Lean Manufacturing: Kanban and Pull Based Manufacturing

Total Page:16

File Type:pdf, Size:1020Kb

Lean Manufacturing: Kanban and Pull Based Manufacturing Microsoft Dynamics® AX 2012 Lean Manufacturing: Kanban and Pull Based Manufacturing White Paper This whitepaper introduces a variety of kanban and pull based manufacturing scenarios and how they can be supported with lean manufacturing for Microsoft Dynamics AX 2012. Date: July 2011 http://microsoft.com/dynamics/ax Conrad Volkmann, Senior Program Manager, Manufacturing Send suggestions and comments about this document to [email protected]. Please include the title with your feedback. Table of Contents Introduction ................................................................................................ 4 Purpose of this document ....................................................................................................... 4 Concepts: kanban and replenishment strategies ......................................... 5 Kanban—the definition .......................................................................................................... 5 Circulating cards ................................................................................................................... 5 Single use kanbans and electronic kanban—all types ................................................................. 5 Single usage kanbans ............................................................................................................ 5 Priority kanbans .................................................................................................................... 5 Kanban schedule .................................................................................................................. 5 Replenishment strategy and kanban type ................................................................................. 6 Manufacturing ................................................................................................................... 6 Withdrawal ....................................................................................................................... 6 Replenishment strategies ....................................................................................................... 6 Fixed quantity kanbans ....................................................................................................... 6 Single usage kanbans ......................................................................................................... 7 Production forecast/schedule related kanbans ....................................................................... 7 Event kanbans................................................................................................................... 7 Reconciling master scheduling and lean manufacturing .............................................................. 8 Finite capacity scheduling for lean manufacturing .................................................................. 9 Production flow and activity validations ...................................................................................10 Kanban boards .......................................................................................... 11 The Kanban schedule board ..................................................................................................11 Automatic scheduling of kanban jobs ................................................................................... 11 Manual scheduling ............................................................................................................ 11 The Kanban schedule board ............................................................................................... 12 Lean scheduling groups ..................................................................................................... 12 Unplanned jobs ................................................................................................................ 13 Displaying the kanban schedule .......................................................................................... 13 Size of the kanban symbol in the schedule ........................................................................... 15 Moving jobs in the schedule ............................................................................................... 15 The schedule alert symbol ................................................................................................. 16 Automatic refresh ............................................................................................................. 16 The kanban board for process jobs .........................................................................................17 The job list ....................................................................................................................... 20 Job details ....................................................................................................................... 21 Job and job status registration ........................................................................................... 22 Picking list ....................................................................................................................... 22 Pegging ........................................................................................................................... 23 Information and process FastTab on the right side ................................................................ 23 Registration ..................................................................................................................... 23 Messages ......................................................................................................................... 23 Cycle time performance indicator ........................................................................................ 24 Transfer jobs .................................................................................................................... 25 Kanban quantity overview—finished goods ........................................................................... 25 Kanban quantity overview – material .................................................................................. 26 Job icon legend ................................................................................................................ 26 2 LEAN MANUFACTURING: KANBAN AND PULL BASED MANUFACTURING Automatic refresh ............................................................................................................. 27 The Kanban board for transfer jobs ........................................................................................28 Filtering jobs on the Kanban board for transfer jobs .............................................................. 28 Working with transfer jobs ................................................................................................. 29 Job status registration ....................................................................................................... 30 Update picking list ............................................................................................................ 31 Replenishment strategies ......................................................................... 31 Fixed quantity kanbans – the circulation principle ....................................................................31 Kanban quantity calculation ............................................................................................... 31 Scheduled kanbans ..............................................................................................................32 Event kanbans .....................................................................................................................32 The sales event ................................................................................................................ 33 The kanban line event ....................................................................................................... 33 The BOM line event ........................................................................................................... 34 Pegging event processing .................................................................................................. 35 The minimum stock event .................................................................................................. 35 Lean supply policies - the kanban rules .................................................... 36 Configuration of kanban rules ................................................................................................36 Filter kanban rules: ........................................................................................................... 37 Activities, kanban flow and production flow .......................................................................... 38 The product selection ........................................................................................................ 38 Quantities ........................................................................................................................ 38 Kanban cards ................................................................................................................... 39 Configuration of events ..................................................................................................... 40 Manufacturing scenarios with kanbans ..................................................... 40 Single process activity production scenario ..............................................................................40
Recommended publications
  • Implementation of Kanban, a Lean Tool, in Switchgear Manufacturing Industry – a Case Study
    Proceedings of the International Conference on Industrial Engineering and Operations Management Paris, France, July 26-27, 2018 Implementation of Kanban, a Lean tool, In Switchgear Manufacturing Industry – A Case Study Shashwat Gawande College Of Engineering, Pune Department of Industrial Engineering and management Savitribai Phule Pune University Pune, Maharashtra 44, India [email protected] Prof. J.S Karajgikar College Of Engineering, Pune Department of Industrial Engineering and management Savitribai Phule Pune University Pune, Maharashtra 44, India [email protected] Abstract Kanban is a scheduling system for lean and just in time manufacturing industries or services firms. It is a very effective tool for running a production system as a whole, in this system problem areas are highlighted by measuring lead time and cycle time of the full process the other benefits of the Kanban system is to establish an upper limit to work in process inventory to avoid over capacity. The objective of this case study is to implement a standard Kanban System for a Electrical manufacturing MNC company. With this system, the firm implemented use of just in time to reduce the inventory cost stocked during the process. This case study also shows that the Kanban implementation is not only bounded to the company but to their vendor also, from where, some of the components are been assembled. A replenishment strategy was also developed, tested and improved at the company location. A complete instruction manual is also developed as a reference Keywords Value Steam Mapping, Kanban, Root Cause Analysis, Replenishment Strategy 1. Introduction Lean manufacturing or simply ‘lean’ is a systematic method for waste reduction within a manufacturing system without affecting productivity.
    [Show full text]
  • Sep 0 1 2004
    AEROSPACE MERGERS AND ACQUISITIONS FROM A LEAN ENTERPRISE PERSPECTIVE by JUNHONG KIM B.S., Chemical Engineering Seoul National University (1998) SUBMITTED TO THE SYSTEM DESIGN AND MANAGEMENT PROGRAM IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENGINEERING AND MANAGEMENT at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY June 2004 @0 2004 Junhong Kim. All rights reserved The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part. Signature of Author......... ........................ Junhong Kim /ste7&Ies 'and Management Program February 2004 Certified by ... .........I . ...................... Joel Cutcher-Gershenfeld Executive Director, Engineering Systems Learning Center Senior Research Scientist, Sloan School of Management Accepted by ....................................................... -........................... Thomas J. Allen Co-Director, LFM/SDM Howard W. Johnson Professor of Management r A c c ep te d b y ............................. ......... ............................................................................................ David Simchi-Levi Co-Director, LFM/SDM MASSACHUSETTS INSTITUTE| Professor of Engineering Systems O.F TENL GYL.J SEP 0 1 2004 BARKER LIBRARIES Room 14-0551 77 Massachusetts Avenue Cambridge, MA 02139 Ph: 617.253.2800 MITL-ibries Email: [email protected] Document Services http://Iibraries.mit.eduldocs DISCLAIMER OF QUALITY Due to the condition of the original material, there
    [Show full text]
  • Setting the Stage for Lean Manufacturing Success
    Automotive SETTING THE STAGE FOR LEAN MANUFACTURING SUCCESS AUTHOR Despite careful study of lean production, many manufacturers miss out on Ron Harbour lean’s benefits—including lower costs, higher product quality, and greater employee productivity. Why? Beguiled by lean’s business systems and technical tools, they neglect the most important—and least understood— key to executing lean: people systems. Lean manufacturing has been active for a long time, traveling a 30-plus-year journey in the West. While the auto industry has led the effort, lean is now being broadly applied across a multitude of industries, ranging from hospitals and pharmaceuticals to electronics and aerospace. In the automotive production industry alone, a wealth of lean production programs has cropped up, as variations on the renowned Toyota Production System and Ford’s much earlier waste-reduction efforts. (See “Henry Ford’s Philosophy.”) HENRY FORD’S PHILOSOPHY As long as a century ago, Henry Ford embodied lean manufacturing philosophy. He believed that by controlling every link in his industry’s value chain, he could minimize the time it took to transform raw materials into manufactured vehicles. He could thus cut costs and create cars that could be sold at prices accessible to virtually everyone. Ford owned iron ore mines for the production of steel, beaches where sand could be gathered to make glass, even cattle ranches to serve as sources of leather for his autos’ upholstery. In today’s world of fractured value chains, where different entities own different links, few people remember Ford’s approach to taking time and cost out of the auto manufacturing process.
    [Show full text]
  • Material Replenishment System
    MATERIAL REPLENISHMENT SYSTEM REPLENISHMENT METHODS FOR VISUALIZING MATERIAL NEEDS IN A LEAN MANUFACTURING COMPANY Examensarbete – Högskoleingenjör Industriell ekonomi Stefan Andersson Johan Elfvenfrost År: 2016.18.07 I Svensk titel: Material återfyllningssystem Engelsk titel: Material replenishment system Utgivningsår: 2016 Författare: Stefan Andersson, Johan Elfvenfrost Handledare: Sara Lorén, Högskolan i Borås Magnus Hansson Fallenius, IAC Group Göteborg Examinator: Andreas Hagen II Abstract This thesis work has been written both for and in co-operation with the company IAC Group Gothenburg. The main purpose of the report is to find a new alternative material replenishment system which will improve the internal material flow and eliminate unnecessary work activities such as manual call offs. The aim is to find a new system to reduce the incidental costs incurred and improve customer service in quality and performance. Observations and interviews were conducted and an analysis of the current situation was made. Waste was identified in the form of unnecessary transport, specifically in milk runs, where time was spent looking for materials to be loaded. This creates uncertainty and may contribute to increased costs and poor customer service. Three different options for a new replenishment system were developed which were compared with the theory and present situation. The proposal was evaluated with respect to cost, available support, complexity and future compatibility. The analysis of the theory and current state shows the importance of a long-term solution with few risks of waste. The solution that best cope with this is an e-Kanban system that automates the replenishment system and would make manual material call offs disappear completely.
    [Show full text]
  • The Extent of Implementation of Lean Six Sigma Within Commercial Banks in Kenya
    IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 18, Issue 12. Ver. II (December. 2016), PP 31-37 www.iosrjournals.org The Extent of Implementation of Lean Six Sigma within Commercial Banks in Kenya Beatrice Chelangat Abstract: The objectives of this study were to find out the extent to which Lean Six Sigma is implemented within commercial banks in Kenya. The respondents were made up of managers from these commercial banks in the Kenyan banking industry. The study adopted exploratory research. Primary data was collected using questionnaires and analyzed using descriptive statistics and factor analysis. The study found that the following application of tools and techniques of Lean and Six Sigma were used to a large extent; Voice of the Customers (VOC), Cause and effect analysis, Total Quality Management (TQM), Cross -functional work teams, Continuous Improvement (Kaizen), –Define- Measure- Analyze-Improve and Control (DMAIC) ,Total Preventive Maintenance and Plan, Do, Check, Act (PDCA). The study also found that two main ways through which the banks knew about Lean Six Sigma were through professional publications and through top management. Key Words: Lean Six Sigma I. Introduction Over the past decades, business organizations have embraced a wide variety of management programmes that they hope will enhance competitiveness. Currently, two of the most popular programmes are Six Sigma and Lean management. According to Wang & Chen (2010), Six Sigma approach is primarily a methodology for improving the capability of business processes by using statistical methods to identify and decrease or eliminate process variation. Its goal is reduction of defects and improvements in profits, employee morale and product quality.
    [Show full text]
  • Implementing Lean Service Operations: a Case Study from Turkish Banking Industry
    İşletme Fakültesi Dergisi, Cilt 10, Sayı 1, 2009, 171-198 IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY Sabri Erdem*, Koray Aksoy** ABSTRACT This paper describes lean management and its application in banking industry. Since lean management eliminates waste effectively in manufacturing environment with significant outputs, service industry has started to focus on lean implementations. In this sense, this paper is a pioneer especially for banking in service sector in Turkey to eliminate waste by means of lean methods. For this reason, a branch of a nationwide state bank in Aegean region was selected as pilot to collect data by observing customers, employee and operations. After analyzing the collected data, some improvements due to eliminations of unnecessary operations were offered. Our results show that significant improvements in banking sector are easy to achieve just by focusing value adding operations. Obtained results are also valid for other branches of the bank. Keywords: Lean Service Management, Lean Thinking, Efficiency in Banking YALIN HİZMET İŞLEMLERİ UYGULAMASI: TÜRK BANKACILIK ENDÜSTRİSİNDEN BİR ÖRNEK OLAY ANALİZİ ÖZET Bu çalışmada yalın yönetim ve bankacılık uygulaması ele alınmaktadır. Yalın yönetimin imalat ortamında anlamlı çıktılar sağlayacak şekilde atıl kaynakları ortadan kaldırmasından dolayı hizmet endüstrisi de yalın uygulamalarına odaklanmaya başlamıştır. Buradan hareketle, bu çalışma, özellikle yalın araçları kullanılarak Türkiye’de bankacılık sektöründeki atıl kullanımın ortadan kaldırılması anlamında öncü çalışmalardan birisi olmaktadır. Bu amaçla devlet bankalarından birisinin Ege Bölgesi’ndeki şubelerinden birisi pilot uygulama alanı olarak seçildi ve bu pilot çalışma alanında müşteriler, banka müşteri temsilcileri ve operasyonlar üzerinde gözlemler yapılarak veri toplanmıştır. Toplanan veriler analiz edildikten sonar gereksiz işlemlerin ortadan kaldırılmasına bağlı olarak bazı iyileştirmeler önerilmektedir.
    [Show full text]
  • The Effect of Lean Manufacturing on a Supply Chain Relationship And
    sustainability Article The Effect of Lean Manufacturing on a Supply Chain Relationship and Performance Assadej Vanichchinchai Faculty of Engineering, Mahidol University, Nakhon Pathom 73170, Thailand; [email protected] or [email protected] Received: 10 July 2019; Accepted: 25 September 2019; Published: 17 October 2019 Abstract: This study aims to explore the impact of lean manufacturing (LM) or transaction-based supply chain management (SCM) on a supply chain relationship (SCR) and supply performance (SP) in manufacturing industries in Thailand. The measurement instruments for LM, SCR, and SP were developed from comprehensive literature reviews, verified by experts, and statistical techniques to assure reliability and validity. The hypothesized model was tested with path analysis of structural equation modeling. It was found that the set of LM, SCR, and SP frameworks were reliable and valid for Thai manufacturing industries. LM had not only a direct effect on the SCR and SP but also an indirect effect on the SP through the SCR. The SCR also had a direct impact on the SP. This paper presents insights into the debate concerning the impact of transaction-based SCM on relationship-based SCM and SP. Keywords: lean manufacturing; supply chain management; supply chain relationship; supply performance; transaction-based supply chain 1. Introduction Just-in-time (JIT) production was created by Toyota Motor Corporation [1,2]. Generally, the term JIT can be used interchangeably with the Toyota production system (TPS) and lean manufacturing (LM) [2–4]. Similar to the supply chain management (SCM), LM emphasizes on time delivery to the right location at a minimum cost by eliminating waste, especially unnecessary inventories [5,6].
    [Show full text]
  • APPLICATION of KANBAN SYSTEM for IMPLEMENTING LEAN MANUFACTURING (A CASE STUDY) 1 2 3 B.Vijaya Ramnath, C
    Journal of Engineering Research and Studies Research Article APPLICATION OF KANBAN SYSTEM FOR IMPLEMENTING LEAN MANUFACTURING (A CASE STUDY) 1 2 3 B.Vijaya Ramnath, C. Elanchezhian and R. Kesavan Address for Correspondence 1,2 Research Scholar, 3Asst. Professor, Department of Production Technology, Anna University, MIT Campus, Chennai-44, Tamilnadu Email: [email protected] ====================================================================== ABSTRACT This paper deals with implementation of lean manufacturing in Engine valve machining cell in a leading auto components manufacturing industry in the South India. The main objective of this paper is to provide a background on lean manufacturing, present an overview of manufacturing wastes and introduce the tools and techniques that are used to transform a company into a high performing lean enterprise. Value stream mapping is a main tool used to identify the opportunities for various lean techniques. The focus of the lean manufacturing approach is on cost reduction by eliminating Non- Value added activities. Applications have spanned many sectors including automotive, electronics and consumer products manufacturing. In this paper, Value Stream Mapping (VSM) is used to map the current operating state for production line. This map is used to identify sources of waste and to identify lean tools for reducing the waste. To eliminate the wastes found from the current state map Kanban system is suggested for pre machining section and single piece flow concept is suggested for machining section. Then a future state map has been developed for the system with lean tools applied to it KEYWORDS: Lean manufacturing, Value Stream Mapping and Kanban System 1. INTRODUCTION system focused on and driven by customers, Many manufacturers are now critically both internal and external.
    [Show full text]
  • A Framework of E-Kanban System for Indonesia Automotive Mixed-Model Production Line
    International Journal of Science and Research (IJSR) ISSN: 2319-7064 ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426 A Framework of e-Kanban System for Indonesia Automotive Mixed-Model Production Line Santo Wijaya1, Fransisca Debora2, Galih Supriadi3, Insan Ramadhan4 1Department of Computer Engineering, META Industry of Polytechnic, Cikarang Technopark Building, Lippo Cikarang, West Java 17550, Indonesia 2Department of Industrial Engineering, META Industry of Polytechnic, Cikarang Technopark Building, Lippo Cikarang, West Java 17550, Indonesia 3PT. Trimitra Chitrahasta, Delta Silicon 2 Industrial Estate, West Java 17530, Indonesia 4Agency for the Assessment and Application of Technology, Puspiptek Serpong, Indonesia Abstract: The paper describes a development framework of e-Kanban (electronic Kanban) system for Indonesia automotive mixed- model production line. It is intended to solve problems found during the implementation of traditional kanban system in the subjected company. The traditional kanban system posed inefficiencies in the production line and it has been identified in this paper. The impact is significant in causing delay information for production instruction, loss of kanban cards, inaccurate inventory, and other human- related errors. We also identified that these inefficiencies are also increasing with the increase of product variety and volume in mixed- model production line. The presented framework is the extension of the traditional kanban system that has been running for over one year in the subject company. Design framework objective is to handle all the inefficiencies problem occurred and improve the overall efficiency of material and information flow within the production line. It is a combination of paper-based kanban and software-based kanban system. Paper-based kanban handles the movement of man and material in the production line.
    [Show full text]
  • (Vsm, Smed, Kaizen) in Minimizing the Lead Time in Gear
    International Journal of Scientific & Engineering Research, Volume 7, Issue 5, May-2016 53 ISSN 2229-5518 APPLICATION OF LEAN TOOLS (VSM, SMED, KAIZEN) IN MINIMIZING THE LEAD TIME IN GEAR MANUFACTURING PROCESS KARTHICK.N1, HARI PRASAD.V2 , GOPI.S3 , BALAJI.K4 1 Assistant Professor, Department of Mechanical Engineering, Knowledge Institute of Technology, Tamil nadu, India. 2Student , Department of Mechanical Engineering, Knowledge Institute of Technology, Tamil nadu, India. 3Student, Department of Mechanical Engineering, Knowledge Institute of Technology, Tamil nadu, India. 4Student, Department of Mechanical Engineering, Knowledge Institute of Technology, Tamil nadu, India. SYNOPSIS cutting at a time. With the implementation of these lean tools total lead time of the product can be reduced and Lean manufacturing is a process improvement the customer demand can be met. Finally the future state methodology that focuses on eliminating non-value value stream map is drawn. added activity, continuous improvement in the process, minimizing cycle time and lead time, reducing inventory INTRODUCTION level, lower the production cost, and increasing 1.1 LEAN MANUFACTURING productivity Lean Manufacturing, also called Lean . Production, is a set of tools and methodologies that aims The project is carried out in Rydon industries to improve the productivity, quality and reduce the cost private limited, Coimbatore. This industry produces through minimizing the non-value added time, cycle variety of products such as sprocket, spur gear, helical time, lead time. These aims are achieved by the gear and gear housingIJSER etc. In this project work spur gear implementation of various lean tools and concepts. The manufacturing is taken for study. At first different explanation of various lean tools and concept is given manufacturing processes (cutting the bar stock, OD below turning, center drilling followed by boring, CNC LEAN TOOLS AND CONCEPTS machining, gear hobbing, deburring, keyway slotting and • Visual management gear grinding) are identified.
    [Show full text]
  • Lean Manufacturing: Selected Financial Performance of Recognized Lean Manufacturers Mehmet C
    International Business & Economics Research Journal –December 2004 Volume 3, Number 12 Lean Manufacturing: Selected Financial Performance Of Recognized Lean Manufacturers Mehmet C. Kocakulah, (E-mail: [email protected]), University of Southern Indiana Jim Upson, (E-mail: [email protected]), University of Southern Indiana ABSTRACT Since the Japanese development of lean manufacturing practices after World War II, American companies have slowly begun to embrace the concepts and results offered by the lean manufacturing concept. Companies in America did not fully embrace the value of the processes until the mid to late 1990’s and some firms are finding that financial results that should have been positively impacted immediately are not showing the results promised by Japanese practitioners. Two companies, Delphi and Johnson Controls, were selected for comparative analysis because of the numerous facilities that each have had selected for the Shingo Prize for Excellence in Manufacturing. Both companies have been engrained in the traditional mass-producing methods of American production from mother companies, customers, and suppliers. Both companies have adopted and implemented lean manufacturing into their organizations in the late 1990’s. Using targets set forth by the lean manufacturing leaders of Japan, a comparison will be made of both of these companies as well as comparisons of these two companies to other firms in their industry. The S&P 500 financial ratios will also be used along with those of two of the most recognized leaders in lean manufacturing, Wal-Mart and Toyota, in order to determine the effectiveness of implementation of lean practices by two of the newest leaders in manufacturing excellence.
    [Show full text]
  • Proxy Circular AODA
    Management Proxy Circular ANNUAL MEETING – MAY 6, 2021 Magna International Inc. DEAR FELLOW SHAREHOLDERS, Around ten years ago, the term ‘‘black swan’’ became known to As you read this Circular and the accompanying Annual Report, I many of us for the first time; in 2020, a true black swan event hope you will take note of many other significant developments at became a devastating part of our reality. Although all of us have Magna during 2020, including: been affected, the devastation of COVID-19 has hit some much • strong second-half operating performance and solid total harder than others in terms of physical, emotional and economic shareholder return performance for the year as a whole; well-being, as well as in terms of loss of family or friends. As with • the Board’s voluntary, 20% reduction in annual Board retainer every company, the Magna family has experienced loss during the for the first-half of 2020; pandemic and our hearts go out to all those who have suffered due to COVID. • initiation of the next phase of Board renewal, including through the recruitment of Mary Lou Maher to serve as an Challenging situations often bring out the best in people; the Independent Director upon her election at the Meeting; challenges posed by COVID certainly demonstrated the ‘‘best’’ in • continued enhancement of the company’s corporate Magna’s employees, as well as its culture. From the earliest days governance practices, such as through adoption of a Board of the pandemic, the company was aligned on the need to Diversity Policy targeting gender parity (ranging between 40 preserve employee economic well-being during the mandatory and 60%); stay at home periods.
    [Show full text]