discussion question
jack12
LeanandSupplyChain1.ppt16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
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16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
*
16 - *
What is Lean?
PRINCIPLES OF LEAN
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
*
16 - *
What is Lean?
PRINCIPLES OF LEAN
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
*
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
What is Lean?
© 2011 Pearson Education, Inc. publishing as Prentice Hall
- The core idea is to maximize customer value while minimizing waste.
- Simply, lean means creating more value for customers with fewer resources.
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
*
16 - *
What is Lean?
© 2011 Pearson Education, Inc. publishing as Prentice Hall
- A lean organization understands customer value and focuses its key processes to continuously increase it.
- The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
*
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Value Stream Mapping
What is meant by Value Stream Mapping (VSM)?
Why it essential?
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Value Stream Mapping
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
Value Stream Mapping
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
Value Stream Mapping
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Value Stream Mapping
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Value Stream Mapping
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Value Stream Mapping
What are the categories of waste that Lean identifies?
How is this helpful?
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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The 5 (or 6) S’s
© 2011 Pearson Education, Inc. publishing as Prentice Hall
- What are the 5 or 6 S’s
- How to they help?
- Does the order they are done matter?
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
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16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
*
16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
*
16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
*
16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
*
16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
*
16 - *
Lean
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Motorola focused on reducing variation. Simplify and standardize.
*
16 - *
What is Lean?
GETTING STARTED
© 2011 Pearson Education, Inc. publishing as Prentice Hall
- Find a change agent, a leader who will take personal responsibility for the lean transformation.
- Get the lean knowledge, via a sensei or consultant, who can teach lean techniques and how to implement them as part of a system, not as isolated programs.
- Find a lever by seizing a crisis or by creating one to begin the transformation. If your company currently isn’t in crisis, focus attention on a lean competitor or find a lean customer or supplier who will make demands for dramatically better performance.
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
*
16 - *
What is Lean?
GETTING STARTED
© 2011 Pearson Education, Inc. publishing as Prentice Hall
- Forget grand strategy for the moment.
- Map the value streams, beginning with the current state of how material and information flow now, then drawing a leaner future state of how they should flow and creating an implementation plan with timetable.
- Begin as soon as possible with an important and visible activity.
- Demand immediate results.
- As soon as you’ve got momentum, expand your scope to link improvements in the value streams and move beyond the shop floor to office processes.
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Lean is a Journey. We are never lean we are always working toward that goal. Lean applies to all facets of operations: manufacturing, product development… etc.
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Virginia Mason Production System
https://www.virginiamason.org/VMPS
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Pancieri, Denielle
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Outline
- What is supply chain management?
- A supply chain strategy framework
- Components of a SCM
- Case Studies
- Major obstacles and common problems
Notes:
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
16 - *
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
Supply-Chain Management
The objective is to build a value chain from suppliers through end customer that focuses on maximizing value while minimizing cost to the ultimate customer
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
The Supply Chain’s Strategic Importance
- Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system
- Competition is no longer simply between companies; it is between supply chains
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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10-*
Objectives of SCM
- Maximize value to the end customer which should enable
- Increase in firm’s profitability
- Increase in revenue
- Responsiveness, flexibility
- Reduced costs
- For making product, transportation, receiving orders, and customer service
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
A Supply Chain for Beer
Figure 11.1
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
A Supply Chain for Pharma
Figure 11.1
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
A Supply Chain for Hospital
Figure 11.1
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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10-*
Supply Chain Management (SCM)
- Managing flow of information through supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs
- Keys to effective SCM
- information
- communication
- cooperation
- trust
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Outcome-driven Supply Chain
Six Major Outcomes:
- – Cost
- – Responsiveness
- – Security
- – Sustainability
- – Resiliency
- – Innovation
© 2011 Pearson Education, Inc. publishing as Prentice Hall
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Supply Chain Tipping Points
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Supply Chain Tipping Points
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A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity
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The Effective Frontier
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Study Overview
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Who is the
Voice of the Supply Chain?
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61 Respondents from 44 Companies
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Supply Chain Organization
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Evolution of Supply Chain Process Excellence
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Supply Chain Excellence Definition
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Examples of Supply Chain Excellence:
Open-Ended
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Supply Chain Pain Points:
All vs. Largest
“Other” Pain Points
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Supply Chain Pain Points:
Others Volunteered
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Supply Chain 2020 Tipping Points
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© 2011 Pearson Education, Inc. publishing as Prentice Hall
Supply Chain Economics
Supply Chain Costs as a Percent of Sales
Table 11.3
| Industry | % Purchased |
| All industry | 52 |
| Automobile | 67 |
| Food | 60 |
| Lumber | 61 |
| Paper | 55 |
| Petroleum | 79 |
| Transportation | 62 |
© 2011 Pearson Education, Inc. publishing as Prentice Hall
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Top 25
Supply Chains
AMR research http://www.amrresearch.com publishes reports on supply chains and other issues.
The Top 25 supply chains report comes out in Novembers.
The table on the right-hand side is from The Second Annual Supply Chain Top 25 prepared by Kevin Riley and Released in November 2005.
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Top 25
Supply Chains
AMR research http://www.amrresearch.com publishes reports on supply chains and other issues.
The Top 25 supply chains report comes out in Novembers.
The table on the right-hand side is from The Second Annual Supply Chain Top 25 prepared by Kevin Riley and Released in November 2005.
Gartner Supply Chain Top 25: 2013
1. Apple
2. McDonald's
3. Amazon
4. Unilever
5. Intel
6. Procter & Gamble
7. Cisco Systems
8. Samsung Electronics
9. Coca Cola Company
10. Colgate-Palmolive
11. Dell
12. Inditex
13. Wal-Mart Stores
14. Nike
15. Starbucks
16. PepsiCo
17. H&M
18. Caterpillar
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A picture is better than 1000 words!
How many words would be better than 3 pictures?
- A supply chain consists of
- aims to Match Supply and Demand, profitably for products and services
- achieves
SUPPLY SIDE
DEMAND SIDE
The right
Product
Higher
Profits
The right
Time
The right
Customer
The right
Quantity
The right
Store
The right
Price
=
+
+
+
+
+
Supplier
Manufacturer
Distributor
Retailer
Customer
Upstream
Downstream
