Materi Green Scm

BackgroundProduct Life CycleSupply Chain Management

Industrial Ecology: a systematic organizing framework for the many facets of environmental management..industrial world as a natural system - a part of the local ecosystems and the global biosphere ... offers a fundamental understanding of the value of modeling the industrial system on ecosystems to achieve sustainable environmental performance (Lowe, 1993).

What is it? Lots of definitions.Heres one -Management of Materials and Resources from Suppliers to Manufacturer/Service Provider to Customer and Back, with the Natural Environment Explicitly Considered (hopefully in a conscientious manner).The Operational Instantiation of Industrial Ecosystems

Product/Process DesignRaw and Virgin MaterialNew Components and PartsRecycled, Reused Material and Parts

VendorsSelectionExternalTransportation

StorageInventory ManagementInternal TransportationFabricationAssemblyClosed-Loop Manufacturing,Demanufacturing,Source ReductionTQEM

StorageDistribution, Forward LogisticsUSEPurchasing, Materials Management, Inbound LogisticsProductionOutbound LogisticsDisposalReverse LogisticsWasteWasteWasteEnergyEnergyEnergyEnergyReusable,Remanufacturable,Recyclable Materials and Components

Location Analysis,Inventory Management,WarehousingTransportationPackagingMarketingEngineeringCustomer Relationships Green Marketing Product StewardshipWaste

Logistics, Procurement have become strategicOrganizations outsourcing, forming partnerships, alliancesProduct environment becoming more complexTime based competition requires time compressionManaging suppliers and customer relationships necessaryCompetition shifting from company vs. company toSupply Chain vs. Supply Chain

Supply Chain ElementsSupply Chain => Supply Cycles

Lean and Sustainable Supply Chains

Describe how Green and Lean can complement each other.Explain how a production pull system works.Understand Toyota Production System concepts.Summarize important attributes of a lean supply chain.Analyze a supply chain process using value stream mapping.Know the principles of supply chain design.

Lean production: an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods)Lean Production also involves the elimination of waste in production effort Lean Production also involves the timing of production resources (i.e., parts arrive at the next workstation just in time)LO 1

Value chain: each step in the supply chain should create valueIf it does not create value, it should be removedCustomer value: something for which the customer is willing to payWaste: anything that does not add value from the customers perspectiveLO 1

Lean is based on the logic that nothing will be produced until it is neededA sale pulls a replacement from the last position in the systemThis triggers an order to the factory production lineEach upstream station then pulls from the next station further upstreamLO 1

Here the customer starts the process, pulling an inventory item from Final AssemblyThen sub-assembly work is pulled forward by that demandThe process continues throughout the entire production process and supply chain

Elimination of waste Respect for peopleLO 3

Waste from overproductionWaste of waiting timeTransportation wasteInventory wasteProcessing wasteWaste of motionWaste from product defectsLO 3

Lifetime employment for permanent positionsMaintain level payrolls even when business conditions deteriorateCompany unionsBonusesView workers as assetsLO 3

Value stream: the value-adding and non-value-adding activities required to design, order, and provide a product or serviceWaste reduction: the optimization of the value-adding activities and the elimination of non-value-adding activitiesLO 4

Lean suppliersAble to respond to changesLower pricesHigher qualityLean procurementKey is automation (e-procurement)Suppliers must see into the customers operations and customers must see into their suppliers operationLean warehousingEliminate non-value-added steps and waste in storage processLO 4

Lean logisticsOptimized mode selection and pooling ordersCombined multi-stop truckloadsOptimized routingCross dockingImport/export transportation processesBackhaul minimizationLean customersUnderstand their business needsValue speed and flexibilityEstablish effective partnerships with suppliersLO 4

Value stream mapping: a special type of flowcharting tool for development of lean processesUsed to visualize product flows through various processing stepsNeed a full understanding of the business including production processesLO 5

LO 5

LO 5

LO 5

Lean layoutsGroup technologyQuality at the sourceJIT productionLean production schedulesUniform plant loadingKanban production control systemLean supply chainsSpecialized plantsWork with suppliersBuilding a lean supply chainLO 6

Plant layout designed to ensure balanced work flow with a minimum of WIP inventoryPreventive maintenance is emphasized to avoid downtimeOperators perform much of the maintenanceLO 6

Group technology: a philosophy in which similar parts are grouped into familiesThe processes required to make the parts are arranged in a manufacturing cellEliminated movement and queue time between operations, reduces inventory, and reduces employeesLO 6

LO 6

Quality at the source: do it right the first time and if something goes wrong, stop the process immediatelyWorkers become their own inspectorsWorkers are empowered to do their own maintenanceLO 6

JIT production: producing what is needed when needed and nothing moreAnything over the minimum is wasteTypically applied to repetitive manufacturingIdea lot size is oneVendors ship several times a dayJIT exposes problems otherwise hidden by inventoryLO 6

LO 6

Level schedule: one that requires material pulled in a pattern uniform enough to allow production to respond to pull signalsFreeze windows: that period of time during which the schedule is fixed and no changes are possibleBackflush: where parts that go into each unit are periodically removed from inventory and accounted for paged on productionUniform plant loading: smoothing the production flow to dampen the reaction waves that normally occur from schedule variationsLO 6

Kanban means sign or instruction card in JapaneseCards or containers are usedMake up the kanban pull systemLO 2

Worker takes the first part A from a full containerWorker takes the withdrawal kanban from the container, and takes the card to the machine center storage areaIn machine center, worker finds a container of part AWorker removes the production kanban, and replaces it with the withdrawal kanbanThis authorizes the movement of the container to the assembly lineThe freed production kanban is placed on a rack by the machine center, which authorizes the production of another lot of materialA similar process is followed for part BThe cards on the rack become the dispatch list for the machine centerLO 2

Storage Part AStorage Part AMachine CenterAssembly LineMaterial FlowCard (signal) FlowWithdrawal kanbanOnce the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first placeThis puts the system back were it was before the item was pulledThe process begins by the Assembly Line people pulling Part A from StorageProduction kanbanLO 2

Reductions in setup and changeover times are necessary to achieve a smooth flowKanban significantly reduces the setup costThe organization will strive for a lot size of oneLO 2

LO 6

Specialized plantsSmall specialized plants rather than large vertically integrated manufacturing facilitiesCan be constructed and operated cheaperWork with suppliersImportant part of processShare projections with suppliersLink with suppliers onlineLO 6

Value must be defined jointly for each product family based on the customers perceptionAll firms along the value stream must make an adequate return on their investmentsFirms must work together to eliminate waste so overall target cost and ROI targets are metWhen cost targets are met, the firms will conduct new analyses to identify remaining waste and set new targets.Every participating firm has the right to examine every activity relevant to the value stream as part of the joint search for wasteLO 6

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