Heijunka (lean for losses)
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Lean Manufacturing tools for order management, Mix product planning, shorter the lead time, supply cycle, supply chain management, etc. This is a visual tool integrated with Kanban.
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Heijunka (lean for losses)
- 3. • M Humayun Heijunka Product & Production Leveling
- 4. PS Total Inventory in pipeline ~ Total Leadtime (T) “Forecast must be projected at least time T ahead” Forecasted Demand Throughput Customer Demand Demand Forecast is 100% accurate Throughput = Demand “Customer gets what they want when they want it” Single Product Type PP Disti Retail Heijunka
- 5. Heijunka Question #1: If demand greater than forecast, can customer take the next available product? “Yes, because there is only one type of product and the immediate next piece is the same.” Question #2: Will it lead to stock out in the future? “Yes and only if the throughput is not increased to fill the pipeline with additional demand.”
- 6. Heijunka If Ican produce at demand, Actual customer demand is known to the supplier Forecasted Demand Throughput Customer Demand Demand PS PP Disti Retail “Throughput always equal to Demand” “There will never be STOCK OUT!!!”
- 7. Heijunka If Ican produce at demand, Actual customer demand is known to the supplier PS Forecasted Demand Throughput Customer Demand Demand PP Disti Retail “Throughput always equal to Demand” “Why do Ineed forecast???”
- 8. Heijunka Produce only when receive order “Too Late” Actual customer demand is known to the supplier Forecasted Demand Throughput Customer Demand Demand Total Inventory in pipeline ~ Total Lead-time “Customer has to wait for a lead time to receive his order.” PS PP Disti Retail
- 9. Heijunka Predict time T into the future and guess what the customer wants Total Inventory in pipeline ~ Total Lead-time PS PP Disti Retail “If we are accurate, customer gets what they want.” Forecasted Demand Throughput Customer Demand Demand So we need forecast,
- 10. Heijunka What happens when our forecast is wrong? guess what the customer wants Total Inventory in pipeline ~ Total Leadtime (T) PS PP Disti Retail Forecasted Demand Throughput Customer Demand Demand + “#1 Customer has to wait.” ~ Service Level “#2 Lose the customer.” “#3 Build Inventory.” ~ Sales ($) ~ Cost ($)
- 11. Heijunka What if, “#1 Customer CANNOT wait.” and “#2 We DO NOT WANT to lose the customer.” “#3 We HAVE TO build inventory.” or Buy a Crystal Ball
- 12. Heijunka How much inventory? Amount of Inventory to hold depends on Lead Time Demand Fluctuation + Or
- 13. Heijunka How to keep inventory low? #1 Shorten Lead time Total Inventory in pipeline ~ Total Leadtime (T) PS PP Disti Retail “Might not be always possible.” “Volume too low to be economically viable.” “Consolidation to yield economies of scale benefits”
- 14. Heijunka How to keep inventory low? # 2 Manage Demand or ✖ ✔ “Is it possible?” “Not an easy feat.” “Not much successes.”
- 15. Heijunka Is there other option? “Yes “Single Product!!!” Actual customer demand is known to the supplierForecasted Demand Throughput Customer Demand Demand PS PP Disti Retail “Throughput always equal to Demand”
- 16. Heijunka Who sell ONLY 1 product??? Actual customer demand is known to the supplierForecasted Demand Throughput Customer Demand Demand PS PP Disti Retail “Throughput always equal to Demand” Are you crazy???
- 17. Heijunka “NO!” Total Inventory in pipeline ~ Total Leadtime (T) PS PP Disti Retail Actual customer demand is known to the supplier “Throughput always equal to Demand” Here is how lean does it
- 18. Heijunka “Level Product Mix” Total Inventory in pipeline ~ Total Lead time (T) PS PP Disti Retail “Throughput always equal to Demand” “The next required product is NOT far away” +