Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
flexibility into their supply chain, some supply chain professionals the
world over have attempted to identify the key Lean principles that
A call to action
It is our hope that this report will foster continued interest in creating
In this paper
Lean: a primer
Summary conclusions
22
A special thanks
25
26
Research methodology
Type of industry
that research, we identified six key attributes for the LSC that then
0.2
Utilities
0.7
0.7
2.4
3.8
Retail
Transportation Service
Provider
Life Sciences
5.1
5.8
7.3
Energy/Chemical/Mining
Distribution/Warehousing
Wholesale
18.6
46.1
Manufacturing
0%
10%
20%
30%
40%
50%
0.2
Utilities
0.7
0.7
Company size
2.4
Lean: a primer
3.8
Retail
Transportation Service
5.1
All sizes of businesses
were represented
in a balanced manner, with
Provider
Sciences
5.8billion, 24.3 percent having $250
29.3 percent Life
having
sales over $1
million
to $1 billion and the remaining
Energy/Chemical/Mining
7.3 responders having sales under
Distribution/Warehousing
$250
million. Good distribution across company
18.6 sizes enabled us to
Wholesale
better understand
whether size has an impact on a companys ability
Manufacturing
to implement Lean practices.
0%
46.1
10%
20%
30%
40%
50%
What is Lean?
Lean is a systematic approach to enhancing value to the customer
by identifying and eliminating waste (of time, effort and materials)
through continuous improvement, by flowing the product at the pull
of the customer, in pursuit of perfection.
The origins of Lean
The concept
of Lean originated
in the 1920s, whenAHenry
Ford
A Set of Tools
A Philosophy
System
17.1
> $3 billion
36.2
46.3
0%
10%
20%
30%
40%
50%
than others?
Days Sales
Outstanding (A/R)
34.2
applied
theisconcept
of continuous
flow toofthe assembly-line
Lean
like a toolbox
A philosophy
A system where a
full ofThis
toolspractice
and
production
canquality
achieve
process.
focused
on cost that
reduction bycompany
improving
techniques. You select emphasizes the
reduced costs, coupled
and throughput.
the right technique or
minimization of the
with continuous
method to improve
amount of all
improvement and
Fords assembly line continued to be recognized as the most
what needs improving. resources used in
customer satisfaction
advanced manufacturing process
until two
Japanese
executives
the various
activities
which
used a standardDoug Howardell,
of the
enterprise.Systemized
5 step
approach.
at Toyota
introduced
the
Toyota
Production
(TPS),
following
Lean Enterprise
a visitInstitute
to Ford in the 1950s. APICS
Lean Thinking
As Toyota soon
optimizing
a partdepends
of the process
is anot
Leanrealized,
is all of the
above. only
Success
on how
as beneficial
as best
optimizing
the whole.
If real changes
were toits
take
company
implements
the principles
to achieve
needs.
place, they would have to include suppliers and customers. Without
all of the key players, the timing and quality of components from the
0.7
2.4
Lean manufacturing
leverages TQM,
Six SigmaRetailand 3.8
TOC to reduce excesses
Transportation Service
5.1
throughout
the manufacturing
processes.
Provider
Life Sciences
5.8
Energy/Chemical/Mining
7.3
Six Sigmas goal is to define processes and manage those
Distribution/Warehousing
18.6
processes toWholesale
obtain the lowest possible level of error. Not limited to
46.1
Manufacturing
0% settings,
10% 20%
30% 40%
50%
It is well regarded in quality
and its adopters
are frequent
36.2
10.3
34.2
Lean Adopters
A Set of Tools
A Philosophy
A System
A philosophy of
production that
emphasizes the
minimization of the
amount of all
resources used in
the various activities
of the enterprise.
A system where a
company can achieve
reduced costs, coupled
with continuous
improvement and
customer satisfaction
which used a standardized 5 step approach.
APICS
Lean Thinking
Doug Howardell,
Lean Enterprise
Institute
Figure 4
Comparing Lean production and supply chain management
Lean Production/Manufacturing
Where does Lean fit into the world of logistics and supply chain
an advantage.
Much has been written about the benefits of Lean manufacturing and
distribution. The following points are a good summary:
The ability to deliver every time at the same cost to the business
improved quality2
For our purposes, we have defined the Lean supply chain as a set
that allow them to be more flexible and adapt more quickly to these
changes. In part, the need for flexibility has led many traditional
manufacturers to shed their plants and rely on domestic and
international contract manufacturers, or to move production to
In which areas can firms partner with their suppliers and
locations performing only the core function and all other needs
Lean strategy?
2005 Study
Area
Number of
Responses
TQM
Six Sigma
Lean
Lean 2005
330
22.12%
18.79%
59.09%
54.4%
Warehousing
399
22.31%
20.55%
57.14%
51.6%
364
25.00%
18.96%
56.04%
52.3%
Forecasting
209
27.27%
23.44%
49.28%
44.7%
Transportation inbound
287
28.92%
22.65%
48.43%
51.8%
Order management
305
30.82%
21.31%
47.87%
46.0%
Transportation outbound
310
31.94%
20.65%
47.10%
48.3%
Manufacturing
515
26.41%
26.60%
46.99%
45.0%
Customer management
247
39.68%
28.34%
31.98%
34.4%
The authors are pleased to see Lean being adopted at such high
areas saw the least adoption across any of the three philosophies.
2008
5.6%
Implemented one or
two Lean tools to learn
more about impact on
the company
2005
47.4%
Lean Movers
2008
50.7%
Lean Adopters
Services/Insurance
2005 Financial
2008
2005 0.2
25.3%
29.5%
9.0%
Utilities 0.7
2008
4.9%
2005
5.7%
Lean production is
standard procedure
Entire
A formal, integrated
Some Lean tools are
Health Managed
Careproduct
0.7 flow is
integrated, product
implemented sporadically approach to Communications/Media
2.4
flows smoothly through
implementation has beenEntertainment
across the organization
theRetail
facility 3.8
developed and is being
No formal integrated
Transportation
Service
5.1
Supply chain partner
implementation approach rolled out
Provider
Life Sciences
companies are5.8
becoming
Awareness training is
involved in joint 7.3
Lean
being performed
at the
Energy/Chemical/Mining
practices
operator level Distribution/Warehousing
2008
9.3%
Continuous improvement
activities are driven
by the operators with
management support
18.6
Wholesale
46.1
Manufacturing
On the lower end of the scale are those respondents who either did
not implement Lean or had no formal, integrated approach to Lean.
the Lean Adopters group performed versus the other two groups on
17.1
> $3 billion
$250
million
- $500
36.2 impact a
only
reduce
themillion
cost of goods sold; they also dramatically
10%
20%
30%
40%
50%
15.2
45.1
Days Sales
Outstanding (A/R)
34.2
10
Lean is like
full of tools
techniques.
the right tec
method to i
what needs
Doug Howa
Lean Enter
Institute
Lea
company
10.3
Inventory Turns
A Set of To
20
Early Lean
30
40
50
Lean Adopters
10.3 turns. One with a turn of 15.2 would carry only $6,578,900, a
DEMAND
MANAGEMENT
CROSSENTERPRISE
COLLABORATION
COST AND
WASTE
REDUCTION
THE LEAN
SUPPLY CHAIN
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
DEMAND
MANAGEMENT
CROSSENTERPRISE
COLLABORATION
CULTURAL
CHANGE
customer.
COST AND
WASTE
REDUCTION
THE LEAN
SUPPLY CHAIN
In its purest form, such a system would be developed using data from
the point of sale and conveyed upstream to all members of the supply
chain, from point to point, without a change in the volume. End user
requirements for the finished product, however, would typically be
meaningless to an upstream supplier, who may provide only a fraction
of the materials included and most probably does not understand how
their materials contribute to the end-product structure.
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
effect, where forecast units are added to the original demand signal
as the signal moves farther upstream. For example, an order may
grow by 10 percent at each node as it moves from the retailer to the
distributor, then to the manufacturer, its tier-one supplier and the
manufacturers suppliers.
On partnerships
A Lean supply chain will work to have products pulled through the
channel using customer demand from the point of sale in real time.
Management practices.
2008
12.0%
Product is pushed
through the channel
based on forecasts
2005
30.0%
% of All Respondents
2008
35.0%
2005
13.6%
2008
13.5%
Downstream supply
chain partners provide
periodic forecasts to
make the immediate
upstream partner aware
of requirements
2008
19.3%
Product is pulled
through the channel
based on actual usage
data from upstream
supply chain partners
2005
14.8%
2008
20.2%
Product is pulled
through the channel using
consumer demand from
point of sale systems in
near real time
by far for those firms that want to compete supply chain to supply
chain. The upper two quintileswhat we call Supply Chain
Focusedsaw a net increase of six percentage points, or 18
percent, from 2005 to 2008. But before we begin to exhibit irrational
exuberance, we need to note that the fact that this group still only
encompasses 39.5 percent of the total, suggesting that there is still
significant room for improvement.
The level of interest in improved demand management that the
research team found during the interviews was outstanding. While
many interviewees were going through a period where they had an
internal focus on Lean implementation, the interest in improvement
was not related to any negligence regarding demand management;
rather, it was seen as part of a strategic plan.
percent. Those who indicated that they collect demand data from their
to just below 45 percent.
2008
14.2%
2005
33.9%
2008
30.4%
Some discussions
between key supply chain
(2 or 3) partners to get
better view of products
and markets
2005
29.8%
2008
27.6%
2005
18.5%
2008
16.6%
2005
5.1%
2008
11.2%
Demand is conveyed
upstream to partners in
real time from point of sale
Partners jointly participate
in analyzing demand
DEMAND
MANAGEMENT
CROSSENTERPRISE
COLLABORATION
THE LEAN
SUPPLY CHAIN
COST AND
WASTE
REDUCTION
CULTURAL
CHANGE
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
Demand collaboration:
Procter & Gamble and Wal-Mart
In the fast-moving area of consumer goods, Procter & Gamble
(P&G) has developed a strong collaborative relationship with
Wal-Mart stores dating back to the 1980s.
the singular focus of Lean management. But this is true only to the
extent that it does not have a negative impact on customer value
of Lean manufacturing.
This is not to say that costs are going to decrease in all areas. It
This focus on waste and not cost also makes the conversation with
is possible that some costs for suppliers may go up; for example,
waste, most parties are more willing to discuss their processes with
The emphasis on waste and cost reduction is holistic, and should not
be limited to a single partner in the supply chain. With a joint goal of
reducing waste, supply chain partners can work together to modify
3. Unnecessary transport
4. Over-processing of parts
6. Unnecessary movement
the chain.
7. Defective parts
2008
20.8%
2005
30.8%
2008
25.4%
Company analyzes
Waste reduction is
focused at the functional internal processes to
areas within the company minimize waste
2005
28.6%
2008
28.7%
2005
16.1%
2008
14.9%
2005
3.8%
2008
10.1%
activities. The respondents who are moved to reduce waste and cost
are likely to have a better understanding of which activities actually
DEMAND
MANAGEMENT
COST AND
WASTE
REDUCTION
THE LEAN
SUPPLY CHAIN
CULTURAL
CHANGE
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
2008
15.1%
No clear distinction
between value-added
and non-value-added
activities
2005
28.2%
2008
24.2%
2005
34.2%
2008
33.0%
2005
21.5%
2008
19.0%
Collaborative practices
are being explored with
supply chain suppliers or
customers to eliminate
non-value-added
activities
2005
3.6%
2008
8.7%
Collaborative practices
are actively being
performed with both
suppliers and customers
to eliminate non-valueadded activities
Planning and production process standardization for the supplychain-focused group improved by 48 percent from 2005 to 2008.
use in providing products and services that add value and eliminate
wasted or duplicated steps.
2008
7.6%
2005
32.7%
2008
26.9%
Processes may be
documented by the
operator but may be
considered proprietary
and are not shared with
supply chain partners
2005
41.3%
2008
37.1%
Processes are
documented and general
process understanding
exists across the supply
chain
2005
12.8%
Processes used by
the various supply
chain partners are well
understood by all, though
not standardized
Dave Nave, How to Compare Six Sigma, Lean and Theory of Constraints, Quality Progress, March 2002
Mike Rother, What are We Learning Since We Started Learning to See, LEI website
2008
16.4%
2005
6.4%
2008
12.0%
Planning, production
and stock management
processes are defined
and standardized across
the supply chain
can share intellectual property, metrics and best practices for many
stated that Hytrol has been able to reduce part number counts
2008
16.8%
Products are
non-standard
No shared components
2005
29.5%
2008
22.8%
2005
19.4%
2008
23.5%
2005
27.7%
2008
25.9%
2005
11.6%
2008
11.1%
Products developed
have a high proportion of
shared parts from other
product lines
DEMAND
MANAGEMENT
CROSSENTERPRISE
COLLABORATION
THE LEAN
SUPPLY CHAIN
COST AND
WASTE
REDUCTION
CULTURAL
CHANGE
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
2008
19.3%
No industry standards
and products are
considered to be
proprietary
2005
13.9%
2008
16.0%
2005
42.9%
2008
33.3%
2005
14.1%
2008
17.1%
Partners agree to
standardize products
based on standards set
by outside groups
2005
12.7%
2008
14.2%
Partners participate in
industry standards bodies
Partners use industry
standards in development
and manufacture of products
2008
24.1%
Data is considered to
be proprietary and is
not shared
2005
41.9%
2008
31.6%
Individual Supply
Chain partners make
information available
to key partners but make
no attempt to assist in
data conversions
2005
19.3%
2008
16.9%
2005
15.3%
2008
20.0%
2005
2.6%
2008
7.5%
Yet employees are asked to trust data as accurate. It is time for data
quality to get more respect across the entire extent of the supply chain.
5. Cultural change
DEMAND
MANAGEMENT
COST AND
WASTE
REDUCTION
THE LEAN
SUPPLY CHAIN
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
costs.6 The real cost may be even higher when incorrect data causes
lost sales or reduced market share.
Russom, Philip, Master Data Management: Consensus-Driven Data Definitions for Cross-Application Consistency, The Data Management Institute, October 2006
Eckerson, Wayne, Data Quality and the Bottom Line, TDWI Report Series, The Data Warehouse 2002.
Figure 16 People
2005
9.4%
2008
10.2%
2005
21.9%
2008
19.0%
2005
27.3%
2008
27.2%
2005
26.3%
2008
27.2%
Resources made
available for employee
development
Continuous improvement
culture in place in most
departments
2005
15.1%
2008
16.3%
2008
4.1%
No continuous
improvement
programs in place
2005
20.4%
2008
23.3%
Informal improvement
projects in place
2005
32.1%
2008
26.1%
2005
27.0%
2008
25.4%
Operational level
change leaders have
been identified and are
being educated on the
need to change and
how to effect change
2005
17.1%
2008
21.1%
true believers that they work for a great company, with great people,
who are trying to do great things. When you get a critical mass of
by the knowledge that the lower two quintiles also saw growth of
true believers, tools such as Lean Six Sigma will enable them to get
3.5 points.
I think that companies get it wrong when they put too much
attention on the tools such as Lean Six Sigma, and not on the
Superheroes of Lean
Many teachers strive to make learning fun. But is there a way to make Lean manufacturing fun?
Hytrol Conveyor Co. Inc. is giving it a shot with a comic book that explores the adventures of
Captain Hytrol, as well as his friends Power Lean and Safety Lady.
According to Hytrol President Greg Goodner, We saw that Lean was going to create the
biggest change that this company had seen in the 25 years I have been here, and we needed
a way to convey our need for Lean to the employees in a positive way.
Our goal was not to teach people how to implement Lean but to make people aware of what
and why things were happening, and how they affected our operation and, ultimately, our
end-user customers.
Staff and management worked together to identify the key attributes for understanding Lean
and create a 56-page book to help the organization understand the remarkable journey of
Lean manufacturing.
6. Cross-enterprise collaboration
With respect to people, the survey results were positive in that nearly
90 percent of the responding firms have implemented some form of
cross-functional teams, with a 48 percent occurrence of cross-supply
DEMAND
MANAGEMENT
CROSSENTERPRISE
COLLABORATION
COST AND
WASTE
REDUCTION
THE LEAN
SUPPLY CHAIN
CULTURAL
CHANGE
PROCESS
STANDARDIZATION
INDUSTRY
STANDARDIZATION
chain partners, are only of true value if they are understood and
2005
2008
19.2%
18.3%
Team members at
individual supply chain
member companies
actively work together for
internal processes only
Whats In It For Me
(WIIFM) has been
addressed at all levels
and is understood and
accepted
2005
2008
20.8%
23.3%
Cross-company supply
chain teams exist to
develop an understanding
of how process
improvement practices
can be implemented
across supply chain
partners
2005
2008
3.8%
6.8%
Cross-company supply
chain teams proactively
recognize opportunities
and enact positive change
for the benefit of the entire
supply chain, even if it
means less revenue on
behalf of their individual
company
Teaching Lean
Boeing uses a Supplier Lean Enterprise Assessment Tool to
help obtain a baseline for understanding a suppliers maturity
level. From there, the company can determine which are the
best resources and educational efforts to improve the identified
leverage areas for that supplier.
For suppliers just starting out with Lean, for example, Behrens
team will teach them the basicswhat Lean is, why it is
important, and how it will help both the supplier and Boeing
grow the business. The team will then train the supplier on
how to run a Kaizen (continuous improvement) event that will
improve a specific process.
Summary conclusions
The research team suggests that four significant findings emerged
2005
17.90%
19.20%
19.90%
24.60%
33.30%
23.60%
26.80%
2008
27.50%
28.40%
25.00%
30.10%
39.50%
27.80%
31.30%
% Change
53.63%
47.92%
25.60%
22.40%
18.60%
17.80%
16.80%
their firms. Below are the percentages based on the total number
of responses:
24.8%
22.8%
19.6%
12.4%
7.51%
8.6%
25.7 %
27.2%
21.2%
8.5%
6.3%
11.0%
companies begin in earnest to examine Lean, they may well find that
they have questions, previously unconsidered, regarding applicability
and benefit. We also believe that, with effort, these companies will
work through these obstacles.
Interestingly, commitment of top managementless of an obstacle
4. The benefits of Lean are real, and impact the bottom line
Keys to success
The research team strongly believes that, in order for companies to
succeed:
We must promote a better understanding of the value of Lean
within the supply chain
Lean education and training must be expanded outside of the
traditional manufacturing area
Management and practitioners must step up efforts to improve
collaboration and partnership throughout the supply chain
There must be a set of metrics and benchmarks for validating the
benefits of Lean
All firms involved must monitor and report on performance
A special thanks
This research and resulting report would not be possible without the continued support
of the studys participants. We would like to thank these professionals for taking time
out of their busy schedules to share with all of us their expertise and insights.
We hope our readers will find this report helpful as they continue to devise, review
and improve supply chain management initiatives within their companies. Each initiative
should be evaluated against the end goal of an adaptive cross-enterprise supply chain
whose efficiency is matched only by its effectiveness.
Sincerely,
Richard H. Thompson
Kate Vitasek
Kate Vitasek
Management.
Richard H. Thompson
www.apics.org
Logistics Management
supplychain.
www.logisticsmgmt.com
Please contact the authors for more information on how to address the challenges and opportunities discussed in this report,
or to obtain additional copies of this publication.