Problem statement
There are two clients in this value chain – the Lean Ireland client based in Ireland (the Bidder) and their client known here as the Buyer, based in various countries in Europe. The Lean Ireland client (the Bidder) was tendering for a large volume fixed term contract, involving shipments between Ireland and Europe. Total tonnage was published by the tender generator (the Buyer), however the frequency and capacity of trucking between ports, and cargo ship requirements, was not known. Correct estimation of these parameters was vital to the Bidder in order to submit a successful and commercially viable tender.
Objective
Develop a model for the Lean Ireland client, the Bidder, that illustrated clearly the capacity requirements for trucking and cargo shipments between ports. Get agreement for the model with the transnational client, the Buyer. Once the model was agreed by the Buyer, the Lean Ireland client could then use the model for developing tender costings for final tender submission.
Lean Ireland consulting/training work
The project began with a clear definition and quantification for the Lean Ireland consultant of the Buyer’s need. This was followed by relevant data collection at the Lean Ireland client site. Data collected included e.g. road haulage and cargo ship tonnage, loading and offloading timings, distances, travel times and various resource and regulatory constraints. A detailed graphical closed loop value stream map (VSM), with key metrics for each transport stage on the outgoing and return journeys, was developed. Once the Lean Ireland client (the Bidder) ratified the model it was presented by the Lean Ireland consultant and client to the Buyer’s representatives. Final adjustments were made and the Lean Ireland client could then use the model to cost the tender submitted.
The Lean Ireland consultant spent 21 days working with the client, collecting data, holding clarification meetings, building the VSM, and adjusting the VSM as required following review with the transnational Buyer.
Detailed results of the client work
The key deliverable was a working graphical VSM, that enabled the Lean Ireland client to adequately plan the tender resource requirements, and estimate the costings for the tender.
The success of the exercise was established when the client subsequently engaged the Lean Ireland consultant to develop a staff rostering resource plan.