Bello Lean Production Toyota.ppt

nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org supplychainexcellence fromleanproductiontoleanconsumption professordanieltjoneschairman leanenterpriseacademy ukwww leanuk org nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org whoami co authorwithjimwomackofthemachinethatchangedtheworld leanthinkingandthenewleanconsumptionarticleandleansolutionsbookchairmanofthenon profitleanenterpriseacademyintheuk partoftheleanglobalnetworkresearchersandpublishersoftheknowledgeneededtobuildaleanbusinesssystemthoughtleadersinpushingforwardthefrontiersofleanthinkinginourleansummitsandmentorstoorganisationsseekingtoimplementleanineverytypeofactivity nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org leanisold notjapanese thevenetiansunderstood flow productionby1400 makingoneshipaday soprobablydidthechinese thefrencharmyunderstoodtheneedforinterchangeablepartsbefore1789brunelwasmakingstandardisedpartsinprocesssequenceforthebritishnavyby1807blanchardmaderiflesonautomaticallycyclingmachineslaidoutincellsinspringfieldin1818forddevelopedthefirstcomplete flowproduction systemathighlandpark detroitin1914 nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org frommasstolean fordwentontocreate massproduction attherougein1927 makinghugevolumesofpartsforassemblyglobally usingbigmachines bigbatches andcomplexcoordinationaspullbecamepushtoyotaextended flowproduction tocopewithvariety usingsimplemachineswithquickchangetools inprocesssequencepulledbycustomerdemandtpsor leanproduction wasperfectedby1970andextendedacrossthewholeenterpriseandacrossthewholeoftoyotacity asthe toyotaway nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org toyota theleanmodel mostpeoplenowrecognisethattoyotaissettingthepace basedonitsleanbusinesssystemitleadsinefficiencyandqualityaroundtheworlditalsoleadsintimetomarketfornewproductsandinintroducingnewtechnologies likehybridsitisglobalisingassemblyandlocalisingpartssupplyithasovertakenfordandplanstoovertakegm superficiallytoyota sfunctionalorganisationlooksfamiliar sowhatdistinguishesthewayitoperates nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org toyota sleanstrategy brilliantprocessmanagementisourstrategy wegetbrilliantresultsfromaveragepeoplemanagingbrilliantprocesses weobservethatourcompetitorsoftengetaverage orworse resultsfrombrilliantpeoplemanagingbrokenprocesses leanthinkingisprocessthinking nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org leanthinking theobjectiveistomanagethebusinessbackwardsfromtheconsumerdefinitionofvalue notforwardsfromyourorganisationandyourassetstocreateleanprimaryprocessestodesign deliverandsupportthisvalue withminimumwastedeffortandtime andthenecessaryleansupportprocessesandtobuildaleanmanagementsystemtodevelop sustainandimprovetheseprocessesovertimebeclearaboutconsumerpurpose beforedesigningtheprocessesandthenorganisingthepeople nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org leanprinciples specifyvaluefromthestandpointoftheconsumer notfromyourassetsandorganisation identifythevaluestreamthroughthestepsrequiredtocreateeachproduct fromconcepttolaunchandordertodelivery andremovethewastedstepsmaketheprocessofvaluecreationflowsmoothlyandquicklytothecustomerbutonlyinlinewiththepulloftheconsumerwhilepursuingperfectionbyconstantlyimprovingtheproductandthevaluestream nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org thedynamicsoflean nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org askthekeyquestions implementinglean checkprogressandstabilise nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org timereducedfrom44to24days timereducedfrom24to3days acrossthevaluestream nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org toyota ssupplychains toyotaspent30yearsdevelopingleaninhouseandspreadingitupanddownitssupplychainthemostimpressiveistheiraftermarketpartssystem supplying400 000skustodealersitoperatesasaseriesoftightreplenishmentloops dealerscalloffpartsfromdistributioncentreseveryday theseshipmentstriggerdailyorderstobepickedupfromsuppliersthenextday 60 ofwhomcanalsomakeeverypartthatisrequiredinadayeverydaytheresultisthehighestavailability loweststocklevelsandthesmoothestordersignals nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org leaningrocerysofar supplier rdc store ndc nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org manyprocessindustries arestuckintheworldofshorttermplanchangesandaneedtorespondflexiblytodemandsfromcustomersactuallytheyarecaughtinaviciouscircle dataerrors forecasterrors demandamplification constantrescheduling expediting lossofcapacity finishedgoodsshortagesandexcessstocksetcthebreakthroughistoseewhereyoucanflowandcreatestabilityandbuildonthattoachieveincreasedresponsivenesstodemand nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org whereandhowtoflow nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org whereandhowtoflow sequentialpull replenishmentpull nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org progressionovertime skusvolume nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org butthisisjustthestart thereisalotmoretodotoachievethefullpotentialoflean beyondwhattescohasdoneinmanycasessuppliershaveonlyjustbeguntheirleanjourneys makingagrowingrangeofproductsotherretailersarepickinguponthislogic soprogresswillcontinuetheanswerdoesnotlieintechnology butinrethinkingthesharedsupplychainprocesstheplacetobeginthisjourneyiswiththeconsumer nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org consumption improvementsinproductionandlogisticshavegivenconsumersagrowingrangeofhigherqualityproductsatlowerpricesthroughmanydifferentsaleschannelssowhyisconsumptionstillsofrustrating whydoesthenewcomputerfailtoworkwiththerestofourkit whydowehavetowastesomuchtimeinhubairportsandgeneralhospitals whydowefailtofindexactlywhatwearelookingforonatriptothesupermarket whyisitsodifficulttoconnectconsumptionandprovision whydowethinkandactdifferentlyasconsumerstohowwedoinourlivesasproviders nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org theconsumptionprocess theanswerbeginsbyseeingconsumptionnotasanisolatedtransactionbetweenstrangersbutbyseeingconsumptionasaprocessofstepstosolveaconsumer sproblem involvingresearching selecting obtaining integrating maintaining upgrading disposingandreplacingmanyitemsovertime interactingwithseveralprovidersofgoodsandservicesinaparallelprovisionprocessaddthisupandyourealisethatmanagingthehouseholdconsumptionprocessesiscomplicatedandtakesalotof unpaid timeandmindshare nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org theconsumer sdilemma weallhavemoreandmorechoicestomakeandmoreandmoreproductstomanagebutlesstimeandenergytodosothissituationcreatesamajoropportunityforprovidersandamajorwin winopportunityforcollaboration nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org principlesofleanconsumption solvetheconsumersproblemcompletelydon twastetheconsumer s ortheprovider s timeprovideexactlywhattheconsumerwantsdeliveritwhereit swantedsupplyitwhenit swantedcontinuallyaggregatesolutionstoreducetheconsumer stimeandhassle nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org solvemyproblem itisnottheobjectwearebuyingbuttheusewegetfromtheobjectorservice inrelationtoitscontexthasitsolvedmyproblemcompletely whatwasitryingtodoexactly whatelsedidihavetodotosolvetheproblemcompletely wasthatahassle fujitsuservicesreversedthelogicofoutsourcedcustomerserviceandtechnicalsupport gettingexperiencedstafftoaskaboutcustomerpurpose offerafix redesigntoeliminatetherootcauseanddiscoveradditionalvalueforfutureproductsweneedadialoguetodiscoverpurposeandhassle nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org don twastemytime theassumptionis mytimeisfree soicandomore inrealitycustomer sandprovider stimeiswastedbyapoorlydesignedanddisconnectedconsumptionandprovisionprocessesmappingbothprocessesandtheirinteractionsrevealsthiswastedtimeandcostandidentifiesopportunitiesforwin wincollaborationtocuttimeandcostforbothbycreatingadialoguewithconsumerstopre diagnosetheproblem planningandpreparing separatingjobtypesandcreatingstandardisedleanprocesses nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org carrepairbeforelean nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org leancarrepair nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org whatiwant fulfilmentlevelsarepoorinmostsystems98 5 availabilitydropsto92 ontheshelfand55 forabasketof40itemsinthegrocerystore80 availabilityfortheshoewith150dayorderwindowleadsto40 beingremaindered52 ofconsumersgetthecarstheywantedontimeand64 ofservicejobsarecompleterrftotbetterit rfidandstocksarenottheanswer butrapid reflexive replenishmentloopsbackupstreamandcompressingthelengthofthesupplychain nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org whereiwantit weallusemanyformatsdependingonourcircumstances andtimepressureplacesagrowingpremiumonconvenience whichsignalstheendofthe bigbox dominantmassretailingformatscaleeconomiesdonotderiveprincipallyfromproductioneconomiesorstoresizebutbuyingpowerthekeytoservingmultiplechannelsisacommonfulfilmentsystemanda waterspider replenishmentsystemforallformats includinglocalstoresandhomeshoppingwhichrequiresmuchmoreaccuratefulfilment nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org alternativeshoppingtrips totaltraveltimecost195m 12 00160m 12 0095m 5 0050m 4 0015m 25m hypermarket discountstore supermarket retailshop conveniencestore nzbusinesscouncilforsustainabledevelopment auckland 24feb2005 www leanuk org wheniwantit iseverythingpurchasedonimpulse isthereanyincentivetoplanahead theconsequenceisthatproductionmustbeinfinitelyflexible everyeventmustbeplannedandwehavetodisposeofunwantedstockreversingthislogic howcanweplanaheadwithmostconsumerswhileofferingpriceincentivestosmooththedemandforproductionslots thisstabilitycreatesthepossibilityofrespondingtothe got to have it now consumersatmuchlowercost th