a lean logistic framework: applications in the wood fiber
TRANSCRIPT
April 2018
Paula Fallas ValverdeMS Candidate, Forest Products, Virginia TechHenry Quesada Pineda Associate Professor, Virginia TechBrian BondProfessor, Virginia Tech
A Lean Logistic Framework: Applications in the Wood Fiber Supply Process
Questions
Conclusions
Case Study 1 (Current and Future State)
Project Introduction and Project Scope
WhatisLean?WhatroledoesLeanThinkingplayinasupplychain?
LeanThinking- SupplyChain- Logistics-VSMMapping
Agenda
LeanThinkingGoal
LeanThinking
Overproduction Transportation Inventory
Motion
01 02
04
Waiting Over-processing
Defects
05 06
07
03
ContinuousWasteReductiontoMaximize
Flow
Lean supply chain management is forbusinesses who want to streamlinetheir processes by eliminating wasteand non-value added activities.
Companies have a number of areas in theirsupply chain where waste can be identifiedas time, costs, or inventory. To create aleaner supply chain companies mustexamine each area of the supply chain.
LeanSupplyChainManagement
WhichAreas?
LeanThinking- SupplyChain- Logistics
Shipping,receivingandprocurement
Suppliercollaborations
InboundLogistics
OutboundLogistics
CustomerCollaborations
ResearchScope
Logistics
“Logistics are the activities required in order to comply effectively withthe quantity need of products in the place and time it is need by thecustomer. It is the link between manufacture and consumption of aproduct or between suppliers and production, all separated by distanceand time" (Kazandijan & Norton, 1999).
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WhatisValueStreamMapping?
Avaluestreamisalltheactions(bothvalue-addedandnon-valueadded)currentlyrequiredtobringaproductthroughthemainflowsessentialtoeveryproduct:Theprojectfocusedonlogisticactivities.
Whatisavaluestreammap?Specialtypeofflowchartthatusessymbolsandmetricstodepicttheflowofinventoryandinformation.
Whatisavaluestream?
Whatisthevaluestreammap?
Objectives
Goal:Todevelopalean logistic frameworkfortheWoodFiberSupplyChainSpecificobjectives:1.Tomapanddetermine leanmetrics forthewoodfibersupplychainprocesses fromstumpage tologyardsatselected processing sites2.Toimplement valuestreammapping(VSM)forthewoodfibersupplychainincluding costfulfillment, operational,andfulfillment-stream performance indicators.3.Todisseminate thelean logistic frameworktotheindustryrelatedtothewoodfibersupplychain.
Logistics andSupplyChainAnalyzedfromStumpage toLogYard
Supplier’sInventoryStumpage
OutboundLogisticsTransportation
CustomerLogYard
StandingTimber/InventoryPoint
Inventory(ADOH)
ValueofInventoryCarryingCost
OutboundLogistics/Transportation
TransitTimeInventory(ADOH)
ValueofInventoryCarryingCostDelivery frequencyPlannedorderfrequency
Customer/ReceivingOperations
OrderingProcessingTime
ValueofInventoryCarryingCostLotSizeDelivery frequencyPlannedorderfrequency
Demand
CaseStudy1:APaperMill
CaseStudy2:ALumberMill
Supplier/Logger(Gatewood)
LeadTimeInventory(ADOH)
ValueInventoryCarryingCost
InboundLogistics/Transportation
TransitTimeInventory(ADOH)
ValueofInventoryCarryingCostDelivery frequencyPlannedorderfrequency
Receiving Operations/LogYard
TransitTime (YardtoLine)Inventory(ADOH)
ValueofInventoryCarryingCost Dem
and
PerformanceMetricsRightQuantityRightQuality(%ofCull)
StandingTimber/InventoryPoint
Inventory(ADOH)
ValueofInventoryCarryingCost
OutboundLogistics/Transportation
TransitTimeInventory(ADOH)
ValueofInventoryCarryingCostDelivery frequencyPlannedorderfrequency
Customer/ReceivingOperations
OrderingProcessingTime
ValueofInventoryCarryingCostLotSizeDelivery frequencyPlannedorderfrequency
Demand
CaseStudy3:LoggerCompany
Supplier/Logger
OrdertoShipmentInventory(ADOH)
ValueInventoryCarryingCost
TruckPayloadMOQ
PerformanceMetrics
InboundLogistics/Transportation
TransitTimeInventory(ADOH)
ValueofInventoryCarryingCost
PlannedOrderFrequencyPlanned Delivery frequency
PerformanceMetrics
CaseStudy1.PaperMill
FutureVSM LowerScopeGain inPercentageWoodFlowPlanning:Mill
ManagementTractAllocation: Procurement
Communication :MillManagement, Procurement and
Supplier
InventoryCarrying Costs 21%
TruckSchedulingCoordination:MillManagement
TractAllocation: Procurement
Inbound/OutboundLogistics 10%
Source:Rodgers,B.,Visser,R.,Shaffer,R.,&Gallagher,T.(2002).PlanningandCommunication:StateoftheForestIndustryandOpportunitiesforImprovementintheWoodSupplyChain.
Logistics andSupplyChainAnalyzedfromStumpage toWoodYard
Supplier’sInventoryStumpage
OutboundLogisticsTransportation
CustomerLogYard
-21%ofInventory
-21%ofInventory
-21%ofInventory
-10%ofTransportationcosts
• Mostofperfect-orderexecution metricssuchas:quality,product,customerservice, location,andquantity,arenottracked inthethreecasestudyfirms.
• Themaincausesforwasteinclude: lackofcommunication amongsupplychainpartners,weaksuppliercollaborations, demandvariability,quotamanagement,andpoorinventorymanagement.
• Thecompletion ofsuchtoolsaid inidentifyingcommunication gapsanddisjunctions between differentelements ofthesupplychain.
• Theapplication ofVSMtothewoodfibersupplychainopensthepossibility ofimprovingcollaboration andinformationsharingpracticesbetween thesupplychainpartners.
MainConclusions
• Theresultscouldbeimproved ifthe implementing partyiscloserandmorefamiliarwiththecompany’sprocesses.
• Similar issues relatedtocommunication andcollaborationhavebeenreportedinpreviousWSRIreports.
• Consumer companies should implement the idea of core suppliers. Thiscategorization could reduce inventory, reduce inefficiencies, and improve theinformation flow between different elements to enhance productivity.
Main Conclusions