Understanding the potential weaknesses of kanban and how APS can overcome these weaknesses to support your lean initiatives.

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? Lean Scheduling International 2 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. Lean Scheduling International 3 Whatis Lean?

4. Traditional Manufacturing Lean Manufacturing Work Centers Batch & Queue MPS MRP Push Cells & Lines Continuous Flow Heijunka Kanban Pull Lean Scheduling International 4 What’s the Difference?

5. Lean Scheduling International 5 Benefits Reduced Inventories

6. Lean Scheduling International 6 Benefits Increased Throughput

7. Benefits Reduced Lead Times Lean Scheduling International 7 Results improved as Processes Improved

8. Understanding Lean It is very helpful to look back in time and understand how and why Lean evolved

13. It was visual

14. It was not dependent on technology

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

21. Generally impact on the bottom line was disappointing

23. But Who is the Weakest Link? The Unexpected Answer is: Manual Heijunka and Kanban Lean Scheduling International 20

25. when to produce it

27. Lean Scheduling International 23 Kanban’s Dirty Little Secret The number of Kanban cards is based on yearly historical demand data

28. Lean Scheduling International 24 Heijunka’s Dirty Little Secret There must be enough capacity to catch up if they fall behind

29. Kanban Lean Scheduling International 25 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!

31. Not too bigLean Scheduling International 26 The Goldilocks Syndrome

32. Scenario 1 What happens when Kanban’s are too small? Lean Scheduling International 27

33. Scenario 1 – Manufactured Item Lean Scheduling International 28

35. Manually create additional Card

36. No way of prioritizing Cell1

37. Stock Out & Late DeliveryLean Scheduling International 29

38. Scenario 2 What happens when Kanban’s are too big? Lean Scheduling International 30

39. Scenario 2 – Manufactured Item Lean Scheduling International 31

40. Scenario 2 – Manufactured Item Lean Scheduling International 32

42. No foreseeable demand

43. Unnecessary consumption of Cell1 capacityLean Scheduling International 33

44. The 8 Limitations of Kanban Unfortunately Kanban sizes are only a small part of the problem!!! Page 34 Lean Scheduling International

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 Lean Scheduling International

48. Broken Connection Lean Scheduling International 36

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 Lean Scheduling International 47 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 Lean Scheduling International 49 Thank you!!!