In his keynote presentation at the 2010 Lean Logistcs Summit, Robert Martichenko, co-author of the Building a Lean Fulfillment Stream workbook, delineated the elements of a lean supply chain

1. Building the Lean Fulfillment StreamLean Logistics SummitJune 22, 2010

2. Slide: 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. 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 Optimize Eliminate Minimize

6. A measure of the loss of information in a transmitted message

7. Inevitable and steady deterioration of a system or societySystem: A group of interacting, interrelated, or interdependent elements forming a complex whole.

8. Certainty # 3 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

9. Slide: 7

11. 9 Principles of the Lean Supply Chain

12. Lean - & 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 ?

14. Supply Chain & Logistics ManagementA Practical Viewpoint Supply Chain Management Logistics 12

15. Do we see the flow (or lack of flow )

17. Thank YouRobert@leancor.com