the output, and customer isn’t willing to pay for.<br />Does not add value to output, customer will not pay for, but is necessary.<br />(Legal, Safety, Etc.)<br />Certainty # 1<br />Process<br />Optimize<br />Eliminate<br />Minimize<br />
    5. 5. Certainty # 2Processes Want to Fall Apart<br />In a system, a process that occurs will tend to increase the total entropy of the universe.<br />Second law of thermodynamics<br />Entropy<br /><ul><li>A measure of the disorder or randomness in a closed system
    6. 6. A measure of the loss of information in a transmitted message
    7. 7. Inevitable and steady deterioration of a system or society</li></ul>System: A group of interacting, interrelated, or interdependent elements forming a complex whole.<br />
    8. 8. Certainty # 3<br />Overproduction is the King of waste…Make to order is utopia<br />+<br /><<br />= MTO <br />Customer LT<br />Supply LT<br />MLT + OL<br /><<br />+<br />= Forecast <br />Customer LT<br />Supply LT<br />MLT + OL<br />
    9. 9. Slide: 7<br />
    10. 10.
    11. 11. 9<br /> Principles of the Lean Supply Chain<br />
    12. 12. Lean - & Systems Thinking<br />All New Products every year with 100% new components…<br />The defining characteristic of a system is that it cannot be understood as a function of its isolated components. First, the behavior of the system doesn't depend on what each part is doing but on how each part is interacting with the rest ...<br />Kofman and Senge, <br />1993<br />You’re a fool if you don’t focus on BOM costs<br />What we need are more sales promotions !<br />I love it when a plan comes together…did it ?<br />
    13. 13.
    14. 14. Supply Chain & Logistics ManagementA Practical Viewpoint<br />Supply Chain Management<br />Logistics<br />12<br />
    15. 15. Do we see the flow (or lack of flow )<br />
    16. 16.
    17. 17. Thank YouRobert@leancor.com<br />

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