Talking about Logistics, workshop

Evidencia 19.7
Presentado por:
ANGELA YULIETH MINA RAMÍREZ

Gestión tecnológica en logística

SENA 2020
 TALLER

Talking about Logistics, workshop

1. Read the next text. Then, answer the comprehension questions.

Note: Make use, at least, one collocation per answer.

Taken from: http://www.vkok.ee

LOGISTICS

Logistics can be defined as the management of the flow of goods, information

and other resources, energy and people between the point of origin and the
point of consumption in order to meet the requirements of consumers. Logistics
involves the integration of information, transportation, inventory, warehousing,
material handling, packaging and security. Logistics may have an internal focus
(inbound logistics), or external focus (outbound logistics). If the company
manufactures a product from parts purchased
from suppliers, and those products are then sold to customers, one can speak
about a supply chain. Supply Chain can be defined as a network of facilities and
distribution options that performs the function of procurement of materials,
transformation of these materials into intermediate and finished products, and
the distribution of these finished products to customers.

Logistics management is part of supply chain management. Logistics

management plans, implements, and controls the efficient flow and storage of
goods, services and related information between the point of origin and the
point of consumption in order to meet customers’ requirements. Successful
supply chain operators work in close partnerships with their customers; they
jointly explore the opportunities for increasing efficiency of the supply chain and
improving service levels by using the latest systems and techniques. This
approach is also referred to as logistics re-engineering. The re-engineering
process considers the following factors: the nature of the product, the optimal or
preferred location of source or manufacture, freight and transport costs and the
destination market, seasonal trends, import and export regulations, customs
duties and taxes, etc. A professional working in the field of logistics
management is called a logistician. The main functions of a qualified logistician
include, among other things, inventory management, purchasing, transportation,
warehousing, consultation and organizing and planning of these activities.
Logisticians are responsible for the life cycle and supply chain operations of a
variety of products. They are also responsible for customs documentation. They
regularly work with other departments to ensure that the customers’ needs and
requirements are met.

Define the terms: "logistics" and "supply chain"

Logistics is the planning and implementation that controls efficient flow and
storage.

the supply chain is a network of facilities and distribution options where

materials are obtained to transform them into products

What does logistics management imply?

Logistics involves the integration of information, transportation, inventory,
storage, material handling in the park and security.

Describe what service providers do in order to increase efficiency of the supply

chain

Jointly explore opportunities using the latest systems and techniques.

Define the “logistics re-engineering” process and its factors.

the nature of the product the optimal or preferred location of origin or
manufacture

Specify the main function of a qualified logistician

In qualified Logista is the one that does the inventory management, purchases,
transportation, storage and organization of all these activities.

Specify the responsabilities of professional logisticians

are responsible for the life cycle and operations of the supply chain and
customs documentation

2. In the previous text, there are 29 underlined words; take them out in a
list and classify them according to their syllable stress using the next
chart. Add as many rows as necessary.

Stress on the Stress on the Stress on the Stress on the ante-

first syllable last syllable penultimate penultimate syllable
syllable
Flow Packaging Management Consumption
Goods Supply Resources Inventory
Product Performs Origin Storage
Costumers Implements Consumers Professional
Taxes Costums Material Logistician
Products Duties Manufactures Departament
Ensure Purchased
Reengineering
Include
 Warehousing

3. Read the next text. Then, prepare a presentation in PowePoint (.ppt)

outlining the main ideas. Check the learning material to develop this
presentation. Finally, record yourself on a video (.mp4) making the
presentation.

Taken from: www.ddilogistics.com

Improve Logistics Efficiency

When it comes to business logistics, continuous improvement is necessary

to facilitate robust and sustained growth. Rising prices on expenses from
energy to labor to raw materials pose a challenge to every company's
bottom line. By improving the efficiency of their logistics processes,
companies can gain and sustain an edge over their competitors.

To implement a plan that will successfully optimize your logistics

operations, consider strategies that minimize costs, fully utilize production
capacity, and improve the overall quality of customer experience.

Consider these four methods to increase logistics efficiency:

Maximize storage. By analyzing and implementing warehousing

procedures, companies can store, move, and ship products more
effectively. This requires adequate and well-trained warehouse staff,
strategic sequencing (to only move products the minimum required number
of times), and use of vertical storage to fully utilize available space.
Carefully scrutinizing ordering patterns to ensure quick delivery of products,
as well as effective space utilization, is also important.

Optimize transportation. The rising cost of transportation accounts for

increased prices in virtually every industry. To reduce transportation costs,
companies should examine every factor that might increase or decrease
 expenses.

1. This starts with the design of products and packaging for optimal size
and weight.

2. Proper load and delivery route planning ensures trucks are always
carrying full loads.

3. Finally, identify and utilize the most cost-effective packaging and

shipping methods for products.

Automate communication technologies. Logistics management software

communicates between the warehouse and accounting departments and
allows for the delivery of timely updates to the customer. This significantly
streamlines the entire process, from storage through shipment, and
requires minimal staffing.

Encourage feedback. The success of a company depends on input from all

of its employees or teams, regardless of their role in the logistics process.
Carefully consider feedback and suggestions from staff concerning
practices that could further improve logistics efficiency.
While logistics management is a complex process, utilizing the above
strategies can help you make the most of all warehousing, staffing,
transportation, and communication resources. The improvement of logistics
planning will inevitably lead to higher productivity, happier customers, and a
more profitable company. (Diversified Distribution Services Inc. 2016)

Main ideas about the text improves logistics efficiency:

 To gain an advantage over competitors, it is necessary to improve the

efficiency of logistics processes, taking into account continuous
improvement and evaluating expenses for the final result.

 Strategies to minimize costs and improve the customer experience.

 Logistics efficiency is increased taking into account the maximum

storage vertically and making fired patterns managing a good stock.
  Know how to examine each factor of transport that can increase or
decrease expenses

 The implementation of ICT taking into account the logistics management

software, greater communication is obtained and little personnel is
required.

 Giving feedback to the staff helps us define opportunities for

improvement and to see that we are doing well to continue improving.

4. Download, from the complementary material file, the article: How to

Compare Six Sig, Lean and the Theory of Constraints. Then, read it very
carefully. After that, prepare a PowerPoint (.ppt) presentation following
the next outline:

IMPROVEMENT PROGRAMS:
a. Six Sigm
i. Theory
ii. Aplication guidelines
iii. Focus
b. Lean thinking
i. Theory
ii. Aplication guidelines
iii. Focus
c. Theory of constraints
i. Theory
ii. Aplication guidelines
iii. Focus
d. Similarities and differences between the improvement
programs.
e. Obstacles to the improvement methodologies

Finally, record yourself on a video (.mp4) making the presentation.

A) Six Sigma
Theory:
Reduce variation: claims that focusing on reduction of variation will solve
process and business problems. By using a set of statistical tools to understand
the fluctuation of a process, management can begin to predict the expected
outcome of that process. If the outcome is not satisfactory, associated tools can
be used to further understand the elements influenc-ing that process.
Application guidelines:
 Define. Practitioners begin by defining the process. They ask who the
customers are and what their problems are. They identify the key
characteristics important to the customer along with the processes that
support those key characteris-tics. They then identify exist-ing output
conditions along with the process elements.
 Measure. Next the focus is on measuring the process. Key
characteristics are categorized, measurement systems are veri-fied and
data are collected.
 Analyze. Once data are col-lected, it is analyzed. The intent is to convert
the raw data into information that pro-vides insights into the process.
TheseThese insights include identi-fying the fundamental and most
important causesof the defects or problems.
 Improve. The fourth step is to improve the process. SolutionsSolutions
to the problem are developed, and changes are made to the process.
Results of process changes are seen in the measurements. In this step,
the company can judge whether the changes are beneficial, or if another
set of changes is necessary.
 Control. If the process is performing at a desired and predictable level, it
is put under control. This last step is the sustaining portion of the Six
Sigma methodology. The process is monitored to assure no unexpected
changes occur.

Focus
Focusing on the primary area of variation reduction produces other secondary
effects, too. Quality is improved. Process investigation produces the re-eval-
uation of the value added status of many elements. SomeSome elements are
modified, while others are discon-tinued. Elements are refined and improved.
Mistakes and opportunities for mistakes are reduced.

B) Lean thinking
Theory:
Remove waste: is sometimes called lean manufactur-ing, the Toyota
production system or other names. LeanLean focuses on the removal of waste,
which is defined as anything not necessary to produce the product or service.
Application guidelines:
 Identify value. The determination of which features create value in the
product is made from the internal and external customer standpoints.
Value is expressed in terms of how the specific product meets the cus-
 tomer’s needs, at a specific price, at a specific time. SpecificSpecific
products or services are evaluated on which features add value. The
value determination can be from the perspective of the ultimate customer
or a subsequent process.
 Identify the value stream. Once value is identified, activities that
contribute value are identified. The entire sequence of activities is called
the value sstream Then a determination is made as to whether activities
that do not contribute value to the product or service are necessary.
Necessary operations are defined as being a prerequisite to other value
added activities or being an essential part of the business. An example of
a nonvalue added but necessary process is payroll. After all, people
need to be paid. Finally the impact necessary, nonvalue added activities
have on the process is reduced to a minimum. All other nonvalue added
activities are transitioned out of the process.
 Improve flow. Once value added activities and nec-essary nonvalue
activities are identified, improvement efforts are directed toward mak-ing
the activities flow. Flow is the uninterrupted movement of product or
service through the system to the customer. Major inhibitors of flow are
work in queue, batch processing and transportation. These buffers slow
the time from prod-uct or service initiation to deli-very. Buffers also tie up
moneythat can be used elsewhere in the organization and cover up the
effects of system restraints and other wasted activities.
 Allow customer pull. After waste is removed and flow established,
efforts turn to let-ting the customer pull product or service through the
process. The company must make the process responsive to providing
the product or service only when the customer needs it—not before, not
after.
 Work toward perfection. This effort is the repeated and con-stant
attempt to remove nonvalue activity, improve flow and satisfy customer
delivery needs.

Focus
While lean focuses on removing waste and improv-ing flow, it too has some
secondary effects. Quality is improved. The product spends less time in
pprocess reducing the chances of damage or obsolescence.
SimplificationSimplification of processes results in reduction of vari-ation. As the
company looks at all the activities in the value stream, the system constraint is
removed, and performance is improved.

C) Theory of constraint
Theory
Manage constraints TOC focuses on system improvement. A system is
defined as a series of interdependent processes. An analogy for a system is the
chain: a group of interdepen-dent links working together toward the overall goal.
The constraint is a weak link.

Application guidelines:
 Identify. The constraint is identified through various methods. The
amount of work in queue ahead of a process operation is a classic
indicator. AnotherAnother example is where products are processed in
batches.
 Exploit. Once the constraint is identified, the process is improved or
otherwise supported to achieve its utmost capacity without major
expensive upgrades or changes. In other words, the constraint is
exploited.
 Subordinate. When the con-straining process is working at maximum
capacity, the speeds of other subordinate processes are paced to the
speed or capacity of the constraint. Some processes will sacrifice individ-
ual productivity for the benefit of the entire system. Subordinate
processes are usually found ahead of the con-straint in the value stream.
ProcessesProcesses after the constraint are not a major concern—they
are probably already producing under capacity because they have to wait
on the constrain-ing process.
 Elevate. If the output of the overall system is not satisfac-tory, further
improvement is required. The company may now contemplate major
changes to the constraint. Changes can involve capital improvement,
reorganization or other major expenditures of time or money. This is
called elevating the constraint or taking whatever action is necessary to
eliminate it.
 Repeat. Once the first constraint is broken, another part of the system or
process chain becomes the new constraint. Now is the time to repeat the
cycle of improvement. The performance of the entire system is re-
evaluated by searching for the new constraint process, exploiting the
process, subordinating and elevating.

Focus
By focusing on constraints, this methodology pro-duces positive effects on the
flow time of the product or service through the system. Reduction of waste in
the constraint increases throughput and improves throughput time. When the
constraint is improved, variation is reduced, and quality is improved.
 D) Similarities and differences
PROGRAM Six Sigma Lean thinking Theory of
constraint
Similarities Controls Controls Controls
Identifies Identifies Identifies
Measure Measure
Less inventories Less inventories Less inventories
Improved quality Improved quality Improved quality
performance performance performance
Analysis not Analysis not
valued valued
Differences Independently Less variation Emphasis on
improved speed and
processes volume
Define Eliminate Use existing
residues systems
Less expenses

E) Obstacles to the improvement methodologies

There are major obstacles to the improvement methodologies:

 They address management theory as a secondary or

tertiary issue.
 They don’t address policies, either for-mal or informal.
 They don’t address how managers are measured and
rewarded for process improvements.
 They don’t address the general theory of manage-ment
used by the organization.
 They don’t address the organization’s values.