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8591481276?profile=RESIZE_400xCut-throat competition in industries has driven companies to find ways to reduce costs while increasing efficiency.  To accomplish this, most companies have skillfully endeavored to streamline Sales, Operations Planning, Forecasting, Inventory Management, and Logistics.

One area that has still not grabbed industry’s attention is out-bound Supply Chain Management–from packaging to final delivery.  Companies generally neglect Supply Chain simply because they do not consider it their core competency.

Significant Cost Reduction in the Supply Chain can be achieved by focusing on 2 main cost categories:

  1. Warehousing Costs
  2. Transportation Costs

Warehousing and Transportation represent a significant portion of the total Logistics costs.  Implementing improvement programs, without any significant capital investments, can enable 20-50% cost saving in Warehousing, 40% in Transportation costs, flexibility, and better service.

Supply Chain Cost Reduction in Transportation and Warehousing has vast potential, not only in terms of costs, but also Process Improvement using Lean Six Sigma (LSS) techniques.

The approach to Supply Chain Cost Reduction in Warehousing encompasses 3 phases:

  1. Set the Baseline
  2. Determine the Gap
  3. Implement Lean Six Sigma (LSS)

Meticulous and persistent application of Lean Management and Six Sigma techniques is at the core of reshaping Warehousing Operations and eradicating sources of waste, variability, and inflexibility.  This article is an overview of the 6 building blocks used in Implementing Lean Six Sigma (LSS)—the 3rd phase of the approach to Supply Chain Cost Reduction in Warehousing:

  1. Business Processes
  2. People
  3. Performance Management
  4. Third Party Interactions
  5. Layout
  6. Ownership

Let us dive a little deeper into some of the building blocks.

Business Processes

Business Processes present a huge opportunity for improvement by eliminating redundancies and sources of waste in Warehouse operations (e.g., unnecessary motion or double-handling in Manufacturing).  Each source of waste represents extra costs and inflexibility that can be reduced or eliminated.

 Business Process Improvement can help reduce:

  • Handling steps
  • Motion
  • Transportation
  • Space requirements
  • Effort
  • Time spent

People

This building block of Implementing Lean Six Sigma aims at avoiding overstaffing of full-time employees and at the same time maintaining a well-trained, efficient workforce.

Streamlining this building block leverages the following benefits to organizations:

  • Refined Recruitment process reduces Employee Turnover.
  • Facilities can more closely match on-site staffing to demand by reducing notice periods.
  • Efficiency can be raised by about 15% through regular training.
  • Overstaffing of full-time employees can be avoided.
  • Productivity can be improved by 5-10% by focusing on appropriate facets of Performance during training.

Performance Management

This building block aims at using existing Performance Management levers to improve Employee Performance through morale boosting and awareness exercises.  A laser-focus on the performance element helps the leadership achieve the following benefits: 

  • Constant reminders and display of current performance give employees a sense of competition and drive.
  • Quick daily discussions highlight the significance of good performance and helps employees focus on essential aspects of their work.
  • Productivity is improved up to 20% by linking pay to performance.
  • Real-time feedback supports pay-related performance.
  • Measuring and rewarding the “softer” elements has long-term benefits.
  • Recognizing employee of the month can increase staff satisfaction.

Given the existing industry cost and performance demands, wasteful or unpredictable Warehouse operations lose more than money.  This can do rapid and permanent harm to a company’s reputation with customers since distribution is the logistical interface with the customer.

Improving Warehouse Operations is a significant area not only for Cost Reduction, but also a source of refining Customer Value Proposition.

Interested in learning more about Supply Chain Cost Reduction in Warehousing and Lean Six Sigma?  You can download an editable PowerPoint on Supply Chain Cost Reduction: Warehousing here on the Flevy documents marketplace.

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Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities.  It also captures the management of the flow of goods and services.

In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become.  By April, many countries experienced declines of over 40% in domestic and international trade.

COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM.  In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart.  Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.

Learn about our Supply Chain Management (SCM) Best Practice Frameworks here.

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This week, LearnPPT added a new section to their site: Operational Excellence.

What exactly is Operational Excellence?

Operational Excellence is a set of business principles, tools, and frameworks aimed to achieving sustainable improvement of key performance metrics. Much of this management philosophy is based on continuous improvement methodologies, such as Lean Management (or Lean Enterprise), Six Sigma, Kaizen, Hoshin Kanri, 5S Workplace Productivity, and PDCA. The focus of Operational Excellence goes beyond the traditional event-based model of improvement toward a long-term change in organizational culture.

The page is currently divided into 4 main sections:

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Over the past couple weeks, a ton of new business frameworks, covering topics from the 5S framework to Kaizen principles to benchmarking, have been added to Flevy.  Flevy is a marketplace of premium business documents, which include business frameworks, financial models, PowerPoint templates, market research reports, and other similar documents.

This presentation deck covers the benefits of benchmarking, various types of benchmarking, identifying what to benchmark, and provides a detailed step by step guidance on how to systematically carry out a benchmarking project based on the world-renown Xerox benchmarking model. It also includes useful tips on benchmarking, benchmarking etiquettes and the critical success factors.

Hoshin Kanri ( Policy Deployment or Hoshin Planning) is a powerful, systematic Strategic Planning methodology that uses a Plan-Do-Check-Act cycle to create goals, choose control measures and link daily control activities to the company’s strategy.

In this training presentation, you will be able to teach employees on the structured Plan-Do-Check-Act (PDCA) approach to problem solving. Many world class companies such as Toyota uses the PDCA problem solving process for relentless pursuit of continuous improvement.

“Lean” is a management philosophy based on the Toyota Production System (TPS). With Lean Thinking, you will be able to enhance value for your customers by improving and smoothing the process flow and eliminating waste. Simply put, with Lean, you will be able to increase productivity and create greater customer value with less resources.

Strategic principles allow organizations to make decentralized decisions while maintaining cohesive strategic action. This document explains the strategic principle framework, including examples, defining attributes, relevant crucial situations, and an approach to strategic principle development.

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This training presentation is specially designed for managers, supervisors, facilitators and continuous improvement steering committees who want to kick-start and implement Kaizen activities in their work areas to improve productivity and customer value.

This training fits well into any improvement initiative, including TQM and Lean management. The COQ methodology instills a practical approach to quantifying the financial impact of the Cost Of Non-Conformance (CONC) and the Cost Of Conformance (COC).

Developing and presenting a business plan is something most of us will do at some point in our business life. If you are good at doing it you are more likely to be successful at raising finance.  This is an easy to follow guide that will give you the right attitude and approach to developing and presenting your business plan.

The 5S workplace organization system applies a set of basic management principles that many companies widely adopt to maximize productivity and organization. As a cornerstone of Lean management, 5S improves workplace morale, safety and efficiency.

This presentation provides a blueprint for building a Lean foundation for your office. You will learn how to mobilize and align your management team to launch or improve 5S in your office.  The presentation covers 5S and Visual Management key concepts, best practices, step-by-step implementation guidance, and the best ways to integrate 5S into the organization’s culture to achieve sustainable world-class excellence.

Most companies are yet to reach their full potential because Human Resources is yet to reach a strategic level of contribution. This PowerPoint presentation shows how to transform Human Resources from a staff function to a strategic business partnership.

This document outlines a 3-phase framework for conducting robust Strategic Analysis, based on a paper published by A. E. Boardman and A. R. Vining. The framework describes the major elements of a strategic analysis, and consists of a logically-sequenced, coherent skeleton of a comprehensive strategic analysis.

Total Quality Management (TQM) is a holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. This training presentation includes quality philosophies from key quality leaders such as W. E. Deming, J. M. Juran and Philip Crosby, and provides a summary of process management, steps for TQM implementation, key tools and techniques for total quality as well as the key business excellence and quality management models.

No doubt, employees bestow many improvement ideas. If you don’t have a formal system to collect and evaluate the ideas, you will lose them. These ideas can save you money, grow your business, and affect your overall bottom line. This formal system details the phases of collecting, evaluating, implementing and rewarding good ideas.

This presentation explores the basics of social media and how to select the right social networks, social media branding, social media marketing, social media optimization, how to build and manage your following. This course has been taught at Rutgers University and numerous professional conferences around the country.

The ISO 9001 standard is increasingly being adopted by many organizations world-wide. Whether you are conducting an internal quality audit in your organization or preparing for an external audit, it is important that the auditing process is thorough, systematic and effective.

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ISO 14001 is a global environmental management system which is adopted by thousands of companies all over the world. The intent of ISO 14001 is to provide a framework for a holistic, strategic approach to an organization’s environmental policy, plans and actions.

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