5-N-Strategic LSCM Configuration PDF

LEAN SUPPLY CHAIN MANAGEMENT SESSION Strategic Lean supply chain configuration Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 1 Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 2 Instructor: Dr. Nguyen Thi Duc Nguyen 1 LSCM ad a competitive weapon? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT...

LEAN SUPPLY CHAIN MANAGEMENT SESSION Strategic Lean supply chain configuration Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 1 Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 2 Instructor: Dr. Nguyen Thi Duc Nguyen 1 LSCM ad a competitive weapon? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 3 LSCM ad a competitive weapon? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 4 2 LSCM ad a competitive weapon? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 5 Lean supply chain performance ? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 6 3 Lean supply chain Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 7 Creating a leaner supply chain Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 8 4 LSCM principles derives from - Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 9 Lean supply chain mgt challenges Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 10 5 Lean supply chain process Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 11 Lean vs. Agile supply chain strategies Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 12 6 Lean supply chain characteristics Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 13 Lean Supply Strategies: Applying the 5S Tools to Supply Management 14 Instructor: Dr. Nguyen Thi Duc Nguyen 7 What is a Supply Strategy? Strategy plan for achieving organizational goals. 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. Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 15 Lean Supply Supply in a Lean Production environment Supply that supports Lean Production Supply for diet food manufacturing Lean Production The latest incarnation of JIT Based on Toyota Production System. Waste elimination Widely used in automotive manufacturing other repetitive manufacturing. Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 16 8 Reducing number of suppliers Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 17 What do we do? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 18 9 Lean tools lead to prevention? Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 19 Five S Five S Yet another acronym An organizational method for lean production. A pillar of the visual workplace. Housekeeping Five S Sort (seiri) Set in Order (seiton) Shine or purity (seiso) Standardize (seiketsu) Sustain (shitsuke) Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 20 10 Five S 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 Barriers to Consolidation Fear of loss of competition Doubtful savings Dilbert Lack of commitment to the selection process Pets Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 21 Five S Set in Order A place for everything and everything in its place. Tool cutouts Taped outline on floor or bench Set in Order Segmentation Risk value Spend value Design value Time value Location value Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 22 11 Five S How Can I Be Successful? Evaluation of Current Supply Base Number of Suppliers Breakdown by Commodity Skills / Process Evaluation Performance Evaluation Location of Suppliers Supply Base Segmentation Design JIT Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 23 Five S 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 Shine Inspection - Surveys Site surveys Supplier self-assessment Remote surveys 3rd party certification surveys 3rd party quality awards Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 24 12 Five S SWOT Analyses Common 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 Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 25 Five S Shine Sometimes you just have to show up and make something happen. Danner Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 26 13 Five S Standardize Standardize ensures that your progress in 3S implementation is not wasted. Procedures, schedules, practices Standardize Align supply chain partner incentives Include in personal plans Make the status visible (e.g., of suppliers) Assign audit responsibilities Ticklers Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 27 Five S 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 Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 28 14 Five S Sustain Deming's point number 1 Constancy of purpose The leadership of supply is responsible for sustaining the process. Prepare contingency plans for crises Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 29 Five S 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. Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 30 15 Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT 31 DISCUSSION POINTS Instructor: Dr. Nguyen Thi Duc Nguyen, SIM-HCMUT Instructor: Dr. Nguyen Thi Duc Nguyen 16