The Future of Lean and APS<br />The Lean Opportunity<br />By Mike Liddell<br />Lean Scheduling International<br />
Today’s Agenda<br />Why Lean Is So Important?<br />Lean Scheduling International<br />2<br />Why Lean Fails?<br />What is ...
Lean Manufacturing<br />Lean manufacturing is a strategy for improving the manufacturing process by identifying and elimin...
Traditional Manufacturing<br />Lean <br />Manufacturing<br />Work Centers<br />Batch & Queue<br />MPS<br />MRP Push<br />C...
Lean Scheduling International<br />5<br />Benefits Reduced Inventories<br />
Lean Scheduling International<br />6<br />Benefits Increased Throughput<br />
Benefits Reduced Lead Times<br />Lean Scheduling International<br />7<br />               Results improved as Processes Im...
Understanding Lean<br />It is very helpful to look back in time and understand how and why Lean evolved<br />
MRP/MRPII and ERP<br />Mid 1980’s<br />MRPII<br />APICS spread the message that MRPII/ERP could do anything and everything...
Enough discipline!</li></li></ul><li>MRP/MRPII Problems<br />FOR MOST MANUFACTURERS ALL WAS NOT WELL!!!<br />INVENTORIES<b...
The Evolution of Lean - JIT<br />Mid 1980’s<br />Just-in-Time Production (JIT) was the result of  work done at Toyota:<br ...
Henry Ford. </li></li></ul><li>The Evolution of Lean - JIT<br />JIT with Kanban seemed like the perfect answer  to the per...
It was visual
It was not dependent on technology
It was quickly adopted by big companies like GE, HP & Emerson</li></li></ul><li>The Evolution of Lean<br />
The Evolution of Lean - TPS<br />Early 1990’s<br />JIT Evolves into TPS<br />
The Evolution of Lean - TPS<br />The main objectives of TPS were to eliminate:<br />overburden (muri) <br />inconsistency ...
The evolution of Lean<br />
Lean Transformation<br />Industrial Engineers Take Control:<br />“Lean out” the shop floor layout and production processes...
The Lean Plunge<br />Many companies were not able to sustain their Lean benefits:<br /><ul><li>Only 19% of companies were ...
Generally impact on the bottom line was disappointing
There were massive problems with variable demand</li></li></ul><li>Real World Consequences of Lean<br />There was a Proble...
But Who is the Weakest Link?<br />The Unexpected Answer is: <br />	Manual Heijunka and Kanban<br />Lean Scheduling Interna...
What is Kanban?<br />Lean Scheduling International<br />21<br />Kanban is a pull system that triggers replenishment of mat...
 when to produce it
 how much to produce</li></li></ul><li>What is Heijunka<br />Lean Scheduling International<br />22<br />A Heijunka box use...
Lean Scheduling International<br />23<br />Kanban’s Dirty Little Secret<br />The number of Kanban cards is based on yearly...
Lean Scheduling International<br />24<br />Heijunka’s Dirty Little Secret<br />There must be enough capacity to catch up i...
Kanban<br />Lean Scheduling International<br />25<br />The Conclusion<br />Because Kanban sizes are not dynamic [Kanban ha...
In order for Kanban to work effectively Kanban sizes must be just right:<br /><ul><li>Not too small
Not too big</li></ul>Lean Scheduling International<br />26<br />The Goldilocks Syndrome<br />
Scenario 1<br />What happens when Kanban’s are  too small?<br />Lean Scheduling International<br />27<br />
Scenario 1 –  Manufactured Item<br />Lean Scheduling International<br />28<br />
Scenario 1 –  Manufactured Item<br />Results:<br /><ul><li>Slow to see demand
Manually create additional Card
No way of prioritizing Cell1
Stock Out & Late Delivery</li></ul>Lean Scheduling International<br />29<br />
Scenario 2<br />What happens when Kanban’s are  too big?<br />Lean Scheduling International<br />30<br />
Scenario 2 –  Manufactured Item<br />Lean Scheduling International<br />31<br />
Scenario 2 –  Manufactured Item<br />Lean Scheduling International<br />32<br />
Scenario 2 –  Manufactured Item<br />Results:<br /><ul><li>Too much inventory
No foreseeable demand
Unnecessary consumption of Cell1 capacity</li></ul>Lean Scheduling International<br />33<br />
The 8 Limitations of Kanban<br />Unfortunately Kanban sizes are only a small part of the problem!!!<br />Page 34<br />Lean...
The 6 Limitations of Kanban & Heijunka<br />Not Connected to Current Demand Patterns (Kanban Sizes)<br />Too Manual<br /><...
Too Time Consuming (resizing, expediting, lost cards)
Too Local (Decision makers have no visibility)</li></ul>Unable to Accurately Prioritize Upstream Work<br />Unable to Intel...
Broken Connection<br />Lean Scheduling International<br />36<br />
The Evolution of APS<br />Let’s look at the evolution of APS over the same timeframe<br />
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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.

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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?
  • The Lean Opportunity

    1. 1. The Future of Lean and APS<br />The Lean Opportunity<br />By Mike Liddell<br />Lean Scheduling International<br />
    2. 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. 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. 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. 5. Lean Scheduling International<br />5<br />Benefits Reduced Inventories<br />
    6. 6. Lean Scheduling International<br />6<br />Benefits Increased Throughput<br />
    7. 7. Benefits Reduced Lead Times<br />Lean Scheduling International<br />7<br /> Results improved as Processes Improved<br />
    8. 8. Understanding Lean<br />It is very helpful to look back in time and understand how and why Lean evolved<br />
    9. 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. 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. 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. 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. 13. It was visual
    14. 14. It was not dependent on technology
    15. 15. It was quickly adopted by big companies like GE, HP & Emerson</li></li></ul><li>The Evolution of Lean<br />
    16. 16. The Evolution of Lean - TPS<br />Early 1990’s<br />JIT Evolves into TPS<br />
    17. 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. 18. The evolution of Lean<br />
    19. 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. 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. 21. Generally impact on the bottom line was disappointing
    22. 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. 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. 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. 25. when to produce it
    26. 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. 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. 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. 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. 30. In order for Kanban to work effectively Kanban sizes must be just right:<br /><ul><li>Not too small
    31. 31. Not too big</li></ul>Lean Scheduling International<br />26<br />The Goldilocks Syndrome<br />
    32. 32. Scenario 1<br />What happens when Kanban’s are too small?<br />Lean Scheduling International<br />27<br />
    33. 33. Scenario 1 – Manufactured Item<br />Lean Scheduling International<br />28<br />
    34. 34. Scenario 1 – Manufactured Item<br />Results:<br /><ul><li>Slow to see demand
    35. 35. Manually create additional Card
    36. 36. No way of prioritizing Cell1
    37. 37. Stock Out & Late Delivery</li></ul>Lean Scheduling International<br />29<br />
    38. 38. Scenario 2<br />What happens when Kanban’s are too big?<br />Lean Scheduling International<br />30<br />
    39. 39. Scenario 2 – Manufactured Item<br />Lean Scheduling International<br />31<br />
    40. 40. Scenario 2 – Manufactured Item<br />Lean Scheduling International<br />32<br />
    41. 41. Scenario 2 – Manufactured Item<br />Results:<br /><ul><li>Too much inventory
    42. 42. No foreseeable demand
    43. 43. Unnecessary consumption of Cell1 capacity</li></ul>Lean Scheduling International<br />33<br />
    44. 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. 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. 46. Too Time Consuming (resizing, expediting, lost cards)
    47. 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. 48. Broken Connection<br />Lean Scheduling International<br />36<br />
    49. 49. The Evolution of APS<br />Let’s look at the evolution of APS over the same timeframe<br />
    50. 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. 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. 52. The evolution of APS<br />
    53. 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. 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. 55. The evolution of APS<br />
    56. 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. 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. 58. The Future<br />
    59. 59. Demand Driven Lean<br />Lean Scheduling International<br />47<br />APS<br />APS connects Static Lean to Customer Demand .<br />
    60. 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. 61. Stay Tuned Next Year<br />Lean Scheduling International<br />49<br />Thank you!!!<br />
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