Lean Supply Chain Management

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Lean Supply Chain Management

What is it and how does it work?

Professor Peter Hines

Director, Cardiff University Innovative Manufacturing Research Centre

Lean Supply Chain

Management

Collaboration between Engineering and

Management Disciplines

Lean

Enterprise

Research

Centre

Sustainable

Logistics

Logistics

Systems

Dynamics

Group

Sustainable

Change

Sustainable

Solutions

Sustainable

Technologies

Advanced Manufacturing &

Information Technologies

Manufacturing Engineering Centre

Lean Supply Chain

Management

What is Lean?

• Lean Thinking is a business philosophy that has been widely applied in Wales (and elsewhere!) and is designed to improve the value proposition to customers, reduce waste, smooth out peaks and troughs of activity and make individual worker’s life easier

• Leading exponents we have worked with include

Toyota and Tesco

Lean Supply Chain

Management

Tesco: Research Activity

• Addressed Lean New Product Introduction

– Reduced NPI from 26 weeks to 8 weeks

– Reduced Variability from 6 weeks to 1 week

• Addressing Lean Distribution

– Target 30% increase in Overall Vehicle

Effectiveness

• Addressed Lean Order Fulfilment

– 1 Touch Replenishment

Lean Supply Chain

Management

Tesco One Touch Replenishment

1 2 3 4 5

Cola

RDC

Tesco

RDC

1

Cola

RDC

2

Tesco

X Dock

30% Lower Logistics Costs

Lean Supply Chain

Management

3

6

Tesco One Touch Replenishment

Lean Supply Chain

Management

Tesco Profitability

£ millions

2500

2000

1500

1000

500

0

Start of Lean

Programme

£400m due to Lean

Thinking

Functional…....Process………..Value Stream……………….

Lean Supply Chain

Management

Our New Programme: C-STEPS Mission

C-STEPS is a new flagship CUIMRC programme starting in early 2007 that focuses on the study of knowledge transfer in the engineering and physical sciences to increase the UK’s expert research knowledge base and improve its practical effectiveness

Lean Supply Chain

Management

Basic Manuf.

Processes uTooling

RS1

RS2

RS3

RS4

RS5

RS6

Research Knowledge Transfer

Manuf. Technology

Development

Manuf.

Applications Dev.

Contract Service

Provisions

Technology

Management

HYDROMEL

LaunchMicro

(RS 1-4&7)

PREMI

(RS 1-6)

SEMOFS

(RS 1-7)

MicroBridge

(Capital infr. & expl. RS1-6)

DELILA

(RS 2, 5&7)

CHARPAN

(RS 2, 5, 6, 7)

MTC

(Expl. RS 1-6)

MAS

(Expl. RS 1-6)

FASTFAB

4M (Integrating outputs from RS1-6, Road-mapping under RS7, across Europe) uSAPIENT (Integrating RS 1-6 across FP6, Road-mapping under RS 7 )

MINOS-EURONET (RS 1-7)

I*PROMS

RS7

C-STEPS

(RS1-6)

Lean Supply Chain

Management

C-STEPS: Scope & Focus

To achieve a balance between market ‘pull’ and technology ‘push’.

To integrate technological issues into business decision making.

To study the internal and external factors affecting the knowledge flows between commercial and R&D organisations.

To address the processes needed to maintain a stream of products and services to the market, including strategy development, innovation, and operations management.

Lean Supply Chain

Management

Opportunities to Take Part in C-Steps

• If you are interested in:

– Understanding how you might improve your supply chain through application of new emerging or disruptive technology in a leaner way

• There are also opportunities if you are interested in:

– Finding out about our international research collaboration in emerging and disruptive technologies

– Understanding exploitation routes for your existing or new technologies

– Roadmapping your current and future technology development and exploitation paths

Lean Supply Chain

Management

Follow Up

• If you would like any further information about the

C-Steps programme or any of our other Innovative

Manufacturing work please contact:

Andrew Davies, CUIMRC Manager on

029 20879334 or daviesat4@cardiff.ac.uk

Lean Supply Chain

Management

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