1 RB-ERP Lean Module RB-ERP Lean Module
Sep 12, 2014
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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