Material Flow Processes and Their Main Aspects
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The document discusses material flow processes and how they can be used to support efficient and responsive supply chains. It describes four main material flow processes: milkrun, kanban, piece picking, and just-in-sequence. Milkrun is used for common components that go into all final goods variants, with replenishment to fixed locations for months. Kanban is for high-use common components, with replenishment for days/weeks. Piece picking delivers variant-specific components in exact quantities. Just-in-sequence is only used if all processes are tightly managed. The document advocates aligning material flow processes to component behaviors for optimal supply chain performance.
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Material Flow Processes and Their Main Aspects
- 1. Material Flow ProcessesTheir strengths and requirementsWhen, what, why and how to usethem? Istvan Fekete (fekete.istvan.pic@gmail.com) Nokia, 2012
- 2. How to support oursuccess? 2 How to create more responsive flow of values/resources downstream? How weserveourcustomers How we use our resources Shorterresponseto change, demand Cheapersupply chain, operation More irregular quantitiesin more irregural timing More regular quantitiesin more regural timing How to create more regular flow of resources/values upstream?
- 3. Material Flow Processes and their main aspects
- 4. Milkrun Top Material Center Flowrack/ CrossDock Robust and adaptive Logistics Centers can support any Material Flow Process in any Factory Materials @ Line/Cell PoU are „made” to order or stock items BB4.3.2 BB4.3.2 BB4.3.2 BB4.3.2 BB4.3.2 BB4.3.2 BB4.3.2 BB4.3.2 BB4.3.2 Close Supplier and/or IHUB (Re)filling the trolley/train NOK OK Piece Pick Sequence Kanban Milkrun Hand Buffer Replacement of urgent NOK material Returning OK leftovers and not-urgent NOK materials Shipping OHUB Finished goods, OK leftovers and not-urgent NOK material collection from line/cell Material Flow Process of a material aligned to its behaviour OK Visual control on ordering Hand Buffer material or moving back consolidated lot to FlowRack
- 5. BB4.3.2 BB4.3.2 BB4.3.2 Supplier IHUB Close Supplier MRP Top Material Center BB4.3.2 BB4.3.2 BB4.3.2 Flowrack/ CrossDock Non-Kanban Components Kanban Card, Empty Bin or E-kanban Milkrun in 30’ to deliver all items to and from cells Team Leader schedules next orders Combination of piece-picking and kanbans covers all needs efficiently and effectively; creates so-called degenerative redundancy, a prerequisite of robustness Kanban Replenishment
- 7. RMSpec RMCom Level FORELOG GLOBAL ALLOCATION KANBAN VMI VENDOR/SUPPLIER MANAGED INVENTORY Bin 2/2 Bin 1/2 Line Feed Kanban Piece Pick to Order Pick to Order E-ban (electronic kanban) PON in use Next PON PON in use Next PON Typical case Rare case
- 8. Hectic Stable $ $ To BOM Quant Quant From Many SyncEffect Commo- nality Effect Size Size Price Price
- 10. Widespread Pareto-Distribution in supply chain networks, though ‚large’means different in three dimensions Irregularity= Coefficientof Variation, NormalizedStandard Deviation Numberof Outgoing/downstreamLinks Irregularity– distributionof interactionsintime Intensityof interactions(UsedvolumePareto)
- 11. •X-Axis: Pareto-rankingasper theintensityof interactions(averageusage) •Y-Axis:Distributionof interactionsintime(Irregulatity) •Bubblesize: numberof outgoinglinks, outgoingdegree(inwhatFG itgoes) •Bottom-left: networkelementswithlotof regularinteractions(Signal–areaofoptimization) •Top-left: networkelementswithlotof irregularinteractions(Disruption/Perturbation) •Top-right openingfan: greatnumberof smallnetworkelements(Noise) CombinedQuantity-IrregularityGraphwithallthreeDimensions. Areasof Signal, Noiseand Disruption
- 12. •Largeregularnetworkelementhas atleastonelargeoutgoingsub-networkwithouttransversalsync •Largeirregularnetworkelementhas largeoutgoingsub-network/s onlywithtransversalsync •Smallnetworkelementshas onlysmalloutgoingsub-network/s Behaviorof a Network Elementdeterminedbyitsdirectand indirectoutgoingsub-networks Largeirregularnetworkelement Largeregularnetworkelements Smallnetworkelement
- 13. 4 material flow processes as modular optionsonCombinedQuantityIrregularityGraph 1.Milkrun-For „fully” common components what go into allFG variants-Replenishmentto fixed location for months 2.Kanban-For common components of high runner variant group-Replenishmentto fixed location fordays/weeks 3.Piece-picked-For variant specific components-Deliveryof component in exact quantity 4.Just-in-Sequence-Onlyifallprocessesaretightlymanaged