Hay Think`s Lean Management System Derive From

TPS: Toyota Production System 

BPS: Bosch Production Systtem

HPS: Hay Production System:

The cornerstone of production strategy is the”Lean Production System” (HPS), designed to eliminate waste in production and all related business processes. HPS provides the basis for continuous improvements in quality, costs, and supply performance. We actively involve our suppliers in HPS activities and offer HPS training courses.

Furthermore we use special supplier development projects to jointly work on the implemenation of HPS principles. The aim is to continuously improve the productivity of our manufacturing chain.

The standardized lean processes based on HPS call for smooth, uninterrupted operations. That means our suppliers have to meet our requirements regarding flexibility, delivery frequency, and replenishment lead time – in a word, they must be “HPS compatible.”

14 Principles of Lean Toyota Production System (TPS)

Principle 1: Base your management decisions on a long term philosophy, even at the expense of short-term financial goals.

Principle 2: Create continuous process flow to bring problems to the surface.

Principle 3: Use “Pull” system to avoid overproduction.

Principle 4: Level out the workload (heijunka). (“Work like a tortoise, not the hare”).

Principle 5: Build a culture of stopping to fix problems, to get quality right at the first time.

Principle 6: Standardized tasks are the foundation for continuous improvements and employee empowerment.

Principle 7: Use Visual Control so no problems are hidden.

Principle 8: Use only reliable, thoroughly tested technology that servers your people and process.

Principle 9: Grow leaders who thoroughly understands the work, live philosophy and teach it to others.

Principle 10: Develop exceptional people and teams who follow your company’s philosophy.

Principle 11: Respect your extended network of partners and suppliers by challenging them and helping them improve.

Principle 12: Go to gemba and see for yourself to thoroughly understand the situation (Genchi Genbutsu).

Principle 13: Make decision slowly by consensus (use cross functional teams), thoroughly considering all options; implement decisions rapidly.

Principle 14: Become a learning organization through relentless reflection (hansei) and continuous improvements (Kaizen).

Supply Chain Excellence Management

Supply Chain Strategies Management

Supply Chain Vision

Our goal is to establish Hay Think`s Supplier as the leader in global manufacturing and deliver the highest customer value. We will implement a lean, integrated Supply Chain with 6 Sigma levels of performance for:

• On-Time Delivery

• On-Time Shipment

• Percent of Spend on Pull Replenishment

• Record Accuracy

• Inventory Turns

• Point of Use Availability

The supply chain will safely deliver top-quality products at the lowest cost while increasing our velocity; thus generating a competitive advantage through superior supply chain execution.

As one of the core Hay Production System (HPS) business processes, the Supply Chain / Materials Management process is a key enabler to other core processes such as Order Management and Finished Goods Distribution.

Supply Chain Strategies

Push to Pull Replenishment Strategy 

Supplier Collaboration

Total Cost of Ownership

Supply Chain Planning Management

The Medium And Long-term Planning Of The Supply Chain Includes

Supply chain organization planning and team capacity planning

Supply chain performance evaluation system planning

Analysis of supply chain cost driving factors and cost reduction plan

Available capacity planning

PFEP

Strategic Supply Chain Network Design and Planning

Layout planning and design of logistics center

Supply chain business process planning and reengineering

Logistics Information Planning and Implementation

Planning and implementation of logistics automation system

Optimization of inventory strategy

Warehousing planning

Packaging planning

…

The Short-term Supply Chain Planning Includes

Demand Management and Demand Planning

S & OP Sales and Operations Planning

Collaborative planning [forecasting and supplementation]

[PMC Production Material Control / Production Material Control [PC Production Control and MC Material Control System]]

MPS Master Production Planning

RCCP Rough-Cut Capability Planning

MRP 

CRP Capacity requirements planning

PAC production operations and scheduling

FAS Final Assembly scheduling

Inventory planning

…

Supply Chain Execution Management

Operating Model

Basic Requirements for Replenishment Planning

Plan for Every Part[PFEP]

Replenishment Methods

Facility Replenishment Strategy Applying OSS

Fixed Build Sequence

Supply Chain Visibility

Process Variation

Internal Material Flow

Supplier Collaboration

Inventory Management

Packaging

Transportation

1. Information Management In Logistics

2. Control concepts and order processing

2.1 Control concepts 

KANBAN 

VMI including consignment 

Call-off | PO | ROP Pull 

2.2 Flexibility and release periods 

Production and material releases 

Minimum order quantities 

Flexibility 

Start-up and phase-out control

3. Packaging Planning

3.1 Packaging specifications

Packaging design criteria 

Responsibilities and definition of packaging specification 

Permitted and non-permitted materials

Delivery specifications 

Requirements for electrostatic discharge (abbr.: ESD) protection 

Corrosion prevention and moisture control 

Packaging for hazardous goods 

3.2 One-way packaging 

Specification 

Procurement 

Specific requirements depending on transportation type

3.3 Returnable packaging 

Specification depending on type of returnable packaging 

Empties management 

Provision and storage of customer-returnable empties 

Repairs and scrapping 

Cleaning 

Labeling of customer-returnable packaging by the SUPPLIER 

Customer standards for returnable SLC 

Adapter pallets and roller carriages

4. Transport logistics 

4.1 Basic information on shipping from SUPPLIER to customer

Transportation companies, couriers, and package shipments 

Packages and HUs 

4.2 Shipping and transportation documents 

Shipping documents 

Transport documents 

4.3 Labeling of products 

4.4 Transport notification 

Transports not processed through Customer TMC 

Transports processed through Customer TMC 

Special arrangements for transportation of critical goods 

4.5 Label for sample parts 

4.6 ASN 

4.7 Shipping process 

4.8 Security in goods transportation

5. Special transports and variation management 

5.1 Special transports 

5.2 Variation management 

5.3 Risk and crisis management in logistics 

Background 

Definition, tasks, and objectives

6. Logistics quality 

Logistics complaints 

SUPPLIER Result Assessment (abbr.: LEB) – Logistics 

Controlling of logistics performance by SUPPLIER

Special transports and variation management 

Special transports 

Variation management 

Risk and crisis management in logistics 

Background 

Definition, tasks, and objectives

Logistics quality 

Definition 

Logistics complaints 

SUPPLIER Result Assessment (abbr.: LEB) – Logistics 

Controlling of logistics performance by SUPPLIER

Supply Chain And Material Management Manual

Supply Chain Excellence Management To Deliver Added Value