Suplier Lead-time:CASE BOSCH MEXICO
Chain Lead-Time: BOSCH MEXICO Case
Targets and Objectives
- One of the objectives of Lean is to create and reinforce a supplier base that is both robust and aligned with the demands of the market.
- Investing in the adoption of Lean practices throughout the chain is a step that heightens the company’s competitive advantage in the market through cost reductions and increased speed of service.
Our Approach
Our consultants use Value Flow Mapping between the company and its suppliers to establish a language of partnership and visualize gains throughout the learning stage.
With this clear, objective view of the needs of the chain, and with the support of established targets and indicators, the companies will be able to measure the success of the implementations and the improvement of their relationships.
What we have done so far
We performed our job at the Bosch Mexico site located in the city of San Luis Potosí. The plant manufactures brakes and wheel sensors. Our goal was to reduce the inventory which had already accumulated in the chain due to small fluctuations in demand. In fact, it was growing daily, because of wastes generated by manufacturing and administrative processes.
The first step to tackle this problem was to have the company’s managers and its suppliers see the value flow between their factories. The value flow map indicated activities to be performed jointly by the customer and its suppliers, who were guided by a plan of action and semi-monthly meetings, all of which finally led to the implementation of joint solutions.
This was the outcome of improving the management of the company’s finished goods inventory. Acting as a supermarket, the company promptly met its customer’s demands and sent leveled orders to the manufacturing plant. Fluctuations were attenuated. The results are shown below.
Results
