END-TO-END LEAN MANAGEMENT. A Guide to Complete Supply Chain Improvement. by Robert J. Trent, Ph.D. J.ROSS PUBLISHING

Transcription

1 END-TO-END LEAN MANAGEMENT A Guide to Complete Supply Chain Improvement by Robert J. Trent, Ph.D. J.ROSS PUBLISHING

2 CONTENTS Preface About the Author Web Added Value xiii xix xxi PART I: UNDERSTANDING THE LEAN SUPPLY CHAIN 1 Chapter 1. Understanding Lean 3 What Is Lean? 4 Keep It Flowing 4 Pull, Don't Push 7 Make It as Perfect as Possible 8 Optimize across the Supply Chain 10 Establish the Standard 10 Make Life Simpler 11 Zeroing in on Waste 12 Types of Waste 13 Defining Supply Chains and Supply Chain Management..". 14 Comparing the Philosophies 16 Nine Myths about Lean 17 Lean Is about Cutting Costs 17 Lean Is about Internal Production 19 Lean Is for Manufacturing Companies 19 Lean Is Your Most Important Strategic Objective 20 Lean Is a Series of Techniques 20 Lean Means Just-in-Time 21 You Cant Be Too Lean 21 Lean Is Forever 22

3 vi End-To-End Lean Management Lean Stifles Innovation 23 Linking Lean across the Supply Chain 23 Concluding Thoughts 25 Chapter 2. Lean Supply 27 Selecting and Developing Lean Suppliers 27 Moving from Selecting Suppliers to Managing and Developing Suppliers..29 A Supplier Selection and Development Example 30 Creating a Lean Supply Network 31 Characteristics of a Lean Supply Network 31 Challenges to Creating a Lean Supply Network 34 Identifying Items and Suppliers for a Lean Network 37 Supply Management Practices That Promote Lean 42 Optimizing the Supply Base 43 Developing a World-Class Supplier Selection Process 44 Reducing Redundancy across Buying Sites and Locations 45 Developing Longer-Term Supply Agreements 46 Establishing Low-Dollar Purchase Systems 47 Concluding Thoughts 48 Chapter 3. Lean Transportation 51 What Is Lean Transportation? 51 Transportation Deregulation A Catalyst for Lean 54 Elements of a Lean Transportation System 58 Contract and Third-Party Logistics Providers 58 Closed-Loop Delivery Systems 64 Returnable Containers : 67 Modified Shipping and Handling Equipment 70 Information Technology 70 The Importance of Transportation Strategies 72 Concluding Thoughts 73 Chapter 4. Lean Operations 77 Setup Time Reduction 77 Setup Time Reduction Objectives 79 How Do We Reduce Setup Times? 80 Facility Layout Changes 82 The Importance of the Right Layout 83 Challenges with Layout Changes 84 Improving Performance through Layout Changes 86 Pull Systems 91

4 Contents vii Visible Signals 92 Uniform Loading 94 Level Scheduling 95 Demand Is Not Always Level 96 Concluding Thoughts 98 Chapter 5. Lean Distribution 101 A Primer on Distribution Channels 102 Ways to Achieve Lean Distribution 104 Strive for Perfect Record Integrity 104 Improve Demand Estimation Capabilities 105 Pursue Form and Time Postponement 107 Optimize Delivery Networks 110 Practice a Make-to-Order Production Strategy Ill Utilize Information Technology 113 Strategically Position Cross-Docking Facilities 116 Optimize Distribution Channel Design 117 Concluding Thoughts 118 Chapter 6. Measuring for Lean 121 The Importance of Measurement 121 The Dark Side of Measurement 122 The Games People Play 123 How Do We Know If Measures Are Good? 126 Measures That Support Lean Supply Chains 127 Lean Supply Measures 128 Lean Transportation Measures Lean Operations Measures 133 Lean Distribution Measures 135 Supply Chain'Planning and Control Measures 135 Customer Value Satisfaction Measures 136 Linking Lean to Corporate Indicators 136 Concluding Thoughts 138 Chapter 7. Tools and Approaches for Continuous Lean Improvement 139 Kaizen Events 140 Creative and Critical Thinking Sessions 142 Creative Thinking 143 Critical Thinking 143 Linking Creative and Critical Thinking and Lean Improvements 145 Group Problem Solving 145

5 viii End-To-End Lean Management Process Modeling and Redesign 147 Value Stream Mapping 148 Six Sigma Methodology and Projects 150 Value Analysis Workshops 153 The Value Analysis Process 154 Suggestion Programs 156 Performance Benchmarking 157 Concluding Thoughts 159 PART II: LEAN CASES AND APPLICATIONS 161 Chapter 8. Going with the Flow 163 Join a volunteer candle-making group as they apply the theory of constraints to remove bottlenecks, improve flow, and increase productivity by almost 200 percent per hour. Bottlenecks and the Theory of Constraints 163 Structural versus Transitory Bottlenecks 165 The Theory of Constraints 166 The Candle-Making Process 167 The Bottlenecks 168 Overcoming the Bottlenecks 170 Tried but Not Used 172 Analyzing the Process Quantitatively 173 Concluding Thoughts 175 Chapter 9. Lean Is the Pits 177 Pick up some valuable lessons from NASCARpit crews and see how different organizations are applying those lessons. Learning from NASCAR Racing Teams 178 Hire the Right People 179 A Focus on Teamwork 179 Practice, Practice, and More Practice 179 Planning and Staging 180 Using Technology to Reduce Downtime 181 Preventive or Planned Maintenance 182 Performance Feedback 182 Don't Discount the Little Ideas 183 Applying NASCAR Lessons to Industry 183 Rapid Maintenance at a Railroad 184 Faster Aircraft Turnaround 185

6 Contents ix When Speed May Mean Life or Death /. 186 Concluding Thoughts 187 Chapter 10. What Goes Around Conies Around 189 Appreciate how returnable containers in a closed-loop system drive out waste and reduce costs. Understanding Container Requirements 189 Making the Financial Case 192 Identifying Cost and Benefit Categories 194 Returnable Containers at Quick Chek 197 The Benefits to Quick Chek 198 Concluding Thoughts 200 Chapter 11. Why Push When You Can Pull? 203 Learn how a packaging facility in a classic push environment moved toward a demand-driven, pull operation. Simplified Scheduling Is Not Always Lean Scheduling 204 What Are the Lean Changes? 206 Replacing Transportation with Material Handling 206 Deferring for the Longer Term 206 Prioritizing Work Daily 207 Changing the Layout 209 Knowing What Comes Next 210 Managing Nonproductive Inventory 210 Managing Subassemblies 212 Concluding Thoughts 214 Chapter 12. Why Push When You Can Pull? The Lessons Learned 217 See why the transformation from a push to pull environment is not always quick and easy. ^ Do Not Forget Training 217 Align Performance Measures with System Objectives 218 Do Not Ignore Equipment Setup Time 219 Minimize System Overrides 219 Be Careful When Using Averages 221 Establish the Baseline for Measuring Performance Improvement 222 Launch the System in Phases 223 Involve Stakeholders during System Design 224 Concluding Thoughts 225

7 x End-To-End Lean Management Chapter 13. Lean Takes to the Skies 227 Feel the "wow" factor as the world's leading aerospace company takes lean to entirely new levels. Boeing's Market Challenges 227 Boeings Lean Journey 229 The 737 Story 230 Moonshine, Anyone? 235 The Defense Side of the Business 235 The Next Generation of Lean 236 Suppliers Are Part of the Lean Vision 237 Concluding Thoughts 238 Chapter 14. Beam Me Up, Scotty 241 See how a leading company relies on remote sensing technology to manage customer inventory and optimize its product delivery network. Let's Learn More about Telemetry 242 The Air Products Delivery System 244 Remote Telemetry System Development 246 Now the Good Stuff Remote Telemetry Benefits 248 What's Next? 250 Concluding Thoughts 251 Chapter 15. Lean Is Electrifying 253 Be shocked by what a major electric utility does that no other utility can do and see the lean benefits that result from that capability. Automated Meter Reading 253 The Role of the Information Technology Group 258 Automated Meter Reading Benefits :'. 258 The Lessons Learned 261 Where to Next?.tr.T. 262 Concluding Thoughts 262 Chapter 16. You're Choking Me! 265 See why a bottlenecked receiving process in a national distribution center is choking the flow of material across an entire distribution network and what to do about it. The Current Receiving Process 265 Why This Process Is Not Lean 268 Making the Receiving Process Lean 269 Strive for Worker Flexibility 270 Streamline the IT Process 271 Pursue Nonverbal Communication 272

8 Contents xi Reduce Nonvalue-Added Activities 272 Perform Some Tasks Concurrently Rather than Sequentially 273 Expand Less-than-Truckload Shipments 274 Balance and Schedule Full Truckload Deliveries 274 Improve the Organizational Design 274 Measure Receiving Performance 275 Bypass Material Receiving Lines 276 Ship Some Items Directly from Suppliers to Regional Centers 276 Evaluate RFID Applicability 276 Concluding Thoughts 277 Epilogue 279 Index 283