CHAPTER 4 – OPTIMIZING YOUR SUPPLY CHAIN Flashcards
OPTIMIZING YOUR SUPPLY CHAIN
– Mapping your supply network
– Driving process improvements
– Managing supply chain projects
– are made up of nodes and links
Networks
– stop that a product makes between raw materials and a customer (factory, warehouse, distribution center, retail store)
Node
– connects nodes (forms of transportation such as ship, railroad etc.)
Links
– making changes in the links and nodes
Network Optimization
approach to network optimization
important part of Lean professional’s toolkit
Value Stream Mapping (VSM)
Three approaches to process improvement:
Lean – reducing waste
Six Sigma – reducing variability
Theory of Constraints – relieving bottlenecks
– an approach to supply chain management that originated with Toyota
– use the least amount of time, effort and resources by maintaining smooth and balanced flow
Lean
Lean is referred to as the
Toyota Production System (TPS)
Lean (3 things to eliminate:)
Muda: waste
Mura: Unevenness in operations
Muri: Overburdening of people and equipment
– the stakeholders form a team and look at how the process is working, come up with ideas for how to make it better, and then implement changes.
Kaizen Event
8 KINDS OF MUDA (TIM WOODS)
Transportation
Inventory
Motion
Waiting
Overproduction
Overprocessing
Untapped skills and employee creativity
Defects - wastes and scraps or rework
a process improvement method that’s built on statistics. The basic idea is that variation is bad. You need consistency and predictability.
Six Sigma
he statistical basis for Six Sigma is to reduce process variability so much that defects occur only at __
the sixth sigma (6σ), or 3.4 times per million.
Five Steps to Apply the Six Sigma – as a process improvement methodology, used for improving an existing process
DMAIC
define
measure
analyze
improve
control
Five Steps to Apply the Six Sigma– used for designing new processes
DMEDI
define
measure
explore
develop
implement
4 Levels for Six Sigma Training and Certification
Yellow belts - basic understanding of concepts and terminologies
Green Belts - solid understanding of Six Sigma
Black Belts - have mastered and can teach other people
Mast Black belts - high level of mastery, train and supervise Black belts.
– The basic idea is that every process is limited by some kind of constraint (think of the saying, “A chain is only as strong as its weakest link”).
– about tuning an entire supply chain to run at the same pace as the slowest step in the process.
Theory of Constraints (TOC)
Structuring Supply Chain Projects
- Managing Cross-Functional Project Teams
- Creating Cross-Functional Project Plans
- Creating a RACI Matrix
- Designing Project Scorecards
- Using the DIRECT Model
the way that companies make changes.
Projects
Because supply chains need to adapt to changes all the time, __ has become an important part of supply chain management
project management
– connects companies and cut across the silos
– might include people from business development, customer services, shipping, receiving and manufacturing
– great way to help develop a broad network
Managing Cross-Functional Project Teams
Three of the most common challenges for cross-functional project managers:
authority, communication, and prioritization
ability to hire, fire, reward, and correct someone
Authority
to be able to provide translation among functions and encourage people to explain what they’re trying to say without using jargon
Communication
If one of the other projects requires more time and attention, you must make sure that your project gets enough support
priorities
– One of the best ways to deal with the challenge of leading a cross-functional project is to have a___
– gives everyone a chance to provide input and catch interdependencies
Cross-Functional Project Plans/project plans
list all the tasks in a project and define the role for each team members in supporting each task.
RACI Matrix
RACI Matrix
responsible, accountable, consult, inform
team member has no connection to the task.
No role
team member needs to be notified that a task is occurring, or that it has been completed.
Inform
- team member asked to provide input for a task,isn’t the one doing the task, and making decisions.
Consult
- team member is responsible for helping to complete a task
Responsible
- the one, and the only, person who is ultimately accountable for getting the task done.
Accountable
One of the most effective ways to track a project
Project Scorecards/ scorecards
make it easy for anyone to tell at a glance how a project is doing — whether it’s ahead of schedule and under budget or behind schedule and over budget; whether things are going as planned, or whether unplanned risks are putting the project in jeopardy
Project Scorecards
built around the six things that a leader needs to focus on in order to help their team complete a project successfully
DIRECT Model
DIRECT Model
Define Objectives
Investigate the options
Resolve to a course of action
Execute the plan
Change the System
Transition the people
