Copyright© Demand Flow Institute, LLC. DBA JCIT International 2005. All rights reserved. Demand...

21
Copyright© Demand Flow Institute, LLC. DBA JCIT International 2005. All rights reserved. Demand Flow Technology The Leader in Demand Flow ® Technology Providing the proven tools of Demand Flow Technology (DFT) and Supply Chain Management to manufacturing professionals through cost effective training and technology transfer services.

Transcript of Copyright© Demand Flow Institute, LLC. DBA JCIT International 2005. All rights reserved. Demand...

Page 1: Copyright© Demand Flow Institute, LLC. DBA JCIT International 2005. All rights reserved. Demand Flow Technology The Leader in Demand Flow ® Technology.

Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.

Demand Flow Technology

The Leader in Demand Flow® Technology

Providing the proven tools of Demand Flow Technology (DFT) and Supply Chain Management to manufacturing professionals through cost effective training and technology transfer services.

Page 2: Copyright© Demand Flow Institute, LLC. DBA JCIT International 2005. All rights reserved. Demand Flow Technology The Leader in Demand Flow ® Technology.

Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.

Demand Flow Technology

Traditional Manufacturing

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Demand Flow Technology

Demand-Driven Manufacturing

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Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.

Demand Flow Technology

SCHEDULED & FUNCTIONAL

MANUFACTURING TECHNIQUES

DEMAND DRIVEN

FLOW MANUFACTURING

Traditional Demand Flow1960 1980 2000 2020

FUNCTIONALTEST AREA

ICT-TEST AREA

STORES

PR

OD

UC

TIO

N

SC

HE

DU

LIN

G

EX

PE

DIT

ING

& D

/L R

EP

OR

T

1

2

3

4

MATERIALSTAGING

AREA(KITS)

PRINT CIRCUIT AREA

STAGING

PICK/PLACE

WA

VE

REWORK

SMT

AREA

RE

-FL

OW

INS

PE

CT

ION

1 2 43 5

SPR

AY

CU

RE

WA

T

JIT/LEAN

COMPLETEDASSEMBLIES

SHORTAGEAREA

INSPECT

INSPECT

FINAL

FINAL

STAGING AREASTAGING AREA

CABLEASSEMBLIES

SUB-ASSEMBLY AREA

FLOW

CELL

CNC1

CNC2

CNC3

TE

ST B

AY

TE

ST

TE

ST

WO

RK

STA

TIO

N A

WO

RK

STA

TIO

N B

WO

RK

STA

TIO

N C

WO

RK

STA

TIO

N D

WO

RK

STA

TIO

N E

MECHANICAL AREA

PRODUCT BURN-INGOVERNMENT

CERTIFICATION173 HRS.

DIP

OVEN

SALESORDER

DEMANDDEMAND

DEMAND

FEE

DE

R PR

OC

ESS

MA

CH

ASM

BL

Y T

QC

CU

TSE

Q. VCD A

SMB

LY

WA

VE

ASSEMBLY

TAKT

TAKTTAKT

TAKT

OPERATIONAL CYCLE TIME

LINE 1- DEMAND FLOW® PROCESS

BACKFLUSH

PULL

Two Forms of Manufacturing

DEMAND-DRIVEN

80-100 INV TURNS IS NORMAL

ZERO WORKING CAPITAL

FORECAST-DRIVEN

6-8 INV TURNS IS WORLD CLASS

$$$ WORKING CAPITAL

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Demand Flow Technology

Certified andNon Certified

Certified andNon Certified

(6) (3) (100) (20) (50) (1)F E D C B A

SCH. QUEUE W/C

SCH. QUEUE W/C

SCH. QUEUE W/C

SCHEDULED MRP II

FAB

SUB-ASSEMBLIES

(5) (1)

B A

A B C D E F W

FORECAST

FGI$ $ $

SALESORDER

SKU

W $

Foundation for Flow

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Demand Flow Technology

A B C D E F WFORECAST

RAW

$10M $10M

$2M

(5) (1)

B A$2M

14.3 HOURS

$10 M

10 DAYS

(6) (3) (100) (20) (50) (1)F E D C B A

$10M

SALESORDERSKU

W $

FGI

CUSTOMER

Zero Working Capital Objectives

BALANCE SHEETASSETS

LIABILITIES

INCOME STATEMENT

CURRENT ASSETSCash $500,000Accounts Receivable 17,500,000Prepaid Expenses 500,000Inventories:Raw Material 5,250,000Work in Process 7,500,000Finished Goods 11,250,000Average Inventory 24,000,000

Total Current Assets (less Cash) 42,000,000

Current LiabilitiesAccounts Payable 14,988,000Accrued Expenses 3,000,000Accrued Employment Costs 2,000,000Total Current Liabilities 19,988,000

Simple Working Capital 26,512,000

Sales 238,000,000Cost of Goods Sold 170,027,200Gross Margin 67,972,800Sales, General & Admin 42,506,800Operating Margin 25,466,800Total Inventory Turns 7.1In-Process Inventory Turns 22.7

The DFT Model

RAW

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Demand Flow Technology

Information Technology

Certified Suppliers

Uncertified Suppliers Warehouse

Sales & Marketing

Warehouse

CustomersCustomer Service

Accounting

Engineering

Human Resources

Factory

Demand Flow Environment

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Demand Flow Technology

Response Time Variability

µ = 8-12 daysµ = 14.3 hours

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Demand Flow Technology

Value Stream Maps - Proceed with Caution

Reference: Learning to See -Mike Rother, John Shook, Jim Womack, Dan Jones

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Demand Flow Technology

Future State Value Stream Map

Reference: Learning to See -Mike Rother, John Shook, Jim Womack, Dan Jones

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Demand Flow Technology

MODEL # OPERATION #

PROCESS I.D.

PAGE

__of__

FIND PART# DESCRIPTION QTY

1400 OP 120

SYSTEM DRIVE ASSEMBLY

TQC

WORK CONTENT

VERIFY

SDA120P2Rev. E

1/21/02

1 1402 Disk Frame 1

2 1421 3/8” Pan Head Screw 4

P.C.O. # DATE

2 2

Product P/NVacuum Brake

Process I.D.Valve Assembly

Quality Info.Move

Desc.

Set-UpSeq.#

Task

Mac

hin

e

Lab

or

V.A

.

Mac

hin

e

Lab

or

D/S

Qty

.

Int.

/Ex

t.

Mac

hin

e

Lab

or

D/S

Qty

.

Int.

/Ex

t.

Dis

t.

TQ

C

15.0 Check bracket assembly with valve body

16.0

Load Stackerwith springs

17.0

Install eject spring in valve

18.0 Install eject button on spring

20.0 Pressurize valve body assembly

*

Confirm eject mechanism works freely.

*

*

Verify TQC on green tag

Verify bezel slot signswith body

TQC bezel againstvalve face

Verify 40 PSI

.20

.45 S 50 E

.35

.10

.10

.25

19.0 Install bezel onto valve body

Time

Vo

lum

e

Dc ??Peak Demand

Avg. Demand

Max CapitalMin Inventory

Min CapitalMax Inventory

OT., Temps, 2nd Shift/Line,3rd Shift/Line, Outsource

1 - Shift

2 - Shift

6 - Months

7.6 + 6.4 = 14.014.017.7

7.6 + 3.7 = 11.3

PRODUCT SYNCHRONIZATIONS

OPERATION SHEETS

SEQUENCE OF EVENTS

DEMAND AT CAPACITY

Tools & Methodology

KANBAN TOOLS

TP c/t

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Demand Flow Technology

Product Synchronization Definitions

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Demand Flow Technology

Dc x Q x RHR x P

HE(S) Dc

ATwTAKT

LEAD TIMES = TP c/t

SUTAKT-RT

(SU + RT + MV) + [ RT x (KCELL – 1)]

KCELL =

RCELL =

WORK = AT

X

DFT Mathematical Foundation

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22697 REV. L

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Demand Flow Technology

USA JAPAN

UK GERMANY

Kanban

SMI

Close Supply

Distant Supply

SMI

Distant Supply

Kanban

Close Supply

Forecast (Software)Forecast (Software)

Demand Trigger

Electronic Kanban

Supplier ManagedInventory

Re-supply basedon Demand Pull

Re-supply basedon Demand Pull

Re-supply basedon Demand Pull

Supplier Forecast (Software)

Raw MaterialSuppliers

-- Tier 1, 2, 3 --

ProductionFacilities Distribution

(Supply Point)Customer Base

Manage Min/Max

FGI Levels

Forecasting and Kanban

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Demand Flow Technology

The Technology Based Lean Supply Chain

Work ContentResponse Time

Daily Rate

Flexible Production Planning

Actual Orders

Certified Supplier Pull Process Management Planned Sequence Release

Linearity

Customers

Manufacturing

SuppliersDistribution Strategies

VMIConsignment

Planning

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Demand Flow Technology

CNCSHORIZONTALMACHINING

VERTICALMACHINING

WIP

SUBASMBLY

SUBASMBLY

SUBASMBLY

SUBASMBLY

SERVICEPACK

SERVICEPACK

SAWSAW

DRILLING/DE-BURR

PAINT BOOTH

WIP

OFFICE

Stores

RE

CE

IVIN

G

LO

AD

WIP

UN

LO

AD

SHIPPING

FINAL ASSEMBLY

FINAL ASSEMBLY

FINAL ASSEMBLY

WIPSTORES

WELD DEPARTMENT

Power Train Components: Before DFT

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Demand Flow Technology

Power Train Components: After DFT

SAW

DE-BURR SAW

DE-BURRP

O

U

P.O.U.

MILLBORE

TAPDRILL

MILLBORE

TAPDRILL

CNC

WAIT/WORK

WAIT/WORK

ASMBLY

ASMBLY

ASMBLY

OFFICE AVAILABLE

SPACE

PAINT BOOTH

P

O

U

CNC

RECEIVING

SHIPPING

FINAL ASSEMBLY

PACK

UN

LO

AD

LO

AD

WE

LD

SALESORDERS

SALESORDERS

SALESORDERS

Shifts

Response Time

Floor Reduction Space

3 to 2

24 Daysto <6 hrs

32%

Past DueOrders

Reduced 65%within 1 month

BatchContainers

Eliminated 3003’x4’x3’

containers

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Demand Flow Technology

Lead Time

Service

Schedule

Inventory

Record Accuracy

35 Days

88%

Weekly

8.5 Turns

< 50% accurate

Plastics Manufacturer: Before DFT

ADDITIVES

BLEND BLEND

EXTRUSION

PACKING

BULKMATERIALS 20 MILES

ADDITIVESRAW

MATERIAL(ON-SITE)

RAWMATERIAL(OFF-SITE)

FINISHEDGOODS

INVENTORY

80%

20%CUSTOMER

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Demand Flow Technology

Lead Time

Service

Schedule

Inventory

Record Accuracy

35 Days to 7 Days

88% to 97%

Weekly to 0

8.5 Turns to 24 Turns

< 50% accurate to 97%

Plastics Manufacturer: After DFT

RIP(ON-SITE)

OFF-SITEWAREHOUSE

CLOSED!

WAIT WORKK

K

K

K

ADDITIVES

BLEND

EXTRUSION

PACKING

BLEND

SEQUENCECONTROL

BOARD

CHANGEOVERCONTROL

SALESORDER

SEQUENCE

ADDITIVES

BULKMATERIALS

FINISHEDGOODS

SUPPLIERS

25%

75%

K

CUSTOMER

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Demand Flow Technology

STAGE 3

STAGE 2

The Proven Path

Demand-Driven Vision

Business Processes

Info

rmat

ion

Sys

tem

s

STAGE 1FUNDAMENTALS

PROCESS-DRIVEN

DEMAND-DRIVEN