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”
“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 !
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
In a system, a process that occurs will tend to increase the total entropy of the universe.
Second law of thermodynamics
System: A group of interacting, interrelated, or interdependent elements forming a complex whole.
Lead Time is Only Made of Two Things!
Overproduction is the King of waste…Make to order is utopia
MLT + OL
MLT + OL
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
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 ?
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,
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 ?
Supply Chain Management
Forcing More Work Through a Broken System…No Way!
Raise Efficiency Through Continuous Improvement…Yes Way!