8 Guiding g Principles p
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8 Guiding Principles
Lean Logistics L L i ti & Lean Logistics & Supply Chain Networks: Supply Chain Networks:
Lean Logistics & Supply Chain Resources
Building a Lean Fulfillment Stream
Available at lean.org/bookstore
The Building a Lean Fulfillment Stream Workshop
November 9, , 2010 in Los Angeles, g , CA Details at lean.org/fulfillment
Todays Presenters
Robert Martichenko CEO, LeanCor, a provider of third-party logistics & supply chain services Co-author Building a Lean Fulfillment Stream, LEIs latest workbook Began lean journey at Toyota Motor Manufacturing Indiana Over 15 years of lean supply chain and third-party logistics experience LEI faculty member, instructor John Cook School of Business at Saint Louis University, and the Georgia Tech Supply Chain & Logistics Institute Leancor.com
Todays Presenters
Kevin von Grabe Vice President, Lean Deployment, LeanCor, responsible for logistics engineering, transportation management, and project management Co-author Building a Lean Fulfillment Stream Lean logistics journey includes working on the greenfield start ups of Toyota Motor Manufacturing Indiana and Jabil Circuit in Hungary and China. Career includes materials management, transportation, consulting, and third party logistics third-party Leancor.com
Supply Chain & Logistics Management
A Practical Viewpoint
Logistics
Supply pp y Chain Management
Principles of the Lean Fulfillment Stream
Eliminateallthewaste
Eliminatewastetoincreasevalue
Makecustomerconsumption visible
BuildandShiptothecadenceof customerdemand
Reduceleadtime
Increaseflexibility
Createlevelflow
Goodsandinformationmovingonaflow basedoncustomerdemand
Principles of the Lean Fulfillment Stream
Usepullsystems
Avoidoverproductionandexcess inventories
Increasevelocityandreduce variation
Move lots frequently M smaller ll l t moref tl
Collaborateanduseprocess discipline
Createproblemsolvingculture
FocusonTotalCostof Fulfillment f
SystemsThinkingtoachievequantum results
Lead Time = Value + Waste
onsumptio on Customer Co
Value
Lead Time is Only Made of Two Things!
oduct Des sign Pro
upplier Bu uild Su
Waste
Waste
e Manufacture
Value
Value
Value
Waste
The Ultimate Business Model
Build to order = No overproduction so whats the problem?
Supply LT
+ +
MLT + OL
< <
Customer LT
= BTO = Forecast
Supply LT
MLT + OL
Customer LT
Lean FS & Systems Thinking
The defining characteristic of a system is that it cannot be understood as a function of its isolated components. First, the
AllNewProductsevery yearwith100%new components p
Youreafoolif youdont d focusonBOM costs
behavior of the system doesn't depend on what each part is doing but on how each part is interacting with the rest ...
Kofman and Senge, Senge 1993
Whatweneed aremoresales promotions!
Iloveitwhenaplan comes togetherdidit?
Processes Want to Fall Apart
In a system, a process that occurs will tend to i increase th the total t t l entropy of the universe. universe
Second law of thermodynamics
Lean Logistics & Supply Chain Resources
Building a Lean Fulfillment Stream
Available at lean.org/bookstore
The Building a Lean Fulfillment Stream Workshop
November 9, , 2010 in Los Angeles, g , CA Details at lean.org/fulfillment
