Lean Six Sigma, Chapter 14 - Lean Six Sigma Logistics
The following is a sample chapter from Lean Six Sigma, which explains how to impact your company's performance in each, by combining the strength of today's two most important initiatives--Lean Production and Six Sigma--into one integrated program. The first book to provide a step-by-step roadmap for profiting from the best elements of Lean and Six Sigma, this breakthrough volume will show you how to achieve major cost and lead time reductions this year; compress order-to-delivery cycle times; and battle process variation and waste throughout your organization.
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associated costs associated with inventory companies competitive cost of capital cost of production costs associated costs of holding cross-dock example excess inventories explicit costs firm firm’s frequency of deliveries frequency per supplier goal holding inventories implementing a Lean inbound logistics systems inbound transportation Increasing delivery frequency inven invento inventory carrying costs inventory control inventory levels Inventory Risk Costs Inventory Service Costs inventory strategies invested just-in-time Lean environment Lean Six Sigma Lean system leveled demand Leveled flow line side load configurations logistics cost drivers logistics functions manufacturer’s manufacturing facil manufacturing process marginal cost curve material handling opportunity cost optimize costs overall Overproduction particular supplier Pipeline visibility profitability pull pull system raw material inventory reducing inventory reducing lot sizes result returnable packaging safety stock sequenced deliveries short run smaller lot sizes space requirements strategic supply chain total cost transportation costs typically ultimately variable costs warehouses