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D. Logistics Bridge Model Review Process: Discipline



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D. Logistics Bridge Model Review Process: Discipline
Logistics Discipline
Questions
Collaboration
Teamwork
How does teamwork flourish in the current environment?
Strategic sourcing
What should be insourced and what should be outsourced?
Project management
What project management skills and tools are in place?
Systems Optimization
Total cost
How do we design and measure “total systems cost”?
Horizontal integration
How do we establish cross-functional expertise?
Vertical integration
How are we managing external supply chain relationships?
Waste Elimination
Quality at the source
How are we error proofing our processes?
Continuous improvement
What formal procedures are in place for continuous improvement?
Execution
How do we ensure effective execution of new initiatives?
Table 24.4.
High-Level Review for Current Condition Analysis (continued).


267
25
SUMMARY AND
CONCLUSION
The topic of Lean Six Sigma Logistics is far from being concluded. In many
respects, we are just getting started on what will eventually become a driving
force in logistics and supply chain management. As we go forward over the next
decade, our initiatives may not be called Lean or Six Sigma. Perhaps the ini-
tiative will simply be called Business Excellence, but the guiding principles of
Lean and Six Sigma will be embedded in whatever initiative it happens to be.
The principles and tools of Lean Six Sigma Logistics are all that is necessary
to design and sustain a formidable logistics system. This means we can stop
looking for what to do and start focusing and how and when we will do it. The
Logistics Bridge Model provides the compass and sets the stage; one must only
add the commitment and perseverance. In the end, success will be granted to
the organizations that recognize that Lean Six Sigma Logistics is not a “nice
to have” but rather a “must have.”
As the authors of this book, we hope that we have been able to articulate
the vision of Lean Six Sigma Logistics. We fully recognize that the reader may
be left with more questions than answers. At some level, that is a desired output
of the book. The reality is that many of our organizations do not have a solid
understanding of logistics and the importance of fundamental logistics practices.
We attempted to highlight this fact in the hope that we would motivate logistics
professionals to drive their agendas into the corporate boardroom. We fully
recognize that this will take time; however, the drive must start today. Logistics
and supply chain issues are the last great frontiers for strategic management.
Logistics and supply chain management need to embrace the science to comple-
ment the art form that it has become.


268
Lean Six Sigma Logistics
We developed this book with the intention of designing a compass or model
that the logistics professional can use to develop an internal logistics strategy.
We began this challenging task by recognizing the driving forces of Lean, Six
Sigma, and logistics. This allowed us to realize the obvious and powerful
relationship shared among variation, waste, costs, and customer value.
We then began a dialogue on the wastes that exist in most logistics systems.
This set up the framework for us to begin our awareness campaigns, empha-
sizing the brutal fact that wastes exist throughout our logistics systems and
supply chain networks. In particular, inventory, transportation, and warehousing
provide a raging river of waste that must be addressed. To this end, we made
every attempt to drive home the point that inventory is the king of waste.
Inventory in the form of overproduction and safety stock covers up for variation
and is the seed for many other forms of waste. To manage inventory is to
manage variation. They are one and the same.
Completing our discussion on logistics wastes, we introduced the Logistics
Bridge Model. This model is the compass that can be used to develop strategic
and operational vision for the organization. Indeed, to develop a model for a
topic as broad as logistics is a daunting task. We have no doubt that many
readers will be left with questions. What about global sourcing? What about
transportation capacity issues? What about the change management side of
implementing these principles? These are all very good questions, and each
could certainly be a book topic in its own right.
Our motivation was to provide a compass that can be used to develop the
solutions to the multitude of challenges that exist in logistics and supply chain
management. It is our hope that the reader will document his or her current
challenges and integrate the challenges into the Logistics Bridge Model. The
ultimate goal of any logistician is to link the organization to suppliers and
customers efficiently and effectively. The Logistics Bridge Model provides the
foundation for this to happen. The Logistics Bridge Model is designed to act
as a catalyst to drive critical thinking inside the organization, for critical think-
ing is the element most lacking in many organizations. Before we can begin to
implement solutions, we must have rigorous debate and develop common
understanding of goals and objectives as they relate to the logistics function.
This debate can begin by analyzing the three major principles of the Logistics
Bridge Model. Significant progress will be made by asking the tough questions
surrounding Logistics Flow, Logistics Capability, and Logistics Discipline. It
is our belief that any logistics challenge will find its inherent solution with the
aid of these three main principles.
Next, we introduced and examined several tools that will be helpful for the
logistician to achieve results. It is virtually impossible to list all available Lean
and Six Sigma tools, and therefore, we were challenged to select what we


Summary and Conclusion
269
considered to be the vital few for the logistician to begin the Lean Six Sigma
Logistics journey. Any logistician ready to engage Lean Six Sigma Logistics
seriously will surely need to be versed on available tools and their uses. How-
ever, it is important to note that tools are simply tools. Tools are not strategy
and they are not principles. Although the tools will help us to determine the how
to accomplish our goals, they do not provide the answer to why we want to reach
these goals. We need to understand the “why” in order to ensure that the
organization is synchronized and heading in the right direction.
Finally, we provided the reader with a real-world example to be used as a
working case study. The purpose of the GoldSMART case is simply to show
the reader that logistics issues are extremely important to organizational suc-
cess. Most organizations suffer from the same challenges: lack of data, lack of
teamwork, and lack of focus on total logistics cost. Our hope is that, together,
we can alter the course of time and strive for meaningful, significant change
in the way we view and manage logistics.
At a minimum, we hope that you found this book worthwhile. At best, we
are thrilled at the prospect that our book and the ideas herein will provide the
catalyst and compass for you and your organization to embrace logistics fully
and truly drive for perfection in all that matters.



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