Kaizen In Logistics And Supply Chains By Euclides A. Coimbra

cargo ship docked at the pier
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My Takeaways:

‘The aim of kaizen is to constantly fight for the elimination of waste, variability, and overburden.’

‘The Total Flow Management model is based on the creation of pull flow both in manufacturing and in supply-chain operations.’

‘Viewing the flow of material and information from the customer end is an important point of difference from other systems.’

‘For each type of improvement or change, there is a habit, there is a group of people who will need to drop old habits and adopt better ones.’

‘Too much inventory and low service levels can be easily explained by having too much of what you don’t need and too little (or none) of what you need immediately.’

‘There is always some level of error associated with any method of forecasting because forecasts by nature make assumptions about the future.’

‘It became clear that the current system for information and material movement had reached its limit and that a new paradigm had to be implemented if the company wanted to move beyond its current limitation.’

‘If the facility can operate at the same cycle time (facility cycle time balanced with customer takt time), then theoretically there will be no muda of material waiting or too much output.’

‘How can we improve machine basic reliability? A quick impact can be achieved through focused gemba kaizen workshops.’

‘In some cases, only a change in system will solve a chronic problem.‘

Achieving the target of creating one-piece flow means redesigning the layout and equipment in order to manufacture one piece at a time in the right sequence of operations.’

‘The aim of one-piece flow is to reach a state of continuous movement from raw materials to finished goods without any stoppages.’

‘One advantage of having several smaller and longer cycle-time lines is that it is extremely easy to balance the line.’

‘Line and layout design always should start with a product-quality (PQ) analysis.’

‘It is the task of internal logistics to supply the right materials, in the right quality, at the right time, at the right location, and with the right method of presentation.’

‘Creating standard work means achieving a state of fluidity in the worker’s movements so that the job will be done in the least amount of time and with perfect quality.‘

‘The process of leveling consists of several planning operations that converts orders into programmable batches and launch an optimized sequence of production.’

‘Leveling means repeating a product in a constant cycle of time (also called the every product every interval (EPEI).’

‘Demand forecasts provide the information input for capacity planning. In many cases, the forecast can be done by product family.’

‘Each warehouse in the supply chain will have to consider the right form of presentation for its immediate customers.’

‘The targets to achieve in inbound operations are related to the creation of flow and an increase in productivity in all manual logistics tasks.’

‘This is the failure of logistics- materials are not being provided at the point of use and within hand’s reach of the operator. What in fact is happening here is that the logistics system is pushing muda onto the products.’

‘The first consideration for good storage and warehouse design is to define optimally sized locations and aggregation of storage type.’

‘Monthly sakes targets can create an artificial spike at the end of the month because the sales force will try to achieve these targets or the sales forecasts may be too optimistic and thus never be achieved.’

‘The first step in defining the planning strategy is to decide which product reference will be available for immediate delivery and which will have to be ordered.’

‘Planning the capacity of the logistics loop has to do with checking that the distribution warehouse suppliers and the transport network are prepared to handle a forecasted volume of orders.’

‘When the stock reaches the reorder level, this automatically generates an order to suppliers, which is equal to the amount just consumed. Toyota calls this the ‘sell-one, buy-one system.”

‘The value-added time can be an estimate of the sum of the unloading, binning, picking, and loading operations.’

‘The purpose of creating production flow is to have fully integrated one-piece flow operations with high worker productivity and high flexibility in changeovers.’

‘The best time to look for improvement opportunities is after working through the production-flow pillar.’

‘The shipment frequency and the transport lead time are key points to consider.’

‘The best solution is when the shipment frequency matches the call-off frequency.’

‘If the return on investment is longer than one year, something is wrong. Usually this means too much capital expenditure was allowed in the vision for the system.’

‘The main quantifiable key performance indicators are: reduction of inventory, improvement of productivity, improvement of quality, and improvement of customer service.’

Source

Euclides A. Coimbra (2013). Kaizen in Logistics And Supply Chains