LeanCor Consulting Webinar: How to Deploy Continuous Improvement in the Warehouse

2. Copyright © LeanCor 2015 Regional Vice President, LeanCor Supply Chain Group Instructor, Georgia Tech Supply Chain and Logistics Institute (GTSCL) bbossence@leancor.com Career Focus: Over 17 years of third party logistics and consulting experience with a specific focus in Lean and Japanese production system environments, including contract and operations management positions across the globe Currently Responsible For: Leading supply chain consulting projects for LeanCor customers in a wide array of sizes and industries. These have included lean warehousing implementation, warehouse layout and design, and ROI assessments Industry Group Speaker: AME, CSCMP, WERC, GTSCL, Institute of Industrial Engineers, Lean Enterprise Institute, Georgia Center for Logistics, Honda Lean Network

3. Copyright © LeanCor 2015 Director of Operations Efficiency, Interline Brands charles.brown@interlinebrands.com Career Focus: Over 17 years of experience in leadership roles within manufacturing, distribution and operations Currently Responsible For: Identifying and leading the implementation of efficiency and cost savings initiatives to improve distribution / supply chain performance while improving Interline Brands’ customer experience Industry Experience: Sr. Operations Manager for W. W. Grainger’s 250,000 sf Distribution Center, NACCO Material Handling Group and Chrysler’s Sterling Stamping Plant Over 11 years with Chrysler in procurement, supply chain and manufacturing across several facilities within the U.S.

4. Copyright © LeanCor 2015  Lean, supply chain, six sigma, and leadership courses that develop people capability and problem solving skills while building a culture of operational excellence.  Project-based, end-to- end supply chain solutions that improve your processes, reduce inventory and Total Cost, and optimize your network.  Custom, outsourced transportation management and warehousing solutions that optimize material flow, and exceed your business goals. Trusted supply chain partner that specializes in lean principles to deliver operational improvement. Three divisions:

5. Copyright © LeanCor 2015  Institutional and Commercial Facility Owners and Service Contractors  Residential Service Contractors and Retailers/Resellers Large-scale, national distributor delivering maintenance products, solutions and focused expertise to three customer segments:  Multifamily Apartment Owners and Property Managers

6. Copyright © LeanCor 2015 - To embrace common principles to drive a problem solving culture - To teach our people how to identify and eliminate the root causes of wasteful processes - To improve efficiencies by driving out preventable costs To Make Operations a REASON to be a customer of Interline Brands. Poll: Do you have a formal continuous improvement program in your warehouse(s)?

9. Copyright © LeanCor 2015 1. Lean Awareness for Leaders: Current State and Vision Alignment 2. Pilot DC Assessment: Productivity Gap 3. Customized and Blended Lean Training and Gap Closure Deployment ◦ Stability Focus: Make Problems Visible ◦ Hour by Hour Status through 5S, Heijunka & Visual Management ◦ Leader Standard Work ◦ Problem Solving Model & Kaizen ◦ Supplier Compliance 4. Post Assessment – Pilot DC & Best Practice Sharing & Maturity Model 5. Next Steps: Value Stream Focus

10. Copyright © LeanCor 2015 Planned Based on Takt Time Stability Visibility Collaboration Lead Time Reduction Waste Elimination Through Associate Engagement Process Discipline Inventory Reduction First Time Quality Pull Highest Customer Value at Lowest Total Cost Principle Based Organization

13. Copyright © LeanCor 2015 •Visible “Quick Win” Improvements within Functional Span of Control •Results of Training and Education •Visible Improvements Across all Functions and the End to End Value Stream •Training and Education •Appropriate Curriculum for all Levels of the Organization •Principle Based Organization •A3 Thinking •Goal and Target Deployment •Collaboration •People Engagement Vision Alignment & Strategy Deployment People and Capability Development Functional Improvement Applied Learning Value Stream Improvement Systems Thinking We Are Here

18. Copyright © LeanCor 2015 Negative Minimal Positive LeanProcessMaturity Lean Deployment - Maturity Model Flow - High Performance Level flow of all logistics activities over the entire value stream to reduce variation and enable stability (balancing flow within the distribution center operation) Decisions Driving Excessive Waste and Cost Feeling the Effects of Unintended Consequences Learning to See Waste in the Value Stream - Understand Future State Lean Initiatives Across the Distribution Center Create Overall Management Systems and Principle Based Organization within the facility Value Stream Improvement Lead and make decisions based on Total Cost of Fulfillment within the supply chain recognizing that all decisions have unintended consequences and their impact on the entire value stream Decisions Made with Unintended Consequences Learning to See the Value Stream Questioning Assumptions and Current Mental Models Eliminating Waste Across Value Stream of the Operation through Experiments Scaling Experiments Across the Distribution Center Functional Improvement Learning to see….. Wastes Do Not See Waste Observe Waste within Functions Reduce Functional Waste - Quick Wins Influence Functional Waste Reduction Share Functional Best Practices Across the Organization/Net work Process and People Visibility Make customer consumption visible throughout the supply chain (internally and externally) and demonstrate a respect for people and process and the value add both contribute Highly Directive Begin to Observe People and Process Show Respect for People and Process - Understand Current State Balance Thinking and Tools Drive Principal Based Decision Making Problem Solving Collaborate, build teams, solve problems and focus on process discipline Hero Firefighter Problem Identification Individual Problem Solver Team Based Problem Solving Empowering Problem Solving Unaware Aware Doer Coach Mentor Lean Leader Maturity

19. Copyright © LeanCor 2015  Productivity increase of 10%  20% Reduction in Overtime  Cultural shift across 70 DC operations  Stable foundation of knowledge and tools for advanced improvement tactics and strategies

20. Copyright © LeanCor 2015 Pro’s 1. Leadership Priority and Support 2. Expertise at the Top of the House 3. Relentless Focus: Do Not Accept Excuses Con’s 1. Systems Thinking: All departments can effect DC productivity (purchasing, supplier compliance, transportation) 2. Consistency of Deployment Team 3. Expertise at the Top of the House

21. Copyright © LeanCor 2015  Based on the Shingo-Award winning book, PEOPLE  Leverage lean principles to become a more effective leader, build teams, and drive operational excellence.  Start today: ◦ www.leancor.com/online-lean-training/  Coming soon: 90-Min Lean Fundamentals! Exclusive 20% Discount Code for Webinar Attendees! Use “leanleader” at checkout!

LeanCor Consulting Webinar: How to Deploy Continuous Improvement in the Warehouse

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LeanCor Consulting Webinar: How to Deploy Continuous Improvement in the Warehouse

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