Backdrop – JIT foundation Understanding your Business … KPI’s Value Streams … ‘True North’ Lean Partnerships to drive cost improvement Design.

Lean Practices for Supply Chain Optimization

by: Bill Mazurek

Backdrop – JIT foundation Understanding your Business … KPI’s Value Streams … ‘True North’ Lean Partnerships to drive cost

improvement Design for LeanSigma opportunities …

manufacturability Lean Supply Chain Management … value

add Best Practices Sharing

Talking Points …

1950’s – Japan … 1980’s - USA Productivity Index

Focused on waste elimination and productivity gains (flat BOM’s / less WIP warehousing)

Visual Signals .. drive the behavior (walk and see) JIT implementation & design principles

◦ Design flow processes◦ Total quality control◦ Stabilized schedule – production smoothing◦ Kanban pull system (replenishment) ◦ Work with vendors / suppliers◦ Inventory Optimization (Inventory Turns)◦ Improved product design

Backdrop – JIT foundation

Factory verse Cell Based Strategy

Continuous Improvement Opportunities

Backdrop – JIT foundation

ProcurementLean Mfg.WarehousingTransportation

Integrated supplier lead times and delivery schedules

Flows from suppliers pulled by customer demand (using takt time, production smoothing, line balancing, single piece flow)

Minimized inventory through all tiers of the supply chain (warehousing / manufacturing / distribution)

On-time supplier delivery (to point of use) Minimal inspection Striving for zero quality defects essential to success Effective two-way communication links to

coordinate production & delivery schedules

Backdrop – JIT foundation

What are you Key Performance Indicators? What are the most significant improvement

opportunities? What KPI is the Biggest Impact to your Business

or Customer? How do you measure you improvement? What are the counter measures? What is the Strategic Planning Methodology for

your Business? Is your Strategy tied to operational tactics? What is your Strategic Planning Methodology?

Understanding your Business … KPI’s

Supplier > Manufacturing > Customer

Value Streams … ‘True North’

Enterprise-wide analysis to identify what activities to engage with each supplier.

Value measurements (supplier report card) Meaningful countermeasures

Self-enforcing agreements for continuous improvement

Target costing Sharing of cost savings

Strategic supplier partnerships with selected suppliers

Trust-based relationships; long-term mutual commitment Close communications; knowledge-sharing Blank Purchase Order … contract management

Lean Partnerships to drive cost improvement

Early supplier integration into design ◦ Early and major supplier role in design ◦ Up-front design-process integration ◦ Leveraging supplier technology base for innovative

solutions

Design for LeanSigma opportunities … manufacturability

Design for LeanSigma opportunities … manufacturability

1) Establish a supply chain steering group (waste elimination) … Value Stream Focus

2) Alignment and staffing for success (education component)

3) Invest in ‘value added’ technologies4) Establish alliances / supplier partnerships5) Focus on total cost of ownership (not price alone)6) New Products Development – suppliers early in the

process7) Optimize Inventory Turns by Cell (ROWC)8) Establish risk based controls / measurements9) Leveraging ‘Green’ based initiatives

Best Practices Sharing

Q & ABill [email protected]