2.  Backdrop – JIT foundation  Understanding your Business … KPI’s  Value Streams … ‘True North’  Lean Partnerships to drive cost improvement  Design for LeanSigma opportunities … manufacturability  Lean Supply Chain Management … value add  Best Practices Sharing

3.  1950’s – Japan … 1980’s - USA Productivity Index  Focused on waste elimination and productivity gains (flat BOM’s / less WIP warehousing)  Visual Signals.. drive the behavior (walk and see)  JIT implementation & design principles ◦ Design flow processes ◦ Total quality control ◦ Stabilized schedule – production smoothing ◦ Kanban pull system (replenishment) ◦ Work with vendors / suppliers ◦ Inventory Optimization (Inventory Turns) ◦ Improved product design

4. Factory verse Cell Based Strategy Continuous Improvement Opportunities Procurement Lean Mfg. Warehousing Transportation

5.  Integrated supplier lead times and delivery schedules  Flows from suppliers pulled by customer demand (using takt time, production smoothing, line balancing, single piece flow)  Minimized inventory through all tiers of the supply chain (warehousing / manufacturing / distribution)  On-time supplier delivery (to point of use)  Minimal inspection  Striving for zero quality defects essential to success  Effective two-way communication links to coordinate production & delivery schedules

6.  What are you Key Performance Indicators?  What are the most significant improvement opportunities?  What KPI is the Biggest Impact to your Business or Customer?  How do you measure you improvement?  What are the counter measures?  What is the Strategic Planning Methodology for your Business?  Is your Strategy tied to operational tactics?  What is your Strategic Planning Methodology?

7.  Supplier > Manufacturing > Customer

8.  Enterprise-wide analysis to identify what activities to engage with each supplier.  Value measurements (supplier report card)  Meaningful countermeasures  Self-enforcing agreements for continuous improvement  Target costing  Sharing of cost savings  Strategic supplier partnerships with selected suppliers  Trust-based relationships; long-term mutual commitment  Close communications; knowledge-sharing  Blank Purchase Order … contract management

9.  Early supplier integration into design ◦ Early and major supplier role in design ◦ Up-front design-process integration ◦ Leveraging supplier technology base for innovative solutions

11. 1) Establish a supply chain steering group (waste elimination) … Value Stream Focus 2) Alignment and staffing for success (education component) 3) Invest in ‘value added’ technologies 4) Establish alliances / supplier partnerships 5) Focus on total cost of ownership (not price alone) 6) New Products Development – suppliers early in the process 7) Optimize Inventory Turns by Cell (ROWC) 8) Establish risk based controls / measurements 9) Leveraging ‘Green’ based initiatives