LeanCor Consulting Webinar: How to Deploy Continuous Improvement in the Warehouse

Advancing the World’s Supply Chains Copyright © LeanCor 2015
Respecting Excellence: A case study on cultural development
in a distribution environment

Copyright © LeanCor 2015
Regional Vice President,
LeanCor Supply Chain Group
Instructor,
Georgia Tech Supply Chain
and Logistics Institute
(GTSCL)
bbossence@leancor.com
Career Focus:
Over 17 years of third party logistics and
consulting experience with a specific focus in
Lean and Japanese production system
environments, including contract and
operations management positions across the
globe
Currently Responsible For:
Leading supply chain consulting projects for
LeanCor customers in a wide array of sizes
and industries. These have included lean
warehousing implementation, warehouse
layout and design, and ROI assessments
Industry Group Speaker:
AME, CSCMP, WERC, GTSCL, Institute of
Industrial Engineers, Lean Enterprise
Institute, Georgia Center for Logistics,
Honda Lean Network

Director of Operations
Efficiency,
Interline Brands
charles.brown@interlinebrands.com
Career Focus:
Over 17 years of experience in leadership
roles within manufacturing, distribution and
operations
Currently Responsible For:
Identifying and leading the implementation of
efficiency and cost savings initiatives to
improve distribution / supply chain
performance while improving Interline
Brands’ customer experience
Industry Experience:
Sr. Operations Manager for W. W. Grainger’s
250,000 sf Distribution Center, NACCO
Material Handling Group and Chrysler’s
Sterling Stamping Plant
Over 11 years with Chrysler in procurement,
supply chain and manufacturing across
several facilities within the U.S.

 Lean, supply chain, six
sigma, and leadership
courses that develop
people capability and
problem solving skills
while building a culture of
operational excellence.
 Project-based, end-to-
end supply chain
solutions that improve
your processes, reduce
inventory and Total Cost,
and optimize your
network.
 Custom, outsourced
transportation
management and
warehousing
solutions that optimize
material flow, and exceed
your business goals.
Trusted supply chain partner that specializes in lean principles to
deliver operational improvement. Three divisions:

 Institutional and
Commercial Facility
Owners and Service
Contractors
 Residential Service
Contractors and
Retailers/Resellers
Large-scale, national distributor delivering maintenance products,
solutions and focused expertise to three customer segments:
 Multifamily Apartment
Owners and Property
Managers

- To embrace common principles to drive a problem
solving culture
- To teach our people how to identify and eliminate the
root causes of wasteful processes
- To improve efficiencies by driving out preventable costs
To Make Operations a REASON to be a customer of
Interline Brands.
Poll: Do you have a formal continuous
improvement program in your warehouse(s)?

Op Ex – Fact vs Fiction
Goal Statement/ Voice of Customer:
“Operations is a Reason We Buy From Interline Brands”

Cultural Perspectives

1. Lean Awareness for Leaders: Current State and Vision Alignment
2. Pilot DC Assessment: Productivity Gap
3. Customized and Blended Lean Training and Gap Closure Deployment
◦ Stability Focus: Make Problems Visible
◦ Hour by Hour Status through 5S, Heijunka & Visual Management
◦ Leader Standard Work
◦ Problem Solving Model & Kaizen
◦ Supplier Compliance
4. Post Assessment – Pilot DC & Best Practice Sharing & Maturity Model
5. Next Steps: Value Stream Focus

Planned Based
on Takt Time
Stability Visibility
Collaboration
Lead Time
Reduction
Waste
Elimination
Through
Associate
Engagement
Process
Discipline
Inventory
Reduction
First Time
Quality
Pull
Highest
Customer Value
at Lowest Total
Cost
Principle Based
Organization

What are your key performance driver(s) in
the warehouse? (Select all that apply.)

•Visible “Quick Win”
Improvements within
Functional Span of
Control
•Results of Training
and Education
•Visible Improvements
Across all Functions
and the End to End
Value Stream
•Training and
Education
•Appropriate
Curriculum for all
Levels of the
Organization
•Principle Based
Organization
•A3 Thinking
•Goal and Target
Deployment
•Collaboration
•People Engagement Vision
Alignment
& Strategy
Deployment
People and
Capability
Development
Functional
Improvement
Applied
Learning
Value
Stream
Improvement
Systems
Thinking
We Are Here

Taking Responsibility for System Wide Results

Outbound Productivity
Picking Productivity
Receiving Productivity
16

Associate Productivity
Lean Awareness Visuals
17

Negative
Minimal
Positive
LeanProcessMaturity
Lean Deployment - Maturity Model
Flow - High
Performance
Level flow of all logistics
activities over the entire
value stream to reduce
variation and enable
stability (balancing flow
within the distribution
center operation)
Decisions Driving
Excessive Waste and
Cost
Feeling the Effects of
Unintended
Consequences
Learning to See
Waste in the Value
Stream -
Understand Future
State
Lean Initiatives
Across the
Distribution Center
Create Overall
Management
Systems and
Principle Based
Organization
within the facility
Value Stream
Improvement
Lead and make decisions
based on Total Cost of
Fulfillment within the
supply chain recognizing
that all decisions have
unintended consequences
and their impact on the
entire value stream
Decisions Made with
Unintended
Consequences
Learning to See the
Value Stream
Questioning
Assumptions and
Current Mental
Models
Eliminating Waste
Across Value
Stream of the
Operation through
Experiments
Scaling
Experiments
Across the
Distribution
Center
Functional
Improvement
Learning to see….. Wastes Do Not See Waste
Observe Waste within
Functions
Reduce Functional
Waste - Quick Wins
Influence
Functional Waste
Reduction
Share Functional
Best Practices
Across the
Organization/Net
work
Process and People
Visibility
Make customer
consumption visible
throughout the supply
chain (internally and
externally) and
demonstrate a respect for
people and process and the
value add both contribute
Highly Directive
Begin to Observe
People and Process
Show Respect for
People and Process -
Understand Current
State
Balance Thinking
and Tools
Drive Principal
Based Decision
Making
Problem Solving
Collaborate, build teams,
solve problems and focus
on process discipline
Hero Firefighter
Problem
Identification
Individual Problem
Solver
Team Based
Problem Solving
Empowering
Problem Solving
Unaware Aware Doer Coach Mentor
Lean Leader Maturity

 Productivity increase of 10%
 20% Reduction in Overtime
 Cultural shift across 70 DC operations
 Stable foundation of knowledge and tools for
advanced improvement tactics and strategies

Pro’s
1. Leadership Priority and Support
2. Expertise at the Top of the House
3. Relentless Focus: Do Not Accept Excuses
Con’s
1. Systems Thinking: All departments can effect DC productivity
(purchasing, supplier compliance, transportation)
2. Consistency of Deployment Team
3. Expertise at the Top of the House

 Based on the Shingo-Award winning book,
PEOPLE
 Leverage lean principles to become a
more effective leader, build teams, and
drive operational excellence.
 Start today:
◦ www.leancor.com/online-lean-training/
 Coming soon: 90-Min Lean Fundamentals!
Exclusive 20%
Discount Code
for Webinar
Attendees!
Use
“leanleader”
at checkout!

Next Webinar:
The Plan for Every Part: How to
Create Standardization in Material
Flow Ordering
WED, May 13 | 11:00 – 12:00 EDT
Register Now!
www.leancor.com/events

Brad Bossence
bbossence@leancor.com
678.876.9009
Let’s connect on
Charles Brown
charles.brown@interlinebrands.com
904.568.6205
Let’s connect on

LeanCor Consulting Webinar: How to Deploy Continuous Improvement in the Warehouse

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LeanCor Consulting Webinar: How to Deploy Continuous Improvement in the Warehouse