Presentation on theme: "Pull System Workshop THE GOAL: Directly link all processes - from the customer back to raw material suppliers - to improve responsiveness, shorten lead."— Presentation transcript:
1 Pull System WorkshopTHE GOAL: Directly link all processes - from the customer back to raw material suppliers - to improve responsiveness, shorten lead time, and reduce costs
2 Why Use Pull Systems to Manage Inventory Buffers? Forecast1. Start with invariably inaccurate forecasts2. Add in the variability of real world operations3. And you create large inventories of what you don’t need and stock-outs of what you do need$$
3 What is a Pull System? Min Stock To Cover Demand Until Refilled Point of UseStorage for Customer,Empty Space Indicates ConsumptionBrand XBrand YRefill Only What Customer Has RemovedSUzUzzzwxxxxxTTYYYYY
4 Mfg. Example of a Pull System STORESStandard Replenishment RouteMin # of Bins To Cover Demand Until Empty Bin is [Seen + Removed + Refilled + Replaced]Point of UseStorage for CustomerEmpty Bin is Signal to Replenish a Specific PartPart #9031.A5Bin Qty: 25Address: Q22-671
5 Process for Implementing a Pull System 1. Map the Current State2. Address Barriers to Pull3. Determine Customer Scheduling Strategy4. Design a Communication System5. Train People to Use the Pull System6. Define Inventory Locations7. Start at Customer and implement upstreamDaily
6 Ship Date & Config. Frozen 1. Map the Current State5 Models30 Engines/monthPaint to Install = 14 daysDailyCustoms(Capinas)A-Trade(Miami)CustomerShipC/T = 20 minProcess all in/out mat’lSAPSales & OpsPlanning5 yr forecast14-monthpurchase order60-Day FrozenScheduleVolume FrozenShip Date & Config. Frozen75% wrong FADECSchedule changes up to PaintLack Process FlowNo defined Target CTMaterial ShortagesPoor 5S, Vis ControlWIP - 3rd shiftLong Setup TimeTest not commonSetup Person idle during testInspection onlyLow OEE & Long SetupsTooling IssuesNo std WIPSupplierMnthlyFinal AssemblyC/T = 30 hrsC/O = 0 hr3 shiftsCap = 2.0 eng/dayTestC/T = 5 hrs (test)+3 hr (load)RFT = 90%2 shiftsCap= 2 eng/dayStoreC/T = 4 hrsC/O = 0 minCap = 4 eng7W31Sub AssemblyC/T = 7 hrsCap = 4.0 eng/day2Turbine MachiningC/T = 5.hrs (Broach)C/O = 2.4 hrOEE = 49%Cap = 4.5 eng/day130 pcsA-22B - 0C - 750 hrs7 hrs25 days12 hrs30 hrs6 days5 hrs3 days4 hrs2 day20 min1 day38 day96 hrsA- 15B - 60C - 35
7 2. Address Barriers WASTE REDUCTION LEAD TIME MATERIAL PEOPLE PROCESSESStandardized WorkLean Value StreamMulti-Process SkillsTotal Prod. MaintenancePull SystemContinuous ImprovementProduction TeamsVisual ControlOne-Piece FlowQuality PracticesQuick SetupProblem Solving Skills5SORGANIZATIONAL COMMITMENT
9 Communicating Customer Orders to the Plant Floor Send Customer Schedule to Only One Point in your Manufacturing ProcessSelect point furthest upstream that flows continuously to customerAvoid including or correct processes that corrupt the customer order sequenceOrder-to-Delivery lead time will determine the customer’s inventory requirementsLevel the schedule to the Production FloorConsider using a Sequence Pull versus a Conventional Pull System to reduce buffer requirement
10 Leveling Production Determine Demand for Each Product Model A = 160/monthModel B = 80/monthModel C = 40/ monthLevel the Daily VolumeTotal Volume = = 280Daily Volume = 280 / 20 day/month = 14Level the SequenceRatio (A:B:C) = 160:80:40 = 4:2:1Batch Size = 4 PartsSequence = 4A-4A-4B-4A-4A-4B-4CPartsMonthPartsDay
11 4. Design a Communication System Kanban: Any signal used to directly communicate production or delivery information between those people performing the workProduction KanbanWithdrawal KanbanSupplierProcessCustomerProcessInventory Marketplace
12 Types of Kanban Production Kanban Signal (or Triangle): Processes with long setup timesCall: Where use of a physical card is not practicalRegular: All other Production KanbansWithdrawal KanbanStock: Material is pulled from in-house storage locationSupplier: Material is ordered from external supplier
13 Production KanbanContains all information needed to communicate a production order or a delivery orderOne Kanban per bin of partsDifferent forms:CardsEmpty BinsFloor LocationCall LightElectronic Signal
14 How a Kanban Works 3. Picks up parts listed on Kanban. Removes Prod. Kanban, places in mailbox.Attaches Withdrawal Kanban.KanbanPart #/DescriptionQty/Bin SizeMarket AddressLine-side Address4. TL Removes Prod. Kanbans from mailbox, places on board to communicate leveled schedule, line produces parts to replace those consumed by customer.2. Retrieve Withdrawl Kanbans at scheduled intervals.1. Starts new bin, removes Kanban, places in mailbox5. Transports needed parts (with Kanbans) to Line-side Address.
15 Kanban Calculations Daily Output * Lead Time [Mfg + Kanban + Safety] Parts per BinNumber of Kanban =Daily Output = Monthly Output / Workdays per MonthLead Time =Time to Manufacture Part + Time to Process Kanban + Safety Factor
16 Signal Kanbans Advance Notice for Next Production Lot Prepare Raw Mat’lPerform External Set UpSignal to Run Next Production LotComplete Internal SetupRun Lot to Kanban Requirements
17 How Signal Kanban Works Set UpRunTL “sees” status of stamping area by viewing Scheduling Board.2. Retrieves Kanbans at set intervals.Places on Kanban Board.3. Rectangle Kanban.Prepare for next jobBlank coil lengthPerform external setup1. Starts bin with Rectangle Kanban, removes Kanban and places in mailbox. Repeats when reaches bin with Triangle Kanban.4. Receive Triangle Kanban.Perform internal setupRun lotAttach Kanban6. Transports parts w/Kanbans to customer.
18 Signal Kanban Calculations Daily Output * Lead Time [Mfg + Prep + Kanban + Safety]Parts per BinReorder Point =(Rectangle)Daily Output * Lead Time [Mfg + Kanban + Safety]Parts per BinReorder Point =(Triangle)Prep is the critical-path time needed to prepare for the production run to include external setup and cutting of raw material
19 5. Train People to Use the Pull System 1. Never send defective products downstream.2. Downstream process draws from upstream processes only what is required by the Kanban.3. Upstream process produces items in exact quantity and sequence indicated by the Kanban.4. Never produce or convey parts without a Kanban.5. Attach Kanban to the actual container of parts.6. Use Kanban to fine tune the production system.
20 6. Define Inventory Locations BeforeAfterIf you had only 30 seconds to find the unit…...which storage system would you choose?
21 7. Start at the Customer and Implement Upstream Initial buffers may be large to account for long lead times or unstable processesReduce buffer sizes over time as implement improvements upstream and gain confidence in the systemAvoid using your ERP system to communicate customer pull signal to the plant floorStreamline the communication/scheduling process connecting your customer to your plant floorUse ERP for capacity planning and long-lead suppliersImplement Material-Information Loops starting at shipping dock and working upstream
22 14 Days Order to Delivery Synchronized Pull Future State MapAdd FadecDefine L/RBox at StoreSales & OpsPlanningSAPForecast &purchase order60-Day FrozenVol. Schedule14 Days Order to Delivery Synchronized PullMixCustoms(Capinas)DailySupplierT=0T=-14C/T = 4 hrsC/O = 0 min2 shiftsCapacity = 4 engShip in PairsFStore/ShipSAPSupplierWklyForecastCommon TestSetup<15minCut 3rd shift2-Bin A PartsKit B/C PartsFlow Engine-6op5S AreaVolumeFinal AssemblyC/T = 36 hrsC/O = 0 hr2 shiftsCapacity = 2.0 eng/dayC/T = 5 hrs (test)+0.5 hr (load)RFT = 90%Capacity = 2 eng/day4-3007A2-3007CW1-A1-CTestTPMSetup<Ct+20minC/T = 5.5hrs (Broach)C/O = 2.4 hr2 shiftsOEE = 75%Capacity = 3 eng/dayTurbine Machining20 pcsWC/T = 7 hrsC/O = 0 hr2 shiftsCapacity = 2.0 eng/daySub Assembly2W