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lean-six-sigma-logistics


Partnering. See Partnership
Partnership
poor, 164
shippers with carriers, 31
supplier, 158–159
terminology, 160–161
PC-based statistics packages, 226
People, 263, 265
flow, 72–75
issues, 177, 178
“perfect order,” 73, 74, 89
Pepsi, 12
Perceived difficulty, 179
Perfection, 239, 240
“Perfect order” execution, 42, 53, 73, 127,
189, 240
Performance tracking, 246


Index
279
Performing, 157
Picking operations, 38, 43
Plan-Do-Check-Act, 193
Planned inventory strategy, 79
Planned network design, 136–137
Planning horizon, 21, 231
Planning tools. See Strategy and planning
tools
Plan versus actual, 136
Point of pickup verification, 122
Poka-yoke, 87, 188, 236
Power of analysis calculation, 244
Predictability, 115–127, 264, 266
complexity, 124–127
coordination, 120–124
organization, 116–120
Process capability, 238–245
Problem-solving tools, 213–226. See also
specific tools
brainstorming, 218–219
cause-and-effect diagram, 219–220
Design of Experiments, 222
DMAIC, 213–218
five-why analysis, 220–222
inferential statistics, 223–226
Processes
horizontal integration of, 177, 178
out-of-control, 139, 140
Procurement, 263
Product changeovers, 253
“Production mentality,” 202
Productivity, 217
Profitability, 204, 205–206
Progressive companies, 73, 102, 195
Project, 165–166
Project management, 165–171, 264, 266
Promotional advertisements, 10
Pull system, 80, 107–108, 132–133, 134,
146, 227–229
Purchased assets, 80–81
Putaway operations, 38
“Putting out fires,” 90
Q
Quality, 78, 119, 186, 187, 209
Quality at the source, 186–190, 265, 266
R
Raw materials suppliers, 159–160
Reactive management, 79, 142
Real-time data, 87, 88
Rearview mirror approach, 98
Recyclable packaging, 49
Red tag initiative, 120, 235–236
Regression analysis, 223–225
Rehandling, 33
Relationships, 13, 30–32, 161, 164
Replenishment, 11
Returnable packaging, 49, 50
Reusable packaging, 49
Revenue, 110–111, 181, 204
Reverse engineering, 13
Rework, 188
“Right-sizing,” 34, 203, 206
Right things right, 202, 206
Risk, 188
Risk costs, 113
“River of waste” analogy, 59–60
Root cause analysis, 218
Root causes of problems, 209, 219, 225–226
Routing guides, 31
S
Safety stock, 21, 76, 134, 159–160, 184,
268
Salaried human resources, 73
Scrap, 188
Seasonal demand, 21
Seasonality of raw materials, 182
Segment profitability analysis, 204, 248
Self-checking, 188
Selling, general, and administrative
expense (SG&A), 111–112
Senior management, 90, 255
Service
costs, 113
failures, 93, 151
industries, 194
levels, 174, 256
providers, 144–145, 150, 161
SG&A. See Selling, general, and
administrative expense
Shingo, Shigeo, 236


280
Lean Six Sigma Logistics
Shipping and delivery, 44–45
Shipping volume, 179
Sigma, 238–239
calculation, 242–245
Silos, 154, 155, 156, 181
SIMPOC (Supplier-Inputs-Measurement-
Procedure-Outputs-Customers), 131,
143, 233–234
Single-facility environment, 178
Six Sigma, 5–6
ANOVA for, 223
“backbone” methodology for, 213, 218
heart of, 138
logistician and, 5–6
quality, 240
transportation management and, 28
Skewed data, 226
Skills set, logistics professionals, 75
Soft goods, 4
Sourcing, 158–165, 165
Space, waste of. See Waste of space and
facilities
Special cause variation, 139–140
Speed, 229–230
Spot-market price, 30
“Spurious effects,” 225
Stability, 129–140, 264, 266
control, 137–140
flexibility, 132–137
standardization, 130–132
Stakeholders, 120, 194
Standard deviation, 238
Standardization, 130–132, 160, 264, 266
Standardized operations, 118–119, 234
Standardized procedures, cube checklist,
132
Standardized work, 66, 91–92, 143, 233
Statement of cash flow, 80
Statistics, 223, 226. See also Inferential
statistics
“Stockholm syndrome,” 155–156
Stockkeeping unit, 125–126, 253
Stockout, 11
Storming, 157, 158
Storyboard, 167–168, 169
Stovepipes, 155
Strategic communication, 93–94
Strategic management, 267
Strategic support, 263
Strategic sourcing, 158–165, 264, 266
Strategy and planning tools, 201–212. See
also specific tool
ABC classification, 208–210
Pareto analysis, 208
value stream mapping, 206–208, 210
voice of the business, 204–206
voice of the customer, 202–204
XY matrix, 211–212
Suboptimal performance, 26
Suboptimization, 100–101
Supplier
alternatives, 159
relationships, unsuccessful, 164
selection, 159
shipping compliance, 150
Supplier-Inputs-Measurement-Procedure-
Outputs-Customers (SIMPOC), 131,
143
Supply chain management, 11–14, 132,
142, 182
Support areas, 55
System capability, 138
System constraints, 179
Systems approach, 77–78, 108
Systems optimization, 173–184, 264–265,
266
horizontal integration, 177–181
total cost, 174–177
vertical integration, 181–184
Systems thinking, 14, 79, 156, 247
T
Takt time, 133, 181
Team development stages, 157–158
Teamwork, 154–158, 180, 264, 266
Technology, administration and, 52–53
Theory of Constraints, 230
Third-party logistics, 144, 155, 161, 162–165
Third-party logistics company, 162–165
3M, 9, 55
Three-sigma quality, 244
Throughput yield, 126
Tier 2 customers, 231
Time, waste of. See Waste of time
Timeliness, 11


Index
281
Tollgate meeting, 167, 169
Tools. See also specific tool; specific topic
measurement, 237–248
operational, 227–236
problem-solving, 213–226
strategy and planning, 201–212
Total cost, 79, 174–177, 178, 179, 206,
246, 264, 266
Total cost analysis, 232, 246–248
Total logistics costs, 176
Total productive maintenance, 235
Total Quality Management, 146
Toyota, 9, 55, 228
Toyota Production System, 4
Trade-offs, 13–14, 33–34
Trailer utilization, 149, 150
Transactional measures, 246
Transit time, 28
Transportation, 159. See also Less-than-
truckload shipments; Waste of
transportation
costs, 136, 150, 160, 161, 176, 179. See
also Waste of transportation
Truck drivers, 162, 256
Trucking, 27, 44, 136, 161–162, 189. See
also Less-than-truckload shipments;
Waste of transportation
Trust, 145, 158

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