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Lean Thinking vs. SCOR Model

A comparison between Lean and SCOR for LEONI industrial engineering department
by

Mohamed Gaber

on 29 May 2011

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Transcript of Lean Thinking vs. SCOR Model

Lean Thinking Vs. SCOR Model
Agenda
I. Lean Vs. SCOR
1. Emphasis
2. Structure
3. Main Objective
4. Continuity
5. Financial Matters
III. Lean Thinking
History and Definition
How it Works!
II. SCOR Model
History and Definition
How it Works!
IV. Conclusion
1. Emphasis
SCOR emphasises the
WHAT
HOW
2. Structure
SCOR Structure
Lean Structure
3. Main Objective
SCOR aims at enhancing KPIs
Lean aims at eliminating Non Value Adding activities
from the customer's perspective
4. Continuity
SCOR takes 6 to 9 months to be implemented, then turns into a 'Control' tool.
Lean is based on continuous improvement 'Kaizen' principle.
5. Financial Matters
SCOR has many financial KPIs, such as COGS, ROII, and Cash-to-Cash Cycle Time
Lean is simplistic regarding financial aspect
SCOR Model was developed in 1996 by a management consulting firm named PRTM and the Supply Chain Council (SCC).
SCOR (Supply Chain Operations Reference) Model is a process reference model endorsed by the SCC as the standard diagnostic tool for supply chain management, used to align the corporate strategy with the process improvement.
Supply Chain Definition in the SCOR context
A supply chain is a system of organizations, people, information, processes and resources involved in moving a product or a service from the supplier’s supplier to the customer’s customer.
A supply chain is governed by 5 processes
Step1: Defining Supply Chain Priority
Step2: SCOR card
Step3: AS IS Material Flow
Step4: AS IS Information Flow
Step5: Collecting Problems
Step6: Consolidating Problems
Step7: Prioritizing Projects
Step8: TO BE Material & Information Flow
Lean is based on Toyota Production System which was developed after WWII by Taiichi Ohno, Shiego Shingo, and Eiji Toyoda.
TPS was inspired by the writings of Deming, Henry Ford, Taylor and the Gilberth family.
Mass production craze, and the US visit
Lean (the term and the word)
Lean's Main Objective
John Womack's Lean Principles
1. Minimizing Waste
2. Built-in Quality (Jidoka)
3. Flexible Manufacturing Lines (JIT)
4. Continuous Improvement (Kaizen)
Types of Waste
Lean
1. Unnecessary Transportation
2. Inventory
3. Motion
4. Waiting
5. Overproduction
6. Overprocessing
7. Defects
Some of the Techniques Used to Eliminate Waste
1. Cellular Layout, Reduces Motion
2. Pull Production (JIT), Reduces Inventory, Overproduction
3. Mistake-Proof (Poka Yoke), Reduces Defects
How to detect waste?
1. Value Stream Mapping
2. Shop Floor Observation
Detect Stop Fix Investigate
Kanban System
Production Leveling (Heijunka)
Lean emphasises the
We can use Pick Chart to prioritize Kaizen projects.
We can use Financial Metrics to measure Lean improvement effect.
We can use simulation software to determine projected improvement effect.
Supermarket
Based on Deming Wheel (PDCA)
Thank You.
Line Balancing
Full transcript