This

book is dedicated to my brilliant and beautiful wife, Lynne, and wonderful son, Andrew. My wife
always comforts and consoles, never complains or interferes, asks nothing, and endures all. She also
writes my dedications.
 CONTENTS

Foreword
Preface

CHAPTER 1 Introduction: Using Lean to Energize Your Supply Chain

What Is Lean?
Lean Failure
Implementing Lean
Supply Chain and Logistics Management Defined
Why All the Interest in Lean Supply Chain Management?

CHAPTER 2 Historical Perspective: From Lean Manufacturing to Lean Enterprise … the Need
for Speed
Evolution of Lean
The Need for Speed
Lean Office
Lean Supply Chain and Logistics Management
Lean Six Sigma
Cycle Time versus Processing Time
Takt Time
Dock-to-Dock Time

CHAPTER 3 The Eight Wastes: Waste Not, Want Not

What Is “Waste”?
The Eight Wastes
Inventory Waste
Transportation or Movement Waste
Motion Waste
Waiting Waste
Overproduction Waste
Overprocessing Waste
Defect or Error Waste
Behavioral Waste (or Underutilized Employees)
Thinking Differently

CHAPTER 4 Lean Opportunities in Supply Chain and Logistics: Forest for the Trees
Plan
Wastes in Forecasting
Source
Make
Make to Order (MTO) versus Make to Stock (MTS)
Distribution Requirements Planning
Deliver
Return

CHAPTER 5 Basic Lean Tools: You Can’t Build a House without a Solid Foundation
Standardized Work
Visual Job Aids
Visual Workplace
Layout
5S: Workplace Organization and Standardization
Sort Out
Set in Order
Shine
Standardize
Sustain

CHAPTER 6 Advanced Lean Tools: It’s Not Rocket Science

Batch Size Reduction and Quick Changeover
Batch Size Reduction
Quick Changeover
Kanbans
Quality at the Source
Work Cells
Balancing a Work Cell
Total Productive Maintenance
 Overall Equipment Effectiveness
Lean Analytical Tools
Tools for Gathering
Tools for Organizing
Tools for Identifying Problems

CHAPTER 7 JIT in Supply Chain and Logistics: This JIT Is Good

Areas of Focus
Network Design
Integration of Resources
Walmart and Dell: Examples of JIT in the Supply Chain
Visibility and Reliability
Cross Docking

CHAPTER 8 Lean Warehouse: Low-Hanging Fruit

Lean Thinking in the Warehouse
“Assembling” Orders
Value Stream Mapping in the Warehouse
Lean Tools in the Warehouse
Lean Warehouse Examples

CHAPTER 9 Lean Global Supply Chain and Logistics: The Long and Winding Road
The Logistics of a Global Supply Chain
Value Stream Mapping to Identify Waste
Areas of Potential Waste in the Global Supply Chain and Logistics Network
Areas to Reduce Waste
Keys to Global Logistics Excellence
Addressing Wastes in the Global Supply Chain

CHAPTER 10 Keys to Success: The Patient Gardener

Key Success Factors
Lean Training
Management Support
Lean Structure
Teamwork and Lean
Making Teamwork Happen
Sales and Operations Planning (S&OP)
S&OP Defined
Supply and Demand Options
The S&OP Process
S&OP and Lean
Working Together

CHAPTER 11 Getting Started: Lean Forward

Lean Opportunity Assessment
Value Stream Mapping
Value Stream Mapping Defined
Value Stream Mapping Benefits
Value Stream and Product Family
Takt Time
Value Stream Manager
Goals and Objectives
Steps to Creating a Current State Value Stream Map
Data Collection
Future State Value Stream Map
Where to Look
Implementation Plan
Lean Teams
Team Charter
The Team Makeup
Kaizen Events
Kaizen Event Management

CHAPTER 12 Lean and Technology: Why Can’t We All Just Get Along?
Lean and Technology: Background
Best-in-Class Use of Technology with Lean
Enterprise Resource Planning (ERP) Systems
Demand Forecasting
Trends Driving the Use of Technology to Reduce Waste
 Distribution Requirement Planning (DRP)
DRP and Demand Pull
Advanced Planning and Scheduling Systems
Benefits of Advanced Planning and Scheduling Systems
Warehouse Management System (WMS) Software and Radio Frequency Identification (RFID)
Warehouse Management Systems in Waste Reduction
Transportation Management Systems (TMS)
Benefits of Transportation Management Systems

CHAPTER 13 Beyond the Four Walls: I Can See Clearly Now

Electronic Data Interchange (EDI)
Web-Based EDI
E-Commerce
E-Commerce and Small- to Medium-Sized Enterprises
QR, ECR, and CPFR
Efficient Consumer Response
Quick Response
ECR versus QR
Collaborative Planning, Forecasting, and Replenishment
Vendor-Managed Inventory
Value Stream Map for a VMI Program
Other Potential Areas for Collaboration
Future Opportunities and Roadblocks
Supply Chain Flexibility Traits

CHAPTER 14 Metrics and Measurement: How Are We Doing?

Policies and Procedures
Rationale for Considering Metrics
Relevant Lean Supply Chain and Logistics Metrics
Delivery Reliability
Perfect Order Measure
Responsiveness
Flexibility
Cost
Asset Management
Balanced Scorecard
Finding the Right Metrics for Your Company
Metrics Framework
Financial Impact of Metrics
Review Scorecard during S&OP
Dashboards to Display and Control Metrics
Indicators
Application Areas of a Scorecard

CHAPTER 15 Education and Training: All Aboard the Lean-Train

Training Methods
Traditional Methods
Group-Building Methods
Selecting the Training Delivery Method
Training: Key Management Team (Seminars, Certifications, etc.)
Training: General Workforce
Training: Tools and Tips
Games
Handouts and Forms
Language Barriers
Measuring Success

CHAPTER 16 Future Thoughts: Lean Times Ahead

Lessons Learned
Barriers to Supply Chain Integration
Human Resources
Structure
Relationships
Technology
Alignment
Trends in Lean Supply Chain
Data Analytics
Supply Chain Analytics and Lean
Potential Obstacles to Lean Thinking in the Supply Chain
 Lean Ahead

APPENDIX A Real-World Examples of Lean Supply Chain and Logistics Management

APPENDIX B Lean Opportunity Assessment

References
Index