Lean Supermarekt principles - November 2016

1Marek.Piatkowski@Rogers.com
Supermarket
Principles
Introduction
Thinkingwin, Win, WIN
Supermarket Principles
Definitions
Marek Piatkowski – November 2016

Supermarket
Principles
Introduction
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

Supermarket
Principles
Introduction

Supermarket
Principles
Introduction
Supermarket in Manufacturing

Supermarket
Principles
Introduction
What is a Pull System?

Supermarket
Principles
Introduction
Mr. Ohno’s Idea

Supermarket
Principles
Introduction
The Supermarket Model

Supermarket
Principles
Introduction
The Supermarket Suppliers

Supermarket
Principles
Introduction
Pull System
 In a traditional operation Production Scheduling department generates
Information by issuing schedules to all departments to produce and to move
material.
 Toyota reversed that process. At Toyota only material movement generates
Information Flow - A Pull Signal (Kanban).
 When parts are “pulled” from the Supermarket, a signal (Kanban) is sent to the
supplying process to produce more.
 Schedule is issued only to the Pacemaker process.
 This is called a Pull System.

Supermarket
Principles
Introduction
Flow in Manufacturing must be in Real Time

Supermarket
Principles
Introduction
Purpose of a Supermarket
 The purpose of a Supermarket is to create a buffer of inventory (Purchased Parts,
sub-assemblies or Finished Goods) in order to safeguard against process or delivery
variations
 Process variation can be caused by:
 Batch (large lot) production process
 Variation in working hours
 Equipment breakdown or problems
 Etc …
 Delivery variation can be caused by:
 Large lot and non-frequent deliveries
 Transportation costs and distance
 Delivery schedule changes
 Weather
 Etc …

Supermarket
Principles
Introduction
Warehouse vs. Supermarket
 In a supermarket we stock only items that are
 frequently needed by its customers
 when they are needed
 and in a quantity needed
 We do not stock Make-to-Order parts in the Supermarket
 Supermarket is a Supermarket only if:
 All parts kept in a designated location – easy to pick
 All parts kept in designated Line-ready containers – no repacking
 All parts and containers are clearly identified
 Min and max levels of inventory (number of containers) are defined
 Parts are replenished several times per day
 FIFO (first-in-first-out) is in place
 Lot control, when applicable, is in place

Supermarket
Principles
Introduction
Supermarket and Lean Transformation
 Supermarket is NOT a final stage of Lean Transformation
 Supermarkets are constructed at the beginning of Lean Transformation in order to:
 Stabilize the operation by eliminating parts shortages
 “Protect the Customer” – short Lead Time and 100% on time Customer deliveries
 Gain control of inventory problems – not enough of what we need and too much of
what we do not need
 Ideal State is - No Supermarket !!!
 Sequential Delivery (Just-in-Time) - deliver parts and components to the Customer,
in a sequence and mix they require, minutes before they are needed at a
manufacturing site
 Therefore, the little inventory that exists would be a ‘rolling inventory” delivered
frequently to point of use in the manufacturing line

Supermarket
Principles
Introduction
Levels of Supermarket Development
 Basic warehouses in place, if any
 Poor or no inventory control
 Ongoing problems with parts shortages and customer deliveries
 Information flow does not match material flow
 Frequent inventory counts and adjustments
 Poor or no material organization in the facility
 No visual management
 Multiple storage location for same part number
 etc..
Level 1 – NO Supermarket / NO Mini-Markets in place

Supermarket
Principles
Introduction
 Basic organization of material in place
 Most of the material located in one place
 No Mini-Markets – delivery points not well defined and controlled
 Some visual management in place
Level 2 – Basic Supermarkets / NO Mini-Markets in place

Supermarket
Principles
Introduction
Level 3 – Supermarkets / Mini-Markets in place
 Common parts Supermarket with segmentation for unique or make-to-order parts
 Single (designated) part locations
 Good visual management in place – inventory control
 Daily meetings in front of Information Boards
 Mini-Markets (with less than few hours of inventories) in place
 Frequent and structured deliveries to Mini-Markets or
Point-of-Use locations
 Incidents of “Parts Shortage” are rare

Supermarket
Principles
Introduction
Level 4 – Supermarket Eliminated / ONLY Mini-Markets in place
 Common parts Supermarket eliminated
 Only unique or make-to-order parts stored in the Supermarket
 Mini-Markets through out the facility
 Frequent and structured deliveries to Mini-Markets
 Inventory levels in hours

Supermarket
Principles
Introduction
Level 5 – Ideal State Just-in-Time Deliveries
 No Supermarkets
 Mini-Markets replace with Points-of-Use inventories
 Just-in-Time sequential deliveries of material to Points-of-Use
 Material Handling (Logistics) should be able to move parts and components at pace of
manufacturing in a right component model, sequence, and mix.
 Inventory levels in minutes - not hours or days

Supermarket
Principles
Introduction
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproduced
without written permission from:
Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

Supermarket
Principles
Introduction
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Lean Supermarekt principles - November 2016

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Lean Supermarekt principles - November 2016