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RB-ERP Lean ModuleRB-ERP Lean Module

  

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AgendaAgenda

• BackgroundBackground– Lean / Kanban APICS Definitions and ConceptsLean / Kanban APICS Definitions and Concepts– ExampleExample

• Overview of RB-ERP LeanOverview of RB-ERP Lean• Walkthrough of RB-ERP Lean Walkthrough of RB-ERP Lean • Questions and AnswersQuestions and Answers

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Lean Manufacturing Lean Manufacturing DefinitionDefinition

• Lean embodies a set of principles and practices that reduce cost Lean embodies a set of principles and practices that reduce cost through the relentless removal of waste and through the simplification through the relentless removal of waste and through the simplification of all manufacturing and support processes. of all manufacturing and support processes.

• Lean is a philosophy of production that emphasizes the minimization of Lean is a philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various the amount of all the resources (including time) used in the various activities of the enterpriseactivities of the enterprise

• Lean involves identifying and eliminating non-value-adding activities in Lean involves identifying and eliminating non-value-adding activities in

design, production, supply chain management, and dealing with the design, production, supply chain management, and dealing with the customers. customers.

• Lean producers employ teams of multi-skilled workers at all levels of the Lean producers employ teams of multi-skilled workers at all levels of the organization and use highly flexible, increasingly automated machines organization and use highly flexible, increasingly automated machines to produce volumes of products in potentially enormous variety.to produce volumes of products in potentially enormous variety.

- APICS - APICS

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Kanban DefinitionKanban Definition

• The Japanese word Kanban, loosely translated, means card, The Japanese word Kanban, loosely translated, means card, billboard, or sign, but other signaling devices such as colored billboard, or sign, but other signaling devices such as colored golf balls have also been used. The term is often used golf balls have also been used. The term is often used synonymously for the specific scheduling system developed synonymously for the specific scheduling system developed and used by the Toyota Corporation in Japan.and used by the Toyota Corporation in Japan.

• Kanban is a method of Just-in-Time production that uses Kanban is a method of Just-in-Time production that uses standard containers or lot sizes with a single card attached to standard containers or lot sizes with a single card attached to each.each.

• It is a pull system in which work centers signal with a card or It is a pull system in which work centers signal with a card or other device that they wish to withdraw parts from feeding other device that they wish to withdraw parts from feeding operations or suppliers. operations or suppliers.

– – APICSAPICS

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Pull as an Integral Part Pull as an Integral Part of Lean Manufacturingof Lean Manufacturing

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COMMON TOOLS OF LEANCOMMON TOOLS OF LEAN

• VALUE STREAM VALUE STREAM MAPPINGMAPPING

• 5S’s5S’s

• VISUAL VISUAL

• PLANT LAYOUTPLANT LAYOUT

• STANDARDIZED WORKSTANDARDIZED WORK

• BATCH REDUCTIONBATCH REDUCTION

• TEAMS/CROSS TRAININGTEAMS/CROSS TRAINING

• SIX SIGMASIX SIGMA

• QUALITY AT SOURCEQUALITY AT SOURCE

• POINT OF USE STORAGE POINT OF USE STORAGE

• QUICK CHANGEOVER QUICK CHANGEOVER (SMED)(SMED)

• CELLULAR/ GROUP TECH. CELLULAR/ GROUP TECH.

• TOTAL PREVENTATIVE TOTAL PREVENTATIVE MAINTENANCEMAINTENANCE

• DEMAND PULL/ KANBANDEMAND PULL/ KANBAN

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Push vs. PullPush vs. Pull

• Push – Produce to Push – Produce to forecast of anticipated forecast of anticipated demanddemand– Excessive inventory Excessive inventory

(stock out of what’s (stock out of what’s needed)needed)

– Large batchesLarge batches– Inability to keep pace with Inability to keep pace with

real-time ordersreal-time orders– Inefficient ops – high costsInefficient ops – high costs

Emergency changeoverEmergency changeover Product teardownsProduct teardowns Expediting – Hot listExpediting – Hot list

• Pull – Produce ONLY the Pull – Produce ONLY the necessary units in the necessary units in the necessary quantities at necessary quantities at the necessary timesthe necessary times– Simple – manage by eyeSimple – manage by eye– Responsive to minor Responsive to minor

changeschanges– Effective at continuous Effective at continuous

inventory reductioninventory reduction

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Kanban ExampleKanban Example

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Kanban Example BOMKanban Example BOM

SP-4 Manufactured

C-40 Manufactured

C-400 PurchasedInventoried at 2 Locations

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Kanban CircuitsKanban Circuits

Customer

Receive Production

Vendor

C-400

SP-4C-40

Demand

Finished parts inventory

Raw material inventory

C-400

Transfer Kanban Circuit

Production Kanban Circuit

Procurement Kanban Circuit

Receive Production

SP-4

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Kanban flowKanban flow

Incoming Customer Order

10 SP-4

Bin: END

Receive Kanban

ReceiveKanban

Bin: FLOORBin: PICK Bin: FLOOR

Supplier

Empty container

Full container

Ship 10 END

Initiate Production

SP-4

Initiate Production

C-40

Receivefor SP-4

Initiate TransferC-400

Initiate Procurement

C-400

Receivefor C-40

Receive C-400

Receive for C-400

Kanban Quantities = 10

Location 01Location KB

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RB-ERP ApproachRB-ERP Approach

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RB-ERP Traditional RB-ERP Traditional ReplenishmentReplenishment

Inventory Reorder Point

Cust Order N/C Lines

Shop Order N/C Comp’s

MPS Planned Orders

MRP Planned Orders

Order Review

Shop Order

Req/Purchase Order

Push Push Push

Demand Pull Demand Pull

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RB-ERP Lean RB-ERP Lean DevelopmentDevelopment

• Generate/Manage Card IssuanceGenerate/Manage Card Issuance• Simple Kanban Transaction Entry (Bar Code Simple Kanban Transaction Entry (Bar Code

Scan) Scan) • Trigger Purchase Order/Release, Notification Trigger Purchase Order/Release, Notification

and Receiptand Receipt• Trigger Inventory TransferTrigger Inventory Transfer• Trigger Production Receipt & BackflushTrigger Production Receipt & Backflush• History of Kanban Activity with Cycle Time History of Kanban Activity with Cycle Time

TrackingTracking

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Database Schema

Item Location Key = Item/Location

Kanban CircuitKey = Item/Location/DestinationContains default information for Kanbans in circuit, Number of Kanbans in circuit, etc.

Kanban CircuitKanban Circuit

KanbanKanban

Kanban

Key = Kanban IDAlternate Key = Item/Location/DestinationContains Type of Kanban, Kanban, Quantity, etc.

Kanban HistoryKanban History

Kanban History

Key = Kanban ID / Count UsageContains History of Kanban Usage including date/time stamps

RB-ERP Lean ModuleRB-ERP Lean Module

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Kanban Destination TableKanban Destination Table

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Kanban Item/Location Kanban Item/Location Flag Flag

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Kanban Circuit Definition Kanban Circuit Definition

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New Kanban CircuitNew Kanban Circuitand Kanban Deployment and Kanban Deployment

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KanbanKanban

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RB-ERP Lean ModuleRB-ERP Lean Module

Receive Production Kanban

Receive Transfer Kanban

Receive Procurement Kanban

Inventory Transfer

Kanban Generation and Deployment

Mfg Receipt

& Backflush

PO Receipt

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Single Entry/Scan of Single Entry/Scan of KanbanKanban

Kanbans May Be Both Initiated and

Received

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Receive Transfer KanbanReceive Transfer Kanban

Yes

No

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Receive Production KanbanReceive Production Kanban

Yes

No

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Move to by Step,Move to by Step,Then Receive Production KanbanThen Receive Production Kanban

Yes

No

Signal Error

Valid Data?Update Kanban

Current OpYes

No

Initiated?

Initiate Kanban

No

Yes

Create InitiateHistory Record

Create MoveHistory Record

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Initiate Procurement KanbanInitiate Procurement Kanban

(Optional)

Option:Create New PO

Create/Release PO

Add PO Line

Add History Record

Option:Blanket Release

Cut Release

Option:Add Line

Add Line to PO

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Receive Procurement KanbanReceive Procurement Kanban

Yes

No

Yes

No

Perform POReceipt

Signal Error &Disallow

Initiated?Update KanbanHistory Record

Yes

No

RB-ERP Kanban Data RB-ERP Kanban Data Setup Setup

RB-ERP Lean Module RB-ERP Lean Module

Receive Production

Kanban

Receive Transfer Kanban

Receive Procurement Kanban

Inventory Transfer

Kanban Generation and Deployment

Mfg Receipt & Back-

flush

PO Receipt

RB-ERP Kanban WalkthroughRB-ERP Kanban Walkthrough

RB-ERP Lean RB-ERP Lean DevelopmentDevelopment

Questions and AnswersQuestions and Answers

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RB-ERP Lean ModuleRB-ERP Lean Module