Executive Program: Supply Chain Seminar & Kaizen. Lean Sensei International

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1 Executive Program: Supply Chain Seminar & Kaizen Lean Sensei International

2 Lean Supply Chain Lean Sensei and CME Manitoba are proud to host a three-day course on Lean Supply Chain in Winnipeg on Apr 18 to 20, The Executive Lean Supply Chain program is specifically designed to bring executives, business owners, senior managers, and CEOs a fresh perspective on how to develop a cutting-edge lean deployment. For busy executives, this program also provides an important but often ignored opportunity to get re-energized by spending some time away from the day-to-day challenges of the business and focus on the most important aspect of the business: supply chain.

3 Lean Supply Chain Drawing from years of experience dealing with some of the best companies in the world, Lean Sensei will provide insights on how lean supply chain can be developed and sustained. Hands-on session will provide executives a rare opportunity to reflect on their strategic style and compare their approach to other leading companies style of deployment. Executives attending this program will leave the program with a renewed energy for vision, and more importantly, a new understanding of how to steer their company to higher levels of lean success using proven methods. Because the program is designed to allow executives to concentrate for a full day on nothing but lean deployment and benchmarking, deliverables will be specific, tangible, measurable, and value-added. This is a working session not a conference, not a lecture, and definitely not a static one-way speaking engagement. This session provides executives with dedicated time to develop their own lean deployment style by following simple methodology with the support of Lean Sensei specialists. This is also a great opportunity to network with other lean executives.

4 Lean Supply Chain Executive Program Key Objectives To learn what lean supply chain is all about To learn how to apply the key concepts of lean supply chain To develop thinking and mindset of a first-class lean company To develop your own lean supply chain framework

5 Key Themes Supply chain & Heijunka workshop provides an advanced level of training covering such topics as lean procurement, lean distribution, inventory management (kanban), and Heijunka (load leveling) concept. The basic format is: One day of classroom/seminar + two days of on-site kaizen at an actual company to apply the principles learned

6 Key Topics Covered

7 Lean Supply Chain Supply chain processes are tightly integrated and highly influenced by each sub-processes. They are not independent for the most part.

8 Suppliers Customers Simple Supply Chain Model Plan Source Make Deliver

9 HEIJUNKA BOX HEIJUNKA BOX PRINCIPLES As you move towards smaller lots or one piece flow, the demand for parts is subject to sudden peaks and valleys. Large orders may deplete inventory, making it difficult to manage. A method of planning and leveling customer demand by volume and variety over the span of a day or shift Product A B C D E Daily Requirement Mfg Sequence Ratio The leveling of production to meet demand is called Heijunka

10 Heijunka Example Toyota Parts Warehouse Zone A Zone B Zone C Zone D Zone E Zone F

11 Heijunka Simulation Heijunka simulation provides insights into how heijunka system works and how that can be applied to supply chain model. A simple but effective simulation involving grocery store shopping will be delivered and explained.

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14 Methodology

15 OPTIMIZATION / MODELING Supply Chain Management Approach Current State / Situation Future State Implementation I. Business Strategy Confirmation Production / Marketing 1. Questions to Ask 2. Current State Issues 3. Confirm Deliverables II. Internal Assessment 1. Overall Supply Chain 2. Operations: Sell Plan / Inventory Make Buy Move Develop 3. Organization and People Effectiveness 4. Information Systems / Technology III. External Assessment 1. Competitors 2. Customers - Current Factor & Requirement 3. Suppliers 4. Technology 5. Industry Trends IV. Best Practices Identification / Benchmarking Possible areas to explore: Company Database Knowledge Database External Research Lean Specialists Research V. Opportunity Identification 1. Value Proposition 2. Target Areas 3. Opportunities and Scope VI. Supply Chain Strategy Development 1. Performance Metrics 2. Organization and People 3. Customer / Service Segmentation 4. Facility Rationalization 5. Inventory Deployment 6. Outsourcing 7. Partnering and Alliances 8. Manufacturing Strategy 9. BS squared VII. Supply Chain Vision 1. Overall Supply Chain Structure 2. Operations / Processes 3. Org. and People Effectiveness 4. System Support Needs VIII. Short Term Improvements Actions and Programs: Transportation Cost Reduction Procurement Cost Reduction Inventory Cost Reduction Balance & Simplify Process: Order Management Overhead Warehouse Management Complexity etc. Total Delivered Cost IX. Future State Design X. Implementation Planning 1. Priority First, Next, Later

16 Common, hybrid approach to all four areas Simplify Processes Sell Value Balance Demand & Supply Lean Procurement Lean Out Inventory However, all six approaches to supply chain cost reduction point to common methods that impact various areas at once This means multiple attacks on supply chain are required, which will yield multiple returns on investments Buy Value Common, hybrid approach

17 Supply Chain Cost Reduction Methodology Sell Value 3 Simplify Processes Balance Demand & Supply Lean Procurement Buy Value Lean Out Inventory Reducing total supply chain cost requires a holistic, strategic approach Buy Less Apply Lean Procurement to rationalize parts and services Store Less Apply Lean Inventory to only carry essential, standardized mat l levels (WIP, FG, RAW) Balance Match supply with demand using Heijunka principles and achieve rapid Fullfillment Simplify Streamline value stream steps for all supply chain processes to reduce waste and cost Bargain Negotiate Value with Suppliers Sell Grow revenue from Capacity and realize Value with customers from Innovations

18 Flow & Kanban

19 Kanban from suppliers Shopfloor operators designed these racks

20 Kanban Min/Max Resetting Kanban Calculations Minimum Kanban Calculations Maximum Kanban Calculations Principles Supplier Commodity Lead Time Avg Demand Safety Multiplier Calculation Multiplier Min Qty Lead Time MAX Demand Safety Multiplier Calculation Multiplier Max Qty (days) (units/day) Supplier Demand Internal List (factor) (units) (days) (units/day) Supplier Demand Internal List (factor) (units) L D Perf. Fluctuation Error another S =LXDXS L D Perf. Fluctuation Error another S =LXDXS 1 Supplier ABC Parts Supplier DEF supplies Supplier XYZ Parts Supplier Performance Multiplier Supplier Commodity Supplier Performance Multiplier On Time On time Defect Free Defect Free Error Free Error Free Another Another (factor) Actual Factor Actual Factor Actual Factor Actual Factor S Supplier ABC Parts 90.00% % % % Supplier DEF supplies 95.00% % % % Final Overall Cost Overall Calculations MIN MAX Cost Averages Supplier Commodity Min Qty Max Qty Supplier $ value Min Max Avg Avg (units) (units) Lot Size per unit Cost Cost Qty Cost =LXDXS =LXDXS (units) ($/unit) ($) ($) (units) ($) 1 Supplier ABC Parts $30.00 $4, $5, $5, Supplier DEF supplies $25.00 $7, $7, $7, Supplier XYZ Parts $23.00 $ $1, $853.43

21 Kaizen and Training This special session includes the following: Day 1: full day of training on lean procurement, lean supply chain, and heijunka concepts. Day 2, 3: Two-day kaizen applying the above concepts to a real company. The team has to develop solutions and implement ideas as part of the live Kaizen, then deliver a final presentation to the hosting company.

22 Andrew McFadyen Executive Coach, Lean Sensei International Andrew McFadyen has over 20 years of lean experience, including 4 years with Toyota and 15 years with Teleflex (a Tier 1 conglomerate). After becoming a supervisor early in his career, Andrew studied business administration and moved progressively through management and executive positions. Andrew has extensive leadership experience in product and service development, process innovation, and lean operations. He is a highly regarded trainer. Equally comfortable in the boardroom or at the gemba, Andrew has real-world experience that he can easily relate to a wide range of organizations and situations. Andrew enjoys teaching and speaking about lean and green at conferences, associations, and workshops, in addition to leading on-site kaizen events. With tremendous experience applying lean thinking, leading environmental programs, and transforming organizations, Andrew brings a rich perspective to organizational challenges and business solutions. He is passionate about strategic planning and deployment, problem solving, value stream mapping, and training. Andrew pushes boundaries when implementing lean programs, tackling broad changes, or pursuing human development. The organizations he has worked with have progressed rapidly in capability and performance. Andrew currently works as an executive coach, develops renewable energy solutions, and is active in community service.

23 Lean Supply Chain Winnipeg Program Fees

24 Program Details The event will be held at a hosting company (to be announced) A USB and a binder of reference materials will be given to all participants, including the powerpoint presentation of the speaker. Meals included: Simple breakfast and lunch on all three days

25 Program Fee Program fee: Active Lean Sensei Clients and/or CME members: $995 for three days (for current clients of who have been involved with Lean Sensei in the last 3 months) Non-Lean Sensei Clients and/or Non-CME members: $1095 for three days (for new or first time clients who have not been involved with LSI in the past) The program fee does not include flights to and from Winnipeg or hotel accommodation.

26 Additional Details

27 To register for this program, please : To register... send an to event@leansensei.com or call our office at

28 Executive Certification Background Information

29 Executive Lean Certification Introduction Executive Lean Certification (ELC) commands the highest respect above and beyond standard programs because its primary focus is to equip executives and senior managers with knowledge and experience in lean deployment and lean management ELC program provides complete freedom and flexibility to allow executives to take various programs at their convenience, and complete the certification once the required number of executive credits (ECs) are completed

30 ELC Tracks Executive Lean Certification program offers three tracks, each track providing different levels of lean methodology and education With as few as 6 executive credits (6 ECs), participants can obtain the Executive Lean Leader Certification (ELL), or continue to obtain further credits toward higher certification levels At the highest level, the participant can achieve the Chief Lean Officer (CLO) designation Three levels of Executive Certifications are: Chief Lean Officer Executive Lean Director Executive Lean Leader

31 Different Levels of ELC Chief Lean Officer (must obtain a total of 15 executive credits) Executive Lean Director (must obtain a total of 10 executive credits) Executive Lean Leader (must obtain a total of 6 executive credits)

32 An example of the certificate You will receive 3 Executive Credits (ECs) in level A from this program. You will only need 3 more credits to receive the first level of Executive Lean Certification.

33 LSI Contact Info David Koichi Chao, P.Eng. President, Lean Sensei # W. Broadway Box 364 Vancouver, BC Canada V6H 4E4 TEL (604) DIRECT (604) LSI-LEAN