A recent article about the Chernobyl Exclusion Zone – 21,000 square miles made uninhabitable for humans in 1986 – demonstrated that plants and animals have come back in force. The author commented that “saving the environment” is a misnomer because it puts the focus on the environment. We should call the movement “protecting the human race” – because Chernobyl shows that no matter what we do to the environment, it will be fine (extremely radioactive and unsuitable for humans, but fine)

Lean and green initiatives are not only good for the environment, but also good for the bottom line. Operationally speaking, a lean transformation is also green for many companies. Driving out waste helps companies tap into their green environmental conscience. Whether it is reverse logistics (a competitive advantage for large retailers), recycling, or any combination of supply chain processes – the leaner those processes, the more profitable the firm.

One firm that has adopted a green (or lean) perspective is U.S. beer producer SABMiller. They have a goal of zero waste in their breweries, and they currently recycle 99.9% of all packaging waste. In Europe, manufacturers are required by law (Verpackungsverordnung or 94/62/EC) to recover all packaging from distributors, retailers and consumers – which encourages the use of recyclable materials as well as reusable packaging. Similar laws have been proposed in the U.S. recently. 
By Warren White
Waller & Associates, LLC
www.WallerAssoc.com

It seems that everyone is talking Six Sigma and Lean around the supply chain industry and that they are the silver bullet that will resolve your operational issues. I do agree that they have great value within the evolutionary improvement process an organization takes, but many companies fail to go that final step with process engineering.

The evolutionary process normally starts when an organization realizes they need to make improvements within their operations to reduce costs or improve throughput. This process starts with adopting “industry best practices” that are learned from experiences within the industry. As the evolution takes place Six Sigma is traditionally the next step in the process, but 6? focuses mainly on quality issues and not operational improvements. The next step that normally progresses is implementing a Lean practice which really starts to focus on efficiency improvements within operations.

Once Lean has been implemented most organizations feel they have gained all of the operational improvements they can, but that is just not true. The final step in the process is Process Engineering or Work Measurement, and one that can be gone to initially and not through evolution. This will also assist with providing sustainability that is validated by engineered processes.

Implementing Process Engineering will scientifically identify the most efficient means to perform a given task or job. By using Process Engineering you will be able to identify actual productivity rates, facility throughputs, and it will assist with all operational planning.

Process Engineering eliminates the individual variances that can be created by doing time studies to identify a productivity rate and uses a predetermined motion time system that has been developed over many years. Maynard Operating Sequence Technique (MOST) is one of the more common forms of this practice around the world, and is growing in acceptance in the United States. MOST has been recognized as a valid form or work measurement within the Canadian auto unions which have agreed to a specific time allowance to perform a given task.

The key to success in a business is being proactive instead of reactive. By using Process Engineering you will be able to plan better and be better prepared for variances that arise within every operation. Process Engineering can, and should be, the cornerstone of information that becomes like building blocks for analysis. It can help in cost-benefit analysis for MHE (material handling equipment), facility planning/expansion, operational budgeting, facility capacity/throughput, and standardization.
By Douglas Cantriel
Waller & Associates, LLC
www.WallerAssoc.com

Benchmarking Overview

It has been my experience that to make profitable process changes you must first understand where you are and where you want to go within your process. How you measure and what you measure are always the two biggest questions to ask in production and labor management. Supply chain operations within an organization should be constantly reviewed to identify where improvements can be made or deficiencies eliminated. One method to help do this is to perform a series of benchmarking tests on their supply chain processes. Benchmarking or goal setting allows a company to assess the opportunities they may have for improving a number of areas in their supply chain including productivity, inventory accuracy, shipping accuracy, storage density and bin-to-bin time. The benchmarking process can provide a company some estimate of the benefits achieved by the implementation of any improvements.

Benchmarking is the process whereby an assessment of an act or performance is measured by some means, whether this is by a measurement of time, value or quantity. A benchmarking project will gather the assessments and develop a plan of action to improve the process that was assessed.

Look for in future Blogs:

Types of Benchmarking, Internal Benchmarking, External Benchmarking and Components of Benchmarking. 
By Bud Hayes
Waller & Associates, LLC
www.WallerAssoc.com