Description
Book SynopsisFocus 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 ITand 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
Trade ReviewPraise for Paul A. Myerson’sLean and Technology:
“Supply Chain Managers have been continuously challenged by external or exogenous forces, particularly in the 21st century. These external forces have challenged business practices and influenced consumer behavior. While globalization has probably attracted the most attention among businesses and governments as an external force or game changer, it has become evident in recent years that the fast paced changes occurring in technology probably are having more impact and influence not only with consumers--e.g., it is currently estimated that 56 cents of every dollar spent for retail sales is based on a digital interaction--, but also among businesses. Companies are being challenged by their customers to provide service on an anytime, anywhere basis at the most efficient and effective level possible and to perfectly execute that service. The impact of the omni-channel revolution is reverberating throughout global supply chains. The technology associated with mobile communication, deep learning, cloud computing, intelligent robotics and manufacturing digitization in conjunction with the approaches and strategies presented by Professor Myerson provide the basis for a “new normal” for supply chains of Mobility, Integration, Complexity and Competition that will shape the strategic direction of supply chains for the foreseeable future.”
-- Dr. John J. Coyle, Professor Emeritus of Logistics and Supply Chain Management, The Pennsylvania State University
“The supply chain arena is drastically changing with new technologies and adaptive intelligence breakthroughs making opportunities for improvement more easily attainable than ever before. Combined with lean principles, which are fundamental to supply chain efficiency, the future is both exciting and challenging at the same time. Companies need to prepare for tomorrow and continuously educate themselves on how systems and processes are changing.”
-- John Murphy, Senior Director Supply Chain Management, Oracle
“Myerson’s book includes many interesting case studies of how companies today are using information technologies to complement lean approaches in order to improve their supply chain performance, effectively using the SCOR model to organize the material.”
-- Susan A. Sherer, Professor, Lehigh University
“With Lean and Technology, Prof. Myerson breaks new ground in creating the industry’s most user friendly “How To” guide with actionable step by step guidance to streamlined and more technologically savvy supply chain integration, regardless of product.”
-- Dr. William J. Bajor, Director, Graduate and Extended Studies, East Stroudsburg University of Pennsylvania
“Today’s business decisions have to be made at a rapid pace. Applying Lean practices with today’s open and flexible technology offerings will help forward thinking operations gain tremendous competitive advantage.”
-- Ron Kubera, Executive VP & CMO, Lucas SystemsTable of ContentsPART 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
