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Supply chain management with lean production and RFID applic

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Thanakorn Nimitchai

on 3 April 2014

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Transcript of Supply chain management with lean production and RFID applic

Current Supply Chain
VSM of current spare part supply chain
RFID technologies
This study explores the application of lean production and RFID technology for improving the logistic efficiency in a three-tier spare parts supply chain.
Future Supply chain operations (to-be model)
Current Supply Chain
Future Supply Chain
Result & Conclusion

Supply Chain management with lean production and RFID application

Lean Production
Re-engineering the supply chain
Arrange the receiving schedule and delivery time according to the agreement with manufacturers
Change the existing traditional proprietary EDI system to internet-base EDI system
Integrates RFID technology with information system and supply chain operation
Changing from manual (Bar-code) to Automatic scanning (RFID) and cross-docking operation
Sub-processes are reduced from 30 to 22
Change their IS from batch-base processing philosophy to a real-time execution and decision philosophy
Future Supply chain operations (to-be model)
Efficiency improvement
of total operation time in three scenario
Evaluation the efficiency improvement
ROI Analysis
Total operation time, from current stage to future stage with
integration of lean and RFID
, can be saved by 81%
(with 82% saving in waiting and transportation time and 63% saving in value-added time).
The saving can be further enhanced to 89%
(with 89% saving in waiting and transportation time and 70% saving in value-added time)

with the adoption of cross-docking.
Furthermore, each warehouse
can reduce at least one operator
while maintaining current service capacity and level in both CDC and LDC.
ROI analysis with
a value of 2.6 justifies the effectiveness of lean production and RFID
ROI Analysis of RFID implementation in supply chain
ROI analyses are helpful to support decisions on the feasibility of RFID deployments.
It was very important to accurately measure the benefit of an RFID project
There existed RFID technology uncertainties and risk such as global standardization, chip price, security and privacy and high investment cost, an accurate economic analysis prior to investment should be made.
ROI Analysis
Full transcript