Lean Supplier Development

Most companies struggle to move beyond the four walls of their business during a lean journey. Many lean leaders have never ventured to the great world of the unknown related to the supplier, but for lean to reach continued breakthrough levels of performance, lean supplier development is required to extend throughout the entire supply chain. Conversations around supply chain lean activity abounds in the consulting world, but few people can bring real life success stories, experience and processes to the picture as Rick Harris, Dr Chris Harris and Chuck Streeter. Their personal, hands on experience is evident once again in this book, their latest venture in true kaizen. They have the unique ability to shoot straight at the target and never talk over the head of the audience. The reader is able to understand the thinking process and then begin implementation starting with the opening lines of the book. This book is not just thoughts, but a detailed process of why, how and when to begin and implement lean supplier development. If your company accelerated improvement with Rick’s red book and shot life into it with the green book, this book will take performance of the total supply chain to an all new level. Let Rick, Chris and Chuck help you enjoy, not fear, the journey!—Mark Gooch, VP Lean Enterprise, Pentair, Inc.Rick and Chris Harris' practical knowledge from so much work in the field helping businesses with lean transformations shines through in this piece of work. The book can be viewed as a checklist adaptable to any business striving to develop an effective supply chain. Be careful not to miss the real gems they offer in the simple and sometimes subtle warnings of traditional behaviors that could impede future success.— Kathryn A. Miller, Vice President, Lean Enterprise & Quality, Parker HannifinFor most manufacturing based businesses direct material costs account for 40-60% of COGs. It is therefore absolutely IMPERATIVE that your supply base become LEAN practitioners if your company is to fully capture the strategic and operational benefits of becoming a truly LEAN Enterprise. Rick and Chris Harris provide a roadmap to accomplishing that goal. Read it, understand it, adopt the principles yourself, convert your supply base and watch your top line revenues and bottom line profits grow! — Rick Dauch, President and CEO, Acument Global Technologies

• Introduction: Why You Need This Book. SECTION I SUPPLIERS OR PARTNERS?: Does This Stuff Really Work? The Supplier Development Philosophy. Key Players (The Advisory Team). How to Choose a Supplier for a Long-Term Partnership. SECTION II INTERNAL OPERATIONS ESSENTIAL TO EXTERNAL SUPPLIER DEVELOPMENT: The Importance of Internal Operations. The Plan for Every Part (PFEP). SECTION III THE TRUE COST MODEL: True Cost Thought Process. Change Cost. Ongoing Cost. Risk Cost. True Cost Sourcing. SECTION IV INTERACTIONS BETWEEN LEAN CUSTOMERS AND PARTNERS: Understanding the Physical Connection between Partner and Customer. Receiving Product. Packaging. SECTION V DEVELOP A SUPPLIER INTO A PARTNER: The Partner Development Team. The Value Stream Mapping Methodology. The Quarterly Review Process. Supplier Development Quarterly Review Agenda. Appendix A: The Eight Wastes and Their Relationship to. Appendix B: Sample Standard Supplier Quarterly Review Presentation