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KAIZEN IN SUPPLY CHAINS in Supply Chain v2.pdfLean Supply Chains Call : + 91 79 26407756, + 91 922...

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in.kaizen.com KAIZEN IN SUPPLY CHAINS
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Page 1: KAIZEN IN SUPPLY CHAINS in Supply Chain v2.pdfLean Supply Chains Call : + 91 79 26407756, + 91 922 552 7911 - Email : india@kaizen.com - in.kaizen.com For too long, a large % of formal

in.kaizen.com

KAIZEN IN

SUPPLY CHAINS

Page 2: KAIZEN IN SUPPLY CHAINS in Supply Chain v2.pdfLean Supply Chains Call : + 91 79 26407756, + 91 922 552 7911 - Email : india@kaizen.com - in.kaizen.com For too long, a large % of formal

Lean Supply Chains

Call : + 91 79 26407756, + 91 922 552 7911 - Email : [email protected] - in.kaizen.com

For too long, a large % of formal Operational Excellence initiatives have focused on manufacturing/ factories. Yet, the pull-flow paradigm was developed by the Toyota Motor Corporation and applied to all its supply chains decades back!

Based on our experience of implementing KAIZEN™ practices since 1985, we at the Kaizen Institute have developed Total Flow Management (TFM), a model that aims to apply Lean principles across entirety of Supply Chains. The word 'Total' implies Lean paradigms being applied to the totality of Supply Chains, from suppliers to consumers - factories being but part of the ‘Total.’

The main objective is to reduce end-to-end lead-time in the supply chain. Using Little's law, the measure of lead-time is inventory held across the entire supply chain.

Reducing lead-time requires identification & reduction of 7 classical wastes from all elements of the Supply Chain, which creates flow of material, enabled by an efficient flow of information. Rigorous systems, processes, and standards are required to create and maintain this flow. They need to cover all activities in the Supply Chain - starting from customer order-entry to design of Lean Warehouses, Lean logistics (through milk-runs & cross-docks) & Lean information systems. Distribution centers partner with Third Party Logistics (3PL) providers to use effective Transportation Management System (TMS) for optimizing freight by using most effective lanes & routes.

Page 3: KAIZEN IN SUPPLY CHAINS in Supply Chain v2.pdfLean Supply Chains Call : + 91 79 26407756, + 91 922 552 7911 - Email : india@kaizen.com - in.kaizen.com For too long, a large % of formal

Call : + 91 79 26407756, + 91 922 552 7911 - Email : [email protected] - in.kaizen.com

Results come as:

Implementation Results

The overall approach is to look at optimizing Total Costs, not minimizing individual costs in isolation. This prevents 'silo' thinking that frequently results in sub-optimization for the Supply Chain as a whole.

Increased customer fill rate and customer satisfaction

Reduced inventories/ working capital

Reduced cost of space

Reduced insurance costs

Increased productivity of manpower

Reduced freight costs

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Page 4: KAIZEN IN SUPPLY CHAINS in Supply Chain v2.pdfLean Supply Chains Call : + 91 79 26407756, + 91 922 552 7911 - Email : india@kaizen.com - in.kaizen.com For too long, a large % of formal

India

+ 91 79 26407756

[email protected]

:

:

:

+ 91 922 552 7911

Kaizen is a journey and not a destination

and it requires a very high degree of top management commitment.

Kaizen Institute is a global pioneer and knowledge based organization which provides consulting, coaching and training services to companies represented in Europe, Asia-Pacific, Middle-East, Africa and America. Kaizen Institute India (KII) is the Indian business unit offering its services to companies in the public, service, and manufacturing sectors, focusing on organizational change, lean manufacturing, and continual improvement implementation. Interestingly KII strongly believes in practicing what it preaches. We strive hard to apply Kaizen in our own day to day business. Call us and we shall be happy to show you our Lean & Green office at Pune, India.

Masaaki ImaiFounder Kaizen Institute

About Us

Our Clients

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[email protected] | in.kaizen.com


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