Lean Supply Chain and Logistics Management Paul Myerson

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1 Lean Supply Chain and Logistics Management Paul Myerson New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto

2 Contents Chapter 1 Chapter 2 Foreword xv Preface xvii Introduction: Using Lean to Energize Your Supply Chain What Is Lean? Lean Failure Implementing Lean Supply Chain and Logistics Management Defined Why All the Interest in Lean Supply Chain Management? Historical Perspective: From Lean Manufacturing to Lean Enterprise... the Need for Speed Evolution of Lean The Need for Speed Lean Office Lean Supply Chain and Logistics Management Lean Six Sigma Cycle Time versus Processing Time Takt Time Dock-to-Dock Time Chapter 3 The Eight Wastes: Waste Not, Want Not What Is Waste? The Eight Wastes Inventory Waste Transportation or Movement Waste Motion Waste vii

3 viii Contents Waiting Waste Overproduction Waste Overprocessing Waste Defect or Error Waste Behavioral Waste (or Underutilized Employees) Thinking Differently Chapter 4 Chapter 5 Lean Opportunities in Supply Chain and Logistics: Forest for the Trees Plan Wastes in Forecasting Source Make Make to Order (MTO) versus Make to Stock (MTS) Distribution Requirements Planning Deliver Return Basic Lean Tools: You Can t Build a House without a Solid Foundation Standardized Work Visual Job Aids Visual Workplace Layout S: Workplace Organization and Standardization Sort Out Set in Order Shine Standardize Sustain Chapter 6 Advanced Lean Tools: It s Not Rocket Science Batch Size Reduction and Quick Changeover Batch Size Reduction Quick Changeover

4 Contents ix Kanbans Quality at the Source Work Cells Balancing a Work Cell Total Productive Maintenance Overall Equipment Effectiveness Lean Analytical Tools Tools for Gathering Tools for Organizing Tools for Identifying Problems Chapter 7 JIT in Supply Chain and Logistics: This JIT Is Good Areas of Focus Network Design Integration of Resources Walmart and Dell: Examples of JIT in the Supply Chain Visibility and Reliability Cross Docking Chapter 8 Lean Warehouse: Low-Hanging Fruit Lean Thinking in the Warehouse Assembling Orders Value Stream Mapping in the Warehouse Lean Tools in the Warehouse Lean Warehouse Examples Chapter 9 Lean Global Supply Chain and Logistics: The Long and Winding Road The Logistics of a Global Supply Chain Value Stream Mapping to Identify Waste Areas of Potential Waste in the Global Supply Chain and Logistics Network Areas to Reduce Waste Keys to Global Logistics Excellence Addressing Wastes in the Global Supply Chain.. 103

5 x Contents Chapter 10 Keys to Success: The Patient Gardener Key Success Factors Lean Training Management Support Lean Structure Teamwork and Lean Making Teamwork Happen Sales and Operations Planning (S&OP) S&OP Defined Supply and Demand Options The S&OP Process S&OP and Lean Working Together Chapter 11 Getting Started: Lean Forward Lean Opportunity Assessment Value Stream Mapping Value Stream Mapping Defined Value Stream Mapping Benefits Value Stream and Product Family Takt Time Value Stream Manager Goals and Objectives Steps to Creating a Current State Value Stream Map Data Collection Future State Value Stream Map Where to Look Implementation Plan Lean Teams Team Charter The Team Makeup Kaizen Events Kaizen Event Management

6 Contents xi Chapter 12 Lean and Technology: Why Can t We All Just Get Along? Lean and Technology: Background Best-in-Class Use of Technology with Lean Enterprise Resource Planning (ERP) Systems Demand Forecasting Trends Driving the Use of Technology to Reduce Waste Distribution Requirement Planning (DRP) DRP and Demand Pull Advanced Planning and Scheduling Systems Benefits of Advanced Planning and Scheduling Systems Warehouse Management System (WMS) Software and Radio Frequency Identification (RFID) Warehouse Management Systems in Waste Reduction Transportation Management Systems (TMS) Benefits of Transportation Management Systems Chapter 13 Beyond the Four Walls: I Can See Clearly Now Electronic Data Interchange (EDI) Web-Based EDI E-Commerce E-Commerce and Small- to Medium-Sized Enterprises QR, ECR, and CPFR Efficient Consumer Response Quick Response ECR versus QR Collaborative Planning, Forecasting, and Replenishment Vendor-Managed Inventory Value Stream Map for a VMI Program Other Potential Areas for Collaboration

7 xii Contents Future Opportunities and Roadblocks Supply Chain Flexibility Traits Chapter 14 Chapter 15 Metrics and Measurement: How Are We Doing? Policies and Procedures Rationale for Considering Metrics Relevant Lean Supply Chain and Logistics Metrics Delivery Reliability Perfect Order Measure Responsiveness Flexibility Cost Asset Management Balanced Scorecard Finding the Right Metrics for Your Company Metrics Framework Financial Impact of Metrics Review Scorecard during S&OP Dashboards to Display and Control Metrics Indicators Application Areas of a Scorecard Education and Training: All Aboard the Lean-Train Training Methods Traditional Methods Group-Building Methods Selecting the Training Delivery Method Training: Key Management Team (Seminars, Certifications, etc.) Training: General Workforce Training: Tools and Tips Games Handouts and Forms Language Barriers Measuring Success

8 Contents xiii Chapter 16 Future Thoughts: Lean Times Ahead Lessons Learned Barriers to Supply Chain Integration Human Resources Structure Relationships Technology Alignment Trends in Lean Supply Chain Data Analytics Supply Chain Analytics and Lean Potential Obstacles to Lean Thinking in the Supply Chain Lean Ahead Appendix A Real-World Examples of Lean Supply Chain and Logistics Management Appendix B Lean Opportunity Assessment References Index

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