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Rb erp lean module overview
This document provides an overview of RB-ERP's new Lean module. It begins with background on Lean/Kanban concepts and definitions from APICS. It then outlines the new RB-ERP Lean system, which uses a Kanban-based approach to trigger purchase orders, inventory transfers, and production using a single Kanban transaction entry. The document walks through how the RB-ERP Lean module handles Kanban generation, deployment, and history tracking to enable a pull-based replenishment system.
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Rb erp lean module overview
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- 2. Agenda • Background – Lean / Kanban APICS Definitions and Concepts – Example • Overview of RB-ERP Lean • Walkthrough of RB-ERP Lean • Questions and Answers 2
- 3. Lean Manufacturing Definition •Lean embodies a set of principles and practices that reduce cost through the relentless removal of waste and through the simplification of all manufacturing and support processes. • Lean is a philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise • Lean involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with the customers. • Lean producers employ teams of multi-skilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in potentially enormous variety. - APICS 3
- 4. Kanban Definition • TheJapanese word Kanban, loosely translated, means card, billboard, or sign, but other signaling devices such as colored golf balls have also been used. The term is often used synonymously for the specific scheduling system developed and used by the Toyota Corporation in Japan. • Kanban is a method of Just-in-Time production that uses standard containers or lot sizes with a single card attached to each. • It is a pull system in which work centers signal with a card or other device that they wish to withdraw parts from feeding operations or suppliers. – APICS 4
- 5. Pull as anIntegral Part of Lean Manufacturing 5
- 6. COMMON TOOLS OFLEAN • VALUE STREAM MAPPING • QUALITY AT SOURCE • 5S’s • POINT OF USE STORAGE • VISUAL • QUICK CHANGEOVER (SMED) • PLANT LAYOUT • CELLULAR/ GROUP TECH. • STANDARDIZED WORK • TOTAL PREVENTATIVE • BATCH REDUCTION MAINTENANCE • TEAMS/CROSS TRAINING • DEMAND PULL/ KANBAN • SIX SIGMA 6
- 7. Push vs. Pull •Push – Produce to forecast of • Pull – Produce ONLY the anticipated demand necessary units in the – Excessive inventory (stock necessary quantities at the out of what’s needed) necessary times – Large batches – Simple – manage by eye – Inability to keep pace with real-time orders – Responsive to minor changes – Inefficient ops – high costs – Effective at continuous Emergency changeover inventory reduction Product teardowns Expediting – Hot list 7
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- 9. Kanban Example BOM SP-4 Manufactured C-40 Manufactured C-400 Purchased Inventoried at 2 Locations 9
- 10. Kanban Circuits Vendor C -400 Finished parts inventory Receive Receive C-400 Production C-40 Production SP-4 SP-4 Raw material inventory Demand Customer Procurement Kanban Circuit Transfer Kanban Circuit Production Kanban Circuit 10
- 11. Kanban flow Supplier Receive for C-400 Initiate Initiate Receive Initiate Receive Initiate Procurement Transfer for C-40 Production for SP-4 Production Receive C-400 C-40 SP-4 C-400 C-400 Receive Receive Kanban Kanban Bin: PICK Bin: FLOOR Bin: FLOOR Bin: END Ship 10 Location KB Location 01 END Incoming Empty container Customer Order Kanban Quantities = 10 10 SP-4 Full container 11
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- 13. RB-ERP Traditional Replenishment Demand Pull Demand Pull Cust Order Shop Order N/C Lines N/C Comp’s Push Push Push MPS Planned MRP Planned Inventory Orders Orders Reorder Point Order Review Shop Order Req/Purchase Order 13
- 14. RB-ERP New LeanReplenishment Demand Pull Demand Pull Cust Order Shop Order N/C Lines N/C Comp’s Kanban Planning Kanban Planning Kanban Pull MPS MRP Kanban Planning Planning Replenish Automatic Generation or Order Review Shop Order Req/Purchase Order 14
- 15. RB-ERP Lean Development •Generate/Manage Card Issuance • Simple Kanban Transaction Entry (Bar Code Scan) • Trigger Purchase Order/Release, Notification and Receipt • Trigger Inventory Transfer • Trigger Production Receipt & Backflush • History of Kanban Activity with Cycle Time Tracking 15
- 16. RB-ERP Lean Module Database Schema Item Location Key = Item/Location Key = Item/Location/Destination Kanban Circuit Contains default information for Kanban Circuit Kanban Circuit Kanbans in circuit, Number of Kanbans in circuit, etc. Key = Kanban ID Kanban Alternate Key = Item/Location/Destination Kanban Kanban Contains Type of Kanban, Kanban, Quantity, etc. Key = Kanban ID / Count Usage Kanban History Contains History of Kanban Usage Kanban History Kanban History including date/time stamps 16
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- 20. New Kanban Circuit andKanban Deployment 20
- 21. Kanban 21
- 22. RB-ERP Lean Module Kanban Generation and Deployment Receive Receive Receive Transfer Production Procurement Kanban Kanban Kanban Inventory Mfg Receipt PO Receipt Transfer & Backflush 22
- 23. Single Entry/Scan ofKanban Kanbans May Be Both Initiated and Received 23
- 24. Receive Transfer Kanban Yes No 24
- 25. Receive Production Kanban Yes No 25
- 26. Move to byStep, Then Receive Production Kanban Yes No Update Kanban Valid Data? Initiated? Yes Yes Current Op No No Initiate Kanban Create Move Signal Error History Record Create Initiate History Record 26
- 27. Initiate Procurement Kanban Option: Create/Release PO Create New PO Add PO Line Option: Cut Release Blanket Release Option: Add Line to PO Add Line Add History Record 27 (Optional)
- 28. Receive Procurement Kanban Yes No Yes Perform PO Update Kanban Initiated? Receipt History Record Yes No Signal Error & No Disallow 28
- 29. RB-ERP Kanban DataSetup
- 30. RB-ERP Lean Module Kanban Generation and Deployment Receive Receive Receive Transfer Production Procurement Kanban Kanban Kanban Inventory Mfg Receipt PO Receipt Transfer & Back- flush
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- 32. RB-ERP Lean Development Questions and Answers
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Editor's Notes
- #11 There are three types of kanban circuits: Production kanban: A card or other signal for indicating that items should be made either for use or to replace some items removed from stock. Transport kanban (Move kanban): A card or other signal for indicating that a specific number of units of a particular item are to be taken from a source (usually an outbound stock point) to a point of use (usually an inbound stock point). Supplier kanban: A card or other signal for indicating that a specific number of units of a particular item should be purchased from a supplier.
- #12 The flow starts with a demand of 10 SP-4 from customer order. The parts are delivered and a container at inventory location END is empty. A replenishment request is created for 10 SP-4 that automatically creates a production schedule. Now there is an empty container at inventory location SUB. A replenishment request is created for 10 C-40 that automatically creates a Shop order. Now there is an empty container at inventory location RAWM. A replenishment request is created for 10 C-400 that automatically creates a Transport Task from PICKING to SUB. Now there is an empty container at inventory location PICKING. A replenishment request is created for 10 C-400 that automatically creates a Purchase Order.