Logistics and Supply Chain Management: The Lean Delivery Drone

Written by Derek Browning, Regional Vice President of Deployment at LeanCor

In a move that has generated controversy in the e-commerce market, Amazon CEO Jeff Bezos recently unveiled a plan to home-deliver packages with unmanned aerial vehicles moments after an order is placed. 

Fellow lean thinkers, let’s put our whiteboards and calculators away for a moment, and  just assume the costs of transportation, legislation, and uncle George’s duck-hunting club can be neutralized.  Let’s look at the principles that would guide this journey in logistics and supply chain management, namely the voice of the customer, lead-time reduction, and one-piece flow.

Voice of Customer

Consider Amazon’s customer base, specifically those like me who subscribe to Amazon’s Prime service.  We want our products now - not two, three, or six days from now.  The thought of clicking “buy” on my couch while filtering through a few e-mails, then picking up the recently purchased item on my porch moments later is nothing short of amazing. The time and money saved by eliminating a trip to the store makes it well-worth a nominal yearly subscription fee.  As both a customer and professional in logistics and supply chain management, I can only imagine there are thousands like me wanting the same thing.  Bezos, whether he calls it lean thinking or not, has his eye on the customer and is willing to push conventional logistics management practices to get the customer what they want. This, my friends, is how a lean supply chain should operate.

Lead Time Reduction

A lean logistics and supply chain management professional is always looking for opportunities to minimize or eliminate lead time.  Lead time is made up of two things: waste and value added activities. Thus, to reduce lead time is to minimize or eliminate waste in the supply chain.  While automation brings up many questions about flexibility and return on investment, the logistician looks at an over the road route vs. a route as the crow flies.  The logistician also observes many necessary wastes associated with road transportation (turns, waiting, etc.) while a straight delivery path eliminates many, perhaps all of those wastes.

One Piece Flow

Batching for efficiency purposes is very common in distribution.  We batch pick releases and pick-routes to minimize human travel, we batch delivery routes to minimize transportation costs, and we batch order sizes to optimize package and transportation utilization.  While financially beneficial, the lean thinker begs the questions: “What if the customer doesn’t want to order that quantity?” or what if the customer doesn’t want to wait for a truck to fill up before it leaves the facility?”  It looks like this new paradigm of distribution thinking will answer those questions with, “Now he doesn’t have to.” 

Automation often brings up many questions about flexibility and return on investment, but let’s look at this closer:  an over the road route observes many necessary wastes associated with road transportation (turns, waiting at stop lights, etc.), while a straight line delivery path eliminates many, perhaps all of those wastes.

A facility that can pick orders and flow them through without stopping to an unmanned aircraft for single-piece delivery, minimizes or even eliminates the batching of orders arriving at the ideal state – a single-piece flow model.

Regardless of your position on the approach, this shift in the logistics and supply chain management industry should cause ample reflection in your own supply chain:

Do you know, and how are you responding to your customer’s voice?

Are you willing to think beyond industry paradigms to reduce lead-time?

What will it take for you to shrink your current batch sizes?

Author Biography

Derek Browning is a Regional Vice President for LeanCor Supply Chain Group.  LeanCor is a trusted supply chain partner that delivers operational improvement and measurable financial results. Derek’s supply chain and logistics experience has encompassed transactional transportation management, logistics network and route designs, supply chain and facility assessments, lean cross-dock and distribution center projects, people development, and the deployment of lean principles and practices in several cross-functional areas. Read more of Derek’s views on logistics and supply chain management at LeanCor.com.

Collaboration: The Missing Ingredient to Transforming the Way We Work

Our business cultures reflect the core values and beliefs that drive our actions and behaviors and influence our relationships, both internally and with our customers. The culture of a workplace shows up in powerful ways in terms of commitment, quality, and productivity, loyalty, satisfaction, and pride. It creates the standards, work style, and expectations by which our companies are defined. Our job is to engage that culture so that its best values emerge and flourish.

The organization as a whole must create a shared cultural framework that will be powerful enough to replace hierarchy. That framework must not merely be a program or technique or a sophisticated new way to manipulate the future. On the contrary, it must be based on fundamental principles, enhance the stability of workplace relationships, help define the new covenant, and enable managers to use common sense in making business decisions.

In my experience there are seven core values that define the basis for effective work relationships:

• Respect for people
• Honor and integrity
• Ownership and alignment
• Consensus
• Full responsibility and accountability
• Trust
• Recognition and growth

Collaboration is a principle-based process of working together, which produces trust, integrity, and breakthrough results by building true consensus, ownership, and alignment in all aspects of the organization. Put another way, collaboration is the way people naturally want to work. It is a way of life that enables us to meet our fundamental needs for self-esteem and mutual respect in the workplace. This principle provides the basis for significant and permanent change – for people as well as for organizations.

Put simply, collaboration is the missing ingredient to transforming the way we work.

Lean Quote: Good Leadership Is Always Human

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Good leadership is always human. It takes time and energy. It is hard work. Which is why good leadership is so special when we find it.." — Simon Sinek

If I only had a nickel for every time I’ve heard someone say, “It’s not personal; it’s just business.” Great leaders understand nothing is more personal than leadership, and they engage accordingly. The best leaders understand a failure to engage is in fact a failure to lead. Average leaders remain aloof and distant – great leaders look to know and care for their people.

Average leaders are viewed as business executives, the best leaders are viewed as great human beings. The best leaders understand it’s not a weakness to get personal, to display empathy, kindness, and compassion – it’s the ultimate strength. Peak performance is never built on the backs of others, but by helping others become successful. Treat your people as if your life depends on it – it does.

Leaders are nothing without people. Put another way, people will make or break you as a leader. You’ll either treat them well, earn their trust, respect and loyalty, or you won’t. You’ll either see people as capital to be leveraged or humans to be developed and fulfilled. You’ll either view yourself as superior to your employees, or as one whose job it is to serve them, learn from them, and leave them be better off for being led by you.

The best leaders don’t put people in a box – they free them from boxes. Ultimately, a leaders job isn’t to create followers, but to strive for ubiquitous leadership. Average leaders spend time scaling processes, systems, and models – great leaders focus on scaling leadership.

The reality is anyone can lead, but very few lead well. If you want to lead well, you can't forget the human component.

 

Daily Lean Tips Edition #57 (841-855)

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #841 – Ensure a Penalty-Free Exchange of Ideas

Ensuring a penalty-free exchange of ideas is beneficial to both the giver and the receiver of new ideas and approaches and will ensure a safe two way exchange of thoughts and ideas.

Lean Tip #842 – Use A Consistent Approach For Projects

A consistent and structured approach for project identification and execution will provide the organization with the ability to identify, select, and manage continuous improvement projects. It should also provide post-closing process steps to continually refine the improvement project methodology and to act upon the lessons learn from the project effort.

Lean Tip #843 – Measure and Monitor Key Performance Indicators

It is not possible to improve what is not measured. Determine in advance the approach and techniques to be used in measurements. Scorecards can be useful to monitor the key performance indicators of processes that support capability and performance.

Lean Tip #844 – Ensure Regular Communications to Foster Collaborative Interactions

Ensure regular communications to foster collaborative interactions among leaders, stakeholders, and practitioners at all levels.  Where needed, schedule face to face meetings and where not needed, use the communication and collaboration tools and capabilities of the enterprise to keep all members updated and involved.

Lean Tip #845 – Establish Core Values that Comprise The Continuous Improvement Culture

Establish the core values that comprise the continuous improvement culture such as a focus on supporting the customer, teamwork throughout the extended enterprise, receptivity to evolving continuous improvement concepts and tools. These core values will create a sense of belonging and a common vision for all involved.

Lean Tip #846 - Identify an Internal Change Agent and Gain Commitment From Leadership

The successful implementation of a lean manufacturing program requires the engagement of company leadership to ensure lean doesn't become the company's latest “flavor of the month” program. I recommend identifying an internal “change agent” who will have overall responsibility for driving your lean transformation. Change won't come easy, so this person must be respected, have good communication skills and the ability to turn pushback into idea generation.

Lean Tip #847 - Turn Employees Into Problem Solvers and Improvement Specialists

The most important aspect of lean is to involve employees in developing lean processes. Many times companies create a culture in which the employees don't make the decisions, management does. Then when problems occur, employees are unable to diagnose or solve problems without involving a supervisor. lean reverses that by revolving around employees and looking to them as the improvement specialists.

Lean Tip #848 - Share As Much As You Can

Shared information will help to stop silos emerging and can help to manage the ‘collective expectation’. Furthermore, regular communications and clear messaging explains the benefits to the wider team and will be widely welcomed.

Lean Tip #849 - Devolve Responsibility To Those At The Gemba

Those on the shop floor are vital in that they will be able to spot imperfections and inefficiency.  Don’t just involve them in discussion, but make them experts and give them responsibility.

Lean Tip #850 – Instill Confidence In Your Employees To Suggest Improvements

Instill confidence in your employees so they will feel free to suggest improvements. In the firelight, our cave dwellers could assess and improve their procedures. In one set of drawings, the hunters stand in front of the stampeding herd. Where do you think we would be today if people had not felt free to suggest improvements?

Lean Tip #851 - Empower Them to Think Differently

While it’s important to set clear goals and responsibilities, the key to having a successful business and engaged workforce is to empower all your employees to make decisions on their own. Make sure employees are comfortable and confident asking questions, bringing forward new ideas and even taking a different approach that may fail. Out of that failure will come knowledge and longer-term success.

Lean Tip #852 - Create Opportunities for Employees to Shine

While every company is pleased to have natural-born leaders, others may need a bit more prodding. Empower those employees by providing them with a bit more freedom to pursue to their passions. Then give them the opportunity to demonstrate their work to other employees.

Lean Tip #853 - Listen to Learn and Ask Questions to Provide Guidance

Provide a space in which people will communicate by listening to them and asking them questions. Guide by asking questions, not by telling grown up people what to do. People generally know the right answers if they have the opportunity to produce them. When an employee brings you a problem to solve, ask, "what do you think you should do to solve this problem?" Or, ask, "what action steps do you recommend?" Employees can demonstrate what they know and grow in the process. Eventually, you will feel comfortable telling the employee that he or she need not ask you about similar situations. You trust their judgment.

Lean Tip #854 - Promote Employee Education.

Provide a means for employees to get whatever training is necessary to their optimal performance so that they can truly master their job responsibilities. Also, show that you are invested in their professional success by arranging for them to attend career development seminars and courses. Not only does this provide for employee empowerment, but it is a great way to gain employee loyalty and improve employee performance.

Lean Tip #855 - Really Listen to What Your Employees are Telling You.

It is hard to know what your employees want and need if you do not truly hear and understand what they are saying. Set aside a designated time to meet one-on-one with each employee at least once a month. During your meeting, actively take notes on what your employee is saying and asking. Your notes will help you to listen more effectively.

Use Performance Measures To Drive Lean Behavior

Changing organization culture is a key approach to overcoming barriers to performance improvement. But how do you change culture? One key element is performance measurement. “What gets measured, gets done!” And if we want to get Lean, we need to use performance measures that promote Lean behavior.

So if measurement motivates, we need to measure the things we want to change. In a traditional “push” plant, we measured output and efficiency by department and machine. The goal was to keep people and machines busy and these measures made that the focus. In retrospect, it’s not surprising that we built up piles of inventory between departments, and extended our total production leadtime, i.e., the time from first operation to last operation.

In a Lean plant we want value to flow. We want leadtimes to be as short as possible. How can we drive that change? Measure leadtimes and show the results to those who can make it happen. Similarly, if changeover times need to be reduced, measure them and feed back the results on a team information board.

“Feedback is the Breakfast of Champions!”

If we want to succeed on our Lean journey, the feedback must support the change. Therefore, discard old measures that encourage sub-optimizing behavior, and replace them with good Lean measures that drive the flow of value to the customer.

Measure

Everything

That

Results

In

Customer

Satisfaction

“No one retires at night with deep satisfaction, unless they have measured their achievements against standards they hold credible.” 

Lean Quote: Become a Man of Value

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Try Not to Become a Man of Success. Rather Become a Man of Value." — Albert Einstein

Success is something that can be judged based upon achievement of goals. However someone who is successful does not necessarily have to give anything valuable to the world.

Value is something that can be measured based upon what an individual has contributed to the world.

Examples of success:

A politician that is elected to a high level of office can be considered successful politician.

A business man that makes a lot of money in the stock market is considered a successful stock broker.

An athlete that wins a gold medal in the Olympics is considered a successful athlete.

Albert Einstein achieved many great accomplishments in physics during his lifetime, and is therefore considered a successful physicist.

Examples of value:

Einstein invented the wheel, and the wheel is used by nearly all human beings living on the planet; therefore he has contributed something of extraordinary value to society, and is hence a valuable person.

Einstein synthesized the polio vaccine, which has been used to rid much humanity of a horrible disease, hence he is a person of value to society.

Through his theory of general relativity Albert Einstein fundamentally changed our view of gravity, and it's mechanics, clarifying many previously misunderstood concepts, and natural phenomena; hence he has been of great value to humanity, and more specifically to the field of physics.

Throughout history, the people who change the way we think, and live, and the people who influence our lives most have been men of value rather than men of success. Though it should be noted that most people of value can also be considered successful, due to the value of their contributions to the world.

There's nothing wrong with success, but oftentimes it's easy to lose sight of who you are when you're successful. If you keep your eyes on your own values, you'll end up both successful and a good person, which is a pretty good combination.

Einstein's quote does not preclude becoming successful (after all, he himself was both), but exhorts value creation as being a higher priority.

It also subtly calls for those who have success but have not yet used it to help other people to pitch in, under the guise of leaving a much longer-lasting legacy.

What do you think about this quote?

 

Guest Post: Workplace Trust

Recently, I had a great conversation with Edward Hallinan, from Unum,on employee empowerment.We discussed the importance of trust in terms of empowerment.  I am pleased to present Edward's post on workforce trust and how to increase it in your workplace.
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On 13th November, Tim wrote a post on the importance of empowering employees for improvement. In it, we found not only that employee empowerment leads to a more knowledgeable, hence effective workforce but, crucially, a more motivated one. And the catalyst for this? Trust. 

When a workforce is trusted to take key decisions and equipped with the tools to do so, it is a clear sign of trust from the higher echelons of a company. And the great thing about trust? It is reciprocal. That means that a trusted workforce trusts its employers in equal measure – a win win situation. 

The role of trust as a key motivator has been explored in real depth by employee engagement expert, Susanne Jacobs and the skilled income protection team at Unum. Entitled, Workplace Trust, the unique infographic depicts 8 factors that lead to increased trust among employees and hence productivity.


Workplace Trust: An infographic by the team at Unum UK

About the Author: Edward Hallinan is a professional content writer, currently writing on behalf of Unum. He is passionate about championing the role of employees in big businesses and believes motivation is the key to success!