Lean Business System Review Push vs Pull Value Stream Mapping Lean tools Results · 2016. 10....
Transcript of Lean Business System Review Push vs Pull Value Stream Mapping Lean tools Results · 2016. 10....
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Lean Business System Review
Push vs Pull
Value Stream Mapping
Lean tools
Results
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• Push system based on forecast.
• High (wrong) inventory levels.
• Low inventory turns.
• Constrained capital.
• Customer Service issues.
• Excess space required.
Initial State
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Initial State
Suppliers
pushing raw
materials to forecast
Production pushing finishedGoods to warehouse
Inventory turns are dropping
Demand variation
StandardWork
Breakdown
CUSTOMER
CustomerService issues
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Our Lean Foundation
Jidoka
6S – Sort, Straighten, Scrub, Standardize, Sustain and Safety
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• Pull system based on true Customer demand.
• Lower (correct) inventory levels.
• Increased inventory turns.
• Liberated capital.
• 99% Customer Service.
• Space reduction.
Ideal State
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“All forecasts are wrong, it’s just a matter
of how wrong.”
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Customer’s Pattern
History is more reliable than trying to
Forecast !
How much will they buy ?
How frequent ?
Same rate all year ?
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Customer’s Pattern
8SPIKE chart
52 weeks
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Customer’s Pattern
9SPIKE chart
SEASONALdemand
BASEdemand
different
RATEWINDOW
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Understanding …
DEMAND
Takt TimePatterns
Customer’s ordering patterns
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Understanding …
at the WORK CELL:
DEMAND
Daily
Drop
ordering pattern for ALL Customers
Takt TimePatterns
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Information, Material, and Process flow
Manufacturer
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• on hand or available ?• when to signal ?• from who ?• lead time ?• pattern ?• ordering size ?how much ?
Pull system
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stock on hand or available
Available Stock
42 cartons 1 2 3 4 5 6 7 8 9 10
days
future firm orders
Stock on Hand
42 cartons
33 cartons
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VISUAL PULL
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Visual Customer Portal
Customer visibility of
Heijunka device
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Ideal State
Production.Finished goods go directly to
Customer DC
Supermarkets for raw materials
replenished on a pull system
Kanban signal from actual
customer sales
(pull/consumption)
Heijunka device to Level Load
production.
Production manufacturing
to Customer demand
Demand Analyst
Supplier
FIFO
Seasonal / Promo
CUSTOMER
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The Four Loops
Staging
Scheduling
• Receiving
• Kanban card
• Replenishing a
supermarket
• FIFO
• Performance visuals
Component
Pull System
• A Kanban Card
• Two Hours worth of
Kanban Cards
• Kitting to the order
• Withdrawal from
supermarket
• Delivery to work cells
• Performance visuals
Component
Kitting
• FGSM
-Time bound signals (daily, shift, hourly)
• Staging Lanes
• Direct Ship
• Signal : Kanban Card
• Performance Visuals
Finish Goods
Pull System
•Sections
-FGSM : Stock
-DS : Direct Ship
-BUILD : Seasonal /
New Product launch
•Time bound production
scheduling board
•Performance visuals
Heijunka
Device
FIFO
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HEIJUNKA
Quarterly Reviews with
Customers and Suppliers
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Results
Inventory Turns from 8 to 19 !
Liberated Capital in excess of $5,000,000 !
Freed up over 100,000 sf or real estate !
Shortened lead time from 6-8 weeks to 10 days !
Increased Customer service to 99% !
Developed Strategic Partnerships throughout entire
Supply Chain !