DEMAND FLOW TECHNOLOGY Tom R. North IEM 5303 Advanced Manufacturing Systems Design.
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Transcript of Copyright© Demand Flow Institute, LLC. DBA JCIT International 2005. All rights reserved. Demand...
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.
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Traditional Manufacturing
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Demand-Driven Manufacturing
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Information Technology
Certified Suppliers
Uncertified Suppliers Warehouse
Sales & Marketing
Warehouse
CustomersCustomer Service
Accounting
Engineering
Human Resources
Factory
Demand Flow Environment
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Response Time Variability
µ = 8-12 daysµ = 14.3 hours
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Value Stream Maps - Proceed with Caution
Reference: Learning to See -Mike Rother, John Shook, Jim Womack, Dan Jones
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Future State Value Stream Map
Reference: Learning to See -Mike Rother, John Shook, Jim Womack, Dan Jones
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
Demand Flow Technology
Product Synchronization Definitions
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2001. All rights reserved.
22697 REV. L
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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
Copyright© Demand Flow Institute, LLC.DBA JCIT International 2005. All rights reserved.
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