2. Agenda
• Background
– Lean / Kanban APICS Definitions and Concepts
– Example
• Overview of RB-ERP Lean
• Walkthrough of RB-ERP Lean
• Questions and Answers
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3. Lean Manufacturing Definition
• Lean embodies a set of principles and practices that reduce cost through the
relentless removal of waste and through the simplification of all manufacturing
and support processes.
• Lean is a philosophy of production that emphasizes the minimization of the
amount of all the resources (including time) used in the various activities of the
enterprise
• Lean involves identifying and eliminating non-value-adding activities in design,
production, supply chain management, and dealing with the customers.
• Lean producers employ teams of multi-skilled workers at all levels of the
organization and use highly flexible, increasingly automated machines to produce
volumes of products in potentially enormous variety.
- APICS
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4. Kanban Definition
• The Japanese word Kanban, loosely translated, means card, billboard,
or sign, but other signaling devices such as colored golf balls have also
been used. The term is often used synonymously for the specific
scheduling system developed and used by the Toyota Corporation in
Japan.
• Kanban is a method of Just-in-Time production that uses standard
containers or lot sizes with a single card attached to each.
• It is a pull system in which work centers signal with a card or other
device that they wish to withdraw parts from feeding operations or
suppliers.
– APICS
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5. Pull as an Integral Part of
Lean Manufacturing
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6. COMMON TOOLS OF LEAN
• VALUE STREAM MAPPING • QUALITY AT SOURCE
• 5S’s • POINT OF USE STORAGE
• VISUAL • QUICK CHANGEOVER (SMED)
• PLANT LAYOUT • CELLULAR/ GROUP TECH.
• STANDARDIZED WORK
• TOTAL PREVENTATIVE
• BATCH REDUCTION MAINTENANCE
• TEAMS/CROSS TRAINING • DEMAND PULL/ KANBAN
• SIX SIGMA
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7. Push vs. Pull
• Push – Produce to forecast of • Pull – Produce ONLY the
anticipated demand necessary units in the
– Excessive inventory (stock necessary quantities at the
out of what’s needed)
necessary times
– Large batches
– Simple – manage by eye
– Inability to keep pace with
real-time orders – Responsive to minor changes
– Inefficient ops – high costs – Effective at continuous
Emergency changeover inventory reduction
Product teardowns
Expediting – Hot list
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9. Kanban Example BOM
SP-4 Manufactured
C-40 Manufactured
C-400 Purchased
Inventoried at 2 Locations
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10. Kanban Circuits
Vendor
C -400 Finished parts
inventory
Receive Receive
C-400 Production
C-40 Production
SP-4
SP-4
Raw material
inventory
Demand
Customer
Procurement Kanban Circuit
Transfer Kanban Circuit
Production Kanban Circuit
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11. Kanban flow
Supplier
Receive for C-400
Initiate Initiate Receive Initiate Receive Initiate
Procurement Transfer for C-40 Production for SP-4 Production
Receive C-400 C-40 SP-4
C-400
C-400
Receive Receive
Kanban Kanban
Bin: PICK Bin: FLOOR Bin: FLOOR Bin: END
Ship 10
Location KB Location 01
END
Incoming
Empty container Customer Order
Kanban Quantities = 10 10 SP-4
Full container 11
13. RB-ERP Traditional Replenishment
Demand Pull Demand Pull
Cust Order Shop Order
N/C Lines N/C Comp’s
Push Push Push
MPS Planned MRP Planned Inventory
Orders Orders Reorder
Point
Order Review
Shop Order Req/Purchase
Order
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14. RB-ERP New Lean Replenishment
Demand Pull Demand Pull
Cust Order Shop Order
N/C Lines N/C Comp’s
Kanban Planning Kanban Planning Kanban Pull
MPS MRP Kanban
Planning Planning Replenish
Automatic Generation or Order Review
Shop Order Req/Purchase
Order
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15. RB-ERP Lean Development
• Generate/Manage Card Issuance
• Simple Kanban Transaction Entry (Bar Code Scan)
• Trigger Purchase Order/Release, Notification and
Receipt
• Trigger Inventory Transfer
• Trigger Production Receipt & Backflush
• History of Kanban Activity with Cycle Time
Tracking
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16. RB-ERP Lean Module
Database Schema
Item Location Key = Item/Location
Key = Item/Location/Destination
Kanban Circuit Contains default information for
Kanban Circuit
Kanban Circuit Kanbans in circuit, Number of
Kanbans in circuit, etc.
Key = Kanban ID
Kanban Alternate Key = Item/Location/Destination
Kanban
Kanban Contains Type of Kanban, Kanban,
Quantity, etc.
Key = Kanban ID / Count Usage
Kanban History Contains History of Kanban Usage
Kanban History
Kanban History including date/time stamps
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26. Move to by Step,
Then Receive Production Kanban
Yes
No
Update Kanban
Valid Data? Initiated?
Yes Yes Current Op
No No
Initiate Kanban Create Move
Signal Error
History Record
Create Initiate
History Record
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27. Initiate Procurement Kanban
Option:
Create/Release PO
Create New PO
Add PO Line
Option:
Cut Release
Blanket Release
Option:
Add Line to PO
Add Line
Add History Record
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(Optional)
28. Receive Procurement Kanban
Yes
No Yes Perform PO Update Kanban
Initiated?
Receipt History Record
Yes
No
Signal Error &
No
Disallow
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There are three types of kanban circuits: Production kanban: A card or other signal for indicating that items should be made either for use or to replace some items removed from stock. Transport kanban (Move kanban): A card or other signal for indicating that a specific number of units of a particular item are to be taken from a source (usually an outbound stock point) to a point of use (usually an inbound stock point). Supplier kanban: A card or other signal for indicating that a specific number of units of a particular item should be purchased from a supplier.
The flow starts with a demand of 10 SP-4 from customer order. The parts are delivered and a container at inventory location END is empty. A replenishment request is created for 10 SP-4 that automatically creates a production schedule. Now there is an empty container at inventory location SUB. A replenishment request is created for 10 C-40 that automatically creates a Shop order. Now there is an empty container at inventory location RAWM. A replenishment request is created for 10 C-400 that automatically creates a Transport Task from PICKING to SUB. Now there is an empty container at inventory location PICKING. A replenishment request is created for 10 C-400 that automatically creates a Purchase Order.