Designing and Managing the Supply Chain: Concepts, Strategies and Case studies
Key Concepts of Supply Chain Management
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Transcript of Key Concepts of Supply Chain Management
ChallengersGroup Members Name: Masroor Ali Soomro Zeeshan Ali Khan Ahmed Hussian Siddiqui Arslan Ahemd Sonia Kumari Sarika
Major Areas To be coveredJidoka Poka - Yoke Kaizen Event / Kaizen Blitz (sm) MUDA MURA MURI 5 Why? Heijunka 5S Sort, Simplify, Scrub, Standardize, Sustain
Key Concepts of Supply Chain Management
Automation with a human touch Practice of stopping a manual line or process when
something goes amiss Quality built-in to the process
Key Concepts of Supply Chain Management
Key Concepts of Supply Chain Management
Jidoka helps to detect a problem earlier and avoids the
spread of bad practices.
Jidoka results in high-quality products and makes
improvement in productivity.
Jidoka is sometimes called autonomation, meaning
automation with human intelligence .
Key Concepts of Supply Chain Management
When a machine breaks down or when defective parts
are produced). This auto-nomation (as it is also called) allows machines to run autonomously, as they will stop when a problem occurs. Ultimately, it is about transferring human (or better) intelligence to machines. Textile Industries KESC Bank Alarms/Fire Alarms Alerts
The phrase poka-yoke originates from the Japanese word:
Yokeru oka
= to avoid Poka-Yoke = inadvertent errors
It is a methodology that is used to strive toward zero defects by either preventing or automatically detecting defects.
Key Concepts of Supply Chain Management
Key Concepts of Supply Chain Management
Machine have limit switches connected to a warning
light that tell operators when parts are positioned improperly on the machine. Fast food restaurants use automated french-frying machine that be operated one way ; the French fries are prepackaged and automated to reduce the chance of human error. Electronics Industries Car Manufacturing Industries
Key Concepts of Supply Chain Management
Basically Poka yoke is same as the Six Sigma Concept :Bill Smith first formulated the particulars of the methodology at Motorola in 1986.
Six Sigma is a business management strategy originally developed by Motorola, USA in 1981. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. A six-sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million).
Key Concepts of Supply Chain Management
Kaizen is the name given by the Japanese to
continuous improvement. Continuous improvement really means continuous incremental improvement. Kai = change Zen = good Kaizen means making changes for the better on a
continual, never-ending basis.
Kaizen refers to improvement of both processes and
people. In fact Kaizen philosophy aims at improving all aspects
of an organization all the time. Good is never good enough; kaizen is a never-ending
journey to excellence.Key Concepts of Supply Chain Management
Key Concepts of Supply Chain Management
Toyota production system known for kaizen, where all
line personnel are expected to their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen. Microsoft Google Wikipedia Rolls-Royce Ferrari Ford
Muda is a traditional Japanese term for an activity that
is wasteful and does not add value or is unproductive. Any element of processing or distribution that add no
value to the final product(services)-waste only adds cost time and (frustration).
Key Concepts of Supply Chain Management
Overproduction ; Printing paperwork (that might change) before it is needed. Processing an
order (that might change) before it is needed. Any processing that is done on a routine schedule - regardless of current demand.
Inventories ; purchasing or making things before they are needed (think office supplies,
literature...). Things waiting in an (electronic or physical) In Box. Unread email. Any form of batch processing (e.g. transactions, reports...)
Packaging
Key Concepts of Supply Chain Management
Mura is a traditional Japanese term for unevenness,
inconsistency in physical matter or human spiritual condition. Strive to reduce variation/fluctuation to a bare
minimum.
Key Concepts of Supply Chain Management
Key Concepts of Supply Chain Management
Mura in its simplest form means unevenness. For
example, Mura results when your operators are told to work like crazy early in the morning only to stand around and do nothing late in the day. Office Clerical Staff To work like donkeys first without forecasting demand and later become lazy (like Rabbit and Turtle) Mura is the unevenness or fluctuation of the schedule. Variability So, in the example Mura is looking at the imbalance in the assigned task.
Muri, made up of the ideograms representing
none + logic , literally means unreasonable, or overburden/overdoing. Muri is about being smooth, and doing things the
logical way.
Key Concepts of Supply Chain Management
Key Concepts of Supply Chain Management
Muri means to overburden equipment or operators.
For example, if your entertainment center is only meant to hold 200 pounds and you place your new 425 pound super duper HD Ready TV on it we have muri. We also have other issues like a very real safety
concern! Muri is the overburdening of your people or equipment. So, in the example muri is looking at demanding that a forklift carry X+ weight when it is rated to carry X weight.
Key Concepts of Supply Chain Management
The Five Whys is a question asking method used to
explore the cause/effect relationships underlying a particular problem. to determine a root cause of a defect or problem
Ultimately, the goal of applying the 5 Whys method is This technique explores deeper and deeper levels until
one gets to a level where proactive counter-measures can be applied.
Key Concepts of Supply Chain Management
A typical Example on www.wikipedia.org The car does not start. Why? - The battery is dead Why? - The alternator is not functioning Why? - The alternator belt has broken Why? - The alternator belt was well beyond its useful
service life and has never been replaced Why? - I have not been maintaining my car according to the recommended service schedule
Key Concepts of Supply Chain Management
Q1. Why is our client, Hinson Corp., unhappy? Ans: Because we did not deliver our services when we said we would. Q 2. Why were we unable to meet the agreed-upon timeline or schedule for delivery? Ans: The job took much longer than we thought it would. Q3. Why did it take so much longer? Ans: Because we underestimated the complexity of the job. Q4. Why did we underestimate the complexity of the job? Ans: Because we made a quick estimate of the time needed to complete it, and did not list the individual stages needed to complete the project. Q5. Why didn't we do this? Ans: Because we were running behind on other projects. We clearly need to review our time estimation and specification procedures.
Key Concepts of Supply Chain Management
Source: http://www.velaction.com/lean-information/wp-content/uploads/2009/02/5-whys-lean-manufacturing-example.jpg
Key Concepts of Supply Chain Management
Heijunka is a workaround for uneven demand. It is
the bridge between how customers order and how a Lean company operates.
The distribution of production volume and mix
evenly over time
Heijunka converts uneven Customer Pull into even
and predictable manufacturing process.
For example, weekly demand over a 3 week period
might be 200, 218, 197-fairly close. The Monday demand for those same three weeks could be 37, 61, 47-not quite as stable. And day-to-day demand might fluctuate even more wildly-Wednesdays might be the day that three of your biggest customers all place their orders (hey, not everyone is lean, right?).
Key Concepts of Supply Chain Management
Key Concepts of Supply Chain Management
Sort : All unneeded tolls, parts and supplies are removed from
the area.
Set in Order : A place for everything and everything is in its
place.
Shine :The area is cleaned as the work is performed. Standardize : Cleaning and identification methods are
consistently applied.
Sustain : 5s is a habit and is continually improved.
Source:http:// www.Strategosinc.com, Consultants , Engineers, Strategists
Key Concepts of Supply Chain Management