leancor consulting webinar: how to deploy continuous improvement in the warehouse
TRANSCRIPT
Advancing the World’s Supply Chains Copyright © LeanCor 2015
Respecting Excellence: A case study on cultural development
in a distribution environment
Copyright © LeanCor 2015
Regional Vice President,
LeanCor Supply Chain Group
Instructor,
Georgia Tech Supply Chain
and Logistics Institute
(GTSCL)
Career Focus:
Over 17 years of third party logistics and
consulting experience with a specific focus in
Lean and Japanese production system
environments, including contract and
operations management positions across the
globe
Currently Responsible For:
Leading supply chain consulting projects for
LeanCor customers in a wide array of sizes
and industries. These have included lean
warehousing implementation, warehouse
layout and design, and ROI assessments
Industry Group Speaker:
AME, CSCMP, WERC, GTSCL, Institute of
Industrial Engineers, Lean Enterprise
Institute, Georgia Center for Logistics,
Honda Lean Network
Copyright © LeanCor 2015
Director of Operations
Efficiency,
Interline Brands
Career Focus:
Over 17 years of experience in leadership
roles within manufacturing, distribution and
operations
Currently Responsible For:
Identifying and leading the implementation of
efficiency and cost savings initiatives to
improve distribution / supply chain
performance while improving Interline
Brands’ customer experience
Industry Experience:
Sr. Operations Manager for W. W. Grainger’s
250,000 sf Distribution Center, NACCO
Material Handling Group and Chrysler’s
Sterling Stamping Plant
Over 11 years with Chrysler in procurement,
supply chain and manufacturing across
several facilities within the U.S.
Copyright © LeanCor 2015
Lean, supply chain, six
sigma, and leadership
courses that develop
people capability and
problem solving skills
while building a culture of
operational excellence.
Project-based, end-to-
end supply chain
solutions that improve
your processes, reduce
inventory and Total Cost,
and optimize your
network.
Custom, outsourced
transportation
management and
warehousing
solutions that optimize
material flow, and exceed
your business goals.
Trusted supply chain partner that specializes in lean principles to
deliver operational improvement. Three divisions:
Copyright © LeanCor 2015
Institutional and
Commercial Facility
Owners and Service
Contractors
Residential Service
Contractors and
Retailers/Resellers
Large-scale, national distributor delivering maintenance products,
solutions and focused expertise to three customer segments:
Multifamily Apartment
Owners and Property
Managers
Copyright © LeanCor 2015
- To embrace common principles to drive a problem
solving culture
- To teach our people how to identify and eliminate the
root causes of wasteful processes
- To improve efficiencies by driving out preventable costs
To Make Operations a REASON to be a customer of
Interline Brands.
Poll: Do you have a formal continuous
improvement program in your warehouse(s)?
Copyright © LeanCor 2015
Op Ex – Fact vs Fiction
Goal Statement/ Voice of Customer:
“Operations is a Reason We Buy From Interline Brands”
Copyright © LeanCor 2015
Cultural Perspectives
Copyright © LeanCor 2015
1. Lean Awareness for Leaders: Current State and Vision Alignment
2. Pilot DC Assessment: Productivity Gap
3. Customized and Blended Lean Training and Gap Closure Deployment
◦ Stability Focus: Make Problems Visible
◦ Hour by Hour Status through 5S, Heijunka & Visual Management
◦ Leader Standard Work
◦ Problem Solving Model & Kaizen
◦ Supplier Compliance
4. Post Assessment – Pilot DC & Best Practice Sharing & Maturity Model
5. Next Steps: Value Stream Focus
Copyright © LeanCor 2015
Planned Based
on Takt Time Stability Visibility
Collaboration Lead Time
Reduction
Waste
Elimination
Through
Associate
Engagement
Process
Discipline
Inventory
Reduction
First Time
Quality
Pull
Highest
Customer Value
at Lowest Total
Cost
Principle Based
Organization
Copyright © LeanCor 2015
Copyright © LeanCor 2015
What are your key performance driver(s) in
the warehouse? (Select all that apply.)
Copyright © LeanCor 2015
•Visible “Quick Win”
Improvements within
Functional Span of
Control
•Results of Training
and Education
•Visible Improvements
Across all Functions
and the End to End
Value Stream
•Training and
Education
•Appropriate
Curriculum for all
Levels of the
Organization
•Principle Based
Organization
•A3 Thinking
•Goal and Target
Deployment
•Collaboration
•People Engagement Vision
Alignment
& Strategy
Deployment
People and
Capability
Development
Functional
Improvement
Applied
Learning
Value
Stream
Improvement
Systems
Thinking
We Are Here
Copyright © LeanCor 2015
Taking Responsibility for System Wide Results
Copyright © LeanCor 2015
Copyright © LeanCor 2015
Outbound Productivity
Picking Productivity
Receiving Productivity
16
Copyright © LeanCor 2015
Associate Productivity
Lean Awareness Visuals
17
Copyright © LeanCor 2015
Ne
gati
ve
Min
imal
P
osi
tive
Lean
Pro
cess
Mat
uri
ty
Lean Deployment - Maturity Model
Flow - High Performance
Level flow of all logistics activities over the entire value stream to reduce variation and enable stability (balancing flow within the distribution center operation)
Decisions Driving Excessive Waste and
Cost
Feeling the Effects of Unintended
Consequences
Learning to See Waste in the Value
Stream - Understand Future
State
Lean Initiatives Across the
Distribution Center
Create Overall Management Systems and
Principle Based Organization
within the facility
Value Stream Improvement
Lead and make decisions based on Total Cost of Fulfillment within the supply chain recognizing that all decisions have unintended consequences and their impact on the entire value stream
Decisions Made with Unintended
Consequences
Learning to See the Value Stream
Questioning Assumptions and Current Mental
Models
Eliminating Waste Across Value Stream of the
Operation through Experiments
Scaling Experiments Across the
Distribution Center
Functional Improvement
Learning to see….. Wastes Do Not See Waste Observe Waste within
Functions Reduce Functional
Waste - Quick Wins
Influence Functional Waste
Reduction
Share Functional Best Practices
Across the Organization/Net
work
Process and People Visibility
Make customer consumption visible throughout the supply chain (internally and externally) and demonstrate a respect for people and process and the value add both contribute
Highly Directive Begin to Observe
People and Process
Show Respect for People and Process - Understand Current
State
Balance Thinking and Tools
Drive Principal Based Decision
Making
Problem Solving Collaborate, build teams, solve problems and focus on process discipline
Hero Firefighter Problem
Identification Individual Problem
Solver Team Based
Problem Solving Empowering
Problem Solving
Unaware Aware Doer Coach Mentor
Lean Leader Maturity
Copyright © LeanCor 2015
Productivity increase of 10%
20% Reduction in Overtime
Cultural shift across 70 DC operations
Stable foundation of knowledge and tools for
advanced improvement tactics and strategies
Copyright © LeanCor 2015
Pro’s
1. Leadership Priority and Support
2. Expertise at the Top of the House
3. Relentless Focus: Do Not Accept Excuses
Con’s
1. Systems Thinking: All departments can effect DC productivity
(purchasing, supplier compliance, transportation)
2. Consistency of Deployment Team
3. Expertise at the Top of the House
Copyright © LeanCor 2015
Based on the Shingo-Award winning book,
PEOPLE
Leverage lean principles to become a
more effective leader, build teams, and
drive operational excellence.
Start today:
◦ www.leancor.com/online-lean-training/
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Next Webinar:
The Plan for Every Part: How to
Create Standardization in Material
Flow Ordering
WED, May 13 | 11:00 – 12:00 EDT
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Brad Bossence
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Charles Brown
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