Lean Supply Chain Video

About 6 years ago, Productivity Press published my book on Lean Supply Chain, Improving the Extended Value Stream: Lean for the Entire Supply Chain.  Since then, much more has been written on this topic, but very few organizations have successfully created lean supply chains.   Many organizations have created "supplier kanban" systems that have resulted in frustration for their suppliers.  The problem in many cases is that these organizations that claim to be "lean" have not created level pull in their own value streams.  Instead of having a pacemaker process that runs smoothly to takt time, their production schedule represents wild changes in mix and volume.  This is a sure recipe for lean supply chain failure which will leave suppliers with a significant misunderstanding of lean thinking.  If your organization is considering creating a lean supply chain, make sure that you have created a lean internal value stream first.  This includes creating operational stability including leveled production and connecting flow throughout the value stream.  It is only then that you can truly create a lean supply chain. 

Following is a brief animated video about a gentleman from a company that is meeting with a representative from a key supplier.  He explains to her how he would like to have a "lean" supply chain by dictating price reductions and forcing the supplier to hold inventory for them. The supplier, who has some knowledge of lean, sets the customer straight on what lean means to a supplier relationship.

Lean Doesn't Work: Revert Back to the Old Days of Excess Inventory

A new article from the Boston Globe is out entitled "Crises Make Automakers Rethink Lean Parts Supplies."   Whenever a natural disaster, financial, or other disaster wreaks havoc on a supply chain, lean thinking always seems to get the brunt of the blame.  "If we weren't using lean principles, this horrible situation would have been avoided."  In this latest article, which you can read here, automakers are said to be rethinking lean parts supplies.  The principle of just-in-time, providing the next downstream customer with what is needed when it is needed doesn't work well in today's world.  Instead, the only alternative, according to the article, seems to be "stocking up," or, in other words, reverting back to the old way of doing things.  I would respectfully disagree with this analysis. 

One pitfall that we should always avoid when we encounter a problem is that of jumping to solutions.  Instead, we should define the problem well and gain a full understanding of the current situation.  The problem here isn't just-in-time or lean thinking.  And the solution shouldn't necessarily be to stock up. The problem is the potential for a shortage of supply, particularly in cases where parts come from one supplier or one region.  If we define the problem this way, we might find other solutions such as alternative suppliers, designs that allow for alternative components, and a number of other potential solutions that do not require scrapping the concept of just-in-time.

Lean Manufacturing at Chrysler - Fiat

The Detroit Free Press has a new article out about Chrysler's successful adoption of Fiat's particular brand of lean manufacturing.  This methodology is described as "Fiat's World Class Manufacturing system that is designed to improve quality, safety, and productivity largely by eliminating waste and bottlenecks while boosting employee involvement."   The article explains that this is Fiat's interpretation of the Toyota Production System.  On the surface, this appears to be exactly the right approach to adopting lean / continuous improvement into an organization.  Executives must ask themselves what operational excellence should look like in their organization, and then develop their own "system" for operational excellence.  I believe the system should always include the two principles most closely associated with Toyota's system, "Continuous Improvement" and "Respect for People."  To read the article, visit:

http://www.freep.com/article/20120409/BUSINESS0103/120409042/2-Chrysler-plants-recognized-manufacturing-processes

Value Stream Mapping

What is value stream mapping?  Tomorrow, we will release our April Learning to Lean Newsetter.  This month's newsletter will cover value stream mapping and will be in our new, more streamlined format.   We will define value stream mapping, which includes material and information flow, and we will include some basics on current and future state mapping as well as a 3 minute video. If you are not already a subscriber, subscribe here:

Learning to Lean Newsetter

Lean Healthcare and Lean Six Sigma Yellow Belt Training Online

We have just formally announced the release of 2 online training programs, Lean Six Sigma Yellow Belt and Lean Healthcare.  The Yellow Belt program is intended for those who want to gain an overall insight to the techniques of Lean Six Sigma.  It includes an overview of the major tools and principles in the DMAIC framework.  The Lean Healthcare Certificate program thoroughly covers concepts such as Value Stream Mapping, Team Facilitation, Kaizen Events, A3 Problem Solving, Mistake Proofing, and Flow and Pull techniques.

Following is the link to today's press release:

http://www.prweb.com/releases/2012/3/prweb9333781.htm

March Newsletter Released: Policy Deployment and Training Updates

Our March 2012 Newsletter has just been released. This month, we continue our series on Lean Leadership with a discussion of strategy deployment (also called policy deployment, hoshin planning, or hoshin kanri). This is the methodology for developing major organizational goals and strategies and then deploying the right goals, projects, and metrics throughout the organization so that everyone is working on the right things.  Our newsletter also talks about our upcoming training programs, including Lean Six Sigma Black Belt, Lean Manufacturing Certification, and our new Lean Heatlhcare online program.  To learn more, please visit:

http://www.emsstrategies.com/newsletter030112.htm

Lean Leadership plus Announcements

Our February 2012 newsletter is out, and we're talking about a new book on lean leadership. Lean is a new way of doing things- a new and permanent paradigm of continuous improvement. Effective leadership is required for an effective and lasting lean transformation. To learn more, visit: http://www.emsstrategies.com/newsletter020112.htm.

We also have space remaining in our Lean Certification program that begins next Wednesday 2/8 as well as our February Lean Healthcare program. To learn more about these programs, visit our website: http://www.emsstrategies.com/