...Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product family • Make the product flow • So the customer can pull • As you manage...
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...What is a Kanban? James Chapados and Agnieszka Perlinska Stowe Consulting Company PO Box 3923 Stowe, Vermont 05672 Phone: 802-635-3676 info@stoweconsultingcompany.com www.stoweconsultingcompany.com 2 Introduction A key tool in lean manufacturing is the kanban. For one of the authors, James Chapados, learning about kanbans was helped by experiences with his mother. My mother was many things, an Olympic caliber tennis player and remarkable all round athlete, a brilliant English and math teacher, witty, charming, fun, impulsive, and a loving, kind human being. But she was not what one would call a good cook. Indeed, it is hard to think of her as a cook at all. To avoid her cooking, both my sister and I learned to cook when very young. My sister and father usually took turns cooking dinner until I was old enough to become a part of the rotation. It was more self-defense than anything else. But my mother ran one heck of an efficient pantry. I never knew us to run out of any staple, be it flour, sugar, the ubiquitous “luncheon meat”, eggs, crackers, milk, or catsup (she always spelled it catsup, not ketchup, I don’t know why). At the same time, we never seemed to have a lot of stuff on the shelves. My mother would put together a shopping list for my father to buy from on Saturday mornings. It always had on it what we needed in specific quantities – one box of oatmeal, two boxes of cornflakes, two dozen eggs, one can of asparagus, three cans of corn, etc...
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...Sequence the Work and Execute the Plans Self-Assessment Introduction Course Overview Welcome to the CPIM Execution and Control of Operations — Sequence the Work and Execute the Plans self-assessment course. This introduction provides an overview of the CPIM program, this course, and further preparation for the certification examinations. The CPIM certification is the recognized standard for individual assessment in the field of production and inventory management. The certification is designed to validate the candidate’s in-depth knowledge of a variety of subjects specific to the field. APICS has ensured that CPIM exams are consistently reliable and that the highest professional standards are used in developing and administering the program. The program consists of five examinations and the candidate must pass all five examinations to earn the CPIM designation. The examinations that make up the program are: • Basics of Supply Chain Management (BSCM) • Master Planning of Resources (MPR) • Detailed Scheduling and Planning (DSP) • Execution and Control of Operations (ECO) • Strategic Management of Resources (SMR) A CPIM Exam Content Manual is published annually by APICS. It is a key resource for anyone preparing for the APICS certification examinations. The manual addresses all five of the examinations by documenting the scope of the module, the content outline, the key terms, and primary and secondary references...
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...Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product family • Make the product flow • So the customer can pull • As you manage...
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...Toyota’s Production System Kanban System was found by the Vice-President of Toyota Motor Company Taiichi Ohno in the middle of the 20th century. The idea behind Kanban System came from US supermarkets and this system is about producing only the necessary products, at the necessary time, in necessary quantity (Sugimori et al., 1977). The starting point of Kanban was the recognition of diversity of Japan’s features and the idea is developed by considering the two distinct characteristics of this culture : (1) lack of resources in Japan, (2) Japanese working culture (Sugimori et al., 1977). After World War II, Japan was affected excessively - insufficient and unproductive land for agriculture - and this lead them to import huge amount of raw materials especially food. Therefore, imbalance of import and export appeared. Since Japan is in a disadvantegeous position about these reasons, it is important to reduce the production cost and to add more value to products. In addition, unlike European and American work style, Japanese working culture includes group consciousness, sense of equality - little discrimination between blue-collars and white-collars -, desire to improve consistently, centralized their life around work and lifetime employment system. These features caused the consideration of full usage of workers capabilities in the production system. Because of these reasons, Toyota Motor Company decided to use Just-In-Time (JIT) production system and Kanban was developed. Toyota...
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...operations. What is JIT just in time-that incorporates generic elements of lean system by cutting unnecessary capacity or inventory and removing non value added activities in operations. Eliminates waste or muda. 8 types of wastes : 1 over production, 2) in appropriate processing,3) waiting, 8) transportation( Excessive handling during transportation), 4) motion, 5) Inventory , 6) defects and 7) underutilization of employees. JIT system organizes the resources, information flow and decisions that enables firm to realize the benefits of JIT principle. Lean system leads to continuous improvement in quality and productivity. The Japanese term for this approach to process improvement is KAIZEN. Hides underlying problems with processes that produce service or product. Service processes improved : scheduling, billing, order taking, accounting, financial planning . SUPPLY CHAIN CONSIDERATIONS IN LEAN SYSTEMS : 2 characterstics of lean systems that are related to creating nad managing material flows in a supply chain ; close supplier ties and small lot sizes. CLOSE SUPPLIER TIES : close with suppliers, Lean systems work is to look for ways to improve efficiency , reduce inventories throughout the supply chain. Win-win situation : by company and supplier closeness. Better communication, One of the first actions undertaken when a lean sys is implemented is to pare(trim,cut) down the number of...
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...4 Objectives .................................................................................................................................................................................................6 The Manufacturing Challenge .................................................................................................................................................................7 Globalization and Competitive Pressure ................................................................................................................................7 Mass Production to Mass Customization ...............................................................................................................................7 Shortening Product Life Cycles....................................................................................................................................................7 Smaller Batch Sizes and Shortening Lead Times ..............................................................................................................7 Outsourcing and Specialization...
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...Materials Requirements Planning (MRP) Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for dependent demand items. Dependent demand items are components of finished goods—such as raw materials, component parts, and subassemblies—for which the amount of inventory needed depends on the level of production of the final product. For example, in a plant that manufactured bicycles, dependent demand inventory items might include aluminum, tires, seats, and derailleurs. The first MRP systems of inventory management evolved in the 1940s and 1950s. They used mainframe computers to explode information from a bill of materials for a certain finished product into a production and purchasing plan for components. Before long, MRP was expanded to include information feedback loops so that production personnel could change and update the inputs into the system as needed. The next generation of MRP, known as manufacturing resources planning or MRP II, also incorporated marketing, finance, accounting, engineering, and human resources aspects into the planning process. A related concept that expands on MRP is enterprise resources planning (ERP), which uses computer technology to link the various functional areas across an entire business enterprise. MRP works backward from a production plan for finished goods to develop requirements for components and raw materials. "MRP begins with...
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...Introduction Traditionally, managers in manufacturing companies have sought to maximize production so as to spread the costs of investments in equipment and other assets over as many units as possible. In addition, managers have traditionally felt that an important part of their job is to keep everyone busy on the theory that idleness waste money. These traditional views often aided and abetted by traditional management practices. Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT can improve a manufacturing organization's return on investment, quality, and efficiency. Different from JIT in that it is externally focused on the customer, lean operation starts with understanding what the customer wants. Lean production Optimize the entire process from the customer’s perspective. It is the systematic removal of waste by all members of the organization from all areas of the values stream. Lean is often referred to as a cost-reduction mechanism. Lean strives to make Lean, six sigma and lean sigma organizations more competitive in the market by increasing efficiency, decreasing costs...
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...CASE: QUALITY PARTS COMPANY Questions 1. Which of the changes being considered by the manager of Quality Parts Company are counter to the lean philosophy? The philosophy of Lean Production involves the removal of wastes and non-value processes or production in the supply chain. The manager of Quality Parts Company has been contemplating to install an automated ordering system to help control inventories and to keep the skids filled. But this means the use of inventory as the reason to continue moving production forward. This change would not be recommended in a Just-In-Time process, for it will create holding time and non-value storage production. She is also planning to add three inspectors to clean up the quality problem. This would also be a waste and a non-value aspect, for it will add new salaries to pay. In-process inspections can be done by their own factory workers. They should be their own inspectors to create personal responsibility to motivate them to produce quality output production. Another is about setting up a rework line to speed repairs. This does not follow a lean philosophy for this will only add more time and cost for labor and machine utilization. The company should only focus on reducing waste including overproduction. Finally, to look into high-rise shelving to store parts coming off machine 4. Installing high rise shelves would create or add non-value storage of wasteful inventory in their...
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...JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit. Just-in-time can also be defined as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It has been described as an approach with the objective of producing the right part in the right place at the right time, hence the phrase Just-in-time. JIT should improve profits and return on investment by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs, such as those associated with machine setup and equipment breakdown. Just-in-time applies to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that of an assembly line. JIT can be traced back to the late 1700’s. Eli Whitney contributed his concept of interchangeable parts to the idea of JIT manufacturing in 1799. The basic elements of JIT were developed by a Toyota motor company in Japan in the 1950’s. In order to begin use of JIT manufacturing in Japan, they first researched American production methods focusing on Ford’s practices. In Japan Just-in-time manufacturing is referred to as the Toyota Production System...
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...Cost. ................................................................................................. 13 Productivity....................................................................................... 14 Safety & Morale ................................................................................ 15 Jidoka . .............................................................................................16-18 Standardization……………………………………………………………….19 Just in Time ........................................................................................... 20 Pull Production………………………………………………………………..21 Kanban……………………………………………………………………..22-23 Level Production.................................................................................... 24 Takt Time. ............................................................................................. 25 Flow Production................................................................................26-28 Equipment Reliability ............................................................................. 29 Summary...
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...Introduction Just In Time (JIT) This is Toyota’s production strategy that strives to improve a business return by reducing the in process inventory, improving quality and stream lining the processes to reduce carrying costs. To meet JIT the process relies on a signal or Kanban. This signal tells production when to make a certain part or when to sequence a certain part that is required. JIT in time focuses on continuous improvement (Kaizen) and if implemented correctly can make the business very efficient with improved quality and returns on investment. Quality Assurance (QA) This is a process centred approach to ensure that Toyota is providing the best possible products or services. It is related to quality control, which focuses on the end result. Quality assurance focuses on the process to achieve the end result. Toyota uses a system called the QA Network, this acts like a net to catch defects before the end result. Toyota implements a 200% quality check by the production and stores processes even before the vehicle is sent for quality inspection. This ensures that every vehicle is fitted with the correct part in the correct way. Toyota’s QA Network is very effective in achieving a very impressive SDR (straight delivery rate), vehicles with no defects that go straight to the customer and no delays. TSAM’s Quality assurance network Before condition 100% before QCI 100% 100% Figure 1 This is an example of the QA network for the wire frame wrong or missing part...
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......11-12 Cost. ................................................................................................. 13 Productivity....................................................................................... 14 Safety & Morale ................................................................................ 15 Jidoka . .............................................................................................16-18 Standardization……………………………………………………………….19 Just in Time ........................................................................................... 20 Pull Production………………………………………………………………..21 Kanban……………………………………………………………………..22-23 Level Production.................................................................................... 24 Takt Time. ............................................................................................. 25 Flow Production................................................................................26-28 Equipment Reliability ............................................................................. 29 Summary...
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...method has problems, such as regarding volume flexibility. There are other methods, but the literature lacks case studies and detailed descriptions and analysis of them, especially for visually oriented methods. Therefore, it is important to explore different methods for materials supply. The purpose of this study is to analyze the application of visually oriented replenishment methods in manufacturing industry and further to design a tentative decision tool for selecting methods. The research aims to provide some answers to three key questions. The first research question concerns general factors that are important for evaluating how effective replenishment methods are. From the literature review, different factors emerged such as product characteristics (fit in the Kraljic matrix, volume issues, size, etc.); information, trust, and geographical proximity between supplier and customer; and different logistics goals (delivery service elements, tied-up capital, use of resources, inventory accuracy). It is also import to include the basic principles methods are related to. The factors were summarized in...
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