The Lean Opportunity

  • 1,450 views
Uploaded on

Understanding the potential weaknesses of kanban and how APS can overcome these weaknesses to support your lean initiatives.

Understanding the potential weaknesses of kanban and how APS can overcome these weaknesses to support your lean initiatives.

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,450
On Slideshare
0
From Embeds
0
Number of Embeds
3

Actions

Shares
Downloads
105
Comments
0
Likes
4

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • There was a desperate need for a simpler solution.
  • There was a desperate need for a simpler solution.
  • The world discovers, embraces and adopts the philosophies and techniques of the Toyota Production System (TPS).
  • Kanban DataManufactured ComponentReplenishment time : 5 daysBuffer Quantity : 200Kanban Cards: 4 / 50 Actual Demand: 250What happens when we get an order for 250 to be shipped in 5 days?
  • Kanban DataManufactured ComponentReplenishment time : 5 daysBuffer Quantity : 200Kanban Cards: 4 / 50 Actual Demand: 250What happens when we get an order for 250 to be shipped in 5 days?
  • Kanban DataManufactured ComponentReplenishment time : 5 daysBuffer Quantity : 200Kanban Cards: 4 / 50 Actual Demand: 250What happens when we get an order for 250 to be shipped in 5 days?
  • Kanban DataManufactured ComponentReplenishment time : 5 daysBuffer Quantity : 200Kanban Cards: 4 / 50 Actual Demand: 250What happens when we get an order for 250 to be shipped in 5 days?
  • Kanban DataManufactured ComponentReplenishment time : 5 daysBuffer Quantity : 200Kanban Cards: 4 / 50 Actual Demand: 250What happens when we get an order for 250 to be shipped in 5 days?

Transcript

  • 1. The Future of Lean and APS
    The Lean Opportunity
    By Mike Liddell
    Lean Scheduling International
  • 2. Today’s Agenda
    Why Lean Is So Important?
    Lean Scheduling International
    2
    Why Lean Fails?
    What is Demand Driven Lean?
    Whyallthis creates a massive opportunity?
  • 3. Lean Manufacturing
    Lean manufacturing is a strategy for improving the manufacturing process by identifying and eliminating wasteful steps.
    Lean Scheduling International
    3
    Whatis Lean?
  • 4. Traditional Manufacturing
    Lean
    Manufacturing
    Work Centers
    Batch & Queue
    MPS
    MRP Push
    Cells & Lines
    Continuous Flow
    Heijunka
    Kanban Pull
    Lean Scheduling International
    4
    What’s the Difference?
  • 5. Lean Scheduling International
    5
    Benefits Reduced Inventories
  • 6. Lean Scheduling International
    6
    Benefits Increased Throughput
  • 7. Benefits Reduced Lead Times
    Lean Scheduling International
    7
    Results improved as Processes Improved
  • 8. Understanding Lean
    It is very helpful to look back in time and understand how and why Lean evolved
  • 9. MRP/MRPII and ERP
    Mid 1980’s
    MRPII
    APICS spread the message that MRPII/ERP could do anything and everything. All you needed was:
    • Enough training!
    • 10. Enough discipline!
  • MRP/MRPII Problems
    FOR MOST MANUFACTURERS ALL WAS NOT WELL!!!
    INVENTORIES
    ON-TIME DELIVERIES
  • 11. The Evolution of Lean - JIT
    Mid 1980’s
    Just-in-Time Production (JIT) was the result of work done at Toyota:
    Sakichi Toyoda
    Kiichiro Toyoda
    Taiichi Ohno
    Their thinking was heavily influenced by:
    • W. Edwards Deming
    • 12. Henry Ford.
  • The Evolution of Lean - JIT
    JIT with Kanban seemed like the perfect answer to the perceived limitations of MRPII:
    • It was simple
    • 13. It was visual
    • 14. It was not dependent on technology
    • 15. It was quickly adopted by big companies like GE, HP & Emerson
  • The Evolution of Lean
  • 16. The Evolution of Lean - TPS
    Early 1990’s
    JIT Evolves into TPS
  • 17. The Evolution of Lean - TPS
    The main objectives of TPS were to eliminate:
    overburden (muri)
    inconsistency (mura)
    waste (muda)
    “ If you do not improve the process how can you expect the results to change”
    Taiichi Ohno
  • 18. The evolution of Lean
  • 19. Lean Transformation
    Industrial Engineers Take Control:
    “Lean out” the shop floor layout and production processes
    Become Lean experts (Black Belts)
    Banish the use of MRPII/ERP systems on the shop floor.
    A Power shift away from IT
  • 20. The Lean Plunge
    Many companies were not able to sustain their Lean benefits:
    • Only 19% of companies were able to successfully implement Lean (Bain & Co. Study)
    • 21. Generally impact on the bottom line was disappointing
    • 22. There were massive problems with variable demand
  • Real World Consequences of Lean
    There was a Problem with variable demand
    ->Shortages
    -> Panic (Decision makers had no Visibility)
    -> Schedulers Return to Excel & ERP
    -> Returned to Manual Expediting
    Conclusion - Like ERP, Lean was not able to manage Change/Volatility
  • 23. But Who is the Weakest Link?
    The Unexpected Answer is:
    Manual Heijunka and Kanban
    Lean Scheduling International
    20
  • 24. What is Kanban?
    Lean Scheduling International
    21
    Kanban is a pull system that triggers replenishment of material based on buffer depletion.
    Kanban is also a scheduling system that tells you:
    • what to produce
    • 25. when to produce it
    • 26. how much to produce
  • What is Heijunka
    Lean Scheduling International
    22
    A Heijunka box uses Customer Kanbans to visually smooth production.
    Heijunka blends Customer Kanbans and Stocking Kanbans to level production.
  • 27. Lean Scheduling International
    23
    Kanban’s Dirty Little Secret
    The number of Kanban cards is based on yearly historical demand data
  • 28. Lean Scheduling International
    24
    Heijunka’s Dirty Little Secret
    There must be enough capacity to catch up if they fall behind
  • 29. Kanban
    Lean Scheduling International
    25
    The Conclusion
    Because Kanban sizes are not dynamic [Kanban has no inherent ability to self correct]… Kanban is NOT actually tied to current demand patterns!
  • 30. In order for Kanban to work effectively Kanban sizes must be just right:
    • Not too small
    • 31. Not too big
    Lean Scheduling International
    26
    The Goldilocks Syndrome
  • 32. Scenario 1
    What happens when Kanban’s are too small?
    Lean Scheduling International
    27
  • 33. Scenario 1 – Manufactured Item
    Lean Scheduling International
    28
  • 34. Scenario 1 – Manufactured Item
    Results:
    • Slow to see demand
    • 35. Manually create additional Card
    • 36. No way of prioritizing Cell1
    • 37. Stock Out & Late Delivery
    Lean Scheduling International
    29
  • 38. Scenario 2
    What happens when Kanban’s are too big?
    Lean Scheduling International
    30
  • 39. Scenario 2 – Manufactured Item
    Lean Scheduling International
    31
  • 40. Scenario 2 – Manufactured Item
    Lean Scheduling International
    32
  • 41. Scenario 2 – Manufactured Item
    Results:
    • Too much inventory
    • 42. No foreseeable demand
    • 43. Unnecessary consumption of Cell1 capacity
    Lean Scheduling International
    33
  • 44. The 8 Limitations of Kanban
    Unfortunately Kanban sizes are only a small part of the problem!!!
    Page 34
    Lean Scheduling International
  • 45. The 6 Limitations of Kanban & Heijunka
    Not Connected to Current Demand Patterns (Kanban Sizes)
    Too Manual
    • Too Slow To React to Change
    • 46. Too Time Consuming (resizing, expediting, lost cards)
    • 47. Too Local (Decision makers have no visibility)
    Unable to Accurately Prioritize Upstream Work
    Unable to Intelligently Sequence Upstream Work
    One way Communication – No Feedback Loop
    No “What-if” Functionality
    Page 35
    Lean Scheduling International
  • 48. Broken Connection
    Lean Scheduling International
    36
  • 49. The Evolution of APS
    Let’s look at the evolution of APS over the same timeframe
  • 50. The Evolution of APS
    Late 1980’s
    Another group was taking a different approach to addressing the fundamental planning problems built into MRP/MRPII
    Infinite Capacity
    Time Buckets
    Backward Scheduling
    Average queue times and fixed setup times
  • 51. The Evolution of APS
    Early adaptors were influenced by The Goal and TOC
    Early scheduling software was called FCS software
    FCS software recognized that machines had a finite capacity.
  • 52. The evolution of APS
  • 53. The evolution of APS
    Although FCS was an improvement it was usually stand alone and limited in its ability to model other real world constraints.
    Secondary Constraints
    Materials
    Complex Calendars
  • 54. The Evolution of APS
    Mid 1990’s
    FCS becomes APS
    APS solutions (like Preactor) provide a complete tool set for modeling real world constraints
    Additional functionality includes:
    Powerful Sequencing Engines
    Easy integration with ERP & MES
    Synchronizes Multiple Constraints (machines, materials, tools & operators)
    Able to Build unique solutions with Customized Rules
  • 55. The evolution of APS
  • 56. APS Results
    The ability to accurately schedule thousands of orders in seconds had a massive impact on manufacturers who were struggling to manage CHANGE.
    Improved Efficiencies
    Improve On-Time deliveries
    Reduced Cycle Times
    Improved Customer Service and Bottom Line
  • 57. The Future
    The limitation of Lean is that it wasn’t connected to current demand
    The limitation of APS is that it didn’t necessarily improve the process
  • 58. The Future
  • 59. Demand Driven Lean
    Lean Scheduling International
    47
    APS
    APS connects Static Lean to Customer Demand .
  • 60. Demand Driven Opportunity
    Use Static Lean To Improve the Process
    Use APS to create innovative solutions that Deliver Demand Driven Lean Solutions:
    Automate Heijunka
    Dynamically Manage Kanban Buffers
    Communicate Between Schedule & Shop Floor
    Provide Visibility and What-If Functionality for Decision Makers
    Prioritize, Sequence & Synchronize Upstream Cells
  • 61. Stay Tuned Next Year
    Lean Scheduling International
    49
    Thank you!!!