August, 2015
www.us-
tech.com Eight Ways to Save in the Supply Chain Continued from page 12
proximity to your customer, all the costs related to shipments, the cost of the time taken for your product to reach you or your customer if it is at
Lectronics Completes “Do” Stage
Continued from page 21
develop the custom fixturing neces- sary for automatic soldering. To gain maximum value from the eventual robotic soldering system, the Lean Team developed a universal fixture, where the robot can be used for sol- dering applications other than the medical products. The part-transfer system noted earlier is also adapt- able, and can be set up to handle a different type of product assembly.
Struggles With the Execution In general, American manufac-
turing companies struggle with the execution of the PDCA lean cycle “do” phase, costing companies in lost la- bor and production, and most impor- tantly causing the customer pain with poor on- time delivery perform- ance. The repetitive failure of one or more “do” phases is typically due to a lack of planning and foresight. By following the structure of the PDCA lean cycle, Lectronics’ effectively mapped out a process flow and tested a pilot program during the planning phase long before ordering a single piece of equipment. The actual high- volume launch of the medical prod- uct line at Lectronics was seamless because the Lean Team was able to assemble a low-volume build line to experiment with critical lean manu- facturing techniques. These tech- niques were then designed into the Lean Plan for higher-volume produc- tion, making the production-line launch a simple verification of what had already been proven successful during the planning stage. The early achievements noted
during the launch of the PDCA lean cycle “do” phase point to a positive transition for this lean manufactur- ing, high-volume medical line. As each team member becomes cross- trained and certified on each work el- ement, Lectronics will then transi- tion into the next phases of the PD- CA cycle, the “check” and “adjust” phases. During these phases, Lean Team members will learn how to go back through the manufacturing process to review what worked and what didn’t. They will be trained and encouraged to review their own work stations to examine opportunities for further improvements. As the Lean Team progresses into the final phas- es of the PDCA cycle, their lean jour- ney will not end. Rather, they will have been transformed and educated by this initiative, and will use what they have learned to train others. This lean learning culture has taken root and will continue to spread rap- idly throughout Saline Lectronics. Contact: Saline Lectronics, 710
North Maple Rd., Saline, MI 48176 % 734-944-1972 fax: 734-944-2005 E-mail:
msciberras@lectronics.net Web:
www.lectronics.net r
sea for four weeks, plus the associat- ed cash flow implications.
Supply chain harmony. Your sup- ply chain is you, your vendors, their vendors, and their vendors’ vendor. You need to integrate the entire supply chain and you need end-to-end visibili- ty and traceability. Some of the suppli- ers to your outsourcing partner will be on your AVL (approved vendor list) and some may not, but everything they do impacts on you, on your costs and on your brand. Looking at the entire supply
chain collaboratively can help things run smoothly and can reduce the
price your vendors pay to their sup- pliers.
The cost of money. The finance team can add a great deal of value in designing the supply chain. Costs can hide in many places, such as the cost of cash and tax implication. Du- ties and tariffs are hugely variable and just because shipping from one geography to a particular market works, there may be different tax or duty implications when you start shipping to an emerging market else- where. Payment terms also have an im- pact on the final cost of the product
and can impact adversely on the businesses ability to generate cash.
A Holistic Approach Looking at the supply chain
holistically will give you a better grasp of your costs, greater control and in- evitably lower costs. Just looking at price might give you a lower price, but it won’t improve the way you bring your product to your customer and if you are only pushing your vendors to reduce that price you won’t build the kind of valuable vendor relationships you’ll need when things don’t go the way you planned. r
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