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Lecture 16 : Lean Logistics (Contd..) — Transcript

by NPTEL IIT Kharagpur · 5,385 words · 799 segments · language en · Watch on YouTube

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  1. 0:01[Music]
  2. 0:22[Music]
  3. 0:25so hello dear friends welcome back to
  4. 0:27nptl online course on Logistics and
  5. 0:29supply chain management so in the last
  6. 0:31session we started discussion on lean
  7. 0:33Logistics we'll uh continue our uh
  8. 0:36discussion on the same topic lean
  9. 0:38Logistics which is a very very important
  10. 0:41part because uh in order to be efficient
  11. 0:44throughout your distribution Network you
  12. 0:46you need to uh remove identify and
  13. 0:49remove the waste or waste in terms of if
  14. 0:51you are doing some unnecessary
  15. 0:53activities which are not going to add
  16. 0:55any value so then you need to identify
  17. 0:58those activities and uh you need to
  18. 1:00remove those activities so we discussed
  19. 1:02about uh the various Concepts under lean
  20. 1:05Logistics and how it started and we
  21. 1:08discussed about very important concept
  22. 1:10under that we defined muda different
  23. 1:11types of waste unevenness overburden
  24. 1:14right how these situations are coming up
  25. 1:17in when we are talking about
  26. 1:19manufacturing or Logistics Services
  27. 1:21right we discussed about the principles
  28. 1:24of lean Logistics and then we identified
  29. 1:27what are the key performance indicators
  30. 1:29so that we can develop the overall
  31. 1:30performance Matrix and we can track our
  32. 1:33performance with respect to those uh key
  33. 1:36performance indicators so uh we'll
  34. 1:39continue from here uh today we'll
  35. 1:41discuss what are the different
  36. 1:42methodologies framework we can use to
  37. 1:44implement lean Logistics right and then
  38. 1:47we'll see what are the challenges in
  39. 1:50implementing uh lean Logistics and we'll
  40. 1:52discuss one very beautiful case study on
  41. 1:55uh Toyota production system so uh just
  42. 2:00uh brief intro about what are the
  43. 2:02different aspects or methodologies
  44. 2:04framework we can use when we are talking
  45. 2:06about lean Logistics uh we'll discuss in
  46. 2:09brief of some of the methodologies so
  47. 2:12first is value stream mapping uh this
  48. 2:15process is uh actually ENT uh you need
  49. 2:18to trace the whole process you need to
  50. 2:22map the whole process what are the
  51. 2:23different activities you are doing in
  52. 2:25that process right and then you need to
  53. 2:28identify all those activ ities which are
  54. 2:30not adding any value right so after
  55. 2:33identifying only you can eliminate the
  56. 2:36waste and inefficiency because of those
  57. 2:38activities first thing is you are uh
  58. 2:41consuming extra time and then extra time
  59. 2:44means extra resources in terms of
  60. 2:46Manpower is also deployed there in terms
  61. 2:48of resources energy resources you are
  62. 2:50using to operate your machines to
  63. 2:52operate your workstation in terms of
  64. 2:55equipment you are using for extra time
  65. 2:58right so if we can reduce even 2 to 3
  66. 3:01seconds also then this is in in uh Big
  67. 3:06Picture This is going to add in a very
  68. 3:08positive way right so if you talk about
  69. 3:11uh automobile car industry so if the
  70. 3:15average time every car is coming uh out
  71. 3:18maybe after 3 to 3.5 minutes right so
  72. 3:22you just imagine if you're saving uh 2
  73. 3:25to 3 seconds so maybe after uh you are
  74. 3:29producing uh 100 cars then you will be
  75. 3:31having one extra car right so in that
  76. 3:34way because this is something car is
  77. 3:36taking that much time 3 to 4 minutes if
  78. 3:39you are talking about some other product
  79. 3:41Small industry where continuously your
  80. 3:43products are coming out of the packaging
  81. 3:45after completing the packaging right so
  82. 3:47if you can save even micros seconds
  83. 3:50through your process and uh then in the
  84. 3:53end you can uh uh incl uh increase your
  85. 3:56overall efficiency so we'll discuss what
  86. 3:58are the different steps when we are
  87. 4:00talking about value stream mapping in
  88. 4:02detail second tool we can use is just in
  89. 4:05time and because uh we identified
  90. 4:08inventory as one of uh uh type of waste
  91. 4:12right uh when we identified seven
  92. 4:14different types of waste so inventory
  93. 4:16was also one of the waste right so if
  94. 4:18you're keeping no doubt you have to
  95. 4:20maintain some uh minimum Stoke so that
  96. 4:23you should not be sto out in the market
  97. 4:25right but then excess inventory is also
  98. 4:28a kind of waste because in inventory
  99. 4:30when you are storing it you are not
  100. 4:32adding any value in that and moreover
  101. 4:34you are consuming resources on that if
  102. 4:37you're are storing for handling for
  103. 4:39maintaining that inventory and then
  104. 4:42handling also you are damaging sometimes
  105. 4:43so that is extra cost so how we can
  106. 4:46ensure we'll see what are the different
  107. 4:47steps under just in time we can
  108. 4:49Implement that and whenever your product
  109. 4:52is required it can be shipped directly
  110. 4:54from your raw material suppliers to the
  111. 4:55production line and then from production
  112. 4:57to the customer
  113. 4:59then standardized work procedures so
  114. 5:02another thing whenever we are coming up
  115. 5:05in manufacturing industry whenever we
  116. 5:07are setting uh new production line for
  117. 5:09new model right so uh then uh initially
  118. 5:13we are producing uh more process
  119. 5:16rejection right because the process is
  120. 5:18not standardized streamlined right and
  121. 5:21people who are working on that
  122. 5:23production line they are also not
  123. 5:24trained even equipment even sometime
  124. 5:27what is happening the raw material we
  125. 5:28are using the we later on after maybe
  126. 5:32initial run of that production assembly
  127. 5:35line we'll realize that we need to
  128. 5:37change the design we need to change some
  129. 5:39parameters and then we'll come with the
  130. 5:41new one right so because before
  131. 5:43standardization so everything these kind
  132. 5:45of rejections these kind of delays
  133. 5:48inefficiencies are happening so
  134. 5:49productivity is in big question mark
  135. 5:52right so because we cannot be productive
  136. 5:55because we have not achieved the
  137. 5:57standardization so our Target is always
  138. 6:00when we are coming with the new
  139. 6:01production line is to you know
  140. 6:03standardize the production line so if
  141. 6:05we'll standardize we'll eliminate the
  142. 6:07variability because now everything is
  143. 6:09standardized so process variability will
  144. 6:11be very less right so we can reduce
  145. 6:14errors we can improve the efficiency as
  146. 6:17well continuous Improvement culture this
  147. 6:20is another kind of thing we'll see
  148. 6:22Kaizen steps how we can Implement those
  149. 6:25Kaizen steps so that continuous
  150. 6:27Improvement can be ensured it's not only
  151. 6:30one time you uh identified some reasons
  152. 6:33for rejection and then next time the
  153. 6:36process will be completely error free
  154. 6:38right so every day there is new
  155. 6:40opportunity if not with the prod you can
  156. 6:43even improve the product design after
  157. 6:45maybe two years 3 years so that's why so
  158. 6:48many product recalls are happening right
  159. 6:51so you you might have seen we discussed
  160. 6:53about boxagon we discussed about maruti
  161. 6:55with desire and Baleno and then BMW even
  162. 6:59some times and then you talked about uh
  163. 7:02uh if you see uh Nokia they have to
  164. 7:05recall their mobile phone because of the
  165. 7:07uh issues happening with the battery
  166. 7:09right so over the time when uh actually
  167. 7:13after commercialization customers start
  168. 7:16using the product in that way very in
  169. 7:19your rough way right so even rough way
  170. 7:21even if you are handling with care even
  171. 7:23then you will start observing new issues
  172. 7:25are coming so then maybe you need to
  173. 7:27change the raw material maybe you need
  174. 7:29to to change the design of the product
  175. 7:31maybe you need to change the technology
  176. 7:33sometimes for manufacturing that product
  177. 7:35maybe you need to train your Manpower
  178. 7:37more so that means every stakeholder
  179. 7:40every unit element has equal role in
  180. 7:44Improvement right so that continuous
  181. 7:46Improvement will uh be there right
  182. 7:49supplier collaboration when we are
  183. 7:50talking about just in time kind of
  184. 7:52system when we are talking about total
  185. 7:55quality management throughout the
  186. 7:56distribution Network supplier is going
  187. 7:58to play important role right so uh that
  188. 8:01will only happen you will you need to
  189. 8:04share the demand forecast you need to
  190. 8:05share the production schedules because
  191. 8:07your down the line the your team is
  192. 8:10always interacting with the customer
  193. 8:11they are analyzing how the demand
  194. 8:13pattern is going to be right so as a
  195. 8:16manufacturer if you are keeping that
  196. 8:18information with you only or if your
  197. 8:20distribution network is keeping that
  198. 8:22information with them only there is no
  199. 8:24use so how without any delay without any
  200. 8:28uh you know manipulation in that
  201. 8:30information how we can pass the exact
  202. 8:33information from the customer we are
  203. 8:35receiving in terms of feedback in terms
  204. 8:37of quality complaints in terms of demand
  205. 8:39if they are having new demand patterns
  206. 8:41new buying Behavior patterns so that
  207. 8:43should be shared immediately throughout
  208. 8:46the network so that will only happen
  209. 8:48when you have strong collaboration with
  210. 8:50your
  211. 8:51suppliers then another very important
  212. 8:54methodology is dmac for implementing
  213. 8:56lean Six Sigma methodology right where
  214. 8:59we will focus on eliminating the errors
  215. 9:02right rejection so how uh Six Sigma
  216. 9:06actually points out only 3.4 defects are
  217. 9:09allowed per million
  218. 9:12opportunity right so you need to
  219. 9:16implement Six Sigma if you you want to
  220. 9:18implement Six Sigma then the this is the
  221. 9:20methodology dmac we can use to implement
  222. 9:23that and Six Sigma means you are
  223. 9:25tremendously you are reducing the uh
  224. 9:28process re or defects in your product
  225. 9:31whatever you are producing you should
  226. 9:32not produce the defected product so how
  227. 9:35we can implement the Six Sigma
  228. 9:36methodology to you know uh reduce that
  229. 9:40process
  230. 9:41rejection so process rejection uh let me
  231. 9:45clarify uh see there are two types of
  232. 9:47rejection I uh one is your Zero Hour
  233. 9:54rejection another one is your process
  234. 9:57rejection
  235. 10:00so your zero hour reection is the
  236. 10:03responsibility is from the raw material
  237. 10:06suppliers this is the problem with the
  238. 10:08raw material suppliers without you did
  239. 10:10not use that material on the production
  240. 10:12line and then you suddenly realize that
  241. 10:14there is something wrong with that
  242. 10:16material that is zero hour rejection
  243. 10:18there is no issue with your
  244. 10:19manufacturing unit but when we talk
  245. 10:22about process rejection this is
  246. 10:24something while converting those raw
  247. 10:26material into finished one we may break
  248. 10:28those component onon right so that means
  249. 10:30that is the responsibility of the
  250. 10:32manufacturing unit that breakage can
  251. 10:34happen because of the faulty technology
  252. 10:37you are using because of the faulty
  253. 10:39method you are using maybe the person
  254. 10:41who is sitting on that workstation is
  255. 10:43not trained fully so then you will be
  256. 10:46generating more process rejection and
  257. 10:48because this is the responsibility of
  258. 10:50the manufacturer so we will reduce your
  259. 10:52productivity and will increase your cost
  260. 10:56because now uh if you said two items are
  261. 11:01you are using two
  262. 11:03components for that particular product
  263. 11:06two components of one maybe raw material
  264. 11:10so if you are damaging maybe after uh so
  265. 11:13see if you have 100 100 components so 50
  266. 11:16final products should come out of that
  267. 11:18right but if you are damaging those
  268. 11:20products maybe 10 you damaged so then
  269. 11:22you will be producing only 45 finished
  270. 11:24products right so that is the process
  271. 11:26rejection we calculate this process
  272. 11:29rejection as fall of rejection rate fall
  273. 11:32of rejection
  274. 11:34rate and we try to reduce it to less
  275. 11:39than 2% in some organization maybe less
  276. 11:42than 5% 1% so anywhere if you are lying
  277. 11:46between 2 to 3% that means it's fair
  278. 11:48enough but that depends upon your
  279. 11:51industry to industry but now we are into
  280. 11:53the era of uh advanced technology where
  281. 11:56why even 2 to 3% Pro process rejection
  282. 11:59we are allowing that means every 100 AC
  283. 12:03we are manufacturing 2 to three will be
  284. 12:06defected right so you just imagine if
  285. 12:09those defected AC's are shipped to the
  286. 12:12market how the product image will be
  287. 12:15done in the market about your brand
  288. 12:17right the experience customer will carry
  289. 12:19the experience customer will share with
  290. 12:21the other you know customers right so
  291. 12:24that means while your brand image in the
  292. 12:26long run so you need to be careful uh
  293. 12:29with this process rejection so
  294. 12:31technology integration is another tool
  295. 12:33which we can use to you know eliminate
  296. 12:36the waste and Implement lean Logistics
  297. 12:39and uh how we can we have seen that in
  298. 12:41logistics when when you are talking
  299. 12:43about Transportation so in
  300. 12:44transportation how route optimization
  301. 12:46you can do how you can reduce the
  302. 12:49distance how you can pick the better
  303. 12:51route as per the environmental condition
  304. 12:53considering the accidents on the road
  305. 12:55considering the road condition
  306. 12:57considering the traffic jams and then
  307. 12:59your software is giving you the
  308. 13:01instruction that you can take the other
  309. 13:03route it will be faster than the this
  310. 13:05route right so if you can reduce that
  311. 13:07during your transportation again cost
  312. 13:09will come down because you will consume
  313. 13:11less uh your fuel that is one way you
  314. 13:15can use the transportation management
  315. 13:16software the other thing is Warehouse
  316. 13:19dist uh management we talked about how
  317. 13:21within Warehouse you can fully utilize
  318. 13:24the capacity if some part of Warehouse
  319. 13:27is lying bant all the time you can
  320. 13:29collaborate for you can go for
  321. 13:30consolidation horizontal integration
  322. 13:32where you can maybe your competitor's
  323. 13:34product also you can store in your cold
  324. 13:36storage house if that is the requirement
  325. 13:39right then uh how you can ensure by
  326. 13:42implementing those uh software warehouse
  327. 13:45management software you can ensure the
  328. 13:48proper stock rotation if you are
  329. 13:50ensuring that then no inventory will go
  330. 13:53uh outdated or expired right so you can
  331. 13:56in that way ensure the complete
  332. 13:58utilization of the inventry as well so
  333. 14:00these kind of software then handling and
  334. 14:02all that you can maintain quickly
  335. 14:04because it's a big large your Warehouse
  336. 14:07facility how quickly and easily you can
  337. 14:10identify the item and then ship that
  338. 14:12item with your corer partner so that on
  339. 14:14time delivery can happen with the End
  340. 14:16customer so these are some of the
  341. 14:18software we can use and during
  342. 14:20distribution Network also you can see
  343. 14:23how you can consolidate more uh you know
  344. 14:27uh final products or ship so that
  345. 14:30instead of making 10 different
  346. 14:32deliveries can you manage with the two
  347. 14:34uh uh shipments so all those 10
  348. 14:37deliveries uh in that particular pin
  349. 14:39code or reason right so that these kind
  350. 14:41of software will help you to minimize
  351. 14:43the uh your waste and uh obviously the
  352. 14:46performance will be improved sustainable
  353. 14:49packaging practices so obviously uh we
  354. 14:53should Target to recyclable and
  355. 14:55biodegradable uh packaging which should
  356. 14:57have a minimum impact on the the
  357. 14:59environment even whatever packaging you
  358. 15:02decided the material then you know what
  359. 15:04is going to be the footprint whether it
  360. 15:05is recyclable how you are going to
  361. 15:07recollect and all that but there are
  362. 15:09some other parameters which you need to
  363. 15:11take care when you are going for you
  364. 15:13know deciding the packaging right size
  365. 15:15of packaging so we we have seen that
  366. 15:18video when your the container is
  367. 15:20carrying the boxes like this so all size
  368. 15:24of the boxes are not equal and inside
  369. 15:26that boxes box the product is carrying
  370. 15:29only this much space so this much is
  371. 15:31only packaging or maybe extra packaging
  372. 15:34you are adding for just safety measures
  373. 15:36so how we can reduce If the product is
  374. 15:39only up to this how we can reduce this
  375. 15:41extra layer of packaging right so right
  376. 15:44size of packaging will help you to
  377. 15:46reduce the to help uh to utilize the
  378. 15:49complete you know container space right
  379. 15:52and in that way you can be more
  380. 15:54efficient root optimization already we
  381. 15:56talked about you need to see distance
  382. 15:58tra trffic condition delivery time what
  383. 16:01are the requirement from the customer
  384. 16:02and if you can minimize the distance and
  385. 16:04travel obviously the fuel consumption
  386. 16:07will be less vehicle Veer and tier will
  387. 16:10be less so overall Transportation Matrix
  388. 16:13performance Matrix you can
  389. 16:16improve so another your Technology based
  390. 16:19solution where you can go you know
  391. 16:21Performance Based contracts when you are
  392. 16:23going for uh Contracting your Logistics
  393. 16:26things right so you can uh uh go for
  394. 16:29your smart contracts kind of concept or
  395. 16:32uh you can evaluate your vendors
  396. 16:35continuously right whether they are your
  397. 16:38logistic partner career partner are
  398. 16:40doing ontime delivery whether uh orders
  399. 16:43are delivered accurately inventory
  400. 16:45accuracy how much inventory on record
  401. 16:47you have and physically if we'll verify
  402. 16:50so how what is the gap in that so if you
  403. 16:54have completely automated kind of
  404. 16:56Warehouse system so there will be
  405. 16:58absolutely no Gap right so that we can
  406. 17:01uh in that way we can optimize the
  407. 17:03operation and we can minimize the cost
  408. 17:07demand forecast and planning so if you
  409. 17:10are accurately predicting the demand
  410. 17:12using whatever predict analytics you are
  411. 17:14using using software interacting with
  412. 17:17the customers or your sales team
  413. 17:19interacting with the customer so then
  414. 17:21you can go for inventory management and
  415. 17:24you can ensure that over production is
  416. 17:26also not happening and also you are not
  417. 17:29out of stock in the market so whenever
  418. 17:31customer is coming to your retail shop
  419. 17:33or your website you are always in the
  420. 17:36position to deliver the product right so
  421. 17:38this you can predict the demand
  422. 17:40accurately by taking historical data
  423. 17:43market trends and customer feedback but
  424. 17:46sometimes because these are kind of
  425. 17:48historical data you are using and you
  426. 17:49can exate the trend and you can predict
  427. 17:51the future but sometimes some emergency
  428. 17:55situations may happen so because of that
  429. 17:57sometimes demand may come come down
  430. 17:59sometime demand may rise up so if you
  431. 18:02take very uh relevant case of covid-19
  432. 18:05you might have seen the all the
  433. 18:08production houses they uh face
  434. 18:10challenges related to demand because in
  435. 18:13automobile sector as well right so our
  436. 18:15production reduced we shut down the
  437. 18:17operation and all the but if you talk
  438. 18:19about the medical supplies if you talk
  439. 18:21about even the common men started using
  440. 18:24mask gloves face Shields goggles and all
  441. 18:27those things and hand sanitizer right
  442. 18:28right so earlier how frequently we were
  443. 18:31using now almost four five years now
  444. 18:34again you see the condition how
  445. 18:35frequently we are using the hand
  446. 18:36sanitizer gloves and all those things
  447. 18:38right so this this was opportunity for
  448. 18:41those companies but yes was Major
  449. 18:44setback for major part of the economy
  450. 18:47right we can come with the model
  451. 18:49Transportation solution where we can
  452. 18:52standardize the container size uh uh by
  453. 18:56considering the packet size we should
  454. 18:59uh also fix the product packaging size
  455. 19:02so that the 100% container size uh
  456. 19:05capacity can be utilized and we should
  457. 19:07go for Intermodal kind of Transportation
  458. 19:10so that the overall cost can be
  459. 19:12minimized and in that way we can be more
  460. 19:14sustainable wherever we have the
  461. 19:16infrastructure we should go through
  462. 19:18ships right or we can go for last mile
  463. 19:21delivery we can use the Cycles or maybe
  464. 19:24we can use the electrical Vehicles
  465. 19:26reverse Logistics optimization we had a
  466. 19:29complete session on this reverse
  467. 19:31Logistics and then we saw that how
  468. 19:34important this is that if the product is
  469. 19:37coming uh unused product is coming or
  470. 19:39product is coming back because of barant
  471. 19:42failures or product is coming back at
  472. 19:44the end of life so how your uh reverse
  473. 19:47Supply uh chain should be equally uh
  474. 19:50efficient as we are talking about the uh
  475. 19:53forward supply chain so how you can
  476. 19:55efficiently ensure the resale of the
  477. 19:57product if it is unused how you can um
  478. 20:00ensure efficient effective recycling
  479. 20:03refurbishment so all those things will
  480. 20:05ident uh will help you you know to map
  481. 20:08your performance Matrix related to
  482. 20:10reverse Logistics optimization so
  483. 20:14performance measurement and monitoring
  484. 20:16this is important that whatever kpis we
  485. 20:18are recording we need to maintain track
  486. 20:20those kpis throughout our distribution
  487. 20:23Network so only then we can identify
  488. 20:25where are the bottlenecks right where we
  489. 20:27are lacking and like Kaizen I talked
  490. 20:30about so everyday small steps
  491. 20:33Improvement will happen only when we
  492. 20:35will identify where the Improvement
  493. 20:38required at the most where we are
  494. 20:40lacking at the most where we are lacking
  495. 20:43where we are losing our business right
  496. 20:45so how we can be more cost efficient so
  497. 20:48some there may be 100 opportunities but
  498. 20:50if you'll address out of those 100 maybe
  499. 20:53first 10 you will prioritize maybe you
  500. 20:55can address 60 70% of the problem of
  501. 20:58efficiency right so that we need to find
  502. 21:01out so this is the first process value
  503. 21:04stream mapping uh we discussed about how
  504. 21:07we can identify inefficiencies and
  505. 21:09bottlenecks so you need to identify what
  506. 21:11are the value adding activities and what
  507. 21:13are
  508. 21:15the nonv value adding activities non
  509. 21:18value adding activities are also known
  510. 21:20as supporting
  511. 21:24activities and in the end the customer
  512. 21:26is getting one package of product where
  513. 21:30for delivering that product you are
  514. 21:32doing non-v value adding activities as
  515. 21:34well you are doing value adding
  516. 21:35activities as well now value adding
  517. 21:37activities let's say your Logistics is
  518. 21:39value adding activities giving the
  519. 21:41customer best experience by delivering
  520. 21:43the on uh Doorstep Delivery then your
  521. 21:46manufacturing who is putting all those
  522. 21:48feature into that then your sales team
  523. 21:50who is going to address your needs
  524. 21:53record your needs and then provide you
  525. 21:55product as per your requirement right so
  526. 21:57then maybe if you are talking about R&D
  527. 22:00if they are coming with new features
  528. 22:02renovating their product every time
  529. 22:04these are some of the kind of activities
  530. 22:06we from these activities as a customer
  531. 22:09you can continuously you can drive the
  532. 22:10value out of that but non value adding
  533. 22:12activity let's say if you're are talking
  534. 22:14about human resource management so Human
  535. 22:17Resource Management primar function is
  536. 22:19to maintain the human resources within
  537. 22:21the organization and then you are doing
  538. 22:23you are designing your compensation
  539. 22:25policies you are designing your
  540. 22:27Healthcare benefits you you are
  541. 22:28designing all other things related to
  542. 22:31your complete package you are giving to
  543. 22:33your employees now as a customer whether
  544. 22:36you are compensating your employees up
  545. 22:39to the industry level or you are below
  546. 22:43that average or you are above that
  547. 22:44average as a customer if as long as my
  548. 22:47product is okay doing well I need not to
  549. 22:50bother about that so this is kind of but
  550. 22:52this is required I'm not saying that HRM
  551. 22:54practices are not required they are
  552. 22:56doing training and development program
  553. 22:58just to you know keep their Manpower
  554. 23:01resources updated but as a customer I I
  555. 23:05cannot drive Direct Value out of that
  556. 23:07but it is very much required to retain
  557. 23:10your employees within the organization
  558. 23:12right so these kind of uh like if you
  559. 23:14are doing auditing kind of services as a
  560. 23:16customer whether your inventory is
  561. 23:18matching with your physical inventory or
  562. 23:20not how I should B if I'm buying car it
  563. 23:24should have five tires I'm getting five
  564. 23:26tires whether your inventory l cost some
  565. 23:29tires damage some tires hardly bother
  566. 23:31about that as a customer right so you
  567. 23:33need to identify what are value adding
  568. 23:35activities what are non value adding
  569. 23:36activities and how then you can take
  570. 23:39Steps step wise to reduce those non
  571. 23:42value adding activities so this is very
  572. 23:44by W Edwards Deming one of the quality
  573. 23:47Guru so Pioneers in that field he said
  574. 23:50that if you don't describe what you are
  575. 23:52doing as a process that means you don't
  576. 23:55know what you are doing so if your
  577. 23:57process whatever you are doing is not
  578. 23:59related with the end result so that is
  579. 24:01something kind of waste so that is non
  580. 24:04value adding activity so how we can
  581. 24:07eliminate that waste is value stream
  582. 24:09mapping uh this process we'll see five
  583. 24:12steps so simple example you can see
  584. 24:15earlier the motion of the product is
  585. 24:16moving like this jig jaag motion you
  586. 24:18just see how it is moving from here to
  587. 24:21there and then again to zigzag motion is
  588. 24:24there so we identified that extra motion
  589. 24:27means extra handling means breakage of
  590. 24:31the product means extra cost means
  591. 24:35inefficiency so all these things are
  592. 24:39related so how we can reduce it with
  593. 24:41implementing lean Basics and there will
  594. 24:43be the smooth streamline flow so that
  595. 24:47Zig jaag flow should not be there so how
  596. 24:50we can do that we need to prepare the uh
  597. 24:53problem what is the problem we need to
  598. 24:55identify the current state by analyzing
  599. 24:57the current data and then we need to
  600. 24:59develop the future state where we want
  601. 25:01to be and then we'll as per that future
  602. 25:05uh State we will develop the plan and
  603. 25:08we'll try to implement that plan and
  604. 25:10we'll then in the end we'll uh again
  605. 25:12track that plan whether we implemented
  606. 25:15in the same way or uh we will align that
  607. 25:18plan with the overall activity so we'll
  608. 25:20see step by step uh first you'll prepare
  609. 25:24you'll document the change right
  610. 25:26whatever you want to change you'll
  611. 25:28Define the scope either it is related to
  612. 25:31process or you need to change with the
  613. 25:33Manpower or you need to change with
  614. 25:35technology or you need to change
  615. 25:38something else in order to be more
  616. 25:40efficient right so you need to identify
  617. 25:43the scope and then identify the
  618. 25:45requirements if you need to change the
  619. 25:47Manpower so why that requirement is
  620. 25:50there that means Manpower is not train
  621. 25:53fully so you cannot hire and fire just
  622. 25:56like that so what you can do you you can
  623. 25:58arrange the training and development
  624. 26:00programs for those people who are
  625. 26:02working on those critical stages so this
  626. 26:05is how it will happen so then you need
  627. 26:08to set logistics for event uh you need
  628. 26:11participants stakeholders if you are
  629. 26:13talking about process the process
  630. 26:15stakeholders will be there location
  631. 26:17where you are going to implement
  632. 26:18materials refreshment meals everything
  633. 26:20is required to you know this is a kind
  634. 26:23of Workshop you are going to conduct
  635. 26:25initial basis and then you will analyze
  636. 26:27the result of of that then you need to
  637. 26:30gather data let's say right now the
  638. 26:32problem you identified related to ontime
  639. 26:34delivery now this ontime delivery is not
  640. 26:37happening because
  641. 26:40because the career
  642. 26:43partner did not pick the product on
  643. 26:48time so that means now I need not to
  644. 26:51focus just on the distribution partner I
  645. 26:54need to focus on first on the that
  646. 26:58partner who was taking the product from
  647. 27:01the
  648. 27:02seller that career
  649. 27:05partner and
  650. 27:08shipping to the local Warehouse right
  651. 27:12and then from there it is going to
  652. 27:14customer right so this problem is with
  653. 27:17the this career partner he did not pick
  654. 27:19on time so then the problem uh came from
  655. 27:24there only so even if this corer partner
  656. 27:27is on time but because the initial delay
  657. 27:29happened so that will giving you will be
  658. 27:32giving you reple effect right so it will
  659. 27:34be uh you know effect uh it will affect
  660. 27:38your the whole process so you need to
  661. 27:41identify if you're talking about actual
  662. 27:43lead time what is the lead time output
  663. 27:45related issues are there cycle time you
  664. 27:48are not able to complete on time so
  665. 27:50whether you need to rethink about the
  666. 27:52cycle time or you need to uh reduce the
  667. 27:55unnecessary activities then defect rate
  668. 27:57quality related issues are there so that
  669. 27:59means you need to identify that thing
  670. 28:02and you need to analyze the collect the
  671. 28:04data right if I'm saying that map the
  672. 28:07flow of item and delivery ontime
  673. 28:10delivery was one big question so we
  674. 28:12mapped this flow of item so product
  675. 28:15started the journey from the seller
  676. 28:17right actually started the journey from
  677. 28:19the raw material supplier and then corer
  678. 28:21partner then again shipping agent is
  679. 28:23there then local warehouse distribution
  680. 28:25partner will be there who will be giving
  681. 28:27the uh final product so we need to find
  682. 28:30out the flow of the information and in
  683. 28:32that flow where the bottleneck is there
  684. 28:36right we need to identify that we need
  685. 28:38to then find out the future State okay
  686. 28:41future State and action plan now we
  687. 28:43identified that uh if we are saying 5
  688. 28:47days it will take so uh it will give you
  689. 28:51only 12 hours to the corer partner to
  690. 28:54pick the product from the seller right
  691. 28:56so if it is taking more than 20 hours
  692. 29:00you need to identify that this is the
  693. 29:02target this is the gap so you need to
  694. 29:03identify this as future state that we
  695. 29:05need to Target 12 hours that is maximum
  696. 29:08we can go for and then we will
  697. 29:10communicate this with the career partner
  698. 29:12that you need to pick after recording
  699. 29:14the order within 12 hours you need to
  700. 29:16pick the product right and if it is not
  701. 29:18happening maybe you need to change the
  702. 29:20technology because you are not able to
  703. 29:22share information quickly so then you
  704. 29:23need to do and then maybe sometimes
  705. 29:25training is required so let's say we'll
  706. 29:28explore this uh uh one worksheet uh the
  707. 29:32process or function let's say we are
  708. 29:34shipping the wrong
  709. 29:36product and why this happened Oris
  710. 29:39problem uh maybe the person who was
  711. 29:42sitting on that recorded wrong order
  712. 29:47wrong
  713. 29:47order recorded right now action items
  714. 29:51what we will do why the wrong order
  715. 29:53recorded I as a j customer I place the
  716. 29:56order with the restaurant and maybe
  717. 29:59restaurant uh that information was not
  718. 30:01shared accurately and in the end when I
  719. 30:04communicated with my kitchen so I
  720. 30:07communicated wrong items right so now
  721. 30:11lack is because human intervention is
  722. 30:15there why uh is it possible can be
  723. 30:19replac this if the order is directly
  724. 30:22coming to Jato can we share the exact
  725. 30:24information with the kitchen uh as uh
  726. 30:27through that Network so that this wrong
  727. 30:29shipment of item will not happen so
  728. 30:32we'll share that this who is responsible
  729. 30:34for this the technology people R&D
  730. 30:37people who can develop this platform
  731. 30:38right due date how we can Implement that
  732. 30:41and then we we'll record the matrices
  733. 30:43how we can uh improve those uh
  734. 30:46performances right and then in the end
  735. 30:48once we decided that this technology
  736. 30:51will be implemented so that we can
  737. 30:52ensure the uh delivery of the right
  738. 30:55product we need to execute the plan
  739. 30:58right and then once executed we need to
  740. 31:01align this and maybe many reviews may be
  741. 31:05required with respect to what you have
  742. 31:07been doing earlier right and then
  743. 31:09implementation and results whether that
  744. 31:12really affecting your performance Matrix
  745. 31:14or not that you need to record right so
  746. 31:18if the investment is this much right
  747. 31:21investment is this much and your result
  748. 31:23is this much you need to rethink about
  749. 31:26that because you contributed so much but
  750. 31:28the result is so maybe then you are
  751. 31:30addressing the wrong issue so then uh
  752. 31:33one you again you will review you will
  753. 31:35review in the with respect to the
  754. 31:37environmental changes right and then you
  755. 31:39will communicate the results whatever
  756. 31:41changes are required you will update
  757. 31:43those changes with the your technical
  758. 31:45team and in the end you will ensure that
  759. 31:47that wrong delivery should not happen a
  760. 31:50very simple example how we can implement
  761. 31:52this right so if you see I want to
  762. 31:55steple a paper and the complete process
  763. 31:58is given here I'll pick up the paper 1
  764. 32:02second I will take walk to steppler 5
  765. 32:04second I will take steple 2 seconds walk
  766. 32:07to desk again 5 Seconds put down the
  767. 32:10paper 1 second so total time if you will
  768. 32:13add is 6 8 13 14 right and if you'll see
  769. 32:19total distance you traveled is 140 40 ft
  770. 32:23but value added time is only you picked
  771. 32:26up the paper you stle the paper and you
  772. 32:29put down the paper that is only 4
  773. 32:31seconds so those 10 seconds are waste
  774. 32:36and value added distance no distance was
  775. 32:39required if your paper and Pen uh your
  776. 32:42steppler is there only this is very
  777. 32:43simple example so that distance also you
  778. 32:46can minimize right so you can see how
  779. 32:49you can be productive value added time
  780. 32:51was only
  781. 32:5228% so rest whatever you were doing was
  782. 32:55waste right so 72 2% of the things you
  783. 32:58are doing is waste right so uh we'll
  784. 33:02continue this discussion with the uh
  785. 33:05some uh more methodologies how we can
  786. 33:07implement the lean Logistics and
  787. 33:09obviously we'll go for one case so uh
  788. 33:12this is the reference list from where
  789. 33:14the content has been prepared and you
  790. 33:15can refer uh these books for more
  791. 33:18understanding better understanding of
  792. 33:19this right so uh that's all from this
  793. 33:22session we'll continue discussion on
  794. 33:24different methodologies in lean
  795. 33:26Logistics while you plan to implement
  796. 33:29lean Logistics in your operational area
  797. 33:31right and we'll go for uh uh Toyota
  798. 33:34production system as case study so thank
  799. 33:36you very much

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