Lean Manufacturing Overview

1
Lean Supply Chains
Superfactory Lean Enterprise Series
2
Outline

• Introduction to Lean Supply Chains
• What is a Lean Supply Chain?
• Components of Lean Supply Chains
• Benefits of Lean Supply Chains
• Moving Toward a Lean Supply Chain
• Seven Steps for Building a Lean Supply Chain
• Critical Success Factors
• Summary

3
Components

• Lean Suppliers
• Lean Procurement
• Lean Manufacturing
• Lean Warehousing
• Lean Transportation
• Lean Customers

4
Lean Warehousing

• Warehousing waste can be found throughout the
  storage process including
• Defective products which create returns
• Overproduction or over shipment of products
• Excess inventories that require additional space
  and reduce warehousing efficiency
• Excess motion and handling
• Inefficiencies and unnecessary processing steps
• Transportation steps and distances
• Waiting for parts, materials and information
• Information processes

Each step in the warehousing process should be
examined critically to see where unnecessary,
repetitive, and non-value-added activities might
be so that they may be eliminated.
5
Lean Transportation

• Lean concepts in transportation include
• Core carrier programs
• Improved transportation administrative processes
  and automated functions
• Optimized mode selection and pooling orders
• Combined multi-stop truckloads
• Crossdocking
• Right sizing equipment
• Import/export transportation processes
• Inbound transportation and backhauls

The keys to accomplishing the concepts above
include mapping the value stream, creating flow,
reducing waste in processes, eliminating
non-value-added activities and using pull
processes.
6
Competitive Weapon
A strong supply chain enables the member
companies to align themselves with each other and
to coordinate their continuous improvement
efforts.

• The synthesis enables even small firms to
  participate in the results of lean efforts
• Competitive advantage and leadership in the
  global marketplace can only be gained by applying
  lean principles to the supply chain
• These elements are required for success
• Thought
• Commitment
• Planning
• Collaboration
• Path Forward

7
Path Forward
The challenge is to bring all of these areas out
of their traditional silos and make them work
together to reduce waste and create flow.
Quality
Distribution
HR
Reduce Waste Create Flow
Development
Marketing
Finance
Purchasing
8
Seven Steps
There are seven steps to developing lean supply
chains.

• Develop Systems Thinking
• Understand Customer Value
• Value Stream Mapping
• Benchmark Best Practices
• Design to Manage Demand Volatility
• Create Flow
• Performance Metrics