+ Safety: freedom from conditions which can cause injury or death to personnel,damage to or loss of equipment or property.Visual controls: The intent of a visual factory is that the whole workplace is setup with signs, labels, color coded markings, etc. such that anyone unfamiliar with the process can, In a matter of minutes, know what is going on, understand the process, and know what is being done correctly and what is out of place.Benefits? Obvious when something is out of place or missing, Enable management and operators to keep operations running efficiently and meet Dc’s Operational goals,Signals malfunctioning equipmentSounds Safety Warnings.A poka-yoke (fool proofing/ Error Proofing): a poka-yoke device is any mechanism that eitherprevents a mistake from being made or makes the mistake obvious at a glance. The ability tofind mistakes at a glance is essential because “ the causes of defects lie in worker errors, and defects are the result of neglecting those errors”Streamlined Layout: Facility(work areas) layout designed to support lean operational flow and sequenceMinimize buffers (WIP)Minimize flow time (cycle time)Minimize wasted motionMinimize fllow spaceThe purpose of a Value Steam Map (VSM) is to enable the detailed analysis of a process in identifying waste and bottlenecks leading to an improvement plan resulting in a more efficient “lean” process flow and a streamlined layout.VSM: is a set of specific actions required to bring a product family from raw material to finished goods per customer demand, concentrating on information management and physical transformation tasks.The outputs of a VSM are a Current State Map, Future State Map and Implementation Plan to get from the current to the future state.Why? Enables analysis of a process regarding waste, constraints, and non-value as well as value added processes in direct support of a “lean” strategy.
Chapter 7: Supply management: the broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods and services.Global Sourcing:Firm do not compete only against global competitors, but against their competitors’ supply chains.To keep up with global competition and tap into the abilities of world class suplliers, many companies have put in place global sourcing systems.Advances in information systems have served as a catalyst for global sourcing effortsGlobal sourcing applies to services and business processes, as well as manufactured goods.Financial Impact:Cost of goods sold: the purchased cost of goods from outside suppliers.Merchandise inventory: A balance sheet item that shows the amount a company paid for theinventory it has on hand at a particular point in time.