| Preface | p. xi |
| Acknowledgments | p. xiii |
| About the Authors | p. xv |
| Web Added Value | p. xvii |
| Lean Six Sigma Logistics: Why Bother? | |
| What Is Lean Six Sigma Logistics? | p. 3 |
| What Is Logistics? | p. 4 |
| What Is Lean? | p. 4 |
| Lean and the Logistician | p. 4 |
| What Is Six Sigma? | p. 5 |
| Six Sigma and the Logistician | p. 5 |
| What Is Lean Six Sigma Logistics? | p. 6 |
| The Logistics Bridge Model | p. 7 |
| The Importance of Logistics and Supply Chain Management | p. 9 |
| Discovering the Dark Continent of Logistics | p. 9 |
| This Thing Called "Supply Chain Management" | p. 11 |
| The Logistics Wastes | p. 14 |
| The Logistics Wastes | |
| The Waste of Inventory | p. 19 |
| Logistics and Inventory Management | p. 19 |
| The Temptation of Inventory | p. 20 |
| The Costs of Holding Inventory | p. 22 |
| The Waste of Transportation | p. 27 |
| Logistics and Transportation Management | p. 27 |
| Transportation and Logistics Trade-offs | p. 29 |
| Transportation Carrier Relationships | p. 31 |
| Minimizing the Day-to-Day Wastes in Transportation | p. 32 |
| The Waste of Space and Facilities | p. 35 |
| Logistics and Warehousing | p. 35 |
| How Many Facilities? How Much Space? | p. 36 |
| Are Advanced Technologies a Cure or Merely a Crutch? | p. 37 |
| The Waste of Time | p. 39 |
| Logistics and Time Wastes | p. 39 |
| Order Transmission | p. 39 |
| Order Processing | p. 41 |
| Order Filling | p. 42 |
| Order Staging and Verification | p. 43 |
| Order Shipping and Delivery | p. 44 |
| The Waste of Packaging | p. 47 |
| Logistics and Product Packaging | p. 47 |
| Packaging as a Source of Waste | p. 48 |
| Packaging as a Waste | p. 49 |
| Packaging as a Visual Control | p. 50 |
| The Waste of Administration | p. 51 |
| Logistics and Administration | p. 51 |
| Administration as Help and Hindrance | p. 52 |
| Technology and Administration | p. 52 |
| The Waste of Knowledge | p. 55 |
| Logistics and Knowledge | p. 55 |
| Cultivating Knowledge | p. 56 |
| Managing the Flow of Knowledge | p. 57 |
| The River of Wastes | p. 59 |
| The Logistics Bridge Model | |
| A Tour of the Bridge | p. 65 |
| History of Lean Six Sigma Logistics | p. 66 |
| The Importance of the Logistics Bridge Model | p. 66 |
| The CEO's Perspective | p. 67 |
| The Implementer's Perspective | p. 69 |
| The Logistics Bridge Model: Getting Started | p. 70 |
| Logistics Flow: Asset Flow | p. 71 |
| People Flow | p. 72 |
| The People "Perfect Order" | p. 73 |
| Organizing People | p. 73 |
| Bridging the People Gap | p. 74 |
| Inventory Flow | p. 75 |
| Understanding Safety Stock | p. 76 |
| Inventory Management | p. 77 |
| Starting with the Systems Approach | p. 77 |
| Inventory and Cause and Effect | p. 78 |
| Inventory Management Fundamentals | p. 79 |
| Fixed Resources Flow | p. 80 |
| Identifying and Mapping Fixed Resources | p. 81 |
| Questioning the Need | p. 82 |
| Vision of Excellence and Fixed Resource Flow | p. 83 |
| Flow: Information Flow | p. 85 |
| Data Flow | p. 86 |
| Historical Data | p. 86 |
| Event and Real-Time Data | p. 87 |
| Future and Deterministic Data | p. 87 |
| Data Excellence | p. 89 |
| Knowledge Flow | p. 89 |
| Continuous Improvement and Knowledge Flow | p. 90 |
| Standardized Work and Knowledge Sharing | p. 91 |
| Getting Knowledge to Flow | p. 92 |
| Communication Flow | p. 93 |
| Strategic Communication | p. 93 |
| Hoshin Planning | p. 94 |
| Operational Communication | p. 95 |
| Flow: Financial Flow | p. 97 |
| Income Statement Flow | p. 98 |
| Logistics Activities and Hidden Operating Costs | p. 99 |
| Logistics Costs Flow Across the Organization | p. 100 |
| Inventory Carrying Costs and the Income Statement | p. 101 |
| Vision of Excellence and the Income Statement | p. 102 |
| Balance Sheet Flow | p. 103 |
| Inventory as a Current Asset | p. 104 |
| Inventory Turns and the Balance Sheet | p. 105 |
| The Balance Sheet and Business Strategy | p. 106 |
| Flexibility | p. 106 |
| Visibility | p. 107 |
| Cash Flow | p. 107 |
| Cash Flow Drivers | p. 108 |
| Accounts Payable and Cash | p. 108 |
| Accounts Receivable and Cash | p. 110 |
| Revenue Growth and Cash | p. 110 |
| Gross Margin and Cash Flow | p. 111 |
| Selling, General, and Administrative Expense and Cash Flow | p. 111 |
| Capital Expenditure and Cash Flow | p. 112 |
| Inventory and Cash Flow | p. 113 |
| Vision of Excellence and Cash Flow | p. 113 |
| Capability: Predictability | p. 115 |
| Organization | p. 116 |
| Highlighting Waste and Creating Visibility | p. 117 |
| Standardized Operations and Setting Priorities | p. 118 |
| The Organized Workplace: Clutter, Complexity, and Quality | p. 119 |
| Measurement and the Organized Workplace | p. 119 |
| Coordination | p. 120 |
| Coordination and Value Stream Mapping | p. 121 |
| Coordination and Detailed Planning | p. 122 |
| Coordination and Measurement | p. 124 |
| Complexity | p. 124 |
| Complexity of Products | p. 125 |
| Complexity of Processes | p. 126 |
| Capability: Stability | p. 129 |
| Standardization | p. 130 |
| The Key Aspects of Standardization | p. 130 |
| Standardization and Continuous Improvement | p. 131 |
| Flexibility | p. 132 |
| Developing Flexibility and Back to Basics | p. 133 |
| Flexibility and Lead Time | p. 134 |
| Logistics Infrastructure Flexibility | p. 135 |
| Planned Network Design and Visibility | p. 136 |
| Control | p. 137 |
| Today's Capability Is the System's Capability | p. 138 |
| Common and Special Cause Variation | p. 139 |
| Capability: Visibility | p. 141 |
| Understandability | p. 142 |
| Beginning to Understand | p. 143 |
| Channel Partners and Their Important Role | p. 143 |
| Opportunities and the Moment of Truth | p. 144 |
| Measurability | p. 145 |
| Voice of the Customer | p. 146 |
| Creating Internal Measures of Meaning | p. 148 |
| Actionability | p. 149 |
| Discipline: Collaboration | p. 153 |
| Teamwork | p. 154 |
| Processes and Knowing the Customer | p. 155 |
| Building Teams | p. 156 |
| Complementary Skills and Opposing Views | p. 156 |
| Natural Stages of Team Development | p. 157 |
| Strategic Sourcing | p. 158 |
| Raw Material Suppliers | p. 159 |
| Standardization, Complexity, and Dual Sourcing | p. 160 |
| Beware the Term "Partnership" | p. 160 |
| Collaboration and Logistics Services | p. 161 |
| Third-Party Logistics | p. 162 |
| Developing a Lean Third-Party Logistics Relationship | p. 163 |
| Project Management | p. 165 |
| Project Management: The Basics | p. 166 |
| Meeting Agenda (Compass) | p. 167 |
| Storyboard | p. 167 |
| Gantt Chart | p. 168 |
| Failure Mode and Effects Analysis | p. 169 |
| Discipline: Systems Optimization | p. 173 |
| Total Cost | p. 174 |
| Explicit and Implicit Costs | p. 174 |
| Horizontal Integration | p. 177 |
| Perceived Difficulty and System Constraints | p. 179 |
| Compensation and Incentive Programs | p. 179 |
| Teamwork, Imperfection, and Defensive Behavior | p. 180 |
| Breaking Down the Walls | p. 181 |
| Vertical Integration | p. 181 |
| From Customer to Supplier | p. 182 |
| Vertical Integration and Information | p. 182 |
| Variability, Leveled Flow, and Vertical Integration | p. 183 |
| Discipline: Waste Elimination | p. 185 |
| Quality at the Source | p. 186 |
| The Benefits of Quality at the Source | p. 187 |
| Logistics and Quality at the Source | p. 189 |
| Continuous Improvement | p. 190 |
| Continuous Improvement: The Bare Facts | p. 190 |
| The Challenges of Continuous Improvement Implementation | p. 192 |
| Bridging the Gap | p. 193 |
| Getting People Trained | p. 194 |
| Execution | p. 195 |
| Acting as Lean Six Sigma Logistics Leaders | p. 195 |
| Building the Bridge: Lean Six Sigma Logistics Tools | |
| Strategy and Planning Tools | p. 201 |
| Surveying the Tool Kit | p. 201 |
| Voice of the Customer | p. 202 |
| Voice of the Business | p. 204 |
| Value Stream Mapping | p. 206 |
| Pareto Analysis and ABC Classification | p. 208 |
| The XY Matrix | p. 211 |
| Problem-Solving Tools | p. 213 |
| DMAIC (Define-Measure-Analyze-Improve-Control) | p. 213 |
| Define | p. 214 |
| Measure | p. 214 |
| Analyze | p. 215 |
| Improve | p. 216 |
| Control | p. 217 |
| Causal Analysis Tools | p. 218 |
| Brainstorming | p. 218 |
| Cause-and-Effect Diagrams | p. 219 |
| Five-Why Analysis | p. 220 |
| Design of Experiments | p. 222 |
| Inferential Statistics | p. 223 |
| Operational Tools | p. 227 |
| Flow Concepts | p. 227 |
| Just-in-Time and the Pull System | p. 227 |
| Lead-Time Management, Speed, and Flexibility | p. 229 |
| Leveled Flow | p. 230 |
| Frequency and Lot Size | p. 232 |
| Organization Concepts | p. 232 |
| Standardized Work Plan | p. 233 |
| The SIMPOC Model | p. 233 |
| 5S Organization and Visual Control | p. 234 |
| Red Tag Initiatives | p. 235 |
| Poka-Yoke | p. 236 |
| Measurement Tools | p. 237 |
| Data Collection Plan | p. 237 |
| Process Capability | p. 238 |
| Defects per Million Opportunities | p. 241 |
| Sigma Calculations | p. 242 |
| Conventional Measures of Logistics Performance | p. 245 |
| Total Cost Analysis | p. 246 |
| Case Study: GoldSMART Products, Inc. | p. 249 |
| Lean Six Sigma Logistics: A Real-World Story | p. 249 |
| GoldSMART Products, Inc.: A Cast in Lean Six Sigma Logistics | p. 250 |
| The Calm Before the Storm | p. 250 |
| The Approach of Ominous Clouds | p. 251 |
| In the Eye of the Storm | p. 252 |
| Riding Out the Storm | p. 255 |
| Seeing Daylight Again | p. 260 |
| Summary and Conclusion | p. 267 |
| Index | p. 271 |
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