Lean Supply Chain
Action Learning Program
September 2007
Objectives of the Proposed Program
• Enable participating companies to learn with and
from each other by tackling real projects of vital
importance to the companies
• Demonstrate the effective application of lean
principles in warehousing, transport, procurement
and distribution
• Disseminate the learnings to promote the application
of lean supply chain principles by local companies
• Promote South Australia as a world class centre for
supply chain excellence
Lean Supply Chain
• Focuses on the Value Stream
• Encompasses warehousing, distribution, transport
and procurement
• Removes waste, mistakes, inflexibility
• Involves developing a “lean mindset”
May involve…
• Eliminating, combining, rearranging, simplifying
stages
• Removing commercial obstacles
• Promoting free flow of information
• Improved logistics methods and systems
• Strategic positioning of inventory
• Involving supply chain partners in the change
process
Action Learning
• A process in which a group of people come together
regularly to help each other learn from their
experience.
• Participants typically come from different situations
where they are involved in different activities and face
individual problems.
• The intention is to introduce some change, and use
the intended change as a vehicle for learning through
reflection.
The Lean Supply Chain
Action Learning Program
• Each project is undertaken by a team of three to five;
one or two from the company and the remainder from
other companies
• The team works intensively together, one day per
week over five weeks, learning and applying lean
principles to the problem
• Outcomes and recommendations are presented to
the host company senior management
• Key elements of the process are videotaped as a
case study to promulgate via DVD to South
Australian companies and via the Web to the World.
Project Selection Criteria
•
•
•
•
Addresses an issue of high priority to the company
Likely to benefit from “fresh eyes”
Potential to demonstrate best practice/lean principles
Likely to achieve a tangible outcome in the time
available
• Company willing for outcomes to be used in the
public domain as a case study
Typical Projects
• Examining the overall supply chain to determine strategies to
improve customer service, reduce or eliminate inventory, reduce
lead time and non-value adding activity
• Apply Lean Principles to warehouse processes and work flow to
reduce double handling and improve customer service etc
• Develop a new warehouse layout to reduce distance traveled,
increase storage density
• Examine the existing warehouse organisation structure, job
roles and skills and devise a development program to build
involvement, teamwork and effectiveness of the people
• Etc
Process Improvement Methodologies
• Lean Principles and Value Stream Mapping
• Cycle Time Reduction and Flow Process Charting
• Business Process Re-engineering
Stages in Value Stream Mapping
•
•
•
•
•
•
Start with the Customer and work back
Become familiar with the present process
Observe and measure the present process
Create a Value Stream Map of present process
Identify non-value adding and waste
Develop an improved process to reduce overall lead
time
• Create a Value Stream Map of the new process
• Plan the implementation and win buy-in
Project Steps
• Preparation
• Project
– Day 1
– Day 2
– Day 3
– Day 4
– Day 5
• Dissemination
Preparation
– Companies are canvassed for potential projects
– Facilitator meets with each company to:
• Set the Minimum Critical Specification for the
project
• Establish any constraints
• Identify resources to be provided by the
company
Preparation (continued)
– Team is selected
– Facilitator identifies relevant learning resources eg
readings and case studies relevant to the project,
to be used to prepare the team
– Team is briefed at an initial meeting at the host
company.
Day 1 - Plan the Project
–
–
–
–
Become familiar with the current situation
Clarify the objectives of the project
Identify the skills and capabilities within the group
Share learnings from pre-reading and from experience to
identify possible approaches and tools to be used
– Agree on the overall approach and the roles of each team
member
– Develop a project plan
– Reflect on the effectiveness of the team and the process
Day 2 Record and Examine
– Identify, gather and assemble relevant data and information
– Consult with stakeholders
– Document the current situation using the appropriate tools
eg Value Stream Mapping, Activity Sampling, Flow Charting,
Storyboarding etc
– Analyse the current situation to identify opportunities for
improvement eg elimination of non-value adding activity,
cycle time reduction etc
– Initial brainstorming of ideas and options
– Pose questions to be researched and answered before Day
3
– Reflect on the effectiveness of the team and the process
Day 3 Develop
– Review outcomes of research between sessions
– Intensively brainstorm options and short list eg story
boarding, mind mapping etc
– Test short listed options with the key stakeholders in the
company
– Synthesize the proposal
– Identify further information or data to be collected to validate
the proposal
– Assign responsibilities for next session
– Reflect on the effectiveness of the team and the process
Day 4 Refine and Justify
• Refine the proposal based on the research between sessions
• Document the proposal eg Value Stream Map, Layout Diagram,
Flow Chart etc
• Prepare a cost benefit analysis of the proposal
• Develop an implementation plan
• Plan tasks and assign responsibilities for next session
• Reflect on the effectiveness of the team and the process
Day 5 Present Outcomes
– Prepare a report with recommendations and justifications
– Prepare a presentation for the host company’s senior
management
– Present to Senior Management and obtain their feedback
– Reflect on the effectiveness of the team and the process and
document the learnings
Dissemination
– Presentations by project team at seminars and
site visits
– Video case study of the project, for inclusion with
other case studies on a DVD for distribution to SA
companies
– Web site explaining and promoting the program
with downloadable case studies and streaming
video or slide presentations to illustrate,
accessible around the world as a showcase for
South Australian supply chain excellence
Into the future
• Recruit more companies into the program locally and
interstate.
• Encourage overseas companies to follow the
example, and to contribute their case studies to the
data base
• Provide a platform for benchmarking, locally and
internationally
Funding
• The initial projects under Lean Supply Chain Action
Learning Program have been funded by the SA
Department of Trade and Economic Development
(DTED)