U UCL. See Upper control limit Understandability, 142–145, 264, 266 Upper control limit (UCL), 245 U.S. Army, 36, 52 V

U
UCL. See Upper control limit
Understandability, 142–145, 264, 266
Upper control limit (UCL), 245
U.S. Army, 36, 52
V
Value-added activity, 37, 208
Value-added network (VAN), 41
Value-added services, 202
Value stream mapping, 77, 121–122, 143,
206–208, 256, 258. See also
Current state; Future state
VAN. See Value-added network
Variability. See Variation
Variance. See Variation
Variation
buffer inventory and, 159
common cause, 139–140
company creation of, 231
in costs, 37
of demand, 87
inferential statistics for, 223–226
inventory and, 268
natural, 138
offshore manufacturing, 22
reduction, 5–6, 188, 239
root causes, 209
safety stock and, 76
in service, 72
special cause, 139–140
vertical integration and, 183–184
Vendor-managed inventory (VMI), 228
Venn diagram, 224, 225
Vertical integration, 181–184, 265, 266
“Virtual think tank,” 255
Visibility, 107, 141–151, 264, 266
actionability, 149–151
creation of, 117–118
measurability, 145–149
planned network design and, 136–137
understandability, 142–145
Visible operational costs, 174
Vision of excellence
cash flow and, 113–114
fixed resources flow and, 83–84
income statement and, 102–103
people perfect order, 74
Visual control, 50, 117, 234–235, 236
Visual cues, 228
VMI. See Vendor-managed inventory
Voice of the business, 204–206, 263, 265
Voice of the customer, 146–148, 202–204,
263, 265
W
Wal-Mart, 9, 10, 11, 55
Warehouse management systems, 52–53
Waste
critical, 32
elimination, 77, 81, 83, 146, 208. See
also Waste elimination

highlighting, 117–118
logistics and, 14–15. See also specific
waste
Waste elimination, 185–197, 265, 266. See
also specific topics
continuous improvement, 190–195
execution, 195–197
quality at the source, 186–190
Waste of administration, 51–53
Waste of inventory, 19–26, 102, 268
holding costs, 22–26
logistics and inventory management, 19
temptation of inventory, 20–22
Waste of knowledge, 55–61
cultivation, 56–57
logistics and, 55–56
management of flow, 57–58
river of wastes, 59–61
Waste of packaging, 47–50
impacts on operations, 48
logistics and product packaging, 47–48
packaging as visual control, 50
packaging as waste, 49
packaging as waste source, 48–49
Waste of space and facilities, 35–38
amount of space, 36–37
logistics and warehousing, 35–36
number of facilities, 36–37
Waste of time, 39–45
order filling, 42–43
order processing, 41–42
order shipping and delivery, 44–45
order staging and verification, 43
order transmission, 39–41
Waste of transportation, 27–34
carrier relationships, 31–32
day-to-day wastes, 32–34
logistics, 27–29
logistics trade-offs, 29–31
management, 27–29
Web-based communication, 41
Win-win dynamic, 161
Workplace, 116–120, 234, 235
World Wide Web, 41
X
XY matrix, 168–189, 211–212
Z
Z-score, 238
282
Lean Six Sigma Logistics