This webcast deals with how to assign and initiate a supply chain
integration initiative. The target audience is senior leaders and the director or vice president of supply chain management and/or
purchasing. The duration is less than one hour.
Dial-in Number: 209 647-1075
Access code: 1013004#
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Objectives Why is supply chain integration important to your
company?
What are the basics of working on supply chain
integration?
How do you organize for supply chain integration?
What are the tools of supply chain integration?
How can you build the “muscle” to help your suppliers
improve?
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Supply Chain Integration Defined An approach that seeks to coordinate
and harmonize all elements of a supply
chain from raw material to finished
product in order to achieve higher
levels of overall performance and
reduced cost.
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Key Elements of Integrated Supply Chain Planning and control
Work structure
Organization structure
Product flow facility structure
Information flow facility structure
Management methods
Power and leadership structure
Risk and reward structure
Culture and attitude
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According to Wikipedia - http://en.wikipedia.org/wiki/Supply_chain_management - supply chain integration consists of these elements.
Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Why is it important? High speed production
Low volume, high mix
Cost reduction
Customer performance
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Roadmap
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
SEA Criteria 1.2.1 Supply Chain Integration Process – How do senior leaders
select supply chain improvement projects? How does your
organization integrate its customers and suppliers into its
improvement strategies? How do you qualify suppliers in quality,
delivery and ability to respond to pull signals? How do you integrate
suppliers into your lean strategies such as in supplier-managed
inventory, min-max, consumption-based ordering, pull signals? How
does your organization make use of teaming agreements to drive
alliances that improvement supply chain performance?
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
What are the basics? Identify Process Owner for 1.2.1
Develop an annual plan
Involve customers and suppliers
Value Stream Map the entire supply chain
Identify key metrics
Schedule Kaizen events and improvement
projects
Implement lean improvements and certify
suppliers to standard work methods
Keep a good record of before and after
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SEA 2011 All Rights Reserved
Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
1.2.1 Supply Chain Integration Process
SEA 2011 All Rights Reserved
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1.2.1 Supply Chain Integration Process – How do senior leaders select supply chain improvement projects? How does your organization integrate its customers and suppliers into its improvement strategies? How do you qualify suppliers in quality, delivery and ability to respond to pull signals? How do
you integrate suppliers into your lean strategies such as in supplier-managed inventory, min-max, consumption-based ordering, pull signals? How does your organization make use of teaming agreements to drive alliances that improvement supply chain performance?
Purpose: : to integrate customer and supplier efforts to increase performance and reduce cost for the entire supply chain
Are
as A
ddre
ssed
Planning
Involve
Customers &
Suppliers
Value Stream
Map Implement
SUPPLY CHAIN INTEGRATION
Prepare presentations for
customer and supplier
meetings
Gain commitment to
improvement projects and
schedule
Gain commitment to customer
involvement in SEA
Gain commitment to supplier
involvement in SEA
Prepare annual supply chain
integration plan including goals
and action plans (included in 1.1.1 Strategic
Planning)
Create target list of supply
chain projects linked to Annual Improvement Plan Goals
(The Process Owner for
Supply Chain Integration is
sometimes called the Supply Chain Director or Manager)
Assemble joint customer-
supplier teams
Value stream map entire
process
Identify key metrics
Create action plans, kaizen
schedules, training and
certification schedules
Implement planned Kaizen
events
Implement Kitting
Implement supplier Kan-Bans,
pull signals
Implement supplier
certifications and scorecards
Implement planned training
and certification of suppliers on standard work methods
Document before and after
1.1.3
1.1.4
Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
How do you organize?
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Champion
Process Owner Supply Chain Integration
Champion
Value Stream
Process Owners
Master Trainers
Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Tools of Supply Chain Integration Value Stream Mapping
Goals and Metrics
Kaizen
Standard Work
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Top Level Current State ITP
CAPO BodyCote Hudson BodyCote CAPO
Howmet
LPI
HON
56 25 31 5 7
Quoted Lead Time: 14 Weeks
Actual Lead Time: 26 Weeks
Target Lead Time: 4 Weeks
Capo
P.O. for -2,-3 P.O. for Casting P.O. RSP
56 Days 25 Days 31 Days 5 Days 7 Days
12.2 Days 3 Days 3 Days 679 Min 1 Days
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SEA 2011 All Rights Reserved
Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
The “Goal” Takt Time = 1 part per day
or 5 per weekTarget Lead Time = 4 Weeks
Weekly Shipment = (5) -2’s
then (5) -3’s Mixed Model alternating weekly.
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Distribution Cycle Target 4 Weeks Lead Time
5 Pcs
Capo HON
B. Cote
Hudson
5 Pcs
5 Pcs
5 Pcs
Capo (Machine)
M Mon Fri
Mon Wed
Hudson (Plate)
B Cote (Braze)
Tr Fri
Capo (Assy)
Mon Fri
This Cycle Has
To Repeat Weekly
A.
C.
B.
D.
A. Capo – Initial Machine
B. Hudson – Plates
C. B Cote – Brazes D. Capo – Assembly
E. Capo – Ships to HON
E.
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
FMEA Analysis
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Accelerating Supply Chain Performance
Dial-in Number: 209 647-1075 Access code: 1013004#
Building the Muscle Process Owners
Master Trainers
Kaizen Leaders
Kaizen Co-leaders
SMEs
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