Lean Supply Chain Management

Lean Supply Chain Management

Lean Supply Chain ManagementWhat is it and how does it work?

Professor Peter Hines Director, Cardiff University Innovative Manufacturing Research Centre


Collaboration between Engineering and Management Disciplines

SustainableSustainableSolutionsSolutions

SustainableSustainableSolutionsSolutions

Advanced Manufacturing &Information Technologies

Advanced Manufacturing &Information Technologies

Logistics

System

Thinking

Inter &

Intra

Firm

Logistics

System

Thinking

Inter &

Intra

Firm

LeanProcessBased ThinkingInter & IntraFirm

LeanProcessBased ThinkingInter & IntraFirm

Sustainable Sustainable LogisticsLogistics

LeanEnterprise Research

Centre

LeanEnterprise Research

Centre

LogisticsSystems Dynamics

Group

LogisticsSystems Dynamics

Group

Manufacturing Engineering CentreManufacturing Engineering Centre

SustainableSustainableChangeChange

SustainableSustainableTechnologiesTechnologies


What is Lean?

• Lean Thinking is a business philosophy that has

been widely applied in Wales (and elsewhere!) and

is designed to improve the value proposition to

customers, reduce waste, smooth out peaks and

troughs of activity and make individual worker’s life

easier

• Leading exponents we have worked with include

Toyota and Tesco


• Addressed Lean New Product Introduction

– Reduced NPI from 26 weeks to 8 weeks

– Reduced Variability from 6 weeks to 1 week

• Addressing Lean Distribution

– Target 30% increase in Overall Vehicle

Effectiveness

• Addressed Lean Order Fulfilment

– 1 Touch Replenishment

Tesco: Research Activity


Tesco One Touch Replenishment

TescoStore

TescoStore

TescoBack ofStore

TescoBack ofStore

TescoRDC

TescoRDC

ColaRDC

ColaRDC

ColaProduction

ColaProduction

1 2 3 4 5 6

30% Lower Logistics Costs

TescoBack ofStore

TescoBack ofStore

TescoX DockTescoX Dock

ColaRDC

ColaRDC

ColaProduction

ColaProduction

1 2 3

TescoStore

TescoStore


Tesco One Touch Replenishment


Tesco Profitability

0

500

1000

1500

2000

2500

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

£ millions Start of Lean Programme

£400m due to Lean

Thinking

Functional…....Process………..Value Stream……………….


Our New Programme: C-STEPS Mission

C-STEPS is a new flagship CUIMRC programme

starting in early 2007 that focuses on the study

of knowledge transfer in the engineering and

physical sciences to increase the UK’s expert

research knowledge base and improve its

practical effectiveness


Research

RS6

RS5

RS4

RS3

RS2

RS1

uToolingHYDROMEL

LaunchMicro(RS 1-4&7)

CHARPAN(RS 2, 5, 6, 7)

DELILA (RS 2, 5&7)

FASTFAB

Manuf. Applications Dev.

Manuf. Technology Development

Basic Manuf. Processes

Contract Service Provisions

SEMOFS(RS 1-7)

MTC(Expl. RS 1-6)

PREMI(RS 1-6)

MicroBridge(Capital infr. & expl. RS1-6)

MAS(Expl. RS 1-6)

Technology Management

Knowledge Transfer

RS7

C-STEPS(RS1-6)

4M (Integrating outputs from RS1-6, Road-mapping under RS7, across Europe)

I*PROMS

uSAPIENT (Integrating RS 1-6 across FP6, Road-mapping under RS7)

MINOS-EURONET (RS 1-7)

DT

I MN

T F

P7

MS

T G

rou

p (R

S 1

-7)


C-STEPS: Scope & Focus

• To achieve a balance between market ‘pull’ and technology ‘push’.

• To integrate technological issues into business decision making.

• To study the internal and external factors affecting the knowledge flows between commercial and R&D organisations.

• To address the processes needed to maintain a stream of products and services to the market, including strategy development, innovation, and operations management.


Opportunities to Take Part in C-Steps

• If you are interested in:– Understanding how you might improve your supply chain

through application of new emerging or disruptive technology in a leaner way

• There are also opportunities if you are interested in:– Finding out about our international research collaboration in

emerging and disruptive technologies – Understanding exploitation routes for your existing or new

technologies– Roadmapping your current and future technology

development and exploitation paths


Follow Up

• If you would like any further information about the

C-Steps programme or any of our other Innovative

Manufacturing work please contact:

Andrew Davies, CUIMRC Manager on

029 20879334 or [email protected]

Lean Supply Chain Management

Documents

Transcript of Lean Supply Chain Management