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Lecture 15 : Lean Logistics — Transcript

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0:01[Music]
0:22[Music]
0:25hello dear friends welcome again to nptl
0:28online course on Logistics and Supply
0:30Chain management so today in this
0:32session we'll extend our discussion
0:35we've started on reverse and Green
0:37Logistics we'll go into next the lean
0:40Logistics which is somehow will
0:42contribute in ensuring the reverse
0:45Logistics as well and Green Logistics
0:47and overall sustainable Logistics right
0:50so the basic concept under lean
0:52Logistics is how we can minimize the
0:55waste right so that is the basic concept
0:58of lean Logistics so we'll try to uh
1:01address the various aspects of lean
1:03Logistics in this session we'll discuss
1:05about the history we'll discuss about
1:07three M of uh how Japanese Industries
1:11are doing that because major uh if you
1:14talk about the Quality Concepts or major
1:17standards uh performance mattresses have
1:20come from the Japanese industry and then
1:24this lean PR uh manufacturing or lean
1:26Logistics concept is also implemented by
1:28Japanese organization first and then
1:31obviously now word is following these
1:34quality practices so we'll talk about
1:36the performance matters uh and uh what
1:39are the key indicators we'll talk about
1:41what are different methodologies and
1:43framework what are the challenges for
1:45implementing lean Logistics and then
1:47obviously we'll discuss about the case
1:49study so we'll spend couple of session
1:51on uh this lean Logistics as this is
1:54very very important part how we can go
1:58with more efficiency and effective iess
2:00and ensuring that the every time we can
2:03be uh 100% on time if you are talking
2:07about the delivery and if you are
2:09talking about quality also then 100% we
2:12should meet the quality as well as per
2:15the requirement of the customer so lean
2:18Logistics is to streamline the flow of
2:20material right so streamlining means
2:23when it is required let's say this is
2:26the supply
2:27chain uh and here our raw material
2:30suppliers are there and this is
2:33production line This is production line
2:35so many different stages are there and
2:38from here we are going for the
2:39distribution of the final product so raw
2:43material instead of storing the
2:46inventory here in your uh storage room
2:50right if why can't this happen that
2:52whenever I need 10 pieces so line wise
2:5610 pieces are coming on my production
2:58line so one by one I'll keep on
3:00processing those pieces and then the
3:02output will be there right so how that
3:05will be helpful in avoiding the
3:07inventory not only avoiding the
3:09inventory but also handling cost when
3:12you are storing in the store also the
3:15damages when you can do with the
3:17components when you are storing the
3:19product right and then the inventory you
3:22are maintaining all the time so that is
3:24also kind of capital you have invested
3:27which you will never utilize right if if
3:29you are maintaining that much inventory
3:31so lean Logistics uh focuses on
3:36eradicating all the inefficiencies or
3:39you can say if you are doing something
3:41in that Network in in any if you are
3:44doing some activity in Warehouse if you
3:46are doing some activity during
3:47Transportation or in manufacturing which
3:50is not adding any value to the End
3:52customer then that is something
3:54inefficient right so if you are saying
3:57that this for in invent
4:01you stored this product for 10 hours as
4:04a customer whether you stored for 10
4:07hours or 1 hour or you did not store you
4:09are directly shipping to me how it will
4:12you know add any value as a customer to
4:14me right so you are storing maybe
4:18because your supply chain is not smooth
4:21to ensure the smooth flow of the
4:24material maybe you are not insure about
4:26your demand then you are keeping the
4:28inventory but but you are keeping
4:30inventory how much you are keeping
4:32inventory as a customer as long as I'm
4:35going to your shop or your website I'm
4:38getting the product hardly matters for
4:40me what how much inventory you are
4:43keeping with your Warehouse right same
4:46is the case with packaging if I'm
4:48getting my product safe quality
4:51standards are met I will hardly bother
4:54about whether you are using uh single
4:56layer packaging double layer packaging
4:58or multi-layer Packaging
5:00right so these are some of the things we
5:02need to identify which are those
5:04activities which are adding value and
5:05which are non- adding uh nonv value
5:08adding activities so these are some of
5:10the definition you can just go through
5:12this lean Logistics focuses on
5:14eliminating waste improving efficiency
5:17in that way streamlining processes
5:19creating constant flow enhancing
5:21collaboration and achieving quality
5:24right so collaboration among
5:26stakeholders will be there throughout
5:27the supply chain only then this lean
5:30Logistics can be implemented right so if
5:33you are doing that you are more
5:35efficient and cost effective in that way
5:37if you are ensuring the lean Logistics
5:40so there is another definition which is
5:42describing lean Logistics to recognize
5:44and eliminate wasteful activities from
5:47the supply chain in order to increase
5:48the product flow and speed see these
5:52based basas of activities or byproducts
5:55you are producing like packaging this is
5:57not going to add any value so if you'll
5:59reduce this so that will also increase
6:03the speed of delivering the products and
6:05services so in that way you will be more
6:07efficient and then you can cut down the
6:09cost because you are not consuming those
6:11many resources so when if you are
6:13keeping the inventory for 10 hours you
6:15are consuming the resources for 10 hours
6:17so why to keep that uh inventory so
6:20there is one small video on just how you
6:23can utilize the maximum capacity in the
6:26container this is one way of
6:27implementing lean Logistics the same
6:30concept can be implemented in
6:31manufacturing and same com concept
6:34during your distribution and when you
6:36are moving through uh that distribution
6:39Network right so here is another video
6:41link you can just go through this video
6:43and you can relate the concept more
6:45closely with this right so uh dear
6:49students I'm again I'm assuming that
6:51that whenever I'm uh refering these
6:54video links you are going through
6:55because sometimes I'm including examples
6:57from there so you can for these videos
7:00okay so just you go through this link
7:03and we'll uh continue the discussion how
7:06using uh softwares or technology you can
7:09ensure the full utilization of the
7:11capacity of the container and how easily
7:14smoothly you can move the you know
7:16pallets inside the container and you
7:18just imagine when you are doing it
7:20manually how many hours you are taking
7:22to you know load that much capacity
7:25pallets those many pallets inside the
7:27container and then if you are talking
7:29about this kind of this is just simple
7:31arrangement of whatever uh uh these
7:35lifts you are using they have arranged
7:37just lift in that way that they are
7:39keeping inventory on that and within
7:41less than 2 minutes you are loading one
7:44full container right and then you are
7:46ensuring the maximum utilization of the
7:48capacity of the container but inside
7:51that pallet boxes whether you are
7:54utilizing fully those boxes or not that
7:56is another point so there also there is
7:58opportunity whether we can reduce the uh
8:01packaging whether we can make it more
8:03compact right so that you can uh in that
8:06way you can save some space inside the
8:09container this container traveling long
8:11distance so instead of maybe uh you are
8:15shipping 1,000 items can I ship maybe
8:171,50 items so then I will be more
8:20efficient so that per unit cost will
8:22come down because earlier whatever cost
8:24was we were dividing by 100 ,000 now we
8:27can divide by if you shipping 150 items
8:31and then per unit cost will come down
8:34right so if you'll Implement lean
8:36Logistics your efficiency will be
8:38improved you will reduce the cost and
8:41when you are efficient and reducing the
8:44cost obviously the customer is getting
8:47the product within less time and because
8:50you have having more margin in that so
8:52those margin can be used maybe you can
8:56keep some part as profit and some part
8:58you can share with your customers and uh
9:01maybe the customer will be more
9:03delighted with some offers and all that
9:05so that you can use or maybe you can
9:06provide some Advanced Services on that
9:09and then increased profit overall
9:10profitability you can ensure so and
9:13obviously more aile and responsive you
9:16will be uh uh in the market because now
9:21customer whatever customer is expecting
9:23in terms of services you are very quick
9:26handling all the disruptions you have FX
9:29exible supply chain distribution Network
9:31and you are responsible also at the same
9:33time you are efficient because you have
9:34eliminated all the waste so this lean
9:38term was uh coined by John krack and uh
9:43he discussed about this in his master
9:45thesis in 1988 where uh try to you know
9:49implement this lean Concept in
9:51manufacturing in warehousing shipping
9:54and various other functions but this was
9:56just uh the theoretical concept and and
9:59uh uh the just instructions were given
10:03how we can go for this what can be the
10:05different steps right but uh the
10:08properly this lean manufacturing concept
10:11was used by Toyota taii Ono uh engineer
10:15in Toyota who is well known in you know
10:17setting up the new quality standards and
10:20uh you know this lean manufacturing as
10:22well and they they try to you know
10:24eliminate the waste enhance the safety
10:26of the product and also touching the
10:28waterm line line for the Improvement
10:30where you will be more efficient and
10:32sustainable right so if we'll talk about
10:35this uh history now it organizations are
10:38also using lean Logistics right and uh
10:42because obviously this will happen only
10:45when just in time so just in time means
10:48again another tool which will help to
10:51ensure the lean
10:53Logistics so uh in that way we will try
10:56to optimize the value adding AC
10:59activities and will eliminate the non
11:01value adding activities like I told you
11:03you are keeping your inventory in your
11:06refrigerator in your Warehouse in your
11:08cold storage as a customer I'll hardly
11:12drive any value out of that you are
11:14putting uh double layer or triple layer
11:17packaging on your product it I'll not
11:19get any value as a customer out of that
11:22what value I'll get how many features
11:24extra you are adding into the product
11:26how is the quality of your product how
11:28quickly you are delivering the product
11:30and then how you are cost efficient in
11:32terms of what is the price right so
11:35talking about lean concept why we are
11:37talking about lean in logistics this is
11:40quite obvious so the share of this
11:43Logistics expenses somewhere 5 to 15% in
11:46some Industries somewh reach 25% also in
11:49retail right and we have talked about
11:52the reverse logistic concept also which
11:54is adding more uh uh you know verden on
11:58the uh Logistics industry to be more
12:01efficient in in terms of you know cost
12:03efficient so these are three quick
12:07pictures if you'll first see this I'm
12:10just giving you two three seconds you
12:11can just think about these pictures and
12:13what is happening and the terms are
12:16explained because these are again
12:17Japanese terms so mura muri mura so
12:21quick view first is you can see waste is
12:23happening overflow of the water second
12:26is the person is overburden what is his
12:29capacity he's taking more than that
12:31third is it is not balanced uneven so
12:35these three terms are muda muri mura how
12:38we can avoid these will lead to lean
12:40Logistics right first we'll take about
12:43muda this is the total capacity and we
12:45are utilizing this much only so rest of
12:48the capacity is waste this is waste how
12:50we can ensure that this if the room is
12:55that 100 people can sit and we are
12:57ensuring the AC facility for those 100
12:59people but only 10 are sitting at that
13:01time so then even the cooling facility
13:03is going in full way right so that way
13:07that small room can be used so that is
13:09unutilized capacity which is waste so we
13:13have identified seven types of waste in
13:17lean under lean first is your
13:20transportation T stands for
13:22transportation I stands for inventory m
13:25stands for your motion W stands for
13:29ating your o stand over production over
13:32processing and defects so anything you
13:35are doing here inventory again I told
13:38you the example is waste if I'm waiting
13:41for my product that waiting time is
13:43waste if let's say two workers are
13:46sitting on stage one stage two right now
13:49he is processing the product taking 2
13:51minutes and for that time he is just
13:53waiting because once he will process it
13:55will be shift to the de person so that
13:57means for 2 minutes he is sitting I so
13:59that is waiting if you are waiting in
14:01your maybe distribution network if you
14:03are waiting your career partner is
14:05baiting you you are placing the order
14:07through Jato so then Jato person career
14:10partner is standing outside the
14:12restaurant for 10 minutes or 15 minutes
14:14at that time you are preparing the food
14:16and it is taking time so how we can
14:18reduce that time how you can you know uh
14:22half cook item should be there that as
14:25soon as you are clicking on the order
14:26and your career partner is reaching at
14:29your restaurant your packet should be
14:31ready so how we can minimize if that can
14:33only happen if you have quick
14:34information sharing system right so if
14:37you are producing anything defect
14:39obviously is waste you cannot utilize
14:41that even if you will say we will repair
14:44we'll replace if as a customer I'm
14:47paying for new product why I should get
14:49the repaired one right so that is simple
14:51concept over production if you are
14:53producing something extra which is not
14:55required then it is waste motion if you
14:58are
14:59moving here and there in the workstation
15:01that means it is not designed properly I
15:03have included some examples also quickly
15:05we'll go through yes these are examples
15:07are there transport already we talked
15:09about if unnecessary movement is there
15:12during transportation that is waste
15:14customer is not going to uh derive any
15:16value out of that inventory you are
15:18keeping in terms of raw material in
15:20terms of work in uh in process in terms
15:23of finished good that is complete waste
15:25as a customer for me I cannot derive any
15:28value how how much raw material
15:29inventory you are keeping inside that
15:32motion this is what I was talking about
15:34waste of motion now this person is
15:36moving sometime to this bin sometime to
15:38workstation sometime he's carrying the
15:40product so jig Jag motion is there so
15:42that means while moving he is wasting
15:45time that is kind of extra motion extra
15:47waste this person is waiting for the
15:49call only then he'll respond to that so
15:52that is waste how you can ensure that
15:54smooth channel so that everyone every
15:57workstation should have some work to do
16:00and as a producer if you are producing
16:02more and then you are expecting that
16:03your customer should bear more than one
16:05cloth at a time that will not happen
16:07right if it is designed in that way only
16:10one t-shirt you can wear at a time so if
16:13other accessories you can wear over
16:14t-shirt or shirt you can wear some other
16:16stuff but you cannot wear two T-shirts
16:19at a time so even if you're producing
16:21more that will not help you then over
16:24processing let's say if you need to
16:26treat something at maybe 100°
16:29temperature and you you are using 150°
16:32right so that is something extra waste
16:34if you're cooking a simple example if
16:37you're baking your bread more than that
16:39temperature even in that process you are
16:42damaging that product as well and even
16:45you are wasting the energy so you
16:47consume more energy than required defect
16:50if anything is uh passing through your
16:53line which is defected so is kind of
16:56waste so some few based kind of waste
17:00have been included over the time if
17:02Talent is not utilized in mean Talent is
17:04also one kind of resource in the
17:06organization that is waste any resources
17:09I'm moving out of this uh recording room
17:12and still AC is on lights are on that is
17:14waste so how we can ensure that so
17:17sensor based lights you can use sensor
17:19based AC condition air conditioning
17:21facility you can use as long as you are
17:24there that will be functioning and after
17:26that it will be automatically turned off
17:29byproducts if you producing anything
17:31that is waste and if I'm saying I'm
17:34doing nothing in this organization still
17:36I'm getting salary is uh not something
17:39to be proud of that means you are not
17:41aligned to the goal of that organization
17:44and the problem is with the designing of
17:46the roles and responsibility of the that
17:49particular worker who is feeling that he
17:50is Idle not getting enough stuff to work
17:53right how we can implement this in
17:57inventory how we can
17:59uh minimize the inventory just to meet
18:02the demand we should not ensure the
18:04excess inventory right so just in time
18:07you can do that warehousing in Warehouse
18:10how F utilization of the warehouse in
18:13terms of capacity of the warehouse you
18:15are ensuring right and then minimum
18:18handling you can ensure right how you
18:21can ensure the proper stock rotation in
18:24the warehouse so that it should not be
18:27Obsolete and expired in the warehouse
18:30only right so those are we have
18:33discussed in warehousing uh session that
18:36what are the key performance indicators
18:38so all those indicators if you'll manage
18:40properly in that way you can be
18:42efficient how in your Warehouse you can
18:44use uh sustainable or renewable sources
18:46of energy to lighten your Warehouse
18:49right those kind of initiatives you can
18:51do trucks how you can ensure the full
18:53capacity you are utilizing the truck
18:56while rooting uh during your truck
18:58Transportation how you can ensure the
19:01minimum distance your truck should cover
19:04right so those many things travel if you
19:06are traveling somewhere for any work the
19:09travel time is wastage right so how I
19:12can reduce the travel time if I'm coming
19:15to you personally somewhere to your
19:16place so addressing those many audience
19:19will be time taking right so it is uh
19:22better way that we can record the
19:24lectures we can have the interactive
19:26sessions as well and then sitting at
19:28different places we can share the
19:30knowledge and information right people
19:33if people are there who like I told you
19:36waiting for their turn and uh for
19:39getting the product to be processed so
19:41that is waste if you're not using the
19:43you know skills of the of your Manpower
19:46even then that is waste so electrical
19:49Vehicles how electrical vehicles uh
19:52obviously can help you to develop the
19:54sustainable Transportation solution so
19:56this is all about muda waste how we can
19:59reduce the waste now
20:01muuri this this session will talk about
20:05what are the different types of uh
20:07issues are there when we are talking
20:08about lean manufacturing or lean
20:10Logistics in the next session we'll talk
20:13about what are the different
20:14methodologies we can use where we can
20:16ensure the lean practices within the
20:18organization so overden so this is
20:21because of why you are feeling overden
20:24because maybe last two days you did not
20:26work so now you are over occupied that
20:28is one reason right or maybe there was
20:31no demand for uh if you are barber or uh
20:35you are doing some giving some Services
20:37right so for 2 hours there was no
20:40customer for next 10 minutes maybe 10
20:43turned up right so then how you will
20:45manage that you are overburden then
20:46right but in Services you cannot avoid
20:49those things right so if you are doing
20:51overburden kind of thing there will be
20:53breakdowns there will be absentismo
20:55[Music]
20:56are now feeling over burden and these
20:59are some of the example when you will
21:01fear
21:02overburden when you are doing those
21:04processes you are not trained for you
21:06don't know how to do that poorly laid
21:09out workplace where the workplace is not
21:12designed efficiently and because of that
21:14you are lacking with your work unclear
21:16instructions out obviously if you are
21:18not clear about the job how you'll feel
21:20you will be feeling all the time uh
21:22overloaded right lack of proper tools
21:25and equipment obviously will lead the
21:27pending of the work fluctuating demand
21:29is mura right so if fluctuating demand
21:33is there even then sometime demand there
21:34is no demand and then there suddenly
21:37demand will come so overburden will be
21:38there lack of proper maintenance will
21:40lead to overburden unreliable processes
21:43poor communication roots in terms of
21:45because you could not identify that how
21:48much demand could be for maybe the next
21:51few uh months so then you predicted it
21:54wrong for the season and then now you
21:57are overburdened doing extra shifts and
21:59double shifts and all that in that way
22:01you are putting extra load on your
22:03system Your Capacity is this much but if
22:05you'll stretch Beyond Your Capacity so
22:08then beer and teer and one out will be
22:10there third point is unevenness now
22:13unevenness is sometimes because I did
22:15not work so now sometimes I'm not
22:18working at all and then maybe for next
22:20two days I'm uh all on the work from
22:24morning to evening so if that thing is
22:26happening so that means that you are
22:28inconsistent in that way so you should
22:32smooth out this right the very basic
22:34reason why you should smooth out your
22:36production process because when you have
22:39overburden in that process you'll
22:42quickly you know process the things and
22:44then you will produce the defected items
22:46you may damage the products so quality
22:48will be compromised and this is very uh
22:52common uh example or obvious things if
22:55I'm giving you assignment and I'm saying
22:58that maybe after 4 weeks you you need to
23:00submit it in the very first week you
23:03will be just thinking about the
23:05assignment oh we have one pending
23:07assignment second week then you'll start
23:09calculating okay these many days are
23:11left okay I need to you know work out
23:13little bit for that what is that topic
23:15okay what can be there in that we will
23:17think just third week now you are
23:19approaching next week is the submission
23:22date okay let's start something working
23:24on that let us start at least the
23:26introduction part of that and in the
23:28last last week we are targeting 17 to
23:3080% right so this is the human tendency
23:34so we are usually stretched up in the
23:38last week of the month when we need to
23:39meet the your uh whatever targets were
23:42set in the initially and because this is
23:45happening with all uh stakeholders even
23:49we will feel the shortage of the raw
23:51material supplier because raw material
23:53suppliers are also behaving in the same
23:55pattern that Hy stick kind of graph you
23:58are get getting that in the first week
24:00uh so in that way we need to smooth out
24:02the production throughout right so in
24:04that way we can avoid the
24:07unevenness principles of lean Logistics
24:09eliminating waste is the basic principle
24:12if you are doing something you don't
24:14know how it is adding value that is
24:17waste improving efficiency if you will
24:20eliminate the waste obviously the cycle
24:22time will be reduced if you are keeping
24:24the inventory uh minimum inventory or
24:28you are making minimum stoppage in the
24:30warehouse Center you are just doing the
24:32cross talking so that means that much
24:34time you are not wasting you can make
24:35the quick delivery so one step is
24:38related to The Next Step if you'll
24:40improve the suppliers automatically your
24:42next chain will be improved your
24:44manufacturing will be smoo out if you'll
24:47ensure the smooth manufacturing your
24:49next distribution network will be uh in
24:52that way streamlined so you need to
24:55streamline the full distribution Network
24:57so this is what I talked about
24:58streamline the processes all unnecessary
25:01steps which are not adding value so for
25:04that which are not adding value you need
25:07to improve the visibility what is
25:09happening if 100 people are coming in my
25:12organization daily I need to analyze
25:15what the people all those people are
25:17doing what is the work on their
25:18workstation I cannot design workstation
25:21for a one person who where he is heavily
25:24loaded and the other person he is
25:26enjoying all all the day right so that
25:28cannot happen so then creating constant
25:31flow so if those those many stages are
25:34there all should have almost equal work
25:36to work on the workstation right so that
25:40constant flow we need to ensure and I
25:43told you this will start with your
25:45supplier and if your supplier is in that
25:48way smooth your manufacturing will be
25:50smooth and if your manufacturing is
25:53smooth your distribution network will
25:55work in a smooth way and in the end
25:58ontime delivery will happen to the End
26:01customer right so that way you need to
26:04enhance the collaboration with all the
26:06stakeholders so lean concept cannot be
26:09implemented with one particular
26:10organization within manufacturing only
26:13right achieving quality so because very
26:17simple example if you are storing any
26:19product for 2
26:21months or the product you are storing
26:24only for 10 days obviously the quality
26:27will be degraded if you have not used
26:30that product for 2
26:32months if you are handling you are
26:34moving in the warehouse here and there
26:36just to manage the space even then you
26:37are damaging the quality right so as
26:40long as so you have the demand your
26:44distribution network is efficient enough
26:47and you are ready with the product in
26:49cck view so then it should be shipped to
26:52the market as soon as possible Right
26:55only when you will ship the product to
26:57the market only then you will be able to
26:59generate that Revenue out of that and
27:01when you are not storing for longer you
27:03can maintain the quality of that so
27:05these are some of the performance key
27:07matrices already we discussed these uh
27:10terms in terms of when we talked about
27:12the uh Logistics performance but in
27:14terms of lean Logistics we'll see how
27:18these things are adding towards the lean
27:20Logistics on time delivery how many
27:22times we are on time so if you have
27:26reduced the based activities you will be
27:28on time lead time how much time you are
27:31taking to deliver the product if you are
27:34having shorter lead time that means you
27:36have uh streamlined your processes and
27:39you are consuming the minimum time
27:41during the distribution Network
27:43inventory turnover if you are keeping
27:45minimum inventory that means quickly you
27:48are replacing the stock you are moving
27:50the material in the market and quickly
27:52you are replacing the stock that means
27:54your minimum time your inventory is
27:57making the temporary stoppage in your
27:59Warehouse order accuracy how many times
28:02you are delivering the accurate order
28:05accurate order on accurate time with
28:07accurate quality right so that is means
28:10complete order transaction cost per unit
28:13if in Bur truck you are carrying 10
28:16items and cost is 100 so obviously
28:19carrying one unit your cost will be 10
28:22Rupees if I'm carrying maybe 20 items in
28:25the same truck same cost will be there
28:28maybe the cost will be 5 rupees may not
28:30be same if uh maybe it will increase a
28:33little bit even then per unit cost will
28:36reduce maybe from uh 10 to it will
28:39reduce 6 rupes per unit or 7 rupees per
28:41unit so you need to ensure the complete
28:44uh you know utilization of the uh
28:47capacity this is Warehouse utilization
28:50how much space is utilized cycle time
28:53for any activity cycle time is when you
28:55are starting and when you are ending so
28:57you need to record the cycle time of all
28:59the activities you are doing during your
29:01distribution Network dock to stock time
29:04how much time you are taking you
29:06received the stock and then it is on the
29:08invent uh your uh Warehouse shelf for
29:11selling purposes right so how quickly it
29:13is moving that return rate high return
29:16rate that means your products are
29:18meeting not meeting the expectations
29:21defects are there so that means your
29:23manufacturing is somewhere in the
29:24question if you are damaging the
29:26products during your distribution
29:28then there is a question with the
29:30packaging with the handling so that
29:33return rate you need to analyze so order
29:36fulfillment cycle how quickly you are
29:39fulfilling the order when you are
29:40receiving the order and how quickly it
29:42is fulfilled perfect order rate perfect
29:46order rate is not only ontime delivery
29:48ontime
29:50delivery complete order fulfillment
29:52intact product I told you on time with
29:56quality right and your complete order
29:59should be delivered right and then back
30:01order rate back order is something if
30:03customer is coming to me I could not
30:06meet the demand because insufficient
30:08inventory was there so then I'll that is
30:11a kind of back order so maybe I'll take
30:14some time maybe next few hours I'll
30:16deliver next few days I'll deliver so
30:18that is back over it so how we can
30:20reduce this back over order rate that
30:23will help uh when you will analyze you
30:26know uh perfectly your market conditions
30:28and perfectly your demand supplier on
30:31time delivery performance how many times
30:33your suppliers are delivering on time so
30:36you can develop the schedule for the
30:38suppliers and you can record the
30:39performance so that next time when
30:42giving orders you can keep in mind as
30:44one of the parameter that this supplier
30:46is mostly on time 90% on time 95% on
30:50time so we should give maximum order to
30:52this order lead time variability if one
30:55supplier is like that in one order he
30:59delivered order two days before for next
31:01order he is delivering maybe 5 days late
31:04so all the all always there is
31:07inconsistency so in that way that
31:09supplier is not reliable you can never
31:12rely on that if it is consistently late
31:15we can take that margin that instead of
31:17five days he will take six or seven days
31:19so we are ready for that those many days
31:22but sometimes he is delivering in 3 days
31:24sometimes in 10 days then we cannot plan
31:26for that shipment Dam damage rate during
31:28distribution how many products are
31:30shipped how uh damaged how many what is
31:33the percentage so that you can see
31:35sustainability Matrix you need to record
31:38the carbon emission during your
31:39distribution warehous Transportation
31:41energy how much you are consuming waste
31:44how much waste as byproduct you are uh
31:47uh generating and then you need to
31:49engage your employees you need to
31:51provide the training to your employees
31:53only then motivated employees will work
31:55properly so this is all about about uh
31:58the various concepts of lean Logistics
32:00right uh and we have seen how we can
32:03what are the different types of waste
32:05how we can address that in the next
32:06session we'll continue this discussion
32:08we will be discussing on the various
32:10methodologies to overcome these waste so
32:13these are some of the references so
32:15that's all from this session thank you
32:17very much

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