Seeing the Whole - Creating Lean Supply Chains

www.leanuk.org
David Brunt
November 10th 2011
Seeing the Whole: Creating
Lean Supply Chains
UK Lean Summit:
Solving Business Problems
Lean Enterprise Academy1

www.leanuk.orgLean Enterprise Academy
Creating Lean Supply Chains
Seeing the Whole Extended Value
Stream
Plenary Theme:
  3. What can we learn from compressing lean supply chains?
  As low-wage globalisation unwinds how to rebuild and manage a
lean supply base in each region to bring jobs back and respond
to customers cost effectively in high wage locations.
This Session:
  How do you analyze the opportunities from compressing
value streams?
2

Objectives of Mapping Extended
Value Streams
Seeing the Whole Extended Value Stream
  Raise consciousness in every firm & function touching the value
stream of the enormous waste of time, effort & movement
  Typical current state 9 out of 10 steps & 99% of elapsed time are
wasted
  Raise consciousness in every firm & function of the effect of its
actions on every other firm & function touching the value stream
  Learn how a value stream team with representatives from every
firm can envision a series of Future States & an Ideal State for their
shared value stream
  Learn how the team can progressively implement:
  A Future State 1 in which smooth, levelled pull & flow are introduced
within every facility touching the value stream
  A Future State 2 in which smooth, levelled pull & frequent replenishment
loops are introduced between every facility touching the value stream
(eliminating warehousing & cross docking in the process)
  An Ideal State (providing a North Star for collectively steering towards
the perfect value stream with zero waste) by compressing the value
stream & introducing right-sized technologies
  Learn how value stream teams can share costs & gains to create
win-win-win outcomes for every value stream participant
3

Agenda
  Introduction
  Lean Thinking & starting the project
  Mapping the flows
  Deciding what to map
  Every Product Every Cycle
  Manufacturing
  Warehousing
  Developing the Future State
4

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Lean Thinking
A Refresher
  Specify what creates
value from the
customers perspective
  Identify all steps across
the whole value stream
  Make those actions that
create value flow
  Only make what is
pulled by the customer
just-in-time
  Strive for perfection by
continually removing
successive layers of
waste

The Essence of Lean Thinking
  Where is the time in your value stream?
  e.g. A U.K. customer has to wait on average 48
days for their custom-built vehicle to arrive
  It takes under 30 hours to produce in the
factory!!!
“All we are doing is looking at the time
line - from the moment the customer
gives us an order to the point where we
collect the cash. And we are reducing
that time line by removing the non-
value-added wastes” Ohno (1988-ix)
6

Value Stream Improvement
& Process Improvement
Company 1 Company 2 Company 3
CUSTOMER
Raw
Material
Finished
Product
VALUE STREAM: All the steps, VA & NVA, required to bring the
product from raw material to customer
Necessary but non value adding
35%
Value adding
5%
Non value adding
60%
7

CUSTOMER
Raw
Material
Finished
Product
PROCESS PROCESS PROCESS
35%
Value adding
5%
Non value adding
60%
Focus of “traditional”
efficiency improvements
8

CUSTOMER
Raw
Material
Finished
Product
PROCESS PROCESS PROCESS
35%
Value adding
5%
Non value adding
60%
Focus of LEAN
improvement
9

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“Seeing the Whole”
Methodology
Seeing the Whole:
Creating Lean Supply
Chains

Value Streams
  Raise consciousness in every firm & function touching the
value stream of the enormous waste of time, effort &
movement
  Typical current state 9 out of 10 steps & 99% of elapsed time
are wasted
  Raise consciousness in every firm & function of the effect of
its actions on every other firm & function touching the value
stream
  Learn how a value stream team with representatives from
every firm can envision a series of Future States & an Ideal
State for their shared value stream
  A Future State 1 in which smooth, levelled pull & flow are
introduced within every facility touching the value stream
  A Future State 2 in which smooth, levelled pull & frequent
replenishment loops are introduced between every facility
touching the value stream (eliminating warehousing & cross
docking in the process)
  An Ideal State (providing a North Star for collectively steering
towards the perfect value stream with zero waste) by
compressing the value stream & introducing right-sized
technologies
  Learn how value stream teams can share costs & gains to
create win-win-win outcomes for every value stream
participant
11

Toyota Production System
Jidoka
-Andon
-Poka-Yoke
-Visual control
-5S, etc.
Just-in-time
-Flow
production
-Takt time
-Pull system
Customer service
Continuous
Improvement
Through
People
Lead TimeCostQuality
Heijunka Standardized Work Kaizen
Equipment Stability
Goal: Highest Quality, Lowest Cost, Shortest Lead Time
Purpose
12

Analysis
Countermeasures
Plan
Follow-up
Background
Goal
  Purpose: What is the business reason for
choosing this issue?
 Overall Situation: What is the strategic,
operational, historical or organizational context
of the situation?
Theme: Review Questions For Problem Solving A3s
Ref: Developed from Sobek & Smalley 2008 pp 50
& David Verble
Current Situation
  What is the Problem or Need- the Gap in
Performance?
 What is happening now versus what needs to
be happening or hat you want to be
happening?
 What are the specific conditions that indicate
you have a problem or need, where and how
much?
 Show the facts visually with charts, graphs,
maps
  Is there a clear goal or target (gap?)
  What, specifically, is to be accomplished?
  How will this goal be measured or evaluated?
  What will improve, by how much, and when?
  What are the options for addressing the
gaps & improving performance in situation?
  How do they compare in effectiveness,
feasibility & potential impact?
  What are their relative costs and benefits?
  Which do you recommend and why?
  Show how your proposed actions will
address the causes of the gaps or constraints
in the situation.
  What will be main actions & outcomes in
the implementation process & in what
sequence?
  What support & resources will be required?
  Who will be responsible for what, when &
how much?
  When will progress & impact be reviewed &
by whom?
  Use a Gantt chart to display actions, steps,
outcomes, timelines & roles.
  How will you measure the effectiveness of
the countermeasures?
  Does the check item align with the
previous goal statement?
  When and how you will know if plans have
been followed & the actions have had the
impact needed?
 What related issues or unintended
consequences do you anticipated & what are
your contingencies?
 What processes will you use to enable,
assure & sustain success
  What do the specifics of the issues in related
work processes (location, patterns, trends,
factors) indicate about why the performance
gap or need exists?
  What conditions or occurrences are
preventing you from achieving the goals?
  Use the simplest problem analysis tool that
will suffice to show cause-effect down to root
cause. From 5 Whys, to 7 QC tools (fish-bones,
analysis trees, Pareto charts) to sophisticated
SPC or other tools as needed.
What are you talking about & why?
Where do things stand now?
What specific outcome is required?
Why does the problem or need exist?
What do you propose & why?
Specifically how will you implement?4Ws1H
How will you assure ongoing PDCA?

Michigan
Steel
Sales
Manager
Gamma
Stampers
Value
Stream
Manager
Beta
Wipers
Plant
Manager
Product
Line
Manager
Alpha
Motors
Head of
Supplier
Development
(Team Leader)
One or two people from each organisation
Step 1: Select a Team from
Across the Chain
14

Manufacturing
Plant
Plant
Manager
Lean
Manager
European
Distribution
Centre
Distribution
Manager
Lean
Manager
Retailer
Head Office
Project
Manager
Category
Buyer
Retailer
High Street
Branch
Manager
Optician
Contact Lens Example
Planning
Manufacturing
Outbound
Logistics
Goods In
Inventory Mgmt
Order Processing
Pick/Pack/
Ship
Ordering
Promotions
Ordering
Delivery
Consumption
15

Who Should be
on the Team?
  Responsibility for part or all of supply chain activity
  People who can take a view beyond their
functional silo
  People who are sufficiently senior and have
sufficient authority & respect to drive through
changes across functional boundaries
  People who can take a strategic perspective
  People who have a ‘willingness to learn ’
  The people who are going to do the improving – do
the mapping
16

Alpha Motors
Platform A
Apex
Wheels
Beta wipers
Epsilon
Fuel Pumps
Cosmic
Brakes
Eclipse
Engine
Computers
Gamma
Stampers
Ampersand
Magnets
Utopia
Castings
Michigan
Steel
Odyssey
Fasteners
Smith Heat
Treatment
Step 2:
Select a Key Value Stream for the
Pilot Improvement Project
The companies in
the target value
stream
The specific
product or
product family
for analysis
17

Glenday Sieve & Product Family
Analysis
Process Steps & Equipment
LH Steering Bracket
RH Steering Bracket
Instrument
Panel Brace
Seat
Rail
Bumper
Brackets
Electronic Test
Fixtures
Assy
Robot Weld Flash Remove Paint Manual AssySpot Weld
X X XX
X X XX
XXX X
XX
XXX
Products
BLUES
95%
6%50%
Cumulative % Product
Range
Cumulative % of Sales
Last 1%
18

Lisbon
Birmingh
am
Mila
n
Rome
Stockhol
m
Helsinki
Vienn
a
Manches
ter
Warsaw
Madrid
Bas
el
2005 European Daily Volume
over 10,000 packages on 24/48
hrs delivery
Os
lo
Athens
Pari
s
Marseille
Bruss
els
Osnabrüc
k
Customer Distribution Chart
19

Step 3: Data Collection
  Go and see ----- GEMBA
  All the team ---- Walk all of the chain
  Record all the steps in the process & the
time taken for each – Process Activity Map
  Classify each step as Value Adding (VA) or
Non–Value Adding (NVA)
  It may seem time consuming – but it is
invaluable
  Use the data collected to construct a
Current State map for each facility
20

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Global System Map

Steel mill
Stamping
Company
Wiper
Assembly
Company
Car
Assembly
Car
Distributor
Current State Map
For the Complete Value Stream
22

Value Streams
movement
are wasted
stream
technologies
participant
23

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Demand Amplification
The Forrester Effect
Small changes in end-user demand
become amplified as they are passed
upstream along the chain

The Bull-Whip Effect
Customer Demand,
Retailer Orders
Distributor Orders
Factory Production
Time
Demand
[units]
40% increase
10% increase
25

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Constructing a Demand
Amplification Map
  Major decision areas
  Customer forecast
  Your business plan - volumes
  Your forecast/schedule
  Your weekly plan
  Final assembly
  Feeder operations
  Actual production numbers
  Supplier forecast
  Supplier orders
  Actual deliveries
  Produce line charts
Date
29

Quality & Delivery
Consumption Map
Geography etc.
Current State Summary
Purpose
Select Product FamilySupply Chain Network &
VS Selection
Alpha Motors
Platform A
Apex
Wheels
Beta wipers
Epsilon
Fuel Pumps
Cosmic
Brakes
Eclipse
Engine
Computers
Gamma
Stampers
Ampersand
Magnets
Utopia
Castings
Michigan
Steel
Odyssey
Fasteners
Smith Heat
Treatment
Current State by Facility
PRODN.
CONTROL
Weekly
Schedul
e
Prod’n
Plan
Forecas
t
Daily
Call In
Forecas
t
Weekly
Call In
Weekly
Suppliers Customer
Mon.
+ Wed.
PRESS ASSEMBLY SHIP
I I
C/T = 30 sec.
C/O = 30 min.
3 shifts
2% Scrap
C/T = 90 sec.
C/O = 5 min.
2 shifts
3% Scrap
600 pieces
2 Day
300 pieces
1 Day
30 sec
2 days
90 sec
1 day
Total lead time 3 days
VA time
2 mins
LH Steering Bracket
RH Steering Bracket
Instrument
Panel Brace
Seat
Rail
Bumper
Brackets
X X XX
X X XX
XXX X
XX
XXX
Products
BLUES
95%
50%
Cumulative % Product
RangeCumulative % of Sales
Last 1%
Supply Chain Current State
30

Workshop
For each of your firms:
  Describe your supply chain network
  Which product family would you select
  Has anyone in your organisation created:
  A Consumption Map?
  Quantified Demand Amplification
  What is the Quality & Delivery performance
of the chain?
  You have 15 minutes
31

Value Streams
movement
are wasted
stream
technologies
participant
32

Heijunka box
Forecast
1. Replenishment Pull System
Concept
Key Points
  Each process has a supermarket which holds the product it produces
  The easiest of all pull systems to start with to implement
  Each process replenishes the market in front of the process
  Pace and order of replenishment at the pacemaker can be controlled
by a Heijunka box (discussed later in more detail)
  Scheduling needs to calculate average demand quantity, the right mix
for the line to produce and continually watch inventory to reconcile
what is actually taken away. (Caution: If you have the line produce
exactly what is taken away you may wind up with an “un-level pull”
system)
Customer
Production
Control
33

Heijunka Box
Order
Sequence
List
Supplier
Parts
2. Sequential Pull System Concept
Key Points
  1. The sequence of production is dependant upon actual orders from
the customer
  2. Production instruction is sent to an upstream process in the value
stream, often in the form of a “sequence list" or instruction kanban
  3. Each following process normally produces in the sequence of the
item delivered
  FIFO of individual products must be maintained throughout
  Without WIP inventory to act as a buffer rigid adherence to
lead-time and on-time delivery of supplier components
becomes absolutely critical
Customer
F I F O F I F O
Production
Control
34

Heijunka box
Order
Scheduling
3. Mixed pull system concept
Key Points
  Both Supermarket replenishment and Sequential type pull systems
may be used concurrently. Such a mixed system works well when and
a small number (perhaps 20%) of parts comprise the majority
(perhaps 80%) of daily production volume, and there are many low
runners that are required at much less frequency
  Demand segmentation analysis is required to break products up into
high runners, medium, low, and infrequent (perhaps special order
or service parts) orders
  Two schedule points (i.e. pacemaker) exist which can cause
problems which I will demonstrate later in the simulation game
Customer
F I F O F I F O
35

How will you level production
mix at the pacemaker?
  Key concept
  Leveling concept & SMED
  Leveling options
36

Level Production Mix
Concept & Effect
Days 0 10 20 30
X Y Z
1,200 per lot
3 lots of 1,200
3 changeovers
10 day build
10 day avg. inventory
10 to 21 day lead time
"Large batch"
Case - 1
30
40 per lot
0 10 20
X
Z
Y
90 lots of 40
90 changeovers
3 items per day build (EPED)
1 day avg. inventory
1 day lead time
"Small batch"
Case - 3
Repeat
schedule
0 10 20 30
X Y Z
400 per lot
9 lots of 400
9 changeovers
3.3 day build
3.3 day avg. inventory
3.3 to 6.6 day lead time
"Medium batch"
Case - 2
Repeat
schedule
Illustrative example
37

Change Over Reduction
(SMED)
= External
= Internal
10 minutes
E I
6. Standardize and improve the new
changeover procedure over time
E I10 minutes5. Reduce the external elements
E I 20 minutes20 minutes4. Reduce and eliminate the internal
elements, adjustments, etc.
E I 40 minutes20 minutes3. Strip out external elements and pull
them forward before the machine
stops
2. Identify internal vs. external elements
and calculate individual time
I
10
I
10
I
5
I
5
Step Pre-work
During machine
shutdown
60 Minutes1. Measure total changeover time
20 minutes
10 minutes
E
4
I
10
E
3
E
3
E
7
E
3
E
I
38

Leveling Options – Two
Scenarios
1.  Batch Machines:
Set number of
changeovers and
determine best EPEI
interval
2.  Flexible Assembly:
Calculate pitch
Intervals
Time available ÷ Pitch = Intervals
450 min. ÷ 9 min. = 50 intervals
35
30
Machine 1 Machine 2
40 hours
Run
Time
Allowable
C/O Time
39

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Determine Time Available for
non-production Work
(1 Machine)
Total 1-shift production time available (net breaks and
lunch)
450 min.
Number of shifts x 2
Time available for production on 1 machine 1 day = 900 min.
Time required per day to meet average demand* - 703 min.
Net time available for set up and changeovers per day = 197 min.
* Taken from above chart on basic machine data
703 min.1,000
1.5%55 min.339 min.40 sec.50015489
1.3%55 min.228 min.45 sec.30015488
1.5%55 min.136 min.40 sec.20015487
Average
scrap rate
Average
changeover
time
Required
run time
per day
Cycle
time
Per piece
Average
demand
per day*
(pieces)
Part #
*Your situation may require calculating demand per week or month as required

Set the Number of Change
Over Events per Interval
30 min.-
Average downtime (not including set-up and changeover
times)
197 min.Non-production time available
3.04=Possible number of changeovers per day
55 min.÷Average changeover time
167 min.=Time available for changeover work on 1 machine 1 day
With 3 part numbers and 3 possible changeovers per day -
Every part every day (EPED) is a good interval to start with in this
instance
41

50 intervals=9 min.÷450 min.
Possible intervals
(on a Heijunka Box)=Pitch÷Time available
Leveling Demand with
Respect to Pitch Intervals
  Pitch (54” x 10 items) = 540 seconds
(9 minutes)
Assume in this example:
  60% of production equals high-runner A items
(of which there are 5).
  20% of production equals medium-runner B items
  20% of production equals low-runner C items
42

Leveling Demand with Pitch
Intervals (Continued)
Step 1 – Basic Level
90 min. / 100
items
10 reserved for Cs=20%x
50
intervals
90 min. / 100
items
10 reserved for Bs=20%x
50
intervals
270 min. / 300
items
30 reserved for As=60%x
50
intervals
Equivalent time &
quantity
Intervals per item=
% of production
mix
x
Total
interval
  Assume average order quantity of 50 units the best you would
practically accomplish is making:
  Each of the 5 A items in quantity of 60
(or every part every day)
  2 of the 5 B items per shift in quantity of 50
(or every part every 2.5 days)
  2 of the 15 C items per shift in quantity of 50
(or every part every 7.5 days)
43

Leveling Demand with Pitch
Intervals (Continued)
Step 2 – More Detailed Level (EPES)
6.6 pieces per C part
number
=15 Cs÷100
20 pieces per B part
number
=5 Bs÷100
60 pieces per A part
number
=5 As÷300
Intervals per product
number
=
Number of
products per
category
÷Category
44

Value Streams
wasted
shared value stream
45

Future State 1
Flow & Pull within Plants
Create Cells
Level orders
Link through Pull
46

Impact of Internal Changes on
Whole Value Stream KPI’s
Current State Future State 1
Total Lead Time
44
days
23.9
days
Value
% of time
0.08% 0.16%
VA Steps as
% of total steps
12% 15%
Inventory
Turns
5 9
Quality
Screen
400 200
Delivery
Screen
8 8
Demand Amp’
Index
7 6
Product travel distance 5300 5300
47

Value Streams
wasted
shared value stream
48

What makes the Extended
Value Stream Lean?
  Everyone in the entire VS should be aware of the
rate of end-customer demand
  Very little inventory - & the inventory that does
exist is the right amount, in the right place in the
VS, for the right reasons
  As few transport links as possible between the
steps in the production process
  As little information processing as possible with
pure signal and no noise in the information flows
that remain
  Shortest possible lead time
  Changes introduced to smooth flow, eliminate
inventories /transport/lead-times should involve
the least possible or even zero cost
49

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AssemblyWipersStamping
Steel
Dist. Centre
Amplification
GO GP BO BP AO AP
%
40
30
20
10
0
Quality & Delivery
ppm
2000
1500
1000
500
0
M-G G-B B-A A-A
%
1
0
5
0
Future State 2
Eliminate Non Value Adding Facilities
Intermediate warehouses
& handling points
50 Lean Enterprise Academy

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Steel
Dist. Centre
16d
55m
39
8
Steps
Time
Amplification
F E D C B A
%
40
30
20
10
0
Quality & Delivery
ppm
2000
1500
1000
500
0
F E C A
%
10
5
0
F E D C B A
DELTA
STEEL
GAMMA
STAMPING BETA WIPERS ALPHA MOTORS
Future State 2
Flow and Pull between Plants
Levelled Pull
system between
plants
with Kanbans
Frequent
Milk round
logistics

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Steel
Dist. Centre
Amplification
F E D C B A
%
40
30
20
10
0
Quality & Delivery
ppm
2000
1500
1000
500
0
F E C A
%
10
5
0
Future State 2
Flow and Pull between Plants
Simplify & straighten
order flows
Disconnect
MRP from
daily
planning

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Future State 2:
Value Stream KPI’s
Current
State
Future
State 1
Future
State 2
Ideal
State
Total Lead
Time
44
days
23.9
days
15.8
days
Value
% of time
0.08% 0.16% 0.6%
VA Steps
%
12 % 15% 21%
Inventory
Turns
5 9 14
Quality
Screen
400 200 50
Delivery
Screen
8 8 3
Demand Amp’
Index
7 7 5
Product travel
distance
5300 5300 4300

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Lean Supply Chains
Examples

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Global System Map
Current State

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Global System Map
Future State

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Wiper Current State Map

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Wiper Future State Map

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Candyman Current State Map

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Candyman Future State Map

I. BASIC CONCEPT
JIT: RIGHT QUANTITY OF THE RIGHT PARTS AT THE RIGHT TIME
The ideal state of JIT physical distribution is where high frequency
replenishment is carried out at the speed determined by consumers
purchases
TMC
DIST
DLR
1pc/day
1pc/day
1pc/day
Parts
Supplier
New parts logistic concept: Target
Order
Taking
Inventory
Control
Storage
Pick-Check
Pack-Dely
Stock
Replenishment
Receiving
Binning
OEM
Dealer
Retail
Needs
Service
Needs
Stock
Policy
+
=
Small lot & frequent &
periodical due date ordering
Small lot periodical
due date ordering
Frequent
Planned
Delivery
Due Date
Diagrammed
Shipment
Desired State
Small lot frequent
receiving
 Prioritisation of
receipt
 P to P processing
 Planned cyclic ops
 Implementation of
PULL system
 6 points of Toyota
storage technique
 Enhanced
regularity control
 Reserve location
control
 Empty location
control
 Small lot frequent
& staggered order
receipt
 Irregularity check
& control
 Planning order
separation
 Diagrammed,
staggered high
frequency
operations based on
delivery diagram
 Establishment of
small lot standard
batch cyclic ops
based on PULL
 High frequency,
small lot staggered
delivery based on
delivery diagram
 Consideration of
loading efficiency
 Shortest & most
economic
transportation
Receiving Storage Order Taking Pick/Check/Pack Delivery
61

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The Ideal State
  So far we have been looking at how to improve the
process with existing assets, facilities & systems
  Dare to Dream
  What would a really lean chain look like if we were
not constrained by existing assets, in existing
locations etc
  What would be the gains?
  Would it be worth fundamentally changing the structure
of the chain to avoid the on-going costs of a sub-optimal
process
  It may not all be feasible – but it gives a North
Star towards which to aim

Compress the Value Stream in
Time & Space
  Locate all manufacturing facilities as
close together as possible
  Locate production as close as possible
to the consumer
  If close location involves extra cost –
this should be weighed against time
savings
63

www.leanuk.org
Ideal State
Value Stream Compression
Dist. Centre
3d
55m
30
8
Steps
Time
Amplification
F E D C B A
%
40
30
20
10
0
Quality & Delivery
ppm
2000
1500
1000
500
0
F E C A
%
10
5
0
F E D C B A
Assembly
ALPHA MOTORSSUPPLIER PARK
Wiper
Cell
Stamping
Cell
Suppliers
co-located
Flow &
Pull
Frequent
Water-spider
loops
Right sized
equipment
Capacity
proportional
to VS needs

www.leanuk.org
Ideal State
Dist. Centre
3d
55m
30
8
Steps
Time
Amplification
F E D C B A
%
40
30
20
10
0
Quality & Delivery
ppm
2000
1500
1000
500
0
F E C A
%
10
5
0
F E D C B A
Assembly
Wiper
Cell
Stamping
Cell
Steel
NEW JERSEY
Steel Service Centre
Alternative
closer
raw
material
supplier

www.leanuk.org
Ideal State
Dist. Centre
3d
55m
30
8
Steps
Time
Amplification
F E D C B A
%
40
30
20
10
0
Quality & Delivery
ppm
2000
1500
1000
500
0
F E C A
%
10
5
0
F E D C B A
Steel
NEW JERSEY
STEEL
Assembly
Wiper
Cell
Stamping
Cell

www.leanuk.org
Ideal State:
Value Stream KPI’s
Current
State
Future
State 1
Future
State 2
Ideal
State
Total Lead
Time
44
days
23.9
days
15.8
days
2.8
days
Value
% of time
0.08% 0.16% 0.6% 1.5%
VA Steps
%
12 % 15% 21% 27%
Inventory
Turns
5 9 14 79
Quality
Screen
400 200 50 2.5
Delivery
Screen
8 8 3 1
Demand Amp’
Index
7 7 5 1
Product travel
distance
5300 5300 4300 525

The Ideal State
  The next new product generation
may be the time to introduce the
Ideal State
68

Supply Chain Ideal State
Future State by
Facility
Summary
Quality & Delivery
Demand
Amplification
Consumption Map
Geography etc.
Purpose Select Product
Family
Supply Chain Network
& VS Selection
Alpha Motors
Platform A
Apex
Wheels
Beta wipers
Epsilon
Fuel Pumps
Cosmic
Brakes
Eclipse
Engine
Computers
Gamma
Stampers
Ampersand
Magnets
Utopia
Castings
Michigan
Steel
Odyssey
Fasteners
Smith Heat
Treatment
Current State by
Facility
PRODN.
CONTROL
Wee
kly
Sch
edul
e
Prod
’n
Plan
Fore
cast
Dail
y
Call
In
Fore
cast
Wee
kly
Call
In
Weekly
Suppliers Customer
Mon.
+ Wed.
PRESS ASSEMBLY SHIP
I I
C/T = 30 sec.
C/O = 30 min.
3 shifts
2% Scrap
C/T = 90 sec.
C/O = 5 min.
2 shifts
3% Scrap
600 pieces
2 Day
300 pieces
1 Day
30 sec
2 days
90 sec
1 day
Total lead time 3 days
VA time
2 mins
LH Steering
BracketRH Steering
BracketInstrument
Panel BraceSeat
RailBumper
Brackets
X X XX
X X XX
XXX X
XX
XXX
Products
BLUES
95%
50%
Cumulative %
Product Range
Cumulative % of
Sales
Last 1%
Supply Chain Current State
Supply Chain Future State Action Plan
69

www.leanuk.org
David Brunt
November 10th 2011
Lean Supply Chains
UK Lean Summit:
Solving Business Problems

Seeing the Whole - Creating Lean Supply Chains

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