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
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
Factory verse Cell Based Strategy Continuous Improvement Opportunities Procurement Lean Mfg. Warehousing Transportation
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
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?
Supplier > Manufacturing > Customer
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
Early supplier integration into design ◦ Early and major supplier role in design ◦ Up-front design-process integration ◦ Leveraging supplier technology base for innovative solutions
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’ technologies 4) Establish alliances / supplier partnerships 5) Focus on total cost of ownership (not price alone) 6) New Products Development – suppliers early in the process 7) Optimize Inventory Turns by Cell (ROWC) 8) Establish risk based controls / measurements 9) Leveraging ‘Green’ based initiatives