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Lean and Technology: Working Hand in Hand to Enable and Energize Your Global Supply Chain

Book Description

Focus Your Supply Chain Technology Investments to Reduce Risk and Maximize Competitiveness

Lean, Six Sigma, and related approaches offer immense potential for improving competitiveness, cost, and customer experience—if you can overcome the challenges of planning and implementation. The well-targeted use of technology can dramatically reduce your risks and accelerate your progress. Until now, however, many guidebooks and consultants have treated Lean primarily as a “pen and pencil” technique. Lean and Technology is the first complete guide to integrating Lean thinking with proven, affordable, and emerging technologies. You’ll learn how companies are linking strategy, the value chain, and IT—and how they are executing on their plans to achieve real competitive advantage.

Step by step, Myerson shows how to use the proven six-step SCOR Model to organize the integration of technology with all key supply chain and operations processes. You’ll discover how to:

  • PLAN to optimize supply chain networks, demand forecasting, master production scheduling, and S&OP

  • SOURCE more effectively with today’s MRP and procurement/e-procurement technologies

  • MAKE higher-value “lean production” products with modern ERP, MES, and short-term scheduling systems

  • DELIVER the right customer solutions at the right time and cost via advanced DRP, TMS, and order fulfillment systems

  • RETURN products and materials with state-of-the-art reverse logistics systems

  • ENABLE continuous improvement via carefully chosen measurements, metrics, and analytics

  • Throughout, Myerson presents easy-to-use tools, methodologies, best practices, and real-world examples: all you need to improve speed, accuracy, integration, and collaboration across complex supply chains. He concludes by previewing emerging technologies for maintaining and extending the competitive advantage you’ve already built.

    Table of Contents

    1. About This E-Book
    2. Title Page
    3. Copyright Page
    4. Dedication Page
    5. Contents at a Glance
    6. Contents
    7. About the Author
    8. Part I: Introduction and Overview
      1. 1. Lean Supply Chain and Technology: A Perfect Combination
        1. It’s a Small World After All
        2. How Big an Opportunity Is It?
          1. The Extended and Often Global Supply Chain and Technology
          2. Information Systems (IS) Versus Information Technology (IT)
          3. Risks and Rewards
        3. Linking Competitive Strategy to the Value Chain
        4. Competitive Strategy, Business Processes, and IT Structure Aligned
        5. Using the SCOR Model to Help Enable Lean Opportunities with Technology
      2. 2. The Growing Importance of the Supply Chain and Technology to Business and Society
        1. Supply Chain Defined
        2. History of Supply Chain and Logistics Management
        3. The Role of Information Technology in the Supply Chain
          1. Supply Chain Information
          2. Interactive View of Information
          3. Importance of Integration for Sharing Information
          4. Viewpoints of Supply Chain Information Systems
          5. Supply Chain Macro Processes
          6. Supply Chain Information Technologies
        4. Supply Chain Technology Trends
      3. 3. Lean Concepts and Their Applications in the Supply Chain
        1. Lean Background
        2. Value-Added Versus Non-Value-Added Activities
        3. Waste
        4. Lean Culture and Teamwork
        5. Elements of a Lean Supply Chain Strategy
          1. Basic Tools
          2. Advanced Tools
          3. Tools for Identifying and Solving Problems
        6. Lean, Supply Chain, and Technology
      4. 4. Software and Hardware Sourcing Process and Applications of Supply Chain and Logistics Management Technology
        1. The Procurement Process
          1. Identify and Review Requirements
          2. Establish Specifications
          3. Identify and Select Suppliers
          4. Determine the Right Price
          5. Issue Purchase Orders
          6. Follow Up to Assure Correct Delivery
          7. Receive and Accept Goods
          8. Approve Invoice for Payment
        2. Software and Hardware Selection
          1. Phase 1—Planning and Budgeting
          2. Phase 2—Requirements Analysis
          3. Phase 3—Vendor Research
          4. Phase 4—Demonstrations
          5. Phase 5—Final Decision
          6. Phase 6—Contract Negotiation
          7. Implementation Partner/VAR Selection
        3. Make or Buy
          1. SCM System Costs and Options
          2. “Best-in-Class” Versus Single Integrated Solution
          3. Consultants
        4. Project Management
        5. Supply Chain Software Market
          1. Supply Chain Planning (SCP)
          2. Supply Chain Execution (SCE)
          3. Other Supply Chain Technologies
        6. Current and Future Trends in Supply Chain Software
          1. Short-Term Supply Chain Technology Trends
          2. Emerging Supply Chain Technology Trends
    9. Part II: Plan
      1. 5. Supply Chain Network Optimization
        1. Strategic Planning Level
        2. Tactical Planning Level
        3. Operational Planning Level
        4. Importance of the Supply Chain Network
        5. The Location Decision and Its Impact on Value
        6. How and Why Network Optimization Technology Can Help Enable a Lean Supply Chain
        7. Network Optimization Technology
          1. Technology Options
        8. Supply Chain Network Optimization Technology Case Studies
          1. Case 1: North American Industrial Manufacturer Optimizes Its Distribution Network
          2. Case 2: Semiconductor Manufacturer Re-Designs Its Global Supply Chain Network
      2. 6. Demand Forecasting Systems
        1. A Lean Approach to Forecasting
          1. Typical Forecasting Process
          2. Lean Forecasting Process
        2. Forecasting Technology Options and Requirements
        3. Lean Forecasting Technology Case Studies
          1. Case 1: Caribou Coffee Automates Forecasting Process with Logility Software
          2. Case 2: Butterball Uses JDA Software to Improve Its Forecasting Process
          3. Case 3: Kimberly-Clark Integrates Point of Sale (POS) Information to Improve Its Resupply Process with Retailers
      3. 7. Master Production Scheduling
        1. Master Production Schedule (MPS) Defined
        2. Lean Scheduling
        3. MPS/Production Planning Technology Options and Requirements
          1. Lean and ERP for Production Planning: A Fine Balancing Act
        4. Lean Production Planning and Technology Case Studies
          1. Case 1: Energy Bar Company Upgrades Production Planning Technology
          2. Case 2: Global Raw Materials Supplier Integrates MPS Process to Minimize Waste
          3. Case 3: Nestlé Innovates Its Milk Production Planning
          4. Case 4: Durabuilt Windows and Doors Balances Lean and ERP for Production Planning
      4. 8. Sales and Operations Planning (S&OP)
        1. Sales and Operations Planning (S&OP) Defined
        2. S&OP and Lean
          1. Working Together
        3. S&OP/Aggregate Planning Technology
        4. Lean S&OP/Aggregate Planning and Technology Case Studies
          1. Case 1: Infineon Technologies AG Takes Planning to the Next Level with JDA S&OP
          2. Case 2: Accelerated S&OP Collaboration at Lance
          3. Case 3: Continental Mills Increases Productivity with S&OP Process
          4. Case 4: Radisys Improves S&OP Process, Supporting Tools Rapidly After Outsourcing Strategy Leads to Real Challenges
    10. Part III: Source
      1. 9. Material Requirements Planning (MRP)
        1. Procurement and Purchasing Defined
          1. The Purchasing Process
          2. Types of Business Purchasing
        2. Material Requirements Planning Described
        3. Lean and Material Requirements Planning
        4. Material Requirements Planning Technology
        5. Lean MRP and Technology Case Studies
          1. Case 1: Gables Engineering Moves to a “Real” MRP System
          2. Case 2: Transport Data Systems—A Picture-Perfect MRP Implementation Helps Traffic Enforcement Camera Maker to Profitability
          3. Case 3: Raytheon Streamlines and Automates Its Material Requirement Planning Processes with Exostar’s Supply Chain Platform
      2. 10. Procurement (and e-Procurement) Systems
        1. The Procurement Process
          1. Automation of Procurement Documents and Processes
        2. Lean and Procurement
        3. Procurement Technology
        4. Lean Procurement and Technology Case Studies
          1. Case 1: Enabling Online Supplier Collaboration at Toshiba Semiconductor Company
          2. Case 2: Clariant—Increasing Interenterprise Productivity and Extending Its SAP Software Investment Value
          3. Case 3: New Purchase-to-Pay System Allows Smarter Processes at Atea
    11. Part IV: Make
      1. 11. Enterprise Resource Planning (ERP) Systems
        1. Lean Supply Chain and ERP Systems
        2. ERP Technology
        3. Lean Supply Chain and ERP Systems Case Studies
          1. Case 1: Radio Flyer Teamed with Ultra Consultants on ERP Selection, Business Process Improvement, and Implementation Management
          2. Case 2: Flexpipe Systems Inc. Works with IFS Applications for More Flexibility
          3. Case 3: Automotive Supplier Nissen Chemitec America Accelerates Lean Operations with IQMS ERP
      2. 12. Manufacturing Execution Systems (MES)
        1. The Role of MES in Today’s Competitive Environment
        2. Manufacturing Execution Systems and Lean
          1. MES, Lean, and Visual Management Systems
        3. Lean Supply Chain and Manufacturing Execution Systems Case Studies
          1. Case 1: Full Sail Brewing Taps Manufacturing Intelligence to Enhance Brewing Process
          2. Case 2: Merck Sharp & Dohme (MSD) Pharmaceutical Asian Factory Implements MES
          3. Case 3: EZ-MES Automates Production Tracking System at a High-Power Laser Company
      3. 13. Short-Term Scheduling
        1. Short-Term Scheduling Process
          1. Continuous Versus Discrete Industry Scheduling
        2. Scheduling in Service Industries
        3. Lean Short-Term Scheduling
          1. Advanced Planning and Scheduling (APS) Systems
        4. Advanced Planning and Scheduling Systems Technology
        5. Advanced Planning and Scheduling Systems Technology Case Studies
          1. Case 1: Auto Parts Manufacturer Chooses Asprova for Its Good User Interface Reduces Labor of Adjusting the Schedule
          2. Case 2: Mueller Stoves Reduces the Assembly Line Stops after Preactor Deployment
    12. Part V: Deliver
      1. 14. Distribution Requirements Planning (DRP)
        1. Lean and DRP
        2. DRP Software
        3. DRP Case Studies
          1. Case 1: Ford Auto Logistics: Revving Up Service Parts Logistics Operations
          2. Case 2: Everlast Builds a Championship Company with New Product Lines
          3. Case 3: Canadian Tire Keeps Stores Rolling with Replenishment Program
      2. 15. Transportation Management Systems (TMS)
        1. Lean and TMS
        2. Types of Savings and Improvements Resulting from the Use of a TMS
        3. Transportation Management System Technology
        4. TMS Case Studies
          1. Case #1: Papa John’s Pizza Orders “Optimization Supreme” with Manhattan’s Supply Chain Process Platform
          2. Case #2: A Leading Dairy Trims 18% from Transportation Costs Using Optimizer Software
          3. Case #3: Miller Brands UK Uses Transwide TMS to Manage Growing Transport Volumes
      3. 16. Order-Fulfillment Systems
        1. Warehouse Management System (WMS)
        2. Order Management Systems (OMS)
        3. Customer Relationship Management (CRM) Systems
        4. Lean and Order Fulfillment
          1. Order Placement
          2. Order Processing
          3. Order Preparation and Loading
          4. Order Delivery
          5. Faster Fulfillment
        5. Order Fulfillment Case Studies
          1. Case 1: Regional Pharmaceutical Distributor Requires Next Day Delivery
          2. Case 2: Whirlpool Spins Optimized Supply Chain with Help from Manhattan Associates
          3. Case 3: TAGG Logistics Combines Cadence WMS and ADSI Ship-IT for Real-Time Supply Chain Execution System
    13. Part VI: Return
      1. 17. Reverse Logistics Systems
        1. Lean Reverse Logistics
          1. Elements Key to a Lean Reverse Logistics Process
        2. Lean and Reverse Logistics Technology Cases
          1. Case 1: RTL™ Adds Up to Many Happy Returns for Philips Consumer Lifestyle
          2. Case 2: Nokia—Deployment of Global Service Strategy
          3. Case 3: Return Central—Reconstructed Network Yields Big Efficiencies, Faster Processes for National Home Improvement Retailer
    14. Part VII: Enable
      1. 18. Measurements, Metrics, and Analytics
        1. Measurement and Analysis Process
        2. What and Where to Measure
          1. Using the SCOR Model to Measure and Control
        3. Supply Chain Analytics
        4. Supply Chain Decision Support and Analytics Technology
        5. Lean and Supply Chain Analytics Technology Case Studies
          1. Case 1: Business Intelligence in the Supply Chain—Better Decisions Through Data for Anna’s Linens
          2. Case 2: Steel Manufacturer Improves Performance, Profitability
          3. Case 3: H.D. Smith: Why Analytics Is Eating the Supply Chain—New Tools Are Helping Companies Achieve the Supply Chain’s “Holy Grails”
    15. Part VIII: Where Do We Go from Here?
      1. 19. Collaborative Supply Chain Systems
        1. The 80/20 Rule
        2. Collaboration for a Lean Supply Chain
          1. Customer Collaboration
          2. Supplier Collaboration
        3. Integrated and Collaborative Technology for a Leaner Supply Chain
        4. Lean and Collaboration Technology Case Studies
          1. Case 1: Agilent Technologies—Comprehensive Supply Chain Visibility Across a Multi-Enterprise Supply Chain
          2. Case 2: Arrow Electronics Automates Replenishment Program with One Network’s Real-Time Value Network
      2. 20. Emerging Technologies and Their Potential Impacts on the Lean Supply Chain
        1. General Supply Chain Trends
        2. Supply Chain Software and Connectivity Technology Trends
          1. Supply Chain Software Best Practices
        3. Supply Chain Hardware Technology Trends
          1. Hardware Technologies for a Competitive Advantage in the Next Decade
        4. Future Supply Chain Technology Spending
        5. Looking Ahead
    16. References
      1. Chapter 1
      2. Chapter 2
      3. Chapter 3
      4. Chapter 4
      5. Chapter 5
      6. Chapter 6
      7. Chapter 7
      8. Chapter 8
      9. Chapter 9
      10. Chapter 10
      11. Chapter 11
      12. Chapter 12
      13. Chapter 13
      14. Chapter 14
      15. Chapter 15
      16. Chapter 16
      17. Chapter 17
      18. Chapter 18
      19. Chapter 19
      20. Chapter 20
    17. Index