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Title: Unlocking the Potential in the Supply Chain through Lean Logistics


1
Unlocking the Potential in the Supply Chain
through Lean Logistics
David Taylor Cardiff University
2004 Queensland Supply Chain Seminar Brisbane 10
11 June
2
Agenda
  • Yesterday The Background Theory
  • Lean Thinking v Mass Production
  • Understanding Waste
  • The Lean Principles
  • Today The Practice
  • Lean Tools Techniques
  • Case Studies of Lean Applications Benefits

3
What have we Got So Far ?
  • Mass Production Thinking
  • V
  • Lean Thinking
  • The Five Lean Principles
  • Specify value
  • Identify the value stream
  • Make the product flow
  • So the customer can pull
  • Manage towards perfection

The Seven Wastes
4
Value Stream Management
The application of Lean Thinkingto improving
business processes
Lean Mapping ToolsLean Improvement Tools Lean
Strategic Techniques
5
Value Streams
VSM Can Be Applied at All Levels
6
Value Stream Management
  • A Dis-Aggregated Approach
  • It deals with individual value streams
    separately

7
Dis-Aggregation By Product Family
Product Group A
Product Group B
Customer
Product Group C
Treat each product group as a separate Value
Stream
8
Value StreamManagement Methodology
  • Select a key value stream for pilot lean
    improvement - Key Product to Key Customer
  • Situational Analysis - Using Mapping Tools
  • Develop model lean value stream Using Lean
    Improvement Tools
  • Roll out lean to other value streams

9
Value Stream Mapping ToolsLean Tools For
Analysing the Current Situation Identifying
Waste
  • Process Activity Mapping
  • Current State Mapping
  • Demand Amplification Map
  • Quality Filter Map
  • Physical Structure map
  • Production Variety Funnel
  • Decision Point Analysis

Create a Quantified Assessment of Process
Performance
10
Process Activity Mapping
  • The starting point for value stream improvement
  • Go to the work place and record what actual
    happens
  • Dont do it in the office where you record what
    you think is happening

11
(No Transcript)
12
Process Activity Map Summary Statistics
Time Operations 2 mins Inspection 1
min Transport 41 min Delay 720
min Storage 960 min
Value Adding Operations Represent lt 1 of Total
time
13
Huck Fasteners Birmingham
  • Lean Improvement initiative
  • Mapped a pilot value stream - Hucktainer
  • Recorded measured every step in making a
    specific product
  • Produced photo sequence as part of their
    internal lean education process

14
Huck Fasteners Performance Improvements from
Lean
  • On-time delivery 10
  • 40 Increase in V.A. per employee
  • 35 reduction in lead-times
  • 20 reduction in inventory
  • 40 of floor spaced freed - Cancelled 10m new
    factory
  • 55 reduction in set-ups
  • More than offset 5 loss in margin due to foreign
    competition

15
Current State Mapping
  • A Toyota tool
  • A clear visual representation of a process
  • Links Physical Product Flow Information Flow
    Time
  • The first tool to do this !

16
Current State Map Meat Processing Plant
17
Identify Wastes Problems
18
Develop a Future State Map
Reduced Total Time
19
SMART Action Plan Specific Measurable
Achievable Resourced Timed)
20
The Value Stream ManagementOverview
Current State Map
Future State Map
21
Lean Tools for Improvement
All help you to move towards Flow, Pull
Perfection
22
Lean Applied at the Cell Level
Lean Applied at the Plant Level
23
Lean Applied at the Cell Level Meat Processing
Slice Pack Cell
  • Mapping identified problems opportunities with
    this cell
  • Master Class to Improve the cell performance in
    Quality, Cost Delivery
  • 8-day Structured Project
  • Led by a Lean expert
  • Involved cell operators team leaders
  • Pork loins Sliced to Chops Vacuum packed

24
Meat Processing Company Slice Pack Cell
Lean Applied at The Cell Level
25
Lean Applied to the Whole Supply Chain
26
Extended Value Stream Maps Same structure
Information links between companies
Key Data by Firm
Time for whole chain
Transport Links
27
Create a Joint Value Stream Mapping Improvement
Team
  • One or two senior manager from each company in
    the chain

The Team then- Jointly map all steps along the
whole chain Jointly identify problems and
opportunities Jointly develop a Future State
Vision Jointly develop an Action plan
28
Current State Map Whole Value Chain for Pork
Farm / Processor / Retailer
29
Develop Future State Map Potential Operational
Improvements
30
Value Chain Analysis Methodology
Introductory Meeting
Agree Team and Events
Day 1
Lean VCA Workshop
Team Build Lean Familiarisation
Construct big picture map
Day 2
VCA Current State
Mapping of processes within each facility
Day 3-6
In House Opportunities Confirm End to End Map
Company Future States
Day 7-8
Chain opportunities Cost/Benefit Matrix
Executive Report
VCA Future State
Day 9-10
31
Value Chain Analysis Benefits
  • A joint value chain mapping team a practical
    way to develop real cooperation a joint vision
  • The whole team goes sees all the operations and
    gets a real understanding of each others issues
  • Each firm identifies internal improvement
    opportunities
  • Opportunities are identified that are only
    available when firms cooperate

32
Corus Metsec Gateway Steel
coils Sections Caravan Chassis
Benefits from Supply Chain Cooperation
  • Stock reduction across the Chain - 50
  • On-time Delivery Improvement lt 90 to 98
  • Quoted Order to delivery lead time 21 days
    to 3 days
  • Increased Mutual Business 40

33
Lean Applied to Supply Chain Information
Management
34
Simplify Information Flows Remove Non-Value
Adding Steps
35
Mapping Order Intake Processing
37 Steps in total 6 Value Adding
Non-Value Added
Necessary Non-Value Added
Value Added
36
The 3 Day Car Project
Total lead time 40 days Making
distrib car 6 days Info Processing
34 days
European Car Makers Madeto-order CarAverage 40
days lead time
37
Lean Applied in The Public Sector
  • Local Government
  • The BBC
  • Hospitals

38
Medway Hospital Emergency Medical GP Referral
Mapping by Walking the process With a pencil,
paper rubber
5- 8 days in-patient
1-5 hours to discharge
39
Medway Lean Thinking Pilot
40
Medway Value Stream Mapping
  • For the first time people start to see
    understand the whole process of a patient coming
    into, through out of hospital
  • Started patient-centred process thinking
  • Identified wastes inconsistencies
  • Led to immediate waste removal

41
Lean Applied to Global Supply Chains
  • Texon Shoe Components
  • UK to SE Asia

42
Current State Map Global Supply Chain Shoe
Components
43
Future State Map Restructure the chain
operational improvements
44
Future State Map Lean Principles Applied
Before After Processing /
Transport 52 35 days Inventory 50
23 days Total Pipeline Time 102
58 days
45
Conclusions So why Lean?
  • Lean shifts the focus from managing assets to
    managing end to end processes
  • It reveals opportunities by distinguishing what
    creates value from what does not
  • It gives people the tools to redesign their
    processes to cut unnecessary steps and time
  • And it builds a social basis for collaboration
    between partners to achieve and sustain
    improvement

46
What is Lean aiming for -
For Businesses Gaining Competitive Advantage
And More Business At More Profitable Levels
For Non-Profit Organisations Improving
Efficiency Better Service
47
David Taylor Senior Research Fellow Lean
Enterprise Research CentreCardiff University
Unlocking the Potential in the Supply Chain
through Lean Logistics
  • Email taylordh_at_cf.ac.uk
  • Tel 00 44 114 263 0705
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