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The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
The Lean Opportunity
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The Lean Opportunity

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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.

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

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