lean fulfillment mapping
14/03/2011
If anyone has tried mapping the lean fulfillment stream from customers through to raw materials you will appreciate how much preparation is needed. We have just returned from a 5 day mapping activity and resorted to traditional VSM after the first day because:
- The measurement system was ambiguous: The "eight rights" criteria was not defined - For example "on time", is it within the hour, within the day, + and - one day, etc.,
- Could not get data from supplier - It is imperative that the supplier is engaged in this exercise.
- Could not get data from the customer - same for supplier - it is imperative that the customer is engaged.
- The internal value stream was not mature or understood.
So using traditional VSM. The team mapped out current and future, identified the pacemaker and 100+ projects that needed to be tackled. These projects are in goods receipt, customer environment, picking, packing, production, procurement, SAP and MRP scheduling, logistics, sales and QA. The future state releases over £0.25m in cash otherwise tied up in inventory. Extrapolating the improvements across the whole business will release approximately £2.5m.
Identifying the benefits at customer end (reducing their inventory stockholding) helps to engage them and is crucial to creating a pull demand system needed. The cash released at customer end is £0.1m reducing storage space and increasing variety and velocity.
TIP: Ensure your door to door value stream is optimised before trying to tackle the complete lean fulfillment stream.