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RB-ERP Lean Module



                     1
Agenda

• Background
  – Lean / Kanban APICS Definitions and Concepts
  – Example
• Overview of RB-ERP Lean
• Walkthrough of RB-ERP Lean
• Questions and Answers




                                                   2
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




                                                                                       3
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




                                                                              4
Pull as an Integral Part of
  Lean Manufacturing




                              5
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




                                                   6
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




                                                                   7
Kanban Example




                 8
Kanban Example BOM

         SP-4    Manufactured




         C-40    Manufactured




         C-400   Purchased
                 Inventoried at 2 Locations




                                         9
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
                                                                      10
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
RB-ERP Approach




                  12
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

                                                                    13
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

                                                                               14
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



                                             15
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

                                                                              16
Kanban Destination Table




                           17
Kanban Item/Location Flag




                            18
Kanban Circuit Definition




                            19
New Kanban Circuit
and Kanban Deployment




                        20
Kanban




         21
RB-ERP Lean Module

            Kanban Generation and Deployment


Receive                 Receive                  Receive
Transfer              Production               Procurement
Kanban                 Kanban                    Kanban


Inventory            Mfg Receipt               PO Receipt
 Transfer             & Backflush




                                                        22
Single Entry/Scan of Kanban




Kanbans May Be Both
Initiated and Received

                           23
Receive Transfer Kanban




     Yes


No




                          24
Receive Production Kanban

     Yes



No




                            25
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
                                                                26
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



                                                   27
                                      (Optional)
Receive Procurement Kanban

                 Yes




         No      Yes   Perform PO   Update Kanban
  Initiated?
                         Receipt    History Record
                 Yes
       No

Signal Error &
        No
   Disallow




                                                 28
RB-ERP Kanban Data Setup
RB-ERP Lean Module

            Kanban Generation and Deployment


Receive                 Receive                  Receive
Transfer              Production               Procurement
Kanban                 Kanban                    Kanban


Inventory            Mfg Receipt               PO Receipt
 Transfer               & Back-
                         flush
RB-ERP Kanban Walkthrough
RB-ERP Lean Development


 Questions and Answers
RB-ERP Lean Module



                     33

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Rb erp lean module overview

  • 2. Agenda • Background – Lean / Kanban APICS Definitions and Concepts – Example • Overview of RB-ERP Lean • Walkthrough of RB-ERP Lean • Questions and Answers 2
  • 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 3
  • 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 4
  • 5. Pull as an Integral Part of Lean Manufacturing 5
  • 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 6
  • 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 7
  • 9. Kanban Example BOM SP-4 Manufactured C-40 Manufactured C-400 Purchased Inventoried at 2 Locations 9
  • 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 10
  • 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 13
  • 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 14
  • 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 15
  • 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 16
  • 20. New Kanban Circuit and Kanban Deployment 20
  • 21. Kanban 21
  • 22. RB-ERP Lean Module Kanban Generation and Deployment Receive Receive Receive Transfer Production Procurement Kanban Kanban Kanban Inventory Mfg Receipt PO Receipt Transfer & Backflush 22
  • 23. Single Entry/Scan of Kanban Kanbans May Be Both Initiated and Received 23
  • 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 26
  • 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 27 (Optional)
  • 28. Receive Procurement Kanban Yes No Yes Perform PO Update Kanban Initiated? Receipt History Record Yes No Signal Error & No Disallow 28
  • 30. RB-ERP Lean Module Kanban Generation and Deployment Receive Receive Receive Transfer Production Procurement Kanban Kanban Kanban Inventory Mfg Receipt PO Receipt Transfer & Back- flush
  • 32. RB-ERP Lean Development Questions and Answers

Editor's Notes

  1. 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.
  2. 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.