Day 1

PART I Overview of lean logistics

• What is logistics?
  • Logistics in general and in manufacturing
  • Alternative definitions of logistics
  • Military logistics
• The lean approach to logistics
  • What is “lean logistics”?
  • Objectives of lean logistics
  • Material flow concepts of lean logistics
  • Information flow concepts of lean logistics
  • Collaborative supplier/customer relationships

PART II Dock-to-dock material flows inside the plant

• Transportation inside the plant
  • Measuring transportation system performance
  • Types of vehicles
  • Structuring the transportation system
• In-plant milk runs
  • Warehousing strategies and devices
  • What are warehouses needed for?
  • Selecting storage devices for different needs
  • Types of warehouse storage devices
• Warehouse management
  • 6 ways to improve warehouse visibility
  • Slot allocation and indexing
  • Determining how full a warehouse should be?
  • Tracking inventory
  • Security and access control
• Warehousing materials
  • WIP and finished goods
  • Incoming materials stores inside the plant
  • Stores for work in process and semi-finished goods
  • Finished goods stores

PART III Material flow in the supply chain

• Supplier milk runs
  • The supplier milk run concept
  • The advantages of milk runs
  • Where milk runs don’t work
  • Using milk runs and remote suppliers
  • Details of supplier milk run operations
• Consolidation centers near the plant
  • Definition of a consolidation center and motivation for using one
  • How a consolidation center works
• Packaging and returnable containers
  • Assessing packaging needs
  • Choosing between disposable and returnable containers
  • Economics of returnable and disposable containers
  • Types of returnable containers
  • Factors affecting customer-supplier collaboration on returnables
  • Scope of use of returnable containers
  • Sizing the containers
  • Preparation of shipping containers

Homework: Case study of improving flow of raw materials and finished goods in a small auto parts plant

Day 2

PART IV Logistics information systems

• Pull systems
  • How pull systems differ from push systems
  • Pull systems: A counterintuitive approach
  • Issuing pull signals
  • Pull signals in dedicated versus mixed-flow lines
  • Sizing and simulating pull loops
  • Relationship between pull systems and market mechanisms
  • How pull systems work within production control
  • Pull signals need simple protocols
• Manual pull signals
  • Using fixed devices
  • Using mobile devices you already have
  • Using physical tokens
• Hybrid and electronic pull signals
  • Kanbans and information technology
  • Toyota’s e-kanban system
  • Using Kanbans with suppliers who don’t
  • The body-on-sequence system
  • Vendor managed inventory (VMI)
  • Dynamic replenishment
  • Other technology-based methods
• Kanban operating policies
  • When should a kanban be pulled?
  • Kanban rules for operators and materials handlers
  • Kanban rules for operators and materials handlers
  • Rules for production and materials/logistics managers
  • Other lists of kanban rules
• Scheduling principles
  • Decentralized scheduling
  • Leveled sequencing and its purpose
  • Rate work and response work
  • Order shuffling
  • Don’t build cripples!
  • Late pegging of goods to orders
  • Emergency response
• Scheduling lines with setups between products
  • What are the true constraints generated by setups
  • Using a fixed repeating sequence
  • Scheduling with timetables
  • Using kanban boards
  • Scheduling a Flexible Manufacturing System (FMS)
• Leveled sequencing of mixed-flow assembly
  • How leveled sequencing works with the pull system
  • Leveled sequencing method #1
  • Leveled sequencing method #2
• Production planning and forecasting
  • Planning objectives
  • Drilling down from monthly to daily planning
  • Forecasting
  • Involvement of sales and customer service

PART V Business relationships in a supply network

• Third-party logistics
  • Defining third party logistics (3PL)
  • How 3PL affects lean logistics
  • 3PL: special case of outsourcing
  • Where to use 3PL
• Supplier-customer relationships
  • Supplier-customer relationships versus in-plant logistics
  • Two ways to run a supplier-customer relationship
  • Transition to and stability of the collaborative mode
  • Conclusions
• Supplier support
  • The different types of supplier support
  • Toyota’s supplier support system
  • Supplier support outside of Toyota
  • Supplier quality assurance
  • Recommendations on providing supplier support
  • Recommendations on receiving supplier support