Supply Chain Doctors The Supply Chain Doctors Supply Chain Management Kimball Bullington, Ph.D. www.supplychaindocs.com.

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Presentation transcript:

Supply Chain Doctors The Supply Chain Doctors Supply Chain Management Kimball Bullington, Ph.D.

Supply Chain Doctors 18 SCM Fundamentals Introduction Planning Sourcing Making Warehousing Transporting Sharpening the Saw

Supply Chain Doctors 18 Making – Performance Excellence What is your model for performance excellence?

Supply Chain Doctors 18 Making – Performance Excellence Malcolm Baldrige National Quality Award Quality Tools Lean Variation

Supply Chain Doctors Malcolm Baldrige National Quality Award Criteria include –Leadership –Information & analysis –Strategic planning –Human resource dev. & mgt. –Process management –Business results –Customer focus & satisfaction

Supply Chain Doctors Benefits of Baldrige Competition Financial success Winners share their knowledge The process motivates employees The process provides a well-designed quality system The process requires obtaining data The process provides feedback

Supply Chain Doctors Criteria Category Importance High, Medium, Low For High-Importance Areas Stretch (Strength) or Improvement (OFI) GoalWhat Action Is Planned?By When?Who Is Responsible? Category 1—Leadership Strength OFI Category 2—Strategic Planning Strength OFI Category 3—Customer and Market Focus Strength OFI Category 4—Measurement, Analysis, and Knowledge Management Strength 1. 2.

Supply Chain Doctors Benefits of State Awards Internationally known Baldrige Award criteria Training Different Levels of Awards

Supply Chain Doctors 18 Making – Performance Excellence Malcolm Baldrige National Quality Award Quality Tools Lean Variation

Supply Chain Doctors Basic Quality Tools Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts

Supply Chain Doctors Flowchart Process Check Process Check

Supply Chain Doctors Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday Check Sheet

Supply Chain Doctors Histogram frequency ABCDE

Supply Chain Doctors Pareto Analysis 80% of the problems may be attributed to 20% of the causes. 80% of the problems may be attributed to 20% of the causes. Wrong Qty Inventory Inaccuracy Wrong Location Missing label Damage Other

Supply Chain Doctors Scatter Diagram Customer Cycle Time

Supply Chain Doctors UCL LCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process Control Charts

Supply Chain Doctors Cause-and-Effect Diagram Effect MaterialsMethods EquipmentPeople Environment Cause

Supply Chain Doctors Run Chart Time (Hours) Diameter

Supply Chain Doctors 18 Making – Performance Excellence Malcolm Baldrige National Quality Award Quality Tools Lean Variation

Supply Chain Doctors Sources of Waste Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects

Supply Chain Doctors Process Design Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Balanced system Little inventory storage

Supply Chain Doctors Benefits of 5S Improve safety Clean, orderly workplace Improve efficiency Improve employee morale Standardized work methods

Supply Chain Doctors Smooth flow of work (the ultimate goal) Elimination of waste Continuous improvement Eliminating anything that does not add value Simple systems - easy to manage Use of product layouts to minimize moving materials and parts Quality at the source Elements of JIT

Supply Chain Doctors Poka-yoke – mistake-proof tools and methods Preventative maintenance Good housekeeping Set-up time reduction Cross-trained employees A pull system Elements of JIT (cont’d)

Supply Chain Doctors 18 Making – Performance Excellence Malcolm Baldrige National Quality Award Quality Tools Lean Variation

Supply Chain Doctors UCL LCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process Control Charts

Supply Chain Doctors Quality Chain Reaction

Supply Chain Doctors Cost of Poor Quality Lost Opportunity Downtime Rework Inspection Overtime Rejects Lost sales Late delivery Long cycle times Expediting costs Inaccurate Reports (less obvious) Lost Customer Loyalty Redundant Operations Cost of Capital Excessive Planning 5-8% of Sales 15-22% of Sales

Supply Chain Doctors Two Ways to Improve Quality

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