1 REALIZING RESULTS WITH LEAN MANUFACTURING THROUGH A CULTURE OF CONTINUOUS IMPROVEMENT DINNER MEETING JANUARY 8, 2019

Transcription

1 1 REALIZING RESULTS WITH LEAN MANUFACTURING THROUGH A CULTURE OF CONTINUOUS IMPROVEMENT DINNER MEETING JANUARY 8, 2019

2 DEREK BROWNING DIRECTOR, CONSULTING SERVICES - LEANCOR SUPPLY CHAIN GROUP years of experience working in logistics and end-to-end supply chain management Consulting career has involved directing projects for industry-leading clients in manufacturing, retail, and distribution environments. Trained thousands of professionals in lean, Six- Sigma, and supply chain. MBA, Certified Lean Six Sigma Black Belt and has certificates in Lean Strategic Sourcing, Lean Six Sigma Logistics, and Lean Supply Chain Management Best Day Ever: A day at church with his wife and four kids

3 THE EVOLUTION OF MANUFACTURING INDUSTRY 4.0 IS HERE 3 Industry 4.0 is not simply about replacing people with machines, but instead about how people, interconnected sensors, machines and artificial intelligence can work together more effectively. - Glenn Graney QAD

4 4 AMIDST TODAY S BUSINESS DISRUPTION, MANUFACTURERS ARE TRYING TO DECREASE COMPLEXITY WHILE INCREASING COMPETITIVE ADVANTAGE. BUT HOW DO WE DO IT? IT STARTS WITH BUILDING A LEAN CULTURE OF CONTINUOUS IMPROVEMENT ACROSS THE END-TO-END SUPPLY CHAIN.

5 VALUE AND WASTE CREATED BY MOST BUSINESS DECISIONS MANIFEST IN THE SUPPLY CHAIN. 5 We must use supply chain performance feedback as a barometer and indicating source for where we are creating customer value and where we are creating organizational waste. This feedback loop will be integrated into the established management system structure and will be a primary driver for prioritizing continuous improvement initiatives that build the culture. 5

6 REALIZING RESULTS 6 CONTINUOUS IMPROVEMENT INITIATIVES ACROSS THE END-TO-END SUPPLY CHAIN MAKE SIGNIFICANT BUSINESS IMPACTS. We help you gain Shareholder Increased Value Shareholder Value When you realize Increased Revenue Increased Operating Margins In the form of Reduced Cost of Goods Sold Reduced Operating Costs Increased Market Share Increased Volume Through continuous improvement initiatives that will Increase Supply Chain Effectiveness Reduce Procurement Costs Reduce Manufacturing Costs Reduce Supply Lead Times Increase Quality and Reliability Reduce Fulfillment Costs Reduce Inventory Carrying Costs Increase Customer Satisfaction Enhance Customization Increased Forecast Accuracy Increase Capacity Improve Responsiveness Reduced Lead Time and Variability Enhance Product Innovation Increased Capital Efficiency Reduced Fixed Asset Investment Reduced Working Capital Investment Optimize Network and Mission of Facilities Utilize Logistics Services Providers Improve Demand Supply Planning Improve Inventory Turns and Positioning Reduce Inventory Levels Improve Cash Conversion Cycle Reduce Complexity

7 7 FIND YOUR OPPORTUNITIES IDENTIFYING CONTINUOUS IMPROVEMENT INITIATIVES

8 BUSINESS DECISION KNOWLEDGE MOST BUSINESS DECISIONS ARE ULTIMATELY MANIFESTED IN THE SUPPLY CHAIN. 8 Knowledge required to prioritize continuous improvement opportunities rests within our current supply chain performance. Do we know the root causes to these challenges? Where were these decisions originally made? What original assumptions did we make? Who all knows this inventory is here? What could this be teaching us? 8

9 SUPPLY CHAIN-CENTRIC DECISION MAKING MOST BUSINESS DECISIONS ARE ULTIMATELY MANIFESTED IN THE SUPPLY CHAIN. 9 Advanced supply chain-centric decision making proactively prevents unintended consequences, thereby eliminating non-required complexities and resulting waste. How will this decision add value to the customer or possibly create unplanned complexity and unintended waste in the supply chain? 9

10 BUILDING YOUR ROADMAP 10 IDENTIFYING BOTH QUICK WINS AND LONG-TERM IMPROVEMENT OPPORTUNITIES End-to-End (E2E) Supply Chain Vision and Mission Alignment Strategic Initiatives Across E2E Supply Chain Tactical Initiatives Within Subprocesses (Functions) Across E2E Supply Chain Opportunities That Exist From an Operator Perspective Opportunities Relative to Benchmark Against Best Practices (Principles) Opportunities That Exist From an Operator Perspective Opportunities Relative to Benchmark Against Best Practices (Principles) RESULTS ROADMAP Opportunities for Performance Improvement and Cost Reduction Quick Wins Medium-Term Opportunities Long-Term INPUTS OUTPUTS

11 CONTINUOUS IMPROVEMENT MATURITY MODEL (EXAMPLE) A LEAN CULTURE OF CONTINUOUS IMPROVEMENT IS A PROGRESSION AND MATURING PROCESS. 11 As we connect end-toend supply chain processes and listen to feedback loops, we improve overall business performance.

12 END-TO-END SUPPLY CHAIN MATURITY ASSESSMENT TAKE YOUR OWN ASSESSMENT TO START BUILDING FEEDBACK LOOPS AND PRIORITIZING CONTINUOUS IMPROVEMENT INITIATIVES. 12 Supply Chain Alignment Vision, current state, and future state Put Your Screenshot Here One Team Performance Aligned, collaborative, and participative decision making Supply Chain Connection Planning and execution infrastructure that connects supply chain processes and organizational interfaces Take your organization s assessment now at: info.leancor.com/supply-chain-maturity-assessment Supply Chain Visibility End-to-end visibility and flexibility for all material and information flow Supply Chain Capability Dependability, flexibility, and speed Supply Chain Performance End-to-end supply chain performance, cost management, and relentless continuous improvement

13 13 LEADERSHIP REQUIREMENTS FOR SUCCESSFULLY DEPLOYING A CULTURE CHANGE

14 BUSINESS SYSTEM ELEMENTS FOR CULTURAL TRANSFORMATION 14 CULTURAL ALIGNMENT: The business improvement system connects to the vision and values of the organization and drives transparency, commitment and improved decision making based on value to the customer. LEADERSHIP PARTICIPATION: Leadership is committed to behaviors based on participation, collaboration and actions driven by agreed upon targets, objectives and operating principles. PEOPLE DEVELOPMENT: The organization is committed to the development of people and leadership ensures that opportunities are identified and realized by the people that do the work. PROCESS MANAGEMENT: The organization understands that the customer feels the impact of the overall performance of all processes across the extended value stream and is committed to improving at the functional level and across functions within the entire organization.

15 15

16 THINKING SYSTEMATICALLY 16 HOW DO OUR DECISIONS IMPACT OTHERS ACROSS THE ENTERPRISE FROM A VALUE AND WASTE POINT OF VIEW? Bias: A strong inclination of the mind or a preconceived opinion about someone or something. We all have biases and this is natural and to be expected. The goal and prize is to understand why these biases exist and how we can use this knowledge to connect core processes to improve the business. The goal is not to criticize. Why do biases exist in business and how do these impact our personal perspective? 16

17 ABOUT LEANCOR YOUR ONE-STOP SUPPLY CHAIN SHOP 17 WE TEACH. LeanCor Supply Chain Group is a trusted partner with a mission to advance the world s supply chains. WE CONSULT. WE DO. Our three integrated divisions specialize in lean principles to help organizations eliminate waste, drive down costs, and build operational excellence.

18 18 THANK YOU QUESTIONS?