Using Kanban Systems to  Drive Your Lean StrategyWill Franks, Vice President of Production Reliable Automatic Sprinkler Co...
Agenda•   Overview of Reliable•   Elements of the Lean Journey•   Pull Systems•   Strategic Driver of Lean•   Turning Poin...
Reliable Automatic Sprinkler Co.          Liberty, SC           Will Franks ©
Reliable Automatic Sprinkler Company Inc.       Manufacturer and Distributor of Fire             Protection Equipment     ...
Worldwide Distribution Centers,      Fabrication Facilities & Sales OfficesNEW YORK, NY (Elmsford)                       S...
    Fenway Park    Cowboys Stadium                    Worldwide Projects   Dubai International Airport   LaGuardia Air...
The Lean Journey•   Foundation in quality•   Process control and repeatability•   Takt time for line balancing•   One piec...
Typical Savings from Pull Systems•   Inventory reduced by 50-90%•   Stockouts reduced by 99.5%•   Space reduced by 50-90%•...
What is a Pull System?              (a.k.a. Kanban System)    Kanban is a Japanese word that means “signal”               ...
Key elements of a Pull System•   Trigger point•   Lot size•   Point of use materials•   Repeatable process•   Associate in...
The Process•   Consume parts•   Send the signal•   Replenish parts•   Deliver parts to point of use                      W...
Pull System processPull System process                                              no  Production Production             ...
Trigger Point Calculation (basic)• Trigger Point is defined as the point at  which the signal is sent• The optimum trigger...
Trigger Point Calculation (basic)• Lead Time from  producing operation (days)        _____• Demand during Lead Time  (Unit...
Lot Size Calculation (basic)• The optimum lot size is equal to  consumption during one replenishment  lead time• Ideally, ...
Lot Size Calculation (basic)• Lead Time from  producing operation (days)       _____• Demand during Lead Time  (Units/day)...
Buffer Size Calculation (basic)• Buffer Size is defined as the maximum  inventory on hand• Trigger Point                  ...
Trigger Mechanisms      When                               What•   Close, visual                  •   Space, Lines•   Clos...
Point of use materialJanuary 2009                       Will Franks ©
Bulk buy vs. demand driven   Before                   After            Will Franks ©
Demand Driven1. Pull finished goods                            2. Signal the cell                         3. Replenish fin...
A strategic driver of leanJust starting?• Start simple, expand• Deliver measurable results quickly• Reduce inventory• Impr...
Inventory hides the waste...      Sea of Inventory                            Long               Machine     Set-ups      ...
Reduce inventory, expose the rocks…      Sea of Inventory                            Long               Machine     Set-up...
A strategic driver of leanBeen on the journey for a little while?• Other lean elements are required:  Quality, process cap...
Turning Point for Success• #1: Seeing the bigger picture• Commitment from all parties• Measurable results• Keep going!    ...
Lessons Learned•   Initial enthusiasm•   Complacency•   Resistance to change•   Resentment•   Keep going!                 ...
Reliable Automatic Sprinkler Company Inc. Questions and Answers                  Will Franks ©
Will Franks•   Will Franks has been at the leading edge of various continuous improvement and lean methodologies for    ne...
Are you a Future Presenter?If you are interested in presenting orvolunteering for next year’s conference inChicago:- Pleas...
Closing slide• Will Franks• WillFranksJr@Gmail.com• “Using Kanban Systems to Drive Your  Lean Strategy”. Session # 1654   ...
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Using Kanban Systems To Drive Your Lean Strategy Ame Dallas 2011

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This is a presentation I gave at the Association for Manufacturing Excellence Annual Conference. Please do not try to implement Kanban/pull systems based on what you see here. Contact me for assistance: WillFranksJr@Gmail.com It is meant to be a basic overview of the topic.

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Using Kanban Systems To Drive Your Lean Strategy Ame Dallas 2011

  1. 1. Using Kanban Systems to Drive Your Lean StrategyWill Franks, Vice President of Production Reliable Automatic Sprinkler Company Will Franks ©
  2. 2. Agenda• Overview of Reliable• Elements of the Lean Journey• Pull Systems• Strategic Driver of Lean• Turning Point and Lessons Learned• Questions and Answers Will Franks ©
  3. 3. Reliable Automatic Sprinkler Co. Liberty, SC Will Franks ©
  4. 4. Reliable Automatic Sprinkler Company Inc. Manufacturer and Distributor of Fire Protection Equipment Will Franks ©
  5. 5. Worldwide Distribution Centers, Fabrication Facilities & Sales OfficesNEW YORK, NY (Elmsford) SEATTLE, WA (Kent)WASHINGTON, DC (Lorton, VA) PORTLAND, ORATLANTA, GA (Norcross) TORONTO, CANADAORLANDO, FL (Longwood) WESTERN CANADACHICAGO, IL MEXICO(Hanover Park) & LATIN AMERICA LONDON, UKMINNEAPOLIS, MN(Roseville) MANCHESTER, UKDALLAS, TX (Carrollton) MANNHEIM, GERMANYGRAND PRAIRIE, TX NACKA, SWEDENHOUSTON, TX BEIJING, PR CHINADENVER, CO SHANGHAI,LOS ANGELES, CA (Brea) PR CHINALAS VEGAS, NV HONG KONG, PR CHINA Will Franks ©
  6. 6.  Fenway Park Cowboys Stadium Worldwide Projects Dubai International Airport LaGuardia Airport London Heathrow Airport St. Patrick’s Cathedral Microsoft Data Systems Wal-Mart Distribution Center Arnold Palmer Hospital Trump Taj Mahal MGM City Center Ritz-Carlton BMW Manufacturing Facility Ford Motor Company Plant Boston College Notre Dame Bristol Meyers Office Building Soldier Field Daimler Chrysler Offices Nike Headquarters Time Warner Building Trump Towers Harrods Coors Field Riker’s Island Prison National Library of Scotland Google Data Center Yankee Stadium Will Franks ©
  7. 7. The Lean Journey• Foundation in quality• Process control and repeatability• Takt time for line balancing• One piece flow production• Pull systems for materials• Eliminate waste Will Franks ©
  8. 8. Typical Savings from Pull Systems• Inventory reduced by 50-90%• Stockouts reduced by 99.5%• Space reduced by 50-90%• Productivity improved by 5-10%• Quality improved by 25-50% Will Franks ©
  9. 9. What is a Pull System? (a.k.a. Kanban System) Kanban is a Japanese word that means “signal” 看 Kan: visual 板 Ban: card or board• Produce only what is needed when needed• Customer demand equals production• Replenish material as it is consumed• Sell a hamburger, make a hamburger! Will Franks ©
  10. 10. Key elements of a Pull System• Trigger point• Lot size• Point of use materials• Repeatable process• Associate involvement Will Franks ©
  11. 11. The Process• Consume parts• Send the signal• Replenish parts• Deliver parts to point of use Will Franks ©
  12. 12. Pull System processPull System process no Production Production Hit the trigger Consume material point? yesMaterial HandlerMaterialHandler Reorder: Wand the Flip the card Put away material Flip the card barcode “On Order” Email Supplier Supplier required information to Produce material Ship material supplier automatically Receiving Receiving Deliver material Receive material to Production in designated area Will Franks ©
  13. 13. Trigger Point Calculation (basic)• Trigger Point is defined as the point at which the signal is sent• The optimum trigger point is equal to consumption during the replenishment lead time• Ideally, you run out as the next lot arrives Will Franks ©
  14. 14. Trigger Point Calculation (basic)• Lead Time from producing operation (days) _____• Demand during Lead Time (Units/day) x _____• Equals Trigger Point = _____ Will Franks ©
  15. 15. Lot Size Calculation (basic)• The optimum lot size is equal to consumption during one replenishment lead time• Ideally, you hit the signal as the next lot arrives Will Franks ©
  16. 16. Lot Size Calculation (basic)• Lead Time from producing operation (days) _____• Demand during Lead Time (Units/day) x _____• Equals Lot Size = _____ Will Franks ©
  17. 17. Buffer Size Calculation (basic)• Buffer Size is defined as the maximum inventory on hand• Trigger Point _____• Plus: Lot Size + _____• Equals: Maximum Inventory = _____ Will Franks ©
  18. 18. Trigger Mechanisms When What• Close, visual • Space, Lines• Close, not visual • Containers• Same facility • Cards• Demand > One card • Trigger Board• Different facility • Electronic Will Franks ©
  19. 19. Point of use materialJanuary 2009 Will Franks ©
  20. 20. Bulk buy vs. demand driven Before After Will Franks ©
  21. 21. Demand Driven1. Pull finished goods 2. Signal the cell 3. Replenish finished goods Will Franks ©
  22. 22. A strategic driver of leanJust starting?• Start simple, expand• Deliver measurable results quickly• Reduce inventory• Improve availability, quality• Associates learn the benefits of lean Will Franks ©
  23. 23. Inventory hides the waste... Sea of Inventory Long Machine Set-ups Line Breakdowns Imbalance Poor Long Vendor Quality SchedulingTransportation Delivery Problems January 2009 Absenteeism Will Franks ©
  24. 24. Reduce inventory, expose the rocks… Sea of Inventory Long Machine Set-ups Line Breakdowns Imbalance Poor Long Vendor Quality SchedulingTransportation Delivery Problems January 2009 Absenteeism Will Franks ©
  25. 25. A strategic driver of leanBeen on the journey for a little while?• Other lean elements are required: Quality, process capability, TPM, level loading, flow, cross training, set up reduction, 5S…...• Remove the rocks• Continue at a manageable pace• Drive the lean journey! Will Franks ©
  26. 26. Turning Point for Success• #1: Seeing the bigger picture• Commitment from all parties• Measurable results• Keep going! Will Franks © 26
  27. 27. Lessons Learned• Initial enthusiasm• Complacency• Resistance to change• Resentment• Keep going! Will Franks © 27
  28. 28. Reliable Automatic Sprinkler Company Inc. Questions and Answers Will Franks ©
  29. 29. Will Franks• Will Franks has been at the leading edge of various continuous improvement and lean methodologies for nearly thirty years. Beginning as a design and manufacturing engineer with Xerox Corporation in the early 80s, he participated in one of that companys first "Leadership Through Quality" teams, based on Japanese "Quality Circles." This experience continued at Ciba Corning with their "TQM" or "Total Quality Management" approach. In early 1986, he was part of their team to work on a new inventory reduction program called "JIT" or "Just in Time," widely recognized as an early version of Lean.• Throughout the 80s and 90s he became an expert and leader in what was known as "World Class Manufacturing" and "Manufacturing Excellence," serving on the board of the Association for Manufacturing Excellence, Northeast Region for seven years. Beginning in 1992 he became involved with and an expert in a new improvement technique known as Kaizen. He helped spread the kaizen methodology to hundreds of U.S. companies by leading "Kaizen Blitz" workshops in cities across the country.• Operationally he has held positions such as Vice President of Manufacturing for Pfizer Infusaid, a medical device manufacturer, and VP of Operations for PLC Medical, the Heart Laser Company. In 1997 he started ICON Business Associates, a Lean Manufacturing consulting firm. His clients include Zildjian, the oldest manufacturing company in the U.S., and Thermo Scientific, a $10 billion instrumentation and services company. He currently is Vice President of Production at the Reliable Automatic Sprinkler Company, manufacturer of fire sprinklers and related fire sprinkler system components.• Franks has a bachelors degree in Mechanical and Aerospace Engineering from Cornell University, studied toward a masters degree in Industrial Engineering at Rochester Institute of Technology and holds a Master of Business Administration degree from UMass Dartmouth. He is also a member of Delta Mu Delta business honor society, and the Mensa High IQ Society. Will Franks ©
  30. 30. Are you a Future Presenter?If you are interested in presenting orvolunteering for next year’s conference inChicago:- Please submit the card provided and give to your Room Host- Or sign up at the Volunteer Table by Registration- Or go to the AME website at http://www.ame.org/volunteer to sign up for volunteering Thanks for attending this year! Will Franks © 30
  31. 31. Closing slide• Will Franks• WillFranksJr@Gmail.com• “Using Kanban Systems to Drive Your Lean Strategy”. Session # 1654 Please return your completed Session Survey to the Room Host Will Franks ©

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