1. Syn Lean and Agile supply 1 © The Delos Partnership 2005 Lean and Agile Applying the ideas to the Supply side

2. Syn Lean and Agile supply 2 © The Delos Partnership 2005 The Delos Model Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply

3. Syn Lean and Agile supply 3 © The Delos Partnership 2005 Value Stream Mapping Map out the flows of order information and physical goods for a product family as they happen now Picture and plan future states that leave out wasted steps and introduce smooth ‘stream- like’ flow Plan how to increase the value offered to customers e.g. increased responsiveness, easier to use packaging

4. Syn Lean and Agile supply 4 © The Delos Partnership 2005 Draw the current state The “current state” shows what is really happening right now It identifies wasteful steps and provides opportunity to visualise and plan a “future state”

5. METAL SUPPLIER PRODUCTION PLANNING SAP Manugistics Weekly Production Plan Daily Despatch Schedule 500 ft coils 18 days 2 per month WELDINGPRESSING STAMPING Weekly Fax 6 week Forecast 60 + 30 day Forecasts EPE = 2 weeks C/O 1-2hrs OEE = 61% C/T 1 second EPE 1 week C/O 0.3-2hrs OEE = 57% C/T 3 seconds EPE 1 week C/O 0.3-1hrs OEE = 76% C/T 10 seconds EPE 1 week C/O N/A Capacity 70% C/T 440 seconds ASSEMBLY TEST EPE 1 week C/O 10 mins Capacity 35% C/T 34 seconds DESPATCH CUSTOMER 1 second 4 days 2 hours 30 days Current State Map Production Lead Time = 60 days Value Added Time = 8 min 8 sec Daily Order 1 x Daily 3 seconds 10 seconds 440 seconds 4 days 34 seconds 5 variants 156 variants

6. METAL SUPPLIER PRODUCTION PLANNING Daily Despatch Schedule 500 ft coils Vendor Managed Inventory STAMP + PRESS 60 + 30 day Forecasts EPE shift C/O 10 mins OEE = 77% C/T 6 seconds EPE shift C/O N/A Capacity 70% C/T 300 seconds WELD + ASSY 1 EPE As required C/O N/A Capacity 55% C/T 164 seconds CUSTOMER 6 hours Future State Map Production Lead Time = 1.3 days Value Added Time = 7 min 50 s Daily Order 1 x Daily 6 seconds 300 seconds 1 day 164 seconds 5 variants156 variants 5 variants ASSY 2 + TEST + DESPATCH

7. Syn Lean and Agile supply 7 © The Delos Partnership 2005 Extended mapping Joint mapping - with suppliers and customers - will help to identify the potential and opportunities for new ways of working –e.g. collaborative planning and supply chain re-designs.

8. Syn Lean and Agile supply 8 © The Delos Partnership 2005 Extended map – Potato snacks POTATO GROW WHSE Production Control SNACK COMPANY Production Control PROCESS COMPANY RDC RETAILER WHSE POTATO PROCESS SNACK PRODN. Production Control GROWING COMPANY SEED SUPPLIER

9. Syn Lean and Agile supply 9 © The Delos Partnership 2005 Potential… Manufacturing Value Adding Time = 1% Total Supply Chain Value Adding Time = 0.01% Supplier Factory Distributor Customer Not just more efficient, but more effective…  How can waste be removed?  How can value be increased?

10. Syn Lean and Agile supply 10 © The Delos Partnership 2005 PP 321 Map

11. Syn Lean and Agile supply 11 © The Delos Partnership 2005 Value Stream Mapping How to do it in your business

12. Syn Lean and Agile supply 12 © The Delos Partnership 2005 Steps for a current state map 1.Identify the family 2.Pick which component to follow 3.Complete a quick walk through to identify the main processes 4.Fill in process information 5.Document customer information 6.Document supplier information 7.Establish information flow (how does each process know what to make next?)

13. Syn Lean and Agile supply 13 © The Delos Partnership 2005 1.Identify the family What product family? Products that: Share the same designs, tools and fabrication/formulation processes Follow roughly the same fabrication/manufacturing/formulation steps

14. Syn Lean and Agile supply 14 © The Delos Partnership 2005 Homogenising Oil Maize flour Salt Flavouring Pack Multibag Fried Snack Frying Oil Look at the BOM and choose a key, long lead time component: 2. Pick which component to follow

15. Syn Lean and Agile supply 15 © The Delos Partnership 2005 3. Identify the main processes and how ‘deep’ and ‘long’ to look PACKINGFRY/FLAVOUR BULK/MIXIN G PRIMARY CASING HMB CASING PALLETISINGDESPATCH Decide how much detail and how broad a scope is appropriate for the time and resources available:

16. Syn Lean and Agile supply 16 © The Delos Partnership 2005 4. Fill in process information Typical information: Cycle time / Operation time Number of operators Working time (minus breaks) Process reliability (uptime) Scrap/Rework/Defect rate Changeover time and responsiveness (Every Part Every…) Number of product variations at each stage Production batch sizes Pack sizes

17. Syn Lean and Agile supply 17 © The Delos Partnership 2005 5. Document customer information 1.How many product variants are there? 2.What are the demand patterns? 3.What lead time do they require and would they like? 4.How and how often do they want deliveries? (include batch/pallet sizes, barcoding etc.) 5.What collaborative planning is there? 6.Are there problems, e.g. obsolescent stock or stock outs? 7.What other value is given, in addition to the product (e.g. advice, package sizes, responsiveness)? 8.What is their opinion of your product/service?

18. Syn Lean and Agile supply 18 © The Delos Partnership 2005 6. Document Supplier information 1.Lead times 2.Delivery frequency / flexibility / responsiveness 3.Batch sizes 4.Capacity 5.Scrap levels / quality problems 6.Delivery problems / reliability 7.Information requirements 8.What other value is given, in addition to the product (e.g. advice, package sizes, responsiveness)?

19. Syn Lean and Agile supply 19 © The Delos Partnership 2005 7. Establish the information flow How does each process know what to make next (does it use Works Orders or Kanbans or look and see what’s needed to make)?

20. Syn Lean and Agile supply 20 © The Delos Partnership 2005 Steps for a future state map 1.Reassess the Value Position 2.Reassess the Make / Buy position 3.How best to make and stock? 4.How best to schedule? 5.Improve process capability 6.Organisational issues

21. Syn Lean and Agile supply 21 © The Delos Partnership 2005 1. Reassess the Value Position Customer Intimacy Responsive and reliable deliveries Configurable product / service solutions Customer partnerships Service support Product Leadership Product / service reliability Premium product functionality Operational Excellence Cost effective products Source product from lowest cost area

22. Syn Lean and Agile supply 22 © The Delos Partnership 2005 Downstream vertical integration Raw materials supplier Component maker Assembly operation Wholesaler Retailer Raw materials supplier Component maker Assembly operation Wholesaler Retailer Upstream vertical integration Stages owned by the organisation 2. Reassess the Make / Buy position

23. Syn Lean and Agile supply 23 © The Delos Partnership 2005 3. How to make and stock? What is the production lead time compared to the customer required (or desired) lead time? Which planning model (MTS,ATO, MTO etc) is most appropriate? Where can improved collaboration over planning and schedules help reduce uncertainty and improve responsiveness? Should new planning systems (e.g. Vendor Managed Inventory or direct line feed) be used? How can value be increased along the chain at minimum cost? (e.g. pack sizes, technical advice)

24. Syn Lean and Agile supply 24 © The Delos Partnership 2005 4. How to schedule? EPE… Should the process be batch build or build to customer Takt (or vary by process)? Takt time? (How do you understand customer demand?) Where can you flow? Where should you use supermarket-based pull? At what single point in the production chain do you trigger production? How much work do you release and take away? How do you level the production mix?

25. Syn Lean and Agile supply 25 © The Delos Partnership 2005 5. Improve process capability Which problems (e.g. bottlenecks, inventory, long changeovers) to focus on improving ? Each step in the process should be: –Valuable – of value to the customer –Capable – right every time –Reliable – always able to run –Flexible – able to change mix and volume in line with demand –Adequate – with capacity to avoid bottlenecks

26. Syn Lean and Agile supply 26 © The Delos Partnership 2005 6. Organisational issues How appropriate are the following areas currently to the future value stream? –Management / value stream structures –Cultures and behaviours –Performance measures –Financial measures What changes are required?

27. Syn Lean and Agile supply 27 © The Delos Partnership 2005 PP321 Supply Map

28. Syn Lean and Agile supply 28 © The Delos Partnership 2005 Workshop Review the current supply chain and identify where waste exists, and how the Supply Chain can now be organised to provide a continuous flow to the customer within the value stream.

29. Syn Lean and Agile supply 29 © The Delos Partnership 2005 Syngenta Workshop Backup illustrations

30. Syn Lean and Agile supply 30 © The Delos Partnership 2005 The Value Chain Co-op/dealer Farmer Food Chain Customer Distribution Customer Distribution Europe Americas Far East Europe Syngenta AI And Form’n Syngenta AI And Form’n Raw Material Transport GOODS CASH Shareholders/Stakeholders INFORMATION

31. Syn Lean and Agile supply 31 © The Delos Partnership 2005 Example Customer Demand = 100,000 100 ml bottles of 10 % AI strength product = 5,000 litres of formulation Packing plant packs 100,000 units Formulation plant packs 10,000 litres AI Plant 1,000 kgs ai Packing plant operates 7 hours a day for 20 hours per month Formulation plant operates 7 hours per day for 20 hours per month AI plant operates 7 hours per day for 30 days in the month.

32. Syn Lean and Agile supply 32 © The Delos Partnership 2005 Example ProductQuantityMinutes available Rate per minute One piece every Packed product100,0008,40011.905.09 secs Formulation10,0008,4001.190.509 secs Active Ingredient 1,000 kgs12,60079 grams1gm every 0.75 seconds

33. Syn Lean and Agile supply 33 © The Delos Partnership 2005 Information flow using ERP systems Periods123456789 Forecast25 Order PAB2500000000 Planned order release25 Planned Order Receipt025 On hand 50 Lead Time = 1 period Order Quantity = 5,000 units Periods123456789 Demand2.5 Order PAB52.50 0 0 0 Planned order release555 Planned Order Receipt5555 On hand 5 Lead Time = 1 period Order Quantity = 5,000 litres Periods123456789 Demand0.5 Order PAB0.5 00 00 Planned order release1.0 Planned Order Receipt1.0 On hand 0.5 Lead Time = 1 period Order Quantity = 5,000 litres

34. Syn Lean and Agile supply 34 © The Delos Partnership 2005 Information flow using Kanbans Kanban Card 250 grams AI Kanban Square Packing Plant Formulation plant Kanban Square AI plant Kanban Square Kanban Card 5,000 litres Formulation XYZ

35. Syn Lean and Agile supply 35 © The Delos Partnership 2005 Takt Definition: “The stroke in keeping time” (Chambers’s Dictionary) The frequency at which parts should be produced in order to meet the customer’s requirements; the ‘heartbeat’ of the process. Takt Time = Available Working Time Number of pieces required Takt Time = Available Working Time Number of pieces required

36. Syn Lean and Agile supply 36 © The Delos Partnership 2005 Scheduling systems Make to Forecast/Stock –MRP/Works Orders Make to Demand –Kanban trigger signals –CONWIP trigger signals Supermarkets (and FIFO lanes) control production between points of flow without a written schedule Pacemaker process

37. Syn Lean and Agile supply 37 © The Delos Partnership 2005 5. Improve process capability Which problems (e.g. bottlenecks, inventory, long changeovers) to focus on improving ? Each step in the process should be: –Valuable – of value to the customer –Capable – right every time –Reliable – always able to run –Flexible – able to change mix and volume in line with demand –Adequate – with capacity to avoid bottlenecks

38. Syn Lean and Agile supply 38 © The Delos Partnership 2005 Valuable – of value to the customer 1.Waste elimination 2.Leadtime reduction (Flow)

39. © The Delos Partnership 2005 The Seven Forms of Waste 1.Over production 2.Motion 3.Transportation 4.Waiting 5.Over Processing 6.Storage/Inventory 7.Defects

40. Syn Lean and Agile supply 40 © The Delos Partnership 2005 Waiting

41. Syn Lean and Agile supply 41 © The Delos Partnership 2005 Defects / Rejects / Re-work

42. Syn Lean and Agile supply 42 © The Delos Partnership 2005 CALL IT TWENTY? …22 TO BE ON THE SAFE SIDE! TEN PLEASE! Over - Production

43. Syn Lean and Agile supply 43 © The Delos Partnership 2005 Motion

44. Syn Lean and Agile supply 44 © The Delos Partnership 2005 Transportation

45. Syn Lean and Agile supply 45 © The Delos Partnership 2005 Over-Processing How do you spell that?

46. Syn Lean and Agile supply 46 © The Delos Partnership 2005 £ £ £ £ £ £ £ £ £ £ £ £ Storage / Inventory

47. Syn Lean and Agile supply 47 © The Delos Partnership 2005 Throughput Efficiency (TE) =Work content x 100% Time in system 5 Weeks 15 hours total work Minimise lead times

48. © The Delos Partnership 2005 Sort out Get rid of all unnecessary items

49. Syn Lean and Agile supply 49 © The Delos Partnership 2005 Capable – Right every time Process quality: - Specialist Quality Control (e.g. 6  ) - Workplace Management (Genba Kanri)

50. Syn Lean and Agile supply 50 © The Delos Partnership 2005 What is 6 sigma? Simple: - Eliminate defects - Eliminate the opportunity for defects Complex - Vision - Measurement of performance - Philosophy - Tool for: > Customer focus > Breakthrough improvement > Continuous improvement > People involvement

51. Syn Lean and Agile supply 51 © The Delos Partnership 2005  PPM% Non Defective 2308,53769.1% 366,80793.32% 46,21099.379% 523399.9767% 63.499.99966% Effectiveness

52. Syn Lean and Agile supply 52 © The Delos Partnership 2005 Workplace Management Real Operational Teamwork Standard Operating Procedures SOS / EOS Team Meetings Team Performance Targets The Role of the Supervisor

53. Syn Lean and Agile supply 53 © The Delos Partnership 2005 Reliable Always able to run Machine reliability: 5S TPM

54. Syn Lean and Agile supply 54 © The Delos Partnership 2005 The 5S’s 1.Sort out 2.Simplify 3.Sweep 4.Standardise 5.Self discipline

55. © The Delos Partnership 2005 Total Productive Maintenance TOTAL - Business wide PRODUCTIVE - Improve equipment performance MAINTENANCE - Machine systems support

56. Syn Lean and Agile supply 56 © The Delos Partnership 2005 Pillars of TPM OEE IMPROVEMENT AUTONOMOUS MAINTENANCE PLANNED MAINTENANCE SKILLS DEVELOPMENT MAINTENANCE PREVENTION STANDARDISATION 5S (WORKPLACE ORGANISATION) RELIABILITY AND AVAILABILITY

57. © The Delos Partnership 2005 Autonomous Maintenance ‘Maintenance is like looking after children. On a day to day basis you don’t require a doctor. In a factory your machines don’t require a technician. Production operators should think of their machines in the same way as a mother thinks of her children.’ Senior Japanese Maintenance Adviser, Nissan (U.K.) 1986.

58. Syn Lean and Agile supply 58 © The Delos Partnership 2005 Flexible – to change mix and volume on demand Machine flexibility SMED = Single Minute Exchange of Die Manpower flexibility

59. Syn Lean and Agile supply 59 © The Delos Partnership 2005 SMED – how to achieve Take a video Record all activities related to change-over Record as internal or external Set up group of operators Brainstorm ways to reduce internal, or convert internal to external Implement Do it again and again

60. Syn Lean and Agile supply 60 © The Delos Partnership 2005 Set Up Reduction Set Up Reduction StageStepTimeChangeover TypeImprovements TotalStepInternalExternalWaste Startup0’.00” 1 Clean Hopper with air blower 32’00” A smaller hooper than 150kg ? 2 Get cleanser to put in hopper 34’00”2’00”Relocate cleanser 3 Keep cleaning injector 52’00”18’00”Avoid walking to switch 4 Feed ABS pigment to hopper 60’00”8’00”Unnecessary? 5 Use air blower to clean hopper 67’00”7’00”Cassette type min- hoppers ? 6 Do a free shot to inject plastic into mould 96’50”29’50”Moulds with 25 kg too large. Unnecessary step ProcessColour ChangeResponsibleA JonesItemHousing MachineMitsubishiMeasured ByB BrownChangeover time96’50”

61. Syn Lean and Agile supply 61 © The Delos Partnership 2005 Purpose 1.To increase equipment availability and efficiency through less machine downtime 2.To increase process flexibility and responsiveness through smaller batch sizes and reduced lead times 3.To increase capital productivity through reduced stock levels

62. Syn Lean and Agile supply 62 © The Delos Partnership 2005 V. Jones P. Daniels R. Hope B. Crosby Op. 1Op. 2Op. 3Op. 4 Manpower flexibility - ILUDO

63. Syn Lean and Agile supply 63 © The Delos Partnership 2005 Adequate – with capacity to avoid bottlenecks Machine Capacity (OEE)

64. Syn Lean and Agile supply 64 © The Delos Partnership 2005 Operating Equipment Effectiveness = Availability X Performance Efficiency X Quality 440 / 480 hours = 91.67 % Actual Run Rate/Planned Run Rate = 90 % Quality = 119/126 = 94.4 % OEE = 77.9 % [91.67x90x94.4]

65. Syn Lean and Agile supply 65 © The Delos Partnership 2005 Capacity mapping

66. Syn Lean and Agile supply 66 © The Delos Partnership 2005 Extended capacity mapping Capacity per week in equivalent units raw material supplier first tier supplier Time final ass paint sub ass press blank pickle cold roll hot roll service centre second tier supplier