Lean Practices in Procurement
Webinar Details $219
- Rated:
- Webinar Length: 100 Minutes
- Guest Speaker: Michael W. Gozzo
- Topic: Purchasing
- Credit: ATAPU 1.5, CPE 2.0
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The role of Procurement is changing. Doing what you’ve always done, even if you do it well, is no longer acceptable. You need to transform rather than simply improve practices. That means adopting practices with suppliers that make both of you winners/leaders in your respective environments.
Your Benefits of Attending:
- Understand the principles of lean practices and how to apply them to your procurement process.
- Learn how to have your suppliers reduce lead time and setup. Understand why this is so significant.
- Gain insight into developing trust with suppliers and why that is so critical.
- Understand 5S / Kaizen and how to use them effectively.
Join Mike Gozzo and start implementing lean practices to improve your procurement process.
- Introduction
- Outline 00:02:15
- What are Lean Practices? 00:0
- Lean Principles 00:03:33
- Waste Elimination 00:06:19
- The Transparent Workplace - Values Versus Nonvalue Added 00:08:57
- Transparent Workplace - Flow Analysis 00:13:06
- What is Value Stream Mapping? 00:15:43
- Why is it Called a Value Stream? 00:17:01
- Difference From Process Mapping 00:17:55
- Transparent Workplace - Value Stream Mapping (VSM) 00:18:23
- Process TimeLine 00:19:23
- How do Lean Practices Relate to Purchasing? 00:25:02
- Role of Purchasing 00:25:35
- What are Cost Drivers? 00:28:33
- Lean Flow Collaboration 00:31:05
- What Is It? 00:33:30
- Collaborations 00:36:43
- Collaboration Implementation Five Steps 00:40:35
- Collaboration Benefits 00:43:01
- Who Needs Lean Flow? 00:45:43
- Performance Potential 00:47:05
- Improvement Potential 00:48:23
- Case in Point - Wiremold 00:49:59
- Understanding and Application of Tools 00:52:03
- Paper and Transaction Reduction 00:52:27
- Exercise 00:53:05
- A Simple Example 00:53:15
- One Potential Solution 00:54:27
- Lead Time 00:59:04
- Definition of Lead Time 00:59:32
- How is it Determined? 01:00:44
- Elements of Manufacturing Lead Time 01:02:30
- Purchasing Lead Time 01:04:27
- Characteristic of Lead Time 01:05:35
- Action 01:08:08
- Kanban 01:09:22
- Cost of Placing Orders 01:13:01
- Costs Associated with Order Quantity Decisions 01:15:11
- Order Quantity Constraints 01:18:01
- Cost of Quality a TQM Measure 01:20:35
- What Must Be Done? 01:24:45
- Our Direction 01:25:06
- Direction Guidance Questions 01:25:31
- Further Guidelines for a Lean Purchasing Practice 01:25:51
- Performance Assessment 01:26:14
- Assessment Continued 01:26:20
- Scoring the Assessment 01:26:25
- Strategic Sourcing 01:26:50
- Strategic Sourcing Process 01:29:14
- Sourcing Strategy Continued 01:31:28
- Transformation to Lean 01:33:06
- What & Where Continued 01:34:01
- Components For Improvement 01:35:10
- Components For Improvement Continued 01:36:42
- Things To Do For Sourcing 01:39:04
- Components for Improvement Continued 01:40:19
- Transparent Workplace - Visual Order - The 5 Ss 01:41:15
- Before Storage Room 01:42:39
- Red Tag Items 01:43:00
- After Storage Room 01:43:29
- Measurements of Performance 01:44:09
- Lean Practices Employment 01:46:39
- Steps To Take 01:46:58
- Expectations and When 01:48:31
- Recap 01:49:35
- Q&A 01:51:54
- Closing Comments 01:52:14
- Presentation Closing 02:02:25
- Cost 00:26:36, 00:29:52, 00:44:31, 01:13:43, 01:16:02, 01:23:12
- Cost Of Goods Sold (COGS) 00:48:44
- Inventory 00:20:57, 00:22:37, 00:29:14, 00:36:15, 00:43:14, 00:48:58, 00:51:29, 01:19:23, 01:50:37
- Lead Time 00:24:06, 00:26:33, 00:30:29, 00:48:48, 00:59:04, 01:02:28, 01:05:55, 01:50:23
- Operating Profit 00:51:49
- Pareto Analysis 01:37:05
- Process Mapping 00:17:58
- Procurement 00:01:39, 00:20:08, 00:25:03, 00:28:37, 01:00:13, 01:13:15
- Product Family 00:18:53
- Pull System 00:33:40
- Push System 00:31:55
- Revenue 00:49:28, 01:33:24
- Strategic Sourcing 01:26:50, 01:31:37, 01:39:44
- Supplier 00:01:54, 00:11:06, 00:20:15, 00:26:51, 00:32:10, 00:43:33, 00:51:10, 01:05:15, 01:18:20, 01:28:16, 01:34:15, 01:37:26
- Supplier Resource Management (SRM) 00:27:52
- Supply Chain 00:34:35, 00:36:29
- Supply Chain Management 00:59:41
- Total Quality Management (TQM) 01:20:35
- Value Stream 00:04:32, 000:17:09, 00:18:07
- Value Stream Mapping (VSM) 00:15:58, 00:18:34
- Vendor 00:38:40
- Vendor Management Inventory (VMI) 01:30:51, 01:38:27
- Voluntary Inter-industry Commerce Standards (VICS) 00:37:55
Cost: The sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location
Cost Of Goods Sold (COGS): The direct expenses related to producing the goods sold by a business. The formula for calculating this will depend on what is being produced, but as an example this may include the cost of the raw materials (parts) and the amount of employee labor used in production.
Inventory: A company's inventory typically involves goods in three stages of production: raw goods, in-progress goods, and finished goods that are ready for sale. Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilization.
Lead Time: The number of days from when a company places an order for supplies, to when those items arrive.
Operating Profit: Operating profit is the net income derived from a company's core operations. To put it another way, it is the amount of money that a company has left over after meeting its operating costs (gross profit) but before paying its taxes.
Pareto Analysis: Pareto analysis is a formal technique useful where many possible courses of action are competing for attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one.
Process Mapping: Process mapping is the graphical representation with illustrative descriptions. Process maps provide insight into a process, help teams brainstorm ideas for process improvement, increase communication and provide process documentation. Process mapping will identify bottlenecks, repetition, and delays. Business process mapping refers to activities involved in defining what a business entity does, who is responsible, to what standard a business process should be completed, and how the success of a business process can be determined.
Procurement: Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.
Product Family: A group of variants passing through similar processing steps that use common equipment.
Pull System: A lean manufacturing strategy used to reduce waste in the production process.
Push System: Production happens based on demand forecast.
Revenue: In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees.
Strategic Sourcing: Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so an organization can use its consolidated purchasing power to find the best possible values in the marketplace and align its purchasing strategy to business goals.
Supplier: A supplier is an entity that supplies goods and services to another organization. A supplier is usually a manufacturer or a distributor. A distributor buys goods from multiple manufacturers and sells them to its customers. Similar Terms. A supplier is also known as a vendor.
Supplier Relationship Management (SRM) : Supplier relationship management is the discipline of strategically planning for, and managing, all interactions with third-party organizations that supply goods and/or services to an organization The objective of SRM is to maximize the value of those interactions.
Supply Chain: A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. The supply chain also represents the steps it takes to get the product or service from its original state to the customer.
Supply Chain Management: In commerce, supply chain management, the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfillment from point of origin to point of consumption.
Total Quality Management (TQM): Total quality management consists of organization-wide efforts to "install and make permanent climate where employees continuously improve their ability to provide on-demand products and services that customers will find of particular value."
Value Stream: a series of steps that occur to provide the product or service that their customers want or need
Value Stream Mapping (VSM): Value stream mapping (VSM) is defined as a lean tool that employs a flowchart documenting every step in the process. Many lean practitioners see VSM as a fundamental tool to identify waste, reduce process cycle times, and implement process improvement.
Vendor: A vendor is a person or business that supplies goods or services to a company. Another term for the vendor is the supplier. In many situations, a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms.
Vendor Management Inventory (VMI): A supply chain agreement where the manufacturer or supplier takes control of the inventory management decisions for the seller or retailer.
Voluntary Inter-industry Commerce Standards (VICS): The VICS (Voluntary Interindustry Commerce Standards) Bill Of Lading (BOL) provides inventory-processing information through the supply chain to a shipper, carrier, and customer.
