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| About Lean Road Map |
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| Lean
Roadmap takes the mystery out of where to start and what
to do. The processes are designed to be easy to understand
and extremely practical to use. This book and the processes
remove the mystery from the lean design process. My goal
in writing this book is to give you the knowledge required
to successfully design a lean solution for your business
with a minimum of time, while maximizing the gains. This
book also tells you how to successfully configure your
MRP/ERP investment for lean. The revolutionary breakthrough
processes described in information flow are currently
being utilized in manufacturing environments with great
ease and success. |
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| Part
I Lean Roadmap Building Blocks Overview |
| Part 1 offers an overview
of the building block processes required for a complete lean
design for your business, relates business improvements to Lean
Roadmap building blocks, and is a non-technical “nuts
and bolts” overview of the importance and simplicity of
these building blocks in improving your business. |
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| Part 2 Lean Roadmap Management |
| Part 2 describes how lean
organizational assignments are linked to Lean Roadmap building
blocks and covers how leadership and employees function as part
of the Lean Roadmap design and implementation. |
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| Part 3 Lean Roadmap Value
Stream Mapping (VSM) |
| Part 3 describes the VSM
process used for “out of the box” thinking, resulting
in an internal team delivering a future-state vision for material
and information flow that significantly reduces lead time and
costs. This future-state vision is the basis for the detailed
design required and defined in Parts 4 and 5. |
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| Part 4 Lean Roadmap Supply
Chain Management Material Flow Design Process Steps |
| Part 4 covers material flow
related to cell design, plant layout, kanban, and cell management
from suppliers to and through the manufacturing process and
to the customer, utilizing cellular manufacturing, kanban replenishment,
and ATC scheduling to final assembly cell capacity. How to match
capacity to customer demand and deliver on time to the customer. |
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Part
5 Lean Roadmap Supply Chain Management Information Flow Design
Process Steps |
Part
5 covers configuring MRP/ERP for lean. Information
flow is vital to supply chain design, planning, and management. Revolutionary
concepts that simplify the process are described in this section
such as, |
1. Simple S&OP using planning
families, plan thousands of configurations using a handful
of numbers,
2. ATC scheduling customer demand to cell capacity at
order booking,
3. Material replenishment using supplier 1 line reporting,
4. Lean software, Sales & Operations Manager™,
and kanban Manager™. |
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| Introduction to Lean
Roadmap |
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| The primary objective of
a Lean Roadmap is to achieve the shortest production lead-time
in your addressed market space and to deliver on time to the
customer’s request date with little or even no finished
goods inventory. Additional objectives of a successful Lean
Roadmap implementation are reduced overhead structure, reduced
quality costs, productivity improvements, and reduced floor
space required to operate your business.
Part I of Lean Roadmap is an overview of
the eleven essential building blocks required for a successful
Lean
Roadmap design. A successful design and implementation will
yield significant improvements in your business. Use the first
part of the book to achieve an understanding of how the building
blocks complement one another and provide a straightforward
roadmap for lean design.
Lean design and implementation in your business is not difficult
to accomplish. The 11 Lean Roadmap building blocks
are clearly detailed in this book. These building blocks are
the required elements for the design, planning, and daily
management of a successful supply-chain management system.
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| Part 1 offers an overview
of the building block processes required for a complete lean
design for your business, relates business improvements to Lean
Roadmap building blocks, and is a non-technical “nuts
and bolts” overview of the importance and simplicity of
these building blocks in improving your business. |
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| Lean Roadmap Business
Improvement Deliverables |
• Eliminate or significantly reduce both work in process
and finished goods inventory.
• Reduce lead times from weeks to days/hours.
• Significantly improve customer on-time delivery (to
the customer’s date).
• Eliminate wasteful steps in the manufacturing process
and realize gains in productivity.
• Reduce floor space required, making room for additional
product lines with the same bricks and mortar.
• Configure MRP/ERP for lean. Utilize your current business
software investment and realize significant
reductions in excess overhead. Use the power of your current
business software to establish a required supply chain
configuration.
• Convert from a forecast for finished goods inventory
to a forecast for kanban and assemble or make-to-order
business.
• Seamless and accurate scheduling of customer orders
at order entry, matching capacity to demand, using the
Assemble to Capacity process (ATC).
• Assemble on-demand product configurations the customer
orders.
• Point-of-use inventory at the production cells controlled
at the point of assembly, and managed/reordered by the
people who assemble/manufacture the product.
• Inventory replacement via kanban; only material consumed
by the customer is reordered.
• Measurement, control, and improvement of performance
measurements linked from plant to cell level.
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Lean Roadmap
will clearly detail the business process building-block designs
required for your company to achieve significant improvements.
The following table is an example of improvement types and magnitude
of improvements you should expect, depending on the current
state of your business. The listed improvements are easy to
achieve utilizing the Lean Roadmap building blocks for design,
planning, and management of your supply chain. The chart values
are based on historical achievements experienced in working
with actual businesses.
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Performance
Measurement Widgets |
Pre-Lean
RoadmapCurrent State Value |
Quality Costs,
Scrap, Warranty-Annual |
$176,000 |
On Time Delivery
to Customers |
53% |
Direct Labor
Employees |
42 |
Indirect Labor
Support |
8 |
Salaried Support |
1 |
*Inventory
Finished Goods $ |
$3,475,346 |
* Inventory
WIP $ |
$476,000 |
* Inventory
Raw $ |
$1,500,456 |
Weighted Avg.
Lead-Time Days Manuf. |
27 |
Weighted Avg.
Lead-Time Days Suppliers |
58 |
Distance Traveled
to Make a Product |
6500' |
Floor Space
Value Added for Production |
29500 sq ft |
Floor Space
Non-Value Added |
45000 sq ft |
Number of Operations
to Schedule |
12 |
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| Lean Roadmap will explain
how to: |
• Define and calculate performance measurements that link
to required business improvements.
• Enable a lean organizational structure that places ownership
for plant and business improvement where it
belongs, yielding consistent Lean Roadmap design and shortened
implementation times.
• Utilize a disciplined process to quantify current process
steps, costs, and lead-times used to manufacture products,
develop a future state vision (floor plan), project expected
savings, cost-to-implement, and timeline for implementation.
Thus, you know the potential $improvement and cost to
implement before starting the process.
• Design a lean supply chain planning and management process
for products that yields significant improvements in inventory
turns, productivity, and on-time customer delivery.
• Configure and supplement your current MRP/ERP business
software for lean.
• Plan a simple and effective lean supply chain that matches
customer demand to available capacity,
replenishing material as the customer purchases products.
• Manage a lean supply chain: accurate customer scheduling
at order entry, building to customer demand,
and replacing material as it is consumed. |
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Lean Roadmap
is designed to be an easy study, and I suggest you keep a
notebook and calculator close by as you read. The Lean Roadmap
processes and calculations described are easy to follow; your
notebook will record ideas that apply to your business.
Whether you are a business leader or a lean leader, your understanding
of the Lean Roadmap building block steps and logical design
calculations will arm you with the knowledge to steer a successful
lean design for your business. The hours you commit to the
understanding of the Lean Roadmap building blocks will pay
enormous dividends in the future.
Lean Roadmap is a proven and logical building
block process, complete with respect to both material flow
(supplier to customer) and information flow (customer to supplier),
defined step by step. When you understand the Lean Roadmap
supply chain process and develop a design for your business,
all that remains is to do it.
The difficulties encountered with a lean implementation generally
occur with the information flow processes of
forecasting, customer order entry, scheduling, and materials
management. Lean Roadmap explains in detail
the
information flow business processes required.
In the past, no matter how well we planned and managed material
flow through the supply chain, information flow
process adversely affected us in several ways:
- We booked customer orders to infinite capacity.
- We experienced material shortages and inadequate replenishment
of materials required to meet customer
demand.
- We used supplier lead-times of weeks. Self-imposed lead-times
of weeks, designed to assist in on-time
delivery, actually have the opposite effect. Instead of
lead-times of weeks, only hours or days are required to
satisfy customer requirements for product.
Without a simplified and effective information flow process
that supports the material flow in both planning and execution,
the supply chain management process will continue to experience
failure. Lean Roadmap solves these problems.
If you are wondering why Lean Roadmap is
not a thicker book, it’s because the process is quite
simple to understand. The essence of lean is waste reduction
and simplicity. Lean supply-chain management is not complicated,
and when you read and understand this book’s contents
and the logic of the process steps, I hope you will agree
that more pages would simply be wasteful—and we live
lean.
I suggest you make a copy of the glossary of terms located
in the back of the book for easy reference. It will provide
you with definitions used in this book and is the basis for
a common Lean Roadmap vocabulary for your business.
Note: A serious management team dedicated to a Lean
Roadmap outcome should plan around a 1-year timeframe for
significant implementation and realization of benefits as
defined by your performance measurements and detailed in a
future state design. As you implement lean in a value stream,
the firefighting is replaced with time for planning and managing
the business.
Let’s get started. Part I of Lean Roadmap
is an overview of the Lean Roadmap supply chain processes
as applied to a typical manufacturing business. |
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“Lean
Roadmap” Inside the Book
05.05.06
