Lean Logistics

L L i ti &
Lean Logistics &
Supply Chain Networks:
Supply Chain Networks:
8 Guiding Principles
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8 Guiding
g Principles
p
Lean Logistics & Supply Chain
Resources

Building a Lean Fulfillment

Stream
Available at lean.org/bookstore

The Building a Lean Fulfillment

Stream Workshop
November 9,, 2010 in Los Angeles,
g , CA
Details at lean.org/fulfillment
 Todays Presenters

Robert Martichenko
CEO, LeanCor, a provider of third-party logistics & supply chain services
Co-author Building a Lean Fulfillment Stream, LEIs latest workbook
Began lean journey at Toyota Motor Manufacturing Indiana
Over 15 years of lean supply chain and third-party logistics experience
LEI faculty member, instructor John Cook School of Business at Saint Louis
University, and the Georgia Tech Supply Chain & Logistics Institute
Leancor.com
 Todays Presenters

Kevin von Grabe

Vice President, Lean Deployment, LeanCor, responsible for logistics
engineering, transportation management, and project management
Co-author Building a Lean Fulfillment Stream
Lean logistics journey includes working on the greenfield start ups of Toyota
Motor Manufacturing Indiana and Jabil Circuit in Hungary and China.
Career includes materials management, transportation, consulting, and
third party logistics
third-party
Leancor.com
Supply Chain & Logistics Management
A Practical Viewpoint

Supply
pp y Chain
Logistics Management
Principles of the Lean Fulfillment Stream

Eliminateallthewaste Eliminatewastetoincreasevalue

Makecustomerconsumption BuildandShiptothecadenceof
visible
visible customerdemand
customer demand

Reduceleadtime Increaseflexibility

Createlevelflow Goodsandinformationmovingonaflow
basedoncustomerdemand
Principles of the Lean Fulfillment Stream

Avoidoverproductionandexcess
Usepullsystems
inventories

Increasevelocityandreduce
variation Movesmallerlotsmorefrequently
M ll l t f tl

Collaborateanduseprocess
Createproblemsolvingculture
discipline

FocusonTotalCostof SystemsThinkingtoachievequantum
Fulfillment
f results
 Lead Time = Value + Waste

Lead Time is Only Made of Two Things!

on
onsumptio
oduct Dessign
uild

e
Manufacture

Customer Co
upplier Bu
Su

Pro
Value

Value

Value

Value
Waste Waste Waste
 The Ultimate Business Model

Build to order = No overproduction so whats the problem?

Supply LT
+ MLT + OL
< Customer LT
= BTO
+ = Forecast
Supply LT MLT + OL
< Customer LT
 Lean FS & Systems Thinking
The defining characteristic AllNewProductsevery
of a system is that it yearwith100%new
Youreafoolif
components
p
cannot be understood as a youdont
d
function of its isolated focusonBOM
components. First, the costs
behavior of the
system doesn't Whatweneed
aremoresales
depend on what each promotions!
part is doing but on
how each part is
interacting with the
rest ...
Iloveitwhenaplan
Kofman and Senge,
Senge comes
comes
1993 togetherdidit?
 Processes Want to Fall Apart

In a system, a process
that occurs will tend to
i
increase th
the total
t t l
entropy of the
universe.
universe
Second law of thermodynamics
Lean Logistics & Supply Chain
Resources

Building a Lean Fulfillment

Stream
Available at lean.org/bookstore

The Building a Lean Fulfillment

Stream Workshop
November 9,, 2010 in Los Angeles,
g , CA
Details at lean.org/fulfillment