Lean and Technology: Working Hand in Hand to Enable and Energize Your Global Supply Chain (FT Press Operations Management)

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Focus Your Supply Chain Technology Investments to Reduce Risk and Maximize Competitiveness

Lean, Six Sigma, and related approaches offer immense potential for improving competitiveness, cost, and customer experience—if you can overcome the challenges of planning and implementation. The well-targeted use of technology can dramatically reduce your risks and accelerate your progress. Until now, however, many guidebooks and consultants have treated Lean primarily as a “pen and pencil” technique. Lean and Technology is the first complete guide to integrating Lean thinking with proven, affordable, and emerging technologies. You’ll learn how companies are linking strategy, the value chain, and IT—and how they are executing on their plans to achieve real competitive advantage.

Step by step, Myerson shows how to use the proven six-step SCOR Model to organize the integration of technology with all key supply chain and operations processes. You’ll discover how to:

PLAN to optimize supply chain networks, demand forecasting, master production scheduling, and S&OP
SOURCE more effectively with today’s MRP and procurement/e-procurement technologies
MAKE higher-value “lean production” products with modern ERP, MES, and short-term scheduling systems
DELIVER the right customer solutions at the right time and cost via advanced DRP, TMS, and order fulfillment systems
RETURN products and materials with state-of-the-art reverse logistics systems
ENABLE continuous improvement via carefully chosen measurements, metrics, and analytics
Throughout, Myerson presents easy-to-use tools, methodologies, best practices, and real-world examples: all you need to improve speed, accuracy, integration, and collaboration across complex supply chains. He concludes by previewing emerging technologies for maintaining and extending the competitive advantage you’ve already built.

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Table of Contents
PART I:  INTRODUCTION AND OVERVIEW     1
Chapter 1  Lean Supply Chain and Technology: A Perfect Combination     3
It’s a Small World After All     3
How Big an Opportunity Is It?     5
    The Extended and Often Global Supply Chain and Technology     6
    Information Systems (IS) Versus Information Technology (IT)     6
    Risks and Rewards     7
Linking Competitive Strategy to the Value Chain     7
Competitive Strategy, Business Processes, and IT Structure Aligned     11
Using the SCOR Model to Help Enable Lean Opportunities with Technology     13
Chapter 2  The Growing Importance of the Supply Chain and Technology to Business and Society     15
Supply Chain Defined     15
History of Supply Chain and Logistics Management     17
The Role of Information Technology in the Supply Chain     19
    Supply Chain Information     19
    Interactive View of Information     19
    Importance of Integration for Sharing Information     21
    Viewpoints of Supply Chain Information Systems     22
    Supply Chain Macro Processes     22
    Supply Chain Information Technologies     23
Supply Chain Technology Trends     24
Chapter 3  Lean Concepts and Their Applications in the Supply Chain     27
Lean Background     27
Value-Added Versus Non-Value-Added Activities     28
Waste     29
Lean Culture and Teamwork     35
Elements of a Lean Supply Chain Strategy     37
    Basic Tools     37
    Advanced Tools     42
    Tools for Identifying and Solving Problems     49
Lean, Supply Chain, and Technology     50
Chapter 4  Software and Hardware Sourcing Process and Applications of Supply Chain and Logistics Management Technology     53
The Procurement Process     53
    Identify and Review Requirements     53
    Establish Specifications     55
    Identify and Select Suppliers     55
    Determine the Right Price     57
    Issue Purchase Orders     58
    Follow Up to Assure Correct Delivery     60
    Receive and Accept Goods     60
    Approve Invoice for Payment     60
Software and Hardware Selection     61
    Phase 1—Planning and Budgeting     61
    Phase 2—Requirements Analysis     61
    Phase 3—Vendor Research     62
    Phase 4—Demonstrations     62
    Phase 5—Final Decision     62
    Phase 6—Contract Negotiation     63
    Implementation Partner/VAR Selection     63
Make or Buy     63
    SCM System Costs and Options     64
     “Best-in-Class” Versus Single Integrated Solution     64
    Consultants     65
Project Management     65
Supply Chain Software Market     66
    Supply Chain Planning (SCP)     67
    Supply Chain Execution (SCE)     68
    Other Supply Chain Technologies     69
Current and Future Trends in Supply Chain Software     70
    Short-Term Supply Chain Technology Trends     70
    Emerging Supply Chain Technology Trends     70

PART II:  PLAN     73
Chapter 5  Supply Chain Network Optimization     75
Strategic Planning Level     75
Tactical Planning Level     75
Operational Planning Level     76
Importance of the Supply Chain Network     77
The Location Decision and Its Impact on Value     77
How and Why Network Optimization Technology Can Help Enable a Lean Supply Chain     80
Network Optimization Technology     80
    Technology Options     82
Supply Chain Network Optimization Technology Case Studies     83
Chapter 6  Demand Forecasting Systems     87
A Lean Approach to Forecasting     88
Typical Forecasting Process     89
Lean Forecasting Process     90
Forecasting Technology Options and Requirements     94
Lean Forecasting Technology Case Studies     96
Chapter 7  Master Production Scheduling     101
Master Production Schedule (MPS) Defined     101
Lean Scheduling     102
MPS/Production Planning Technology Options and Requirements     104
    Lean and ERP for Production Planning: A Fine Balancing Act     104
Lean Production Planning and Technology Case Studies     105
Chapter 8  Sales and Operations Planning (S&OP)     111
Sales and Operations Planning (S&OP) Defined     111
S&OP and Lean     113
    Working Together     114
S&OP/Aggregate Planning Technology     115
Lean S&OP/Aggregate Planning and Technology Case Studies     117

PART III:  SOURCE     123
Chapter 9  Material Requirements Planning (MRP)     125
Procurement and Purchasing Defined     125
    The Purchasing Process     126
    Types of Business Purchasing     127
Material Requirements Planning Described     128
Lean and Material Requirements Planning     130
Material Requirements Planning Technology     133
Lean MRP and Technology Case Studies     135
Chapter 10  Procurement (and e-Procurement) Systems     139
The Procurement Process     139
    Automation of Procurement Documents and Processes     139
Lean and Procurement     140
Procurement Technology     143
Lean Procurement and Technology Case Studies     145

PART IV:  MAKE     149
Chapter 11  Enterprise Resource Planning (ERP) Systems     151
Lean Supply Chain and ERP Systems     152
ERP Technology     154
Lean Supply Chain and ERP Systems Case Studies     156
Chapter 12  Manufacturing Execution Systems (MES)     161
The Role of MES in Today’s Competitive Environment     162
Manufacturing Execution Systems and Lean     163
    MES, Lean, and Visual Management Systems     164
Lean Supply Chain and Manufacturing Execution Systems Case Studies     165
Chapter 13  Short-Term Scheduling     171
Short-Term Scheduling Process     172
    Continuous Versus Discrete Industry Scheduling     173
Scheduling in Service Industries     175
Lean Short-Term Scheduling     176
Advanced Planning and Scheduling (APS) Systems     176
Advanced Planning and Scheduling Systems Technology     178
Advanced Planning and Scheduling Systems Technology Case Studies     178

PART V:  DELIVER     183
Chapter 14  Distribution Requirements Planning (DRP)     185
Lean and DRP     187
DRP Software     188
DRP Case Studies     189
Chapter 15  Transportation Management Systems (TMS)     195
Lean and TMS     196
Types of Savings and Improvements Resulting from the Use of a TMS     197
Transportation Management System Technology     198
TMS Case Studies     199
Chapter 16  Order-Fulfillment Systems     205
Warehouse Management System (WMS)     205
Order Management Systems (OMS)     206
Customer Relationship Management (CRM) Systems     207
Lean and Order Fulfillment     208
    Order Placement     209
    Order Processing     209
    Order Preparation and Loading     210
    Order Delivery     210
    Faster Fulfillment     211
Order Fulfillment Case Studies     212

PART VI:  RETURN     217
Chapter 17  Reverse Logistics Systems     219
Lean Reverse Logistics     220
    Elements Key to a Lean Reverse Logistics Process     220
Lean and Reverse Logistics Technology Cases     226

PART VII:  ENABLE     231
Chapter 18  Measurements, Metrics, and Analytics     233
Measurement and Analysis Process     233
What and Where to Measure     234
    Using the SCOR Model to Measure and Control     234
Supply Chain Analytics     236
Supply Chain Decision Support and Analytics Technology     238
Lean and Supply Chain Analytics Technology Case Studies     240

PART VIII:  WHERE DO WE GO FROM HERE?     243
Chapter 19  Collaborative Supply Chain Systems     245
The 80/20 Rule     246
Collaboration for a Lean Supply Chain     247
Integrated and Collaborative Technology for a Leaner Supply Chain     250
Lean and Collaboration Technology Case Studies     251
Chapter 20  Emerging Technologies and Their Potential Impacts on the Lean Supply Chain     255
General Supply Chain Trends     256
Supply Chain Software and Connectivity Technology Trends     257
    Supply Chain Software Best Practices     258
Supply Chain Hardware Technology Trends     261
    Hardware Technologies for a Competitive Advantage in the Next Decade     265
Future Supply Chain Technology Spending     265
Looking Ahead     266
References     269
Index     279