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E-grāmata: LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today's VUCA World

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  • Formāts: 493 pages
  • Izdošanas datums: 26-Nov-2013
  • Izdevniecība: Apple Academic Press Inc.
  • Valoda: eng
  • ISBN-13: 9781482205343
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LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today's VUCA WorldPalielināt
  • Formāts: 493 pages
  • Izdošanas datums: 26-Nov-2013
  • Izdevniecība: Apple Academic Press Inc.
  • Valoda: eng
  • ISBN-13: 9781482205343
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Delivering excellent service to all customers is the key imperative for many sustainable businesses. So why do so many supply chains struggle to fulfill customer requirements at competitive costs? The answer is simple: traditional supply chain planning, which was tailored to a predominantly stable and predictable business environment, cannot handle the new challenges in the world of variability, uncertainty, complexity, and ambiguitythe VUCA world.

Companies can either accept the drawbacks that often result in high inventories, poor asset utilization, and unsatisfactory customer service or, they can change their view of the fundamental approach to supply chain management. LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Todays VUCA World introduces a new paradigm and a new approach to managing variability, uncertainty, and complexity in todays planning processes and systems.

Introducing a cutting-edge supply chain management concept that addresses current problems in the process industry's supply chains, the book presents powerful methods developed by leading research institutes, process industry champions, and supply chain experts. It explains how readers can change their approach to the fundamental planning paradigms in a manner that will help their organizations achieve higher levels of responsiveness, improved levels of customer service, and substantial increases in cost-efficiencies.

This holistic practitioners guide describes how to establish the right accountabilities for performance management and also provides a set of meaningful metrics to help measure your progress. Supplying detailed guidelines for transforming your supply chain, it includes first-hand reports of leading organizations that have already adopted some of the facets of this paradigm and used the relevant instruments to achieve unprecedented improvements to customer service, supply chain agility, and overall equipment effectiveness.

Recenzijas

Our Lean Supply Chain Visibility initiative reshaped our operations and supply chain management operating model with fundamental new global capabilities to realize end-to-end lean and agile supply chains and a step change in information systems.Andy Evans, Head of Global SC Planning, AstraZeneca It is not about improving the accuracy of the forecast and reducing the amount of uncertainty in the future, it is about eliminating the need for certainty. Ronald W. Bohl, Senior Director of Supply Chain, Eli Lilly

Controlling and monitoring of inventory has long been fully integrated into supply chain functions. Transportation and warehousing cost management are also key tasks for supply chain managers. From an end-to-end perspective, what really counts is what remains visible and measurable for our customers. It is not only about key performance indicators and delivery service but also the ability to properly communicate accurate and meaningful supply chain information in a multi-cultural and cross-functional environment across geographies.Christophe Vidonne, Head of Supply Chain Management, and Dr. Ralph Billo, Head of Global Supply Chain Management at Novartis AH





There is no better planning concept than the Rhythm Wheel, I am convinced of this.

André Wulff, former Planning Head, AstraZeneca Germany To meet our challenging goals we need a systematic and scientific approach for sustainable improvement of our processes. LEAN SCM is developing and providing the roadmap.

Thomas Semlinger, Head of Production PCI Europe / BASF Construction Chemicals E-EBE

If your company lives through a lean journey, this book will be a helpful compass throughout all the stages of it.David Smith, Executive Vice President of Operations, AstraZeneca

Introduction: What the Book Is All About xvii
Reader's Guide xxv
About the Author and the Motivation for This Book xxxiii
Acknowledgments xxxvii
Part I Why LEAN SCM Today?
Chapter 1 Supply Chain Management in Process Industries
3(34)
1.1 Supply Chain Management Must Master the VUCA World
5(3)
1.1.1 Supply Chain Management Orchestrates Global Functions and Networks
5(1)
1.1.2 Key Pain Points in Supply Chain Organizations Today
6(1)
1.1.3 Why Leadership Is Concerned about the Impact of Volatility
7(1)
1.2 Supply Chain Planning in the VUCA World Today
8(13)
1.2.1 Planning and Control as the Backbone of Supply Chain Management
9(2)
1.2.2 The VUCA World Poses New Challenges to Supply Chain Planning
11(6)
1.2.3 Today's Supply Chain Planning Approaches and Their Limitations
17(4)
1.3 Why We Need a Paradigm Shift in Supply Chain Planning Now
21(14)
1.3.1 Traditional Planning Approaches Fail to Deal with the VUCA World
22(5)
1.3.2 Common Lean Approaches Are Insufficient for Global Supply Chain Synchronization
27(5)
1.3.3 How to Back Out of the Dead End of Today's Planning
32(3)
Chapter Summary
35(2)
Chapter 2 Guiding Principles of LEAN SCM Planning: Facing VUCA Challenges
37(18)
2.1 LEAN Demand: How to Cope with Rising Demand Variability
37(6)
2.1.1 Accept Uncertainty and Eliminate the Need for Certainty in Execution
38(1)
2.1.2 A View of Aggregated Demand: Be Prepared for Consumption-Driven Supply
39(2)
2.1.3 Stop Using Forecasts to Trigger Manufacturing: Respond to Real Consumption
41(2)
2.2 LEAN Supply: How to Get a Grip on Supply Uncertainty and Reliability
43(5)
2.2.1 Manage Demand Spikes with Planned and Right-Sized Safety Stock Buffers
43(2)
2.2.2 Level Production Plans to Create Flow and Stabilize Utilization
45(1)
2.2.3 Use Cyclic Production Patterns to Achieve a Common Takt and Regularity
46(2)
2.3 LEAN Synchronization: How to Master Complexity and Ambiguity
48(5)
2.3.1 Separate Planning to Slice Complexity for End-to-End Synchronization
49(1)
2.3.2 "Parameter-Driven" End-to-End Supply Chain Planning
50(1)
2.3.3 Establish Visibility and a Collaborative Environment for Synchronization
51(2)
Chapter Summary
53(2)
Chapter 3 Fundamentals of LEAN SCM Planning: A Paradigm Shift in Planning
55(34)
3.1 What Is the Most Suitable Supply Chain Planning Approach to Follow?
56(10)
3.1.1 The Lean Supply Chain Is More about Waste Elimination and Cost Efficiency
56(1)
3.1.2 The Agile Supply Chain Is More about Responsiveness and Customer Service
57(1)
3.1.3 The Resilient Supply Chain Is More about Risk-Avoidance and Robustness
58(1)
3.1.4 Trade-Offs among the Common Paradigms in Supply Chain Management
59(2)
3.1.5 How LEAN SCM Combines and Builds upon a New Planning Paradigm
61(5)
3.2 The Building Blocks for LEAN SCM Planning: Concepts and Highlights
66(15)
3.2.1 Flexible Rhythm Wheels Enable Cyclic Planning while Responding to Variability
67(4)
3.2.2 Dynamic Safety Buffers in Planning for Two-Sided Variability Management
71(2)
3.2.3 Cycle Times and Inventory Targets Aligned to Global Takt for Synchronization
73(2)
3.2.4 Separation of Tactical Pre-Parameterization and Planning to Reduce Complexity
75(3)
3.2.5 Enabling IT to Create Global Visibility and Staying Power for Sustainability
78(3)
3.3 How LEAN SCM Planning Drives Corporate Success in the VUCA World
81(4)
3.3.1 Creating a Step Change in Supply Chain Performance
81(1)
3.3.2 Better Service Leads to Customer Satisfaction and True Competitive Advantages
82(2)
3.3.3 World-Class Operational Supply Chain Performance Means Financial Success
84(1)
Chapter Summary
85(4)
Part II How to Design and Build LEAN SCM
Chapter 4 Prepare Your Supply Chain for LEAN SCM
89(50)
4.1 Segment and Strategize Your Supply Chain
90(9)
4.1.1 How Many Supply Chain Strategies Are Needed?
90(2)
4.1.2 Structure Customers and Products to Build Supply Chain Segments
92(3)
4.1.3 Assigning Strategies to Defined Supply Chains
95(4)
4.2 Aligning the Supply Chain from a Top-Down Perspective
99(21)
4.2.1 Create End-to-End Transparency in Supply Chains
99(6)
4.2.2 Identify and Assess Gaps to Improve Supply Chain Synchronization
105(8)
4.2.3 Adopt Three Measures for Preparing the Supply Chain
113(7)
4.3 Aligning the Supply Chain from a Bottom-Up Perspective
120(17)
4.3.1 Gain Transparency into Local Value Streams
121(2)
4.3.2 Analyze Value Streams to Prepare the Shop Floor for LEAN SCM
123(7)
4.3.3 Aim for Leveled Flow Design
130(7)
Chapter Summary
137(2)
Chapter 5 Strategic LEAN Supply Chain Planning Configuration
139(60)
5.1 What to Produce: Replenishment Modes
141(9)
5.1.1 Sell What You Make: Forecast-Based Push Replenishment
142(1)
5.1.2 Make What You Sell: Consumption-Based Pull Replenishment
143(7)
5.2 How to Produce: Production Modes
150(17)
5.2.1 Kanban and Its Advancements for Process Industries
150(4)
5.2.2 Product Wheels and Rhythm Wheels for Cyclic Production Planning
154(4)
5.2.3 How to Manage Variability with Different Rhythm Wheel Types
158(9)
5.3 Supply Chain Mode Selection: Combining Production and Replenishment Modes
167(21)
5.3.1 Define the Configuration Scope of the Supply Chain Segment
168(2)
5.3.2 Analyze Key Impact Dimensions of Mode Selection
170(12)
5.3.3 Select the Appropriate Supply Chain Modes
182(3)
5.3.4 Evaluate Your Decision Quantitatively
185(3)
5.4 The Strategic Renewal Process to Configure Agile Supply Chains
188(8)
5.4.1 What Information Base Is Needed on Strategic Level?
189(2)
5.4.2 Establish Sustainable Renewal of Supply Chain Modes
191(2)
5.4.3 Ensure Supply Chain Agility through Regular Mode Renewal
193(1)
5.4.4 Who Is Involved to Enable Governance for Supply Chain Agility?
194(2)
Chapter Summary
196(3)
Chapter 6 Tactical LEAN Supply Chain Planning Parameterization
199(70)
6.1 Setting Up the Parameters for LEAN Production Modes
201(21)
6.1.1 Classic Rhythm Wheel Design to Enable Flow in Stable Environments
203(8)
6.1.2 Breathing Rhythm Wheel Design to Manage Higher Demand Variability
211(5)
6.1.3 High-Mix Rhythm Wheel Design to Manage Diverse Product Portfolios
216(6)
6.2 Setting Up the Parameters for LEAN Replenishment Modes
222(12)
6.2.1 How Stocks Are Structured for Variability and Uncertainty
223(4)
6.2.2 Right-Size the Parameters to Enable Consumption-Based LEAN Replenishment
227(7)
6.3 Synchronize Parameters to Achieve an End-to-End LEAN Supply Chain
234(19)
6.3.1 Synchronize Supply Chain Cycle Times to a Global Takt
236(9)
6.3.2 Build on Dynamic Inventory Target Setting to Smooth Cycle Time Oscillation
245(8)
6.4 The Tactical Renewal Process to Parameterize LEAN Supply Chains
253(14)
6.4.1 What Information Base You Need
255(1)
6.4.2 Establish Regular Renewal of Planning Parameters
256(7)
6.4.3 Alignment of Planning Parameters for the LEAN Supply Chain
263(1)
6.4.4 Who Is Involved in Keeping the Supply Chain LEAN through Synchronized Parameters?
264(3)
Chapter Summary
267(2)
Chapter 7 Operational LEAN Supply Chain Planning Execution
269(28)
7.1 How to Execute Planning and Sequencing with Rhythm Wheels
270(7)
7.1.1 The Replenishment Trigger Report as a Link between Production and Replenishment
271(3)
7.1.2 Handling of Demand Signals with Rhythm Wheels
274(3)
7.2 How to Level Production with Factoring
277(7)
7.2.1 Use Cycle Time Boundaries to Stabilize the Asset Takt
277(2)
7.2.2 Use Upper Factoring When the Cycle Becomes Too Long
279(3)
7.2.3 Use Lower Factoring When the Cycle Becomes Too Short
282(2)
7.3 Effective Monitoring of Planning Execution in LEAN SCM
284(8)
7.3.1 What Should Be Monitored?
284(2)
7.3.2 Operational LEAN Production KPIs to Monitor Asset Performance
286(3)
7.3.3 Operational LEAN Replenishment KPIs to Evaluate Inventory Parameterization
289(3)
Chapter Summary
292(5)
Part III What to Implement and Transform for LEAN SCM
Chapter 8 Build an Organization for LEAN SCM
297(32)
8.1 Below the Ground: The Prerequisites for LEAN SCM
299(8)
8.1.1 Management Buy-In and Mobilization for LEAN SCM
300(2)
8.1.2 Ensuring Leadership and Commitment across Functional Borders
302(2)
8.1.3 Shift in Mindsets and Accountabilities in the SCM Community
304(3)
8.2 Above the Ground: The Visible Enablers for LEAN SCM
307(12)
8.2.1 What Is the Right SCM Organization Model for LEAN SCM?
307(3)
8.2.2 Integration of LEAN SCM Processes with the Existing Planning Processes Framework
310(6)
8.2.3 Mapping Roles and Responsibilities to Renewal Processes
316(3)
8.3 Managing Change and Transition for LEAN SCM
319(8)
8.3.1 Focus Areas of Change Management
319(2)
8.3.2 Key Activities of Change Management
321(3)
8.3.3 Valuable Tools for Change Management in LEAN SCM
324(3)
Chapter Summary
327(2)
Chapter 9 Performance Management for LEAN SCM
329(24)
9.1 Role of Performance Management in LEAN SCM
330(7)
9.1.1 Key Objectives of Performance Management for LEAN SCM
330(3)
9.1.2 Orchestrating Supply Chain Planning Processes Successfully
333(2)
9.1.3 How the LEAN SCM Paradigm Changes Your Performance Management
335(2)
9.2 How to Measure LEAN SCM Performance
337(7)
9.2.1 Metrics to Link Tactical and Operational LEAN Supply Chain Planning
338(1)
9.2.2 Metrics for Linking Strategic and Tactical LEAN Supply Chain Planning
339(2)
9.2.3 Metrics for Assessing the Maturity of a Supply Chain for LEAN SCM
341(3)
9.3 Five Points to Consider for Successful Performance Management
344(6)
9.3.1 Develop a Balanced and Comprehensive System of Metrics
344(1)
9.3.2 Effective Target Definition for Performance Tracking
345(2)
9.3.3 Systematic and Regular Performance Analysis for Sustainability
347(1)
9.3.4 Create Clear Responsibility for Metrics
348(1)
9.3.5 Use Data Management and IT Systems for Support
349(1)
Chapter Summary
350(3)
Chapter 10 The Planning System Landscape for LEAN SCM
353(28)
10.1 The Evolution of IT Planning Systems
354(6)
10.1.1 MRP II: Consideration of Capacity but Captured in the Automation Trap
355(1)
10.1.2 ERP: Functional Integration but Lost in the Details
356(1)
10.1.3 APS: Supply Chain Integration but Caught in the Optimization Trap
357(1)
10.1.4 The Forecast Myth: An Overarching Obstacle
358(1)
10.1.5 IT for LEAN Planning: How to Escape the Optimization Trap and the Forecast Myth
358(2)
10.2 Enabling LEAN Planning: How to Leverage Past IT Investments
360(5)
10.2.1 Enterprise Resource Planning
361(1)
10.2.2 Master Data Management
362(1)
10.2.3 Market Demand Planning (APS Module)
362(1)
10.2.4 Supply Network Planning (APS Module)
363(1)
10.2.5 Detailed Planning and Scheduling (APS Module)
363(2)
10.3 LEAN Planning Add-Ons to Complete the IT System
365(14)
10.3.1 Configuring and Renewing Tactical LEAN SCM Parameters
366(2)
10.3.2 Planning and Adjusting Production Based on Actual Consumption
368(4)
10.3.3 Performance Monitoring for the Renewal Process
372(7)
Chapter Summary
379(2)
Chapter 11 The LEAN SCM Journey
381(12)
11.1 Building Strong Commitment and Leadership for LEAN SCM
382(2)
11.2 Creating a Holistic LEAN SCM Architecture
384(4)
11.3 Establishing LEAN SCM Program Management
388(2)
Chapter Summary
390(3)
Part IV How Your Industry Peers Gained Benefits by LEAN SCM
Chapter 12 Read How Top-Industry Players Share Their Experiences with LEAN SCM
393(46)
12.1 Motivation and Approaches to LEAN SCM
393(44)
12.1.1 AstraZeneca's Lean SCM Journey
394(6)
12.1.2 Eli Lilly's Synchronized Lean Production
400(9)
12.1.3 Buffer Management at Novartis
409(8)
12.1.4 Leveled Flow Design to Enable LEAN Planning
417(8)
12.1.5 AstraZeneca Excellence with Rhythm Wheel Takted Site
425(7)
12.1.6 The LEAN Production Initiative at PCI: A Company of BASF
432(5)
12.2 Why LEAN SCM: Summary of Key Benefits
437(2)
Bibliography 439(2)
Index 441
Josef Packowski
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