1 / 41

Lean Supply Strategies: Applying the 5S Tools to Supply Management

Lean Supply Strategies: Applying the 5S Tools to Supply Management. ISM International Conference Modified November 15, 2004 Kimball Bullington, Ph.D., P.E. MTSU. Outline. What is a Supply Strategy? What is Lean Supply? What is 5S? Developing a Supply Strategy Using 5S.

audra
Download Presentation

Lean Supply Strategies: Applying the 5S Tools to Supply Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lean Supply Strategies:Applying the 5S Tools to Supply Management ISM International Conference Modified November 15, 2004 Kimball Bullington, Ph.D., P.E. MTSU

  2. Outline • What is a Supply Strategy? • What is Lean Supply? • What is 5S? • Developing a Supply Strategy Using 5S

  3. What is a Supply Strategy? • Strategy – A plan for achieving organizational goals.

  4. Supply Strategy Constraints • The Supply Strategy should support the Corporate Strategy. • The Supply Strategy should support the Operations Strategy. • The Supply Strategy should give our customers confidence in the quality, reliability, and safety of our products.

  5. Outline • What is a Supply Strategy? • What is Lean Supply? • What is 5S? • Developing a Supply Strategy Using 5S

  6. Lean Supply • Supply in a Lean Production environment • Supply that supports Lean Production • Supply for diet food manufacturing

  7. Lean Production • The latest incarnation of JIT • Based on Toyota Production System. • Waste elimination • Widely used in automotive manufacturing & other repetitive mfg.

  8. Outline • What is a Supply Strategy? • What is Lean Supply? • What is 5S? • Developing a Supply Strategy Using 5S

  9. Five S • Yet another acronym • An organizational method for lean production . • A pillar of the visual workplace. • Housekeeping

  10. Five S • Sort (seiri) • Set in Order (seiton) • Shine or purity (seiso) • Standardize (seiketsu) • Sustain (shitsuke) 5S

  11. Five S • Sort • Set in Order (Sweep) • Shine (Straighten) • Standardize • Sustain RED TAG

  12. Sort Supplier consolidation or rationalization • Reduces waste of working with wrong suppliers • Focuses efforts of selection, evaluation, and improvement on a few suppliers • Reduces transaction waste • Increases opportunity for partnering and leverage

  13. Barriers to Consolidation • Fear of loss of competition • Doubtful savings • Dilbert • Lack of commitment to the selection process • Pets

  14. Five S • Sort • Set in Order • Shine • Standardize • Sustain

  15. Set in Order • A place for everything and everything in its place. • Tool cutouts • Taped outline on floor or bench

  16. Set in Order • A place for everything and everything in its place. • Tool cutouts • Taped outline on floor or bench

  17. Set in OrderSegmentation • Risk value • Spend value • Design value • Time value • Location value

  18. How Can I Be Successful? Evaluation of Current Supply Base • Number of Suppliers • Breakdown by Commodity • Skills / Process Evaluation • Performance Evaluation • Location of Suppliers

  19. Supplier Characterization Matrix High Critical 2: Special Situations Critical 1: Long-term Relationship Risk Non-Critical 2: Transactional Non-Critical 1: Contractual Low High Annual Spend

  20. Supplier Characterization Matrix High Critical 2: Special Situations Critical 1: Long-term Relationship Risk Non-Critical 2: Transactional Non-Critical 1: Contractual Consolidate Low High Annual Spend

  21. Supplier Characterization Matrix High Critical 2: Special Situations Critical 1: Long-term Relationship Consolidate Risk reduce & Consolidate Risk Non-Critical 2: Transactional Non-Critical 1: Contractual Low High Annual Spend

  22. Supplier Characterization Matrix High Critical 2: Special Situations Critical 1: Long-term Relationship Consolidate Risk reduce & Consolidate Risk Non-Critical 2: Transactional Non-Critical 1: Contractual Consolidate Low High Annual Spend

  23. Supply Base Segmentation Design & JIT Design JIT

  24. Uncertainty Framework Hau Lee, 2002 High Hydro-electric power, some food products Telecom, high-end computers, semiconductor Grocery, basic apparel, food, oil and gas Fashion apparel, computers, pop music Supply Uncertainty Low Functional Products High Innovative Products Demand Uncertainty

  25. Uncertainty Framework Hau Lee, 2002 High Hydro-electric power, some food products Risk-hedging SC Telecom, high-end computers, semiconductor Agile SC Grocery, basic apparel, food, oil and gas Efficient SC Fashion apparel, computers, pop music Responsive Supply Uncertainty Low Functional Products High Innovative Products Demand Uncertainty

  26. Supply Chain StrategiesHau Lee • Efficient Supply Chains – cost-focused • Risk-Hedging Supply Chains – risk-focused • Responsive Supply Chains – demand-focused • Agile Supply Chains – demand-focused but risk-conscious

  27. Five S • Sort • Set in Order • Shine • Standardize • Sustain

  28. Shine • Keep everything clean and swept • System maintenance and inspection • Problems (e.g., oil leaks) are more easily spotted when the workplace is in order

  29. ShineInspection - Surveys • Site surveys • Supplier self-assessment • Remote surveys • 3rd party certification surveys • 3rd party quality awards

  30. SWOT AnalysesCommon Themes • Strengths • Current supplier provides product for process mkt. • Weaknesses • We are a small customer with little leverage • Lack of management depth for small suppliers • Opportunities • Setup reduction • Cost reduction • Threats • Loss of technology leadership

  31. Shine “Sometimes you just have to show up and make something happen.” Danner

  32. Five S • Sort • Set in Order • Shine • Standardize • Sustain

  33. Standardize • Standardize ensures that your progress in 3S implementation is not wasted. • Procedures, schedules, practices

  34. Standardize • Align supply chain partner incentives • Include in personal plans • Make the status visible (e.g., # of suppliers) • Assign audit responsibilities • Ticklers

  35. Standardize: Problems Avoided • Growth of supplier base • Size of supplier base unknown • Segmentation deteriorates – classification unknown • Suppliers not visited regularly • Surveys conducted informally or with renegade processes

  36. Five S • Sort • Set in Order • Shine • Standardize • Sustain

  37. Sustain • Deming’s point number 1: Constancy of purpose • The leadership of supply is responsible for sustaining the process. • MBWA • Prepare contingency plans for crises

  38. Five S • Sort – supplier consolidate • Set in Order - segment • Shine - survey • Standardize – 3S scheduled • Sustain – sustaining leadership Five S is the foundation of lean manufacturing and it can be the foundation of lean supply.

  39. Five S References • James P. Womack and Daniel T. Jones, Lean Thinking , 1996.) • Hiroyuki Hirano, 5S for Operators: 5 Pillars of the Visual Workplace (Productivity Press, 1996.) • Hiroyuki Hirano, 5 Pillars of the Visual Workplace (Productivity Press, 1990.) • Kimball Bullington, 5S Supply Base Maintenance, Quality Progress, Jan., 2003 • Hau Lee, The Triple-A Supply Chain, Harvard Business Review, October, 2004.

  40. Lean Supply Strategies:Applying the 5S Tools to Supply Managementn Modified from 2003 ISM International Conference Presentation November, 2004 Kimball Bullington, Ph.D., P.E. MTSU

More Related