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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
      The Lean Opportunity
      By Mike Liddell
      Lean Scheduling International
    • 2. Today’s Agenda
      Why Lean Is So Important?
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      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.
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      Whatis Lean?
    • 4. Traditional Manufacturing
      Lean
      Manufacturing
      Work Centers
      Batch & Queue
      MPS
      MRP Push
      Cells & Lines
      Continuous Flow
      Heijunka
      Kanban Pull
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      What’s the Difference?
    • 5. Lean Scheduling International
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      Benefits Reduced Inventories
    • 6. Lean Scheduling International
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      Benefits Increased Throughput
    • 7. Benefits Reduced Lead Times
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      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
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    • 24. What is Kanban?
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      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
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      A Heijunka box uses Customer Kanbans to visually smooth production.
      Heijunka blends Customer Kanbans and Stocking Kanbans to level production.
    • 27. Lean Scheduling International
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      Kanban’s Dirty Little Secret
      The number of Kanban cards is based on yearly historical demand data
    • 28. Lean Scheduling International
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      Heijunka’s Dirty Little Secret
      There must be enough capacity to catch up if they fall behind
    • 29. Kanban
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      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
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      The Goldilocks Syndrome
    • 32. Scenario 1
      What happens when Kanban’s are too small?
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    • 33. Scenario 1 – Manufactured Item
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    • 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
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    • 38. Scenario 2
      What happens when Kanban’s are too big?
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    • 39. Scenario 2 – Manufactured Item
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    • 40. Scenario 2 – Manufactured Item
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    • 41. Scenario 2 – Manufactured Item
      Results:
      • Too much inventory
      • 42. No foreseeable demand
      • 43. Unnecessary consumption of Cell1 capacity
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    • 44. The 8 Limitations of Kanban
      Unfortunately Kanban sizes are only a small part of the problem!!!
      Page 34
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    • 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
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    • 48. Broken Connection
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    • 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
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      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
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      Thank you!!!

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