1 / 18

Lean Logistics Lean – Green – The Future

Lean Logistics Lean – Green – The Future. Process and the Supply Chain. “Brilliant Process Management is our Strategy” “We get brilliant results from average people managing brilliant processes”

etan
Download Presentation

Lean Logistics Lean – Green – The Future

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 LogisticsLean – Green – The Future

  2. Process and the Supply Chain “Brilliant Process Management is our Strategy” “We get brilliant results from average people managing brilliant processes” “We observe that our competitors often get average (or worse) results from brilliant people managing broken processes” Toyota Motor Manufacturing Oh No ! What happened !

  3. Is Anything For Certain These Days ?

  4. Non-Value Added Business-Value Added Value Added Adds value to the output and customer is willing to pay for. Does not add value to the output, and customer isn’t willing to pay for. Does not add value to output, customer will not pay for, but is necessary. (Legal, Safety, Etc.) Certainty # 1 Process Eliminate Minimize Optimize

  5. Certainty # 2Processes Want to Fall Apart In a system, a process that occurs will tend to increase the total entropy of the universe. Second law of thermodynamics • Entropy • A measure of the disorder or randomness in a closed system • A measure of the loss of information in a transmitted message • Inevitable and steady deterioration of a system or society System: A group of interacting, interrelated, or interdependent elements forming a complex whole.

  6. Certainty # 3 Lead Time is Only Made of Two Things! Customer Consume Product Design Supplier Build Manufacture Waiting Inventory Rework Value Waste Value Waste Value Waste Value

  7. Certainty # 4 Overproduction is the King of waste…Make to order is utopia + < = MTO Customer LT Supply LT MLT + OL < + = Forecast Customer LT Supply LT MLT + OL

  8. Cash to Cash Cycle Certainty # 5 All we are doing is looking at the time line, from the moment we get an order, order material from our suppliers ( and pay cash to our suppliers )… to the point where we collect that same cash ( and a little profit) from our customer.  And we are reducing the time line by reducing the non-value adding activities. Cash to Cash = Accounts Receivables + Inventory – Accounts Payables Inbound Supply Chain Manufacturing Lead Time Outbound Supply Chain I I

  9. What Does The Future Hold ? Who is going to blink first ? Who is going to lead and/or follow ? Is it about incentives or disincentives ? Why do we need to wait…is green not obvious ?

  10. Do I need Calculus to Show this Ain’t Green ?

  11. A Quick Look… • Let’s examine transportation variables. Drawing assumptions from data that has been released by several organizations, we conclude that it is possible that in North America our truck load transportation system has the following characteristics: • Truck Load carriers ( and private fleets ) run from 5% to 15% empty (unpaid) miles to service their customers • Average truckload shipment sizes range from 20,000lbs to 28,000lbs when measured by weight and 40% to 65% when measured by trailer cube utilization • For purposes of discussion, let’s assume average empty miles are 10% and average trailer utilization is 60%. This means that theoretically, on any given day, with proper coordination (we eliminated all empty miles and had fully utilized trailers), we could move all freight in North America with 50% of the existing trucks

  12. Its Going to Take Real Work…

  13. Principles of the Lean Supply Chain

  14. Lean - Green & Systems Thinking All New Products every year with 100% new components… The defining characteristic of a system is that it cannot be understood as a function of its isolated components. First, the behavior of the system doesn't depend on what each part is doing but on how each part is interacting with the rest ... Kofman and Senge, 1993 You’re a fool if you don’t focus on BOM costs What we need are more sales promotions ! I love it when a plan comes together…did it ?

  15. Supply Chain & Logistics ManagementA Practical Viewpoint Supply Chain Management Logistics

  16. Lean and Green Just Make Sense Forcing More Work Through a Broken System…No Way! Growth Raise Efficiency Through Continuous Improvement…Yes Way! Growth

  17. Thank YouRobert@leancor.com

More Related