1、Building and Managing the Lean Supply Chain,The Supply Chain,1st Tier, 2nd Tier, , Suppliers,Enterprise,Distribution Channels,Customers,The Supply Chain,Develop Systems Thinking,Lean supply chain principle 1: Improving the performance of every subsystem does not necessarily improve system performanc
2、e. The sum of local optima does not equate to the global optimum. Improvements in subsystem performance must be gauged only through its impact on the whole system.,Systems Thinking and the Theory of Constraints,“Find the essence of each situation, like a logger clearing a log jam. The pro climbs a t
3、all tree, locates the key log, blows it, and lets the stream do the rest. An amateur would start at the edge of the jam and move all the logs, eventually moving the key log. Both approaches work, but the essence concept saves time and effort. Almost all problems have a key log if we learn to find it
4、.”- Fred Smith,The Business Ecosystem,Dells Business Ecosystem,The Business Ecosystem,Lean supply chain principle 2: Focus on improving the performance of the lean supply chain. However, do not ignore the supply chains business ecosystem.,Steps to Build Lean Supply Chains,Develop a systems perspecti
5、ve Understand customers and their expectations Map the supply chain Benchmark best practices Design products and processes to manage demand volatility Create flow across the supply chain Develop supply chain metrics,Develop a Systems Perspective,For any decision you take consider the following. Does
6、 the decision: Help you sell more products? Help reduce investments in resources? Help reduce payments/expenses?,Understand Customer Value,Critical step: provide what the customer wants Providing the wrong product or service in an efficient way is muda. Eg. Air travel An opportunity for kaikaku (dra
7、matic change): Rethink the delivery system on a product line basis with strong dedicated product teams,Understanding Customer Value,Document the following: Customer values in each segment (order qualifiers and order winners) Delivery cycle/time expectations of customers in each segment,Identify mark
8、et segments,Market Segments: Example,Customer Values in Each Segment,Staple stock (e.g., Stationery) Availability (qualifier), cost (winner) Direct freight (e.g., Sony DSC-S30) Product design (qualifier), quality (winner) Seasonal Convenience (qualifier), availability (winner),Map the Supply Chain,T
9、he set of all actions required to deliver the finished product or service to the customer “Seeing the Whole” (Systems Thinking) Systematic study of the value stream often reveals a staggering amount of muda Need to “map” the whole process, and identify value-added and non-value added activities acro
10、ss the value stream,Supply Chain Map: “As-Is”,Patient Telemonitoring System monitored by Office based Nurse,Physicians Office,Admission RN or Therapist,Transcription,Medical Records,Outside Supplier,Clinical Staff,Materials Management,Intake Coordinator,Hospital Discharge Staff,Billing and Collectio
11、ns,Clinical Supervisor,Visit Scheduler,Courier,Information flow Paper flow Data flowSupply delivery Adds ValueSource of Waste,Supply Chain Map: “To-Be”,Patient Telemonitoring System monitored by Office based Nurse,Outside Supplier,Clinical Staff,Materials Management,Hospital Discharge Staff,Billing
12、and Collections,Clinical Supervisor /Case Manager,Intake Coordinator/ Scheduler,Physician or Physicians Office,Information flowData flowSupply delivery Adds ValueSource of Waste,Medical Records,Customer,Supplier,30 Days Firm Schedule,Production Planning,Central Supplies,Monthly Fax of Weekly Schedul
13、es,Weekly Calls with Daily Schedules,Inventory Management System,CAPS System,Blend,Compound,Pre- Form,Pre- Cure,Press- Curing slab,Finish- ing,Pack,1.33 Days,900 seconds,0 Days,0.26 Days,0.09 Days,0.09 Days,0.68 Days,0.54 Days,12 Days,18 seconds,5700 seconds,18810 seconds,4500 seconds,45 seconds,0.0
14、7 seconds,Bi-Weekly Schedule,Press- Curing DFM,FIFO,Sales Warehouse,Customer Demand: 4,560 units/day,Record Receipt,To Raw Material Supermarket,Value Added Time: 0.35 days; Production Lead Time 3.34 days; Value Added Ratio: 10.5%,Supply Chain Map: “As-Is”,Customer,Supplier,30 Days Firm Schedule,Prod
15、uction Planning,Central Supplies,Monthly Fax of Weekly Schedules,Weekly Calls with Daily Schedules,Inventory Management System,CAPS System,Blend,Compound,Pre- Form,Pre- Cure,Press- Curing slab,Finish- ing,0.03 Days,900 seconds,0 Days,0.11 Days,0 Days,0.03 Days,0.13 Days,6 Days,18 seconds,1800 second
16、s,18810 seconds,4500 seconds,45 seconds,Bi-Weekly Schedule,Press- Curing DFM,FIFO,Sales Warehouse,Value Added Time: 0.30 days; Production Lead Time 0.60 days; Value Added Ratio: 50%,Daily Orders,Record Receipt,To Raw Material Supermarket,Customer Demand: 6,200 units/day,Supply Chain Map: “To-Be”,Ano
17、ther kind of Supply Chain Map,Benchmark Best Practices,Develop performance metrics,Identify world class organizations; study their operations strategies and tactics,Benchmark Best Practices,Lean supply chain principle 3:Focus on customer needs and process considerations when designing the product de
18、livery system. Enterprises can gain tremendous competitive advantage through best-in-class practices that cut across industries.,Designing Products and Processes: Coping With Demand Volatility,Can you smooth demand volatility? Key observation: Much of the demand volatility is self-induced Sales prom
19、otions and rebates End-of-the-month syndrome (“Channel Stuffing”) Batching New product introductions ,How Can We Reduce Demand Volatility?,Have no promotions Reduce lead times and produce in small lots Exploit product structures Postponement strategies Exploit commonality and delay commitment Aggreg
20、ation,How to Manage Demand Volatility: The RAP Principle,Raw Material,Before,After,Sub-Assembly,Final Assembly,Finished Goods,Fabrication,How to Manage Demand Volatility: The RAP Principle,Lean supply chain principle 4: Maximize external variety with minimal internal variety. It is desirable to main
21、tain inventories in an undifferentiated form for as long as it is economically feasible to do so,Managing Demand Variation,Lean supply chain principle 5: Buffer the variation in demand with capacity, not inventory,As far as possible, avoid using inventory to buffer variation Less chances of misalloc
22、ation Inventory seriously impedes flow,“At-Once” Customers,“At-Lead-Time” Customers,“Beyond-Lead-Time” Customers,Percentage of Orders,Lead Time = 3 to 5 weeks,Replenishment Lead Time,Wk 1,Wk 2,Wk 3,Wk 4,Wk 5,Wk 6,Wk 7,Wk 8,The Customer Time-Based Demand Profile,Product Delivery Strategies,Build to s
23、tock (BTS) Finished goods made in anticipation of demand. Customers orders are met from inventory Assemble to order (ATO) Subassemblies produced according to forecast. Required items are drawn from wip and assembled when orders are received. Very little finished goods inventory carried,Product Deliv
24、ery Strategies: Product Structures,Build to order (BTO) Products built in response to actual customer orders. Usually these are standard products with a few options Engineer to order (ETO) New product designed and produced in response to specific customer needs. Lead times include relevant elements
25、of engineering design and manufacturing,Product Delivery Strategies: Product Structures,FG,Build to Stock,Assembly,Assemble-to-Order,Customer LT,Build-to-Order,Assembly,RM,Customer LT,Product Structures: Resulting Lead Times,Create Flow,Customers,Facility,Suppliers,Creating flow requires a systems p
26、erspective Lack of flow results in inventory or work imbalance somewhere in the supply chain Improved flow reduced lead times To create flow, all processes should “row the boat” at the same pace the concept of flow balance,Creating Flow,Lean supply chain principle 6: Use forecasts to plan and pull t
27、o execute. A system that reacts to pull signals will have less variation than a comparable system that adopts a push mode of operation.,To enhance flow, use pull signals for execution where possible,“Tell me how you will measure me and I will tell you how I will behave.”,Does the metric: Help you sell more products? Help reduce investments in resources? Help reduce payments/expenses?,Develop Metrics Using a Systems Perspective,
