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Lean Supply Chain Management

Lean Supply Chain Management. What is it and how does it work?. Professor Peter Hines Director, Cardiff University Innovative Manufacturing Research Centre. Collaboration between Engineering and Management Disciplines. Logistics System Thinking Inter & Intra Firm. Lean Process Based

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Lean Supply Chain Management

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  1. Lean Supply Chain Management What is it and how does it work? Professor Peter Hines Director, Cardiff University Innovative Manufacturing Research Centre

  2. Collaboration between Engineering and Management Disciplines Logistics System Thinking Inter & Intra Firm Lean Process Based Thinking Inter & Intra Firm Lean Enterprise Research Centre Logistics Systems Dynamics Group Sustainable Logistics Sustainable Solutions Advanced Manufacturing & Information Technologies Sustainable Change Sustainable Technologies Manufacturing Engineering Centre

  3. 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

  4. 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

  5. 1 2 3 Cola Production Tesco Back of Store Tesco Store Cola RDC Tesco X Dock Tesco One Touch Replenishment 1 2 3 4 5 6 Cola Production Tesco Back of Store Tesco Store Cola RDC Tesco RDC 30% Lower Logistics Costs

  6. Tesco One Touch Replenishment

  7. £400m due to Lean Thinking Start of Lean Programme Tesco Profitability £ millions Functional…....Process………..Value Stream……………….

  8. 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

  9. 4M (Integrating outputs from RS1-6, Road-mapping under RS7,across Europe) uSAPIENT (Integrating RS 1-6 across FP6, Road-mapping under RS7) MINOS-EURONET (RS 1-7) I*PROMS Research Knowledge Transfer Technology Management Contract Service Provisions Basic Manuf. Processes Manuf. Technology Development Manuf. Applications Dev. HYDROMEL PREMI (RS 1-6) uTooling LaunchMicro (RS 1-4&7) RS7 RS1 MicroBridge (Capital infr. & expl. RS1-6) SEMOFS (RS 1-7) DTI MNT FP7 MST Group (RS 1-7) RS2 C-STEPS (RS1-6) DELILA (RS 2, 5&7) RS3 MTC (Expl. RS 1-6) RS4 CHARPAN (RS 2, 5, 6, 7) RS5 MAS (Expl. RS 1-6) RS6 FASTFAB

  10. 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.

  11. 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

  12. 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

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