Lecture 16 : Lean Logistics (Contd..) — Transcript
Full transcript
- 0:01[Music]
- 0:22[Music]
- 0:25so hello dear friends welcome back to
- 0:27nptl online course on Logistics and
- 0:29supply chain management so in the last
- 0:31session we started discussion on lean
- 0:33Logistics we'll uh continue our uh
- 0:36discussion on the same topic lean
- 0:38Logistics which is a very very important
- 0:41part because uh in order to be efficient
- 0:44throughout your distribution Network you
- 0:46you need to uh remove identify and
- 0:49remove the waste or waste in terms of if
- 0:51you are doing some unnecessary
- 0:53activities which are not going to add
- 0:55any value so then you need to identify
- 0:58those activities and uh you need to
- 1:00remove those activities so we discussed
- 1:02about uh the various Concepts under lean
- 1:05Logistics and how it started and we
- 1:08discussed about very important concept
- 1:10under that we defined muda different
- 1:11types of waste unevenness overburden
- 1:14right how these situations are coming up
- 1:17in when we are talking about
- 1:19manufacturing or Logistics Services
- 1:21right we discussed about the principles
- 1:24of lean Logistics and then we identified
- 1:27what are the key performance indicators
- 1:29so that we can develop the overall
- 1:30performance Matrix and we can track our
- 1:33performance with respect to those uh key
- 1:36performance indicators so uh we'll
- 1:39continue from here uh today we'll
- 1:41discuss what are the different
- 1:42methodologies framework we can use to
- 1:44implement lean Logistics right and then
- 1:47we'll see what are the challenges in
- 1:50implementing uh lean Logistics and we'll
- 1:52discuss one very beautiful case study on
- 1:55uh Toyota production system so uh just
- 2:00uh brief intro about what are the
- 2:02different aspects or methodologies
- 2:04framework we can use when we are talking
- 2:06about lean Logistics uh we'll discuss in
- 2:09brief of some of the methodologies so
- 2:12first is value stream mapping uh this
- 2:15process is uh actually ENT uh you need
- 2:18to trace the whole process you need to
- 2:22map the whole process what are the
- 2:23different activities you are doing in
- 2:25that process right and then you need to
- 2:28identify all those activ ities which are
- 2:30not adding any value right so after
- 2:33identifying only you can eliminate the
- 2:36waste and inefficiency because of those
- 2:38activities first thing is you are uh
- 2:41consuming extra time and then extra time
- 2:44means extra resources in terms of
- 2:46Manpower is also deployed there in terms
- 2:48of resources energy resources you are
- 2:50using to operate your machines to
- 2:52operate your workstation in terms of
- 2:55equipment you are using for extra time
- 2:58right so if we can reduce even 2 to 3
- 3:01seconds also then this is in in uh Big
- 3:06Picture This is going to add in a very
- 3:08positive way right so if you talk about
- 3:11uh automobile car industry so if the
- 3:15average time every car is coming uh out
- 3:18maybe after 3 to 3.5 minutes right so
- 3:22you just imagine if you're saving uh 2
- 3:25to 3 seconds so maybe after uh you are
- 3:29producing uh 100 cars then you will be
- 3:31having one extra car right so in that
- 3:34way because this is something car is
- 3:36taking that much time 3 to 4 minutes if
- 3:39you are talking about some other product
- 3:41Small industry where continuously your
- 3:43products are coming out of the packaging
- 3:45after completing the packaging right so
- 3:47if you can save even micros seconds
- 3:50through your process and uh then in the
- 3:53end you can uh uh incl uh increase your
- 3:56overall efficiency so we'll discuss what
- 3:58are the different steps when we are
- 4:00talking about value stream mapping in
- 4:02detail second tool we can use is just in
- 4:05time and because uh we identified
- 4:08inventory as one of uh uh type of waste
- 4:12right uh when we identified seven
- 4:14different types of waste so inventory
- 4:16was also one of the waste right so if
- 4:18you're keeping no doubt you have to
- 4:20maintain some uh minimum Stoke so that
- 4:23you should not be sto out in the market
- 4:25right but then excess inventory is also
- 4:28a kind of waste because in inventory
- 4:30when you are storing it you are not
- 4:32adding any value in that and moreover
- 4:34you are consuming resources on that if
- 4:37you're are storing for handling for
- 4:39maintaining that inventory and then
- 4:42handling also you are damaging sometimes
- 4:43so that is extra cost so how we can
- 4:46ensure we'll see what are the different
- 4:47steps under just in time we can
- 4:49Implement that and whenever your product
- 4:52is required it can be shipped directly
- 4:54from your raw material suppliers to the
- 4:55production line and then from production
- 4:57to the customer
- 4:59then standardized work procedures so
- 5:02another thing whenever we are coming up
- 5:05in manufacturing industry whenever we
- 5:07are setting uh new production line for
- 5:09new model right so uh then uh initially
- 5:13we are producing uh more process
- 5:16rejection right because the process is
- 5:18not standardized streamlined right and
- 5:21people who are working on that
- 5:23production line they are also not
- 5:24trained even equipment even sometime
- 5:27what is happening the raw material we
- 5:28are using the we later on after maybe
- 5:32initial run of that production assembly
- 5:35line we'll realize that we need to
- 5:37change the design we need to change some
- 5:39parameters and then we'll come with the
- 5:41new one right so because before
- 5:43standardization so everything these kind
- 5:45of rejections these kind of delays
- 5:48inefficiencies are happening so
- 5:49productivity is in big question mark
- 5:52right so because we cannot be productive
- 5:55because we have not achieved the
- 5:57standardization so our Target is always
- 6:00when we are coming with the new
- 6:01production line is to you know
- 6:03standardize the production line so if
- 6:05we'll standardize we'll eliminate the
- 6:07variability because now everything is
- 6:09standardized so process variability will
- 6:11be very less right so we can reduce
- 6:14errors we can improve the efficiency as
- 6:17well continuous Improvement culture this
- 6:20is another kind of thing we'll see
- 6:22Kaizen steps how we can Implement those
- 6:25Kaizen steps so that continuous
- 6:27Improvement can be ensured it's not only
- 6:30one time you uh identified some reasons
- 6:33for rejection and then next time the
- 6:36process will be completely error free
- 6:38right so every day there is new
- 6:40opportunity if not with the prod you can
- 6:43even improve the product design after
- 6:45maybe two years 3 years so that's why so
- 6:48many product recalls are happening right
- 6:51so you you might have seen we discussed
- 6:53about boxagon we discussed about maruti
- 6:55with desire and Baleno and then BMW even
- 6:59some times and then you talked about uh
- 7:02uh if you see uh Nokia they have to
- 7:05recall their mobile phone because of the
- 7:07uh issues happening with the battery
- 7:09right so over the time when uh actually
- 7:13after commercialization customers start
- 7:16using the product in that way very in
- 7:19your rough way right so even rough way
- 7:21even if you are handling with care even
- 7:23then you will start observing new issues
- 7:25are coming so then maybe you need to
- 7:27change the raw material maybe you need
- 7:29to to change the design of the product
- 7:31maybe you need to change the technology
- 7:33sometimes for manufacturing that product
- 7:35maybe you need to train your Manpower
- 7:37more so that means every stakeholder
- 7:40every unit element has equal role in
- 7:44Improvement right so that continuous
- 7:46Improvement will uh be there right
- 7:49supplier collaboration when we are
- 7:50talking about just in time kind of
- 7:52system when we are talking about total
- 7:55quality management throughout the
- 7:56distribution Network supplier is going
- 7:58to play important role right so uh that
- 8:01will only happen you will you need to
- 8:04share the demand forecast you need to
- 8:05share the production schedules because
- 8:07your down the line the your team is
- 8:10always interacting with the customer
- 8:11they are analyzing how the demand
- 8:13pattern is going to be right so as a
- 8:16manufacturer if you are keeping that
- 8:18information with you only or if your
- 8:20distribution network is keeping that
- 8:22information with them only there is no
- 8:24use so how without any delay without any
- 8:28uh you know manipulation in that
- 8:30information how we can pass the exact
- 8:33information from the customer we are
- 8:35receiving in terms of feedback in terms
- 8:37of quality complaints in terms of demand
- 8:39if they are having new demand patterns
- 8:41new buying Behavior patterns so that
- 8:43should be shared immediately throughout
- 8:46the network so that will only happen
- 8:48when you have strong collaboration with
- 8:50your
- 8:51suppliers then another very important
- 8:54methodology is dmac for implementing
- 8:56lean Six Sigma methodology right where
- 8:59we will focus on eliminating the errors
- 9:02right rejection so how uh Six Sigma
- 9:06actually points out only 3.4 defects are
- 9:09allowed per million
- 9:12opportunity right so you need to
- 9:16implement Six Sigma if you you want to
- 9:18implement Six Sigma then the this is the
- 9:20methodology dmac we can use to implement
- 9:23that and Six Sigma means you are
- 9:25tremendously you are reducing the uh
- 9:28process re or defects in your product
- 9:31whatever you are producing you should
- 9:32not produce the defected product so how
- 9:35we can implement the Six Sigma
- 9:36methodology to you know uh reduce that
- 9:40process
- 9:41rejection so process rejection uh let me
- 9:45clarify uh see there are two types of
- 9:47rejection I uh one is your Zero Hour
- 9:54rejection another one is your process
- 9:57rejection
- 10:00so your zero hour reection is the
- 10:03responsibility is from the raw material
- 10:06suppliers this is the problem with the
- 10:08raw material suppliers without you did
- 10:10not use that material on the production
- 10:12line and then you suddenly realize that
- 10:14there is something wrong with that
- 10:16material that is zero hour rejection
- 10:18there is no issue with your
- 10:19manufacturing unit but when we talk
- 10:22about process rejection this is
- 10:24something while converting those raw
- 10:26material into finished one we may break
- 10:28those component onon right so that means
- 10:30that is the responsibility of the
- 10:32manufacturing unit that breakage can
- 10:34happen because of the faulty technology
- 10:37you are using because of the faulty
- 10:39method you are using maybe the person
- 10:41who is sitting on that workstation is
- 10:43not trained fully so then you will be
- 10:46generating more process rejection and
- 10:48because this is the responsibility of
- 10:50the manufacturer so we will reduce your
- 10:52productivity and will increase your cost
- 10:56because now uh if you said two items are
- 11:01you are using two
- 11:03components for that particular product
- 11:06two components of one maybe raw material
- 11:10so if you are damaging maybe after uh so
- 11:13see if you have 100 100 components so 50
- 11:16final products should come out of that
- 11:18right but if you are damaging those
- 11:20products maybe 10 you damaged so then
- 11:22you will be producing only 45 finished
- 11:24products right so that is the process
- 11:26rejection we calculate this process
- 11:29rejection as fall of rejection rate fall
- 11:32of rejection
- 11:34rate and we try to reduce it to less
- 11:39than 2% in some organization maybe less
- 11:42than 5% 1% so anywhere if you are lying
- 11:46between 2 to 3% that means it's fair
- 11:48enough but that depends upon your
- 11:51industry to industry but now we are into
- 11:53the era of uh advanced technology where
- 11:56why even 2 to 3% Pro process rejection
- 11:59we are allowing that means every 100 AC
- 12:03we are manufacturing 2 to three will be
- 12:06defected right so you just imagine if
- 12:09those defected AC's are shipped to the
- 12:12market how the product image will be
- 12:15done in the market about your brand
- 12:17right the experience customer will carry
- 12:19the experience customer will share with
- 12:21the other you know customers right so
- 12:24that means while your brand image in the
- 12:26long run so you need to be careful uh
- 12:29with this process rejection so
- 12:31technology integration is another tool
- 12:33which we can use to you know eliminate
- 12:36the waste and Implement lean Logistics
- 12:39and uh how we can we have seen that in
- 12:41logistics when when you are talking
- 12:43about Transportation so in
- 12:44transportation how route optimization
- 12:46you can do how you can reduce the
- 12:49distance how you can pick the better
- 12:51route as per the environmental condition
- 12:53considering the accidents on the road
- 12:55considering the road condition
- 12:57considering the traffic jams and then
- 12:59your software is giving you the
- 13:01instruction that you can take the other
- 13:03route it will be faster than the this
- 13:05route right so if you can reduce that
- 13:07during your transportation again cost
- 13:09will come down because you will consume
- 13:11less uh your fuel that is one way you
- 13:15can use the transportation management
- 13:16software the other thing is Warehouse
- 13:19dist uh management we talked about how
- 13:21within Warehouse you can fully utilize
- 13:24the capacity if some part of Warehouse
- 13:27is lying bant all the time you can
- 13:29collaborate for you can go for
- 13:30consolidation horizontal integration
- 13:32where you can maybe your competitor's
- 13:34product also you can store in your cold
- 13:36storage house if that is the requirement
- 13:39right then uh how you can ensure by
- 13:42implementing those uh software warehouse
- 13:45management software you can ensure the
- 13:48proper stock rotation if you are
- 13:50ensuring that then no inventory will go
- 13:53uh outdated or expired right so you can
- 13:56in that way ensure the complete
- 13:58utilization of the inventry as well so
- 14:00these kind of software then handling and
- 14:02all that you can maintain quickly
- 14:04because it's a big large your Warehouse
- 14:07facility how quickly and easily you can
- 14:10identify the item and then ship that
- 14:12item with your corer partner so that on
- 14:14time delivery can happen with the End
- 14:16customer so these are some of the
- 14:18software we can use and during
- 14:20distribution Network also you can see
- 14:23how you can consolidate more uh you know
- 14:27uh final products or ship so that
- 14:30instead of making 10 different
- 14:32deliveries can you manage with the two
- 14:34uh uh shipments so all those 10
- 14:37deliveries uh in that particular pin
- 14:39code or reason right so that these kind
- 14:41of software will help you to minimize
- 14:43the uh your waste and uh obviously the
- 14:46performance will be improved sustainable
- 14:49packaging practices so obviously uh we
- 14:53should Target to recyclable and
- 14:55biodegradable uh packaging which should
- 14:57have a minimum impact on the the
- 14:59environment even whatever packaging you
- 15:02decided the material then you know what
- 15:04is going to be the footprint whether it
- 15:05is recyclable how you are going to
- 15:07recollect and all that but there are
- 15:09some other parameters which you need to
- 15:11take care when you are going for you
- 15:13know deciding the packaging right size
- 15:15of packaging so we we have seen that
- 15:18video when your the container is
- 15:20carrying the boxes like this so all size
- 15:24of the boxes are not equal and inside
- 15:26that boxes box the product is carrying
- 15:29only this much space so this much is
- 15:31only packaging or maybe extra packaging
- 15:34you are adding for just safety measures
- 15:36so how we can reduce If the product is
- 15:39only up to this how we can reduce this
- 15:41extra layer of packaging right so right
- 15:44size of packaging will help you to
- 15:46reduce the to help uh to utilize the
- 15:49complete you know container space right
- 15:52and in that way you can be more
- 15:54efficient root optimization already we
- 15:56talked about you need to see distance
- 15:58tra trffic condition delivery time what
- 16:01are the requirement from the customer
- 16:02and if you can minimize the distance and
- 16:04travel obviously the fuel consumption
- 16:07will be less vehicle Veer and tier will
- 16:10be less so overall Transportation Matrix
- 16:13performance Matrix you can
- 16:16improve so another your Technology based
- 16:19solution where you can go you know
- 16:21Performance Based contracts when you are
- 16:23going for uh Contracting your Logistics
- 16:26things right so you can uh uh go for
- 16:29your smart contracts kind of concept or
- 16:32uh you can evaluate your vendors
- 16:35continuously right whether they are your
- 16:38logistic partner career partner are
- 16:40doing ontime delivery whether uh orders
- 16:43are delivered accurately inventory
- 16:45accuracy how much inventory on record
- 16:47you have and physically if we'll verify
- 16:50so how what is the gap in that so if you
- 16:54have completely automated kind of
- 16:56Warehouse system so there will be
- 16:58absolutely no Gap right so that we can
- 17:01uh in that way we can optimize the
- 17:03operation and we can minimize the cost
- 17:07demand forecast and planning so if you
- 17:10are accurately predicting the demand
- 17:12using whatever predict analytics you are
- 17:14using using software interacting with
- 17:17the customers or your sales team
- 17:19interacting with the customer so then
- 17:21you can go for inventory management and
- 17:24you can ensure that over production is
- 17:26also not happening and also you are not
- 17:29out of stock in the market so whenever
- 17:31customer is coming to your retail shop
- 17:33or your website you are always in the
- 17:36position to deliver the product right so
- 17:38this you can predict the demand
- 17:40accurately by taking historical data
- 17:43market trends and customer feedback but
- 17:46sometimes because these are kind of
- 17:48historical data you are using and you
- 17:49can exate the trend and you can predict
- 17:51the future but sometimes some emergency
- 17:55situations may happen so because of that
- 17:57sometimes demand may come come down
- 17:59sometime demand may rise up so if you
- 18:02take very uh relevant case of covid-19
- 18:05you might have seen the all the
- 18:08production houses they uh face
- 18:10challenges related to demand because in
- 18:13automobile sector as well right so our
- 18:15production reduced we shut down the
- 18:17operation and all the but if you talk
- 18:19about the medical supplies if you talk
- 18:21about even the common men started using
- 18:24mask gloves face Shields goggles and all
- 18:27those things and hand sanitizer right
- 18:28right so earlier how frequently we were
- 18:31using now almost four five years now
- 18:34again you see the condition how
- 18:35frequently we are using the hand
- 18:36sanitizer gloves and all those things
- 18:38right so this this was opportunity for
- 18:41those companies but yes was Major
- 18:44setback for major part of the economy
- 18:47right we can come with the model
- 18:49Transportation solution where we can
- 18:52standardize the container size uh uh by
- 18:56considering the packet size we should
- 18:59uh also fix the product packaging size
- 19:02so that the 100% container size uh
- 19:05capacity can be utilized and we should
- 19:07go for Intermodal kind of Transportation
- 19:10so that the overall cost can be
- 19:12minimized and in that way we can be more
- 19:14sustainable wherever we have the
- 19:16infrastructure we should go through
- 19:18ships right or we can go for last mile
- 19:21delivery we can use the Cycles or maybe
- 19:24we can use the electrical Vehicles
- 19:26reverse Logistics optimization we had a
- 19:29complete session on this reverse
- 19:31Logistics and then we saw that how
- 19:34important this is that if the product is
- 19:37coming uh unused product is coming or
- 19:39product is coming back because of barant
- 19:42failures or product is coming back at
- 19:44the end of life so how your uh reverse
- 19:47Supply uh chain should be equally uh
- 19:50efficient as we are talking about the uh
- 19:53forward supply chain so how you can
- 19:55efficiently ensure the resale of the
- 19:57product if it is unused how you can um
- 20:00ensure efficient effective recycling
- 20:03refurbishment so all those things will
- 20:05ident uh will help you you know to map
- 20:08your performance Matrix related to
- 20:10reverse Logistics optimization so
- 20:14performance measurement and monitoring
- 20:16this is important that whatever kpis we
- 20:18are recording we need to maintain track
- 20:20those kpis throughout our distribution
- 20:23Network so only then we can identify
- 20:25where are the bottlenecks right where we
- 20:27are lacking and like Kaizen I talked
- 20:30about so everyday small steps
- 20:33Improvement will happen only when we
- 20:35will identify where the Improvement
- 20:38required at the most where we are
- 20:40lacking at the most where we are lacking
- 20:43where we are losing our business right
- 20:45so how we can be more cost efficient so
- 20:48some there may be 100 opportunities but
- 20:50if you'll address out of those 100 maybe
- 20:53first 10 you will prioritize maybe you
- 20:55can address 60 70% of the problem of
- 20:58efficiency right so that we need to find
- 21:01out so this is the first process value
- 21:04stream mapping uh we discussed about how
- 21:07we can identify inefficiencies and
- 21:09bottlenecks so you need to identify what
- 21:11are the value adding activities and what
- 21:13are
- 21:15the nonv value adding activities non
- 21:18value adding activities are also known
- 21:20as supporting
- 21:24activities and in the end the customer
- 21:26is getting one package of product where
- 21:30for delivering that product you are
- 21:32doing non-v value adding activities as
- 21:34well you are doing value adding
- 21:35activities as well now value adding
- 21:37activities let's say your Logistics is
- 21:39value adding activities giving the
- 21:41customer best experience by delivering
- 21:43the on uh Doorstep Delivery then your
- 21:46manufacturing who is putting all those
- 21:48feature into that then your sales team
- 21:50who is going to address your needs
- 21:53record your needs and then provide you
- 21:55product as per your requirement right so
- 21:57then maybe if you are talking about R&D
- 22:00if they are coming with new features
- 22:02renovating their product every time
- 22:04these are some of the kind of activities
- 22:06we from these activities as a customer
- 22:09you can continuously you can drive the
- 22:10value out of that but non value adding
- 22:12activity let's say if you're are talking
- 22:14about human resource management so Human
- 22:17Resource Management primar function is
- 22:19to maintain the human resources within
- 22:21the organization and then you are doing
- 22:23you are designing your compensation
- 22:25policies you are designing your
- 22:27Healthcare benefits you you are
- 22:28designing all other things related to
- 22:31your complete package you are giving to
- 22:33your employees now as a customer whether
- 22:36you are compensating your employees up
- 22:39to the industry level or you are below
- 22:43that average or you are above that
- 22:44average as a customer if as long as my
- 22:47product is okay doing well I need not to
- 22:50bother about that so this is kind of but
- 22:52this is required I'm not saying that HRM
- 22:54practices are not required they are
- 22:56doing training and development program
- 22:58just to you know keep their Manpower
- 23:01resources updated but as a customer I I
- 23:05cannot drive Direct Value out of that
- 23:07but it is very much required to retain
- 23:10your employees within the organization
- 23:12right so these kind of uh like if you
- 23:14are doing auditing kind of services as a
- 23:16customer whether your inventory is
- 23:18matching with your physical inventory or
- 23:20not how I should B if I'm buying car it
- 23:24should have five tires I'm getting five
- 23:26tires whether your inventory l cost some
- 23:29tires damage some tires hardly bother
- 23:31about that as a customer right so you
- 23:33need to identify what are value adding
- 23:35activities what are non value adding
- 23:36activities and how then you can take
- 23:39Steps step wise to reduce those non
- 23:42value adding activities so this is very
- 23:44by W Edwards Deming one of the quality
- 23:47Guru so Pioneers in that field he said
- 23:50that if you don't describe what you are
- 23:52doing as a process that means you don't
- 23:55know what you are doing so if your
- 23:57process whatever you are doing is not
- 23:59related with the end result so that is
- 24:01something kind of waste so that is non
- 24:04value adding activity so how we can
- 24:07eliminate that waste is value stream
- 24:09mapping uh this process we'll see five
- 24:12steps so simple example you can see
- 24:15earlier the motion of the product is
- 24:16moving like this jig jaag motion you
- 24:18just see how it is moving from here to
- 24:21there and then again to zigzag motion is
- 24:24there so we identified that extra motion
- 24:27means extra handling means breakage of
- 24:31the product means extra cost means
- 24:35inefficiency so all these things are
- 24:39related so how we can reduce it with
- 24:41implementing lean Basics and there will
- 24:43be the smooth streamline flow so that
- 24:47Zig jaag flow should not be there so how
- 24:50we can do that we need to prepare the uh
- 24:53problem what is the problem we need to
- 24:55identify the current state by analyzing
- 24:57the current data and then we need to
- 24:59develop the future state where we want
- 25:01to be and then we'll as per that future
- 25:05uh State we will develop the plan and
- 25:08we'll try to implement that plan and
- 25:10we'll then in the end we'll uh again
- 25:12track that plan whether we implemented
- 25:15in the same way or uh we will align that
- 25:18plan with the overall activity so we'll
- 25:20see step by step uh first you'll prepare
- 25:24you'll document the change right
- 25:26whatever you want to change you'll
- 25:28Define the scope either it is related to
- 25:31process or you need to change with the
- 25:33Manpower or you need to change with
- 25:35technology or you need to change
- 25:38something else in order to be more
- 25:40efficient right so you need to identify
- 25:43the scope and then identify the
- 25:45requirements if you need to change the
- 25:47Manpower so why that requirement is
- 25:50there that means Manpower is not train
- 25:53fully so you cannot hire and fire just
- 25:56like that so what you can do you you can
- 25:58arrange the training and development
- 26:00programs for those people who are
- 26:02working on those critical stages so this
- 26:05is how it will happen so then you need
- 26:08to set logistics for event uh you need
- 26:11participants stakeholders if you are
- 26:13talking about process the process
- 26:15stakeholders will be there location
- 26:17where you are going to implement
- 26:18materials refreshment meals everything
- 26:20is required to you know this is a kind
- 26:23of Workshop you are going to conduct
- 26:25initial basis and then you will analyze
- 26:27the result of of that then you need to
- 26:30gather data let's say right now the
- 26:32problem you identified related to ontime
- 26:34delivery now this ontime delivery is not
- 26:37happening because
- 26:40because the career
- 26:43partner did not pick the product on
- 26:48time so that means now I need not to
- 26:51focus just on the distribution partner I
- 26:54need to focus on first on the that
- 26:58partner who was taking the product from
- 27:01the
- 27:02seller that career
- 27:05partner and
- 27:08shipping to the local Warehouse right
- 27:12and then from there it is going to
- 27:14customer right so this problem is with
- 27:17the this career partner he did not pick
- 27:19on time so then the problem uh came from
- 27:24there only so even if this corer partner
- 27:27is on time but because the initial delay
- 27:29happened so that will giving you will be
- 27:32giving you reple effect right so it will
- 27:34be uh you know effect uh it will affect
- 27:38your the whole process so you need to
- 27:41identify if you're talking about actual
- 27:43lead time what is the lead time output
- 27:45related issues are there cycle time you
- 27:48are not able to complete on time so
- 27:50whether you need to rethink about the
- 27:52cycle time or you need to uh reduce the
- 27:55unnecessary activities then defect rate
- 27:57quality related issues are there so that
- 27:59means you need to identify that thing
- 28:02and you need to analyze the collect the
- 28:04data right if I'm saying that map the
- 28:07flow of item and delivery ontime
- 28:10delivery was one big question so we
- 28:12mapped this flow of item so product
- 28:15started the journey from the seller
- 28:17right actually started the journey from
- 28:19the raw material supplier and then corer
- 28:21partner then again shipping agent is
- 28:23there then local warehouse distribution
- 28:25partner will be there who will be giving
- 28:27the uh final product so we need to find
- 28:30out the flow of the information and in
- 28:32that flow where the bottleneck is there
- 28:36right we need to identify that we need
- 28:38to then find out the future State okay
- 28:41future State and action plan now we
- 28:43identified that uh if we are saying 5
- 28:47days it will take so uh it will give you
- 28:51only 12 hours to the corer partner to
- 28:54pick the product from the seller right
- 28:56so if it is taking more than 20 hours
- 29:00you need to identify that this is the
- 29:02target this is the gap so you need to
- 29:03identify this as future state that we
- 29:05need to Target 12 hours that is maximum
- 29:08we can go for and then we will
- 29:10communicate this with the career partner
- 29:12that you need to pick after recording
- 29:14the order within 12 hours you need to
- 29:16pick the product right and if it is not
- 29:18happening maybe you need to change the
- 29:20technology because you are not able to
- 29:22share information quickly so then you
- 29:23need to do and then maybe sometimes
- 29:25training is required so let's say we'll
- 29:28explore this uh uh one worksheet uh the
- 29:32process or function let's say we are
- 29:34shipping the wrong
- 29:36product and why this happened Oris
- 29:39problem uh maybe the person who was
- 29:42sitting on that recorded wrong order
- 29:47wrong
- 29:47order recorded right now action items
- 29:51what we will do why the wrong order
- 29:53recorded I as a j customer I place the
- 29:56order with the restaurant and maybe
- 29:59restaurant uh that information was not
- 30:01shared accurately and in the end when I
- 30:04communicated with my kitchen so I
- 30:07communicated wrong items right so now
- 30:11lack is because human intervention is
- 30:15there why uh is it possible can be
- 30:19replac this if the order is directly
- 30:22coming to Jato can we share the exact
- 30:24information with the kitchen uh as uh
- 30:27through that Network so that this wrong
- 30:29shipment of item will not happen so
- 30:32we'll share that this who is responsible
- 30:34for this the technology people R&D
- 30:37people who can develop this platform
- 30:38right due date how we can Implement that
- 30:41and then we we'll record the matrices
- 30:43how we can uh improve those uh
- 30:46performances right and then in the end
- 30:48once we decided that this technology
- 30:51will be implemented so that we can
- 30:52ensure the uh delivery of the right
- 30:55product we need to execute the plan
- 30:58right and then once executed we need to
- 31:01align this and maybe many reviews may be
- 31:05required with respect to what you have
- 31:07been doing earlier right and then
- 31:09implementation and results whether that
- 31:12really affecting your performance Matrix
- 31:14or not that you need to record right so
- 31:18if the investment is this much right
- 31:21investment is this much and your result
- 31:23is this much you need to rethink about
- 31:26that because you contributed so much but
- 31:28the result is so maybe then you are
- 31:30addressing the wrong issue so then uh
- 31:33one you again you will review you will
- 31:35review in the with respect to the
- 31:37environmental changes right and then you
- 31:39will communicate the results whatever
- 31:41changes are required you will update
- 31:43those changes with the your technical
- 31:45team and in the end you will ensure that
- 31:47that wrong delivery should not happen a
- 31:50very simple example how we can implement
- 31:52this right so if you see I want to
- 31:55steple a paper and the complete process
- 31:58is given here I'll pick up the paper 1
- 32:02second I will take walk to steppler 5
- 32:04second I will take steple 2 seconds walk
- 32:07to desk again 5 Seconds put down the
- 32:10paper 1 second so total time if you will
- 32:13add is 6 8 13 14 right and if you'll see
- 32:19total distance you traveled is 140 40 ft
- 32:23but value added time is only you picked
- 32:26up the paper you stle the paper and you
- 32:29put down the paper that is only 4
- 32:31seconds so those 10 seconds are waste
- 32:36and value added distance no distance was
- 32:39required if your paper and Pen uh your
- 32:42steppler is there only this is very
- 32:43simple example so that distance also you
- 32:46can minimize right so you can see how
- 32:49you can be productive value added time
- 32:51was only
- 32:5228% so rest whatever you were doing was
- 32:55waste right so 72 2% of the things you
- 32:58are doing is waste right so uh we'll
- 33:02continue this discussion with the uh
- 33:05some uh more methodologies how we can
- 33:07implement the lean Logistics and
- 33:09obviously we'll go for one case so uh
- 33:12this is the reference list from where
- 33:14the content has been prepared and you
- 33:15can refer uh these books for more
- 33:18understanding better understanding of
- 33:19this right so uh that's all from this
- 33:22session we'll continue discussion on
- 33:24different methodologies in lean
- 33:26Logistics while you plan to implement
- 33:29lean Logistics in your operational area
- 33:31right and we'll go for uh uh Toyota
- 33:34production system as case study so thank
- 33:36you very much
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