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lean-six-sigma-logistics

J
Japan, 167
Jidoka, 189
Juran, Joseph, 209
Just-in-time, 227–229
K
Kaizen, 107
Kanban signal, 228
Knowledge, waste of. See Waste of
knowledge
Knowledge flow, 89–92, 264, 265
Kurtosis of data, 226
L
Law of large numbers, 88
LCL. See Lower control limit
Leadership, 194, 195–197
Lead time, 134–135
management, speed, and flexibility,
229–230
Lean
defined, 4
elimination of waste, 77, 81, 102
flexibility, 106–107
logistician and, 4–5
microplanning, 120–121
philosophy, 4–5, 65, 77, 80, 146, 247
system, 174
visibility, 107
“Leaned out” operation, 230, 234
Lean Six Sigma inventory management,
78
Lean Six Sigma Logistics, 3–8
defined, 6
execution, 196
focuses of, 66
history of, 66
leaders, 195–197
Logistics Bridge Model and. See
Logistics Bridge Model
promises of, 60
real-world study, 249–270
right things right, 202, 206
tools. See Tools; specific tool
ultimate measure for, 246
Leased or rented assets, 81
Less-than-truckload shipments, 32–33, 139,
179
Leveled flow, 6, 177, 183–184, 230–231
Liabilities, 103
Life cycles, 11
Line-haul service, 33
Logistician
key focus areas, 263–265
Lean and, 4–5
Logistics
activities, 99–100
administration and, 51–52
capability, 196
cash flow drivers, 109
as core competency, 73
costs, 100–101
dark continent of, 9–11
defined, 4
discipline, 196, 197
drivers, 99, 105
flow, 196, 197
function, 109
importance of, 9–11
inbound, 29–30, 132, 176
infrastructure flexibility, 135
inventory management and, 19
key focus areas, 263–265
knowledge and, 55–56
management, 72
network, 29–30, 129, 142–144
outbound, 29–30, 112


Index
277
performance measures, 245–246
proactive management, 79–80
product packaging and, 47–48
professionals, skills set, 75
providers, 159, 161
quality at the source and, 189–190
services, 161–162
third-party, 162–165
transportation management and, 27–31
warehousing and, 35–36
wastes, 14–15
Logistics Bridge Model, 7–8, 59–61,
65–70. See also specific topics
capability
predictability, 115–127
stability, 129–140
visibility, 141–151
as catalyst, 268
CEO’s perspective, 67–69
as compass, 196
discipline
collaboration, 153–171
systems optimization, 173–184
waste elimination, 185–197
flow
asset, 71–84
financial, 97–114
information, 85–96
illustrated, 60, 270
implementer’s perspective, 69–70
importance of, 66–70
three key principles, 61, 67–70
Logistics capability, 7, 196
CEO’s perspective, 68
implementer’s perspective, 69–70
Logistics discipline, 7, 196, 197
CEO’s perspective, 68–69
implementer’s perspective, 70
Logistics flow, 7, 196, 197
asset flow, 71–84
CEO’s perspective, 67–68
fixed resources flow, 80–84
implementer’s perspective, 69
inventory flow, 75–80
people flow, 72–75
Long-range planning, 21
Lost opportunity, 113
Lot size, 232
Lower control limit (LCL), 245
Loyalty, 11
M
Malcolm Baldrige Award, 235
Management, 90, 255, 267
Manufacturing plant, 177, 178
Mapping fixed resources
“Marketing concept,” 202
Material requirements planning (MRP),
132–133
Materials handling, 38
Material waste reduction, 50
Measurability, 145–149, 264, 266
Measure, 214–215
Measurement
coordination and, 124
internal, 148–149
logistics performance, 245–246
organized workplace and, 119–120
perfect, 147
tools, 237–248
conventional, 245–246
data collection plan, 237–238
process capability, 238–242
sigma calculations, 242–245
total cost analysis, 232, 246–248
Meeting agenda, 167
Mergers and acquisitions, 179
Microsoft Excel, 82
Milk run, 177, 179, 232
Mind mapping, 219
Mistake proofing, 87, 186, 188, 189
“Model parsimony,” 224
Moment of truth, 121, 123, 144–145
MRP. See Material requirements planning
Muda, 20
Multiple channel partners, 129, 142
N
Natural laws, 78, 81
Natural variation, 138
Network design map, 30
Next-stage customers, 231


278
Lean Six Sigma Logistics
Nonparametric tools, 216
Nonsalaried employees, 73
Nonvalue-added activity, 29, 229
Normal distribution, 226
Normally distributed curve, 239
“Normal population,” 226
Norming, 157
O
OEM. See Original equipment
manufacturer
Offshore manufacturing, 22
Offshore supply base, 159–160
Ohno, Taiichi, 20, 36
On-hand inventories, 106
On-time delivery, 28, 147
Operating costs, hidden, 99–100
Operational communication, 95–96
Operational costs, 174
Operational data, 260, 261, 262
Operational error, 186–187
Operational service failures, 151
Operational support, 263
Operational tools, 227–236. See also
specific tools
5S and visual control, 234–236
frequency and lot size, 232
just-in-time and pull system, 227–229
lead-time management, speed, and
flexibility, 229–230
leveled flow, 230–231
poka-yoke, 236
SIMPOC, 233–234
standardized work plan, 233
Operations, 48
Opportunistic buying, 22
Opportunity cost of capital, 101, 247
Opposing views, 156–157
Optimization, 174, 178
Order(s)
cycle, 39, 40
cycle times, 11, 28
filling, 42–43
lead time, 28
picking, 43
processing, 41–42, 258, 259
shipping and delivery, 44–45
staging and verification, 43
transmission, 39–41
Organizational communication, 93–96
Organization concepts, 232–233
Organized workplace, 116–120, 234, 235
Original equipment manufacturer (OEM), 184
Outbound logistics, 112
Outbound trailer utilization, 150
Out-of-control processes, 140
Output variable, 225
Outsourced carriers, 142
Outsourced logistics, 161–162
Overhead, 111
Overproduction, 104, 268
Overstock, 256
P
Packaging
excess, 49
holding capacity, 49
logistics and, 47–48
as visual control, 50
waste of. See Waste of packaging
Paperwork, 125–126, 144
Parametric techniques, 216
Pareto, Vilfredo, 209
Pareto analysis, 208–210, 243
“Parking lot” list, 219
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