RB Erpleanmoduleoverview 120507110109 Phpapp02

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RB-ERP Lean Module

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Agenda

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

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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

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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

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Pull as an Integral Part of
Lean Manufacturing

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COMMON TOOLS OF LEAN

VALUE STREAM MAPPING QUALITY AT SOURCE


5Ss 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

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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 whats 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

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Kanban Example

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Kanban Example BOM

SP-4 Manufactured

C-40 Manufactured

C-400 Purchased
Inventoried at 2 Locations

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Kanban Circuits

Vendor
Finished parts
inventory

Receive Receive
Production Production
SP-4
Raw material
inventory

Demand
Customer
Procurement Kanban Circuit

Transfer Kanban Circuit

Production Kanban Circuit


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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

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RB-ERP Traditional Replenishment
Demand Pull Demand Pull

Cust Order Shop Order


N/C Lines N/C Comps
Push Push Push

MPS Planned MRP Planned Inventory


Orders Orders Reorder
Point

Order Review

Shop Order Req/Purchase


Order

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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

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RB-ERP Lean Module

Database Schema
Item Location Key = Item/Location

Key = Item/Location/Destination
Kanban Circuit
Kanban Circuit Contains default information for
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

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Kanban Destination Table

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Kanban Item/Location Flag

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Kanban Circuit Definition

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New Kanban Circuit
and Kanban Deployment

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Kanban

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RB-ERP Lean Module

Kanban Generation and Deployment

Receive Receive Receive


Transfer Production Procurement
Kanban Kanban Kanban

Inventory Mfg Receipt PO Receipt


Transfer & Backflush

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Single Entry/Scan of Kanban

Kanbans May Be Both


Initiated and Received

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Receive Transfer Kanban

Yes

No

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Receive Production Kanban

Yes

No

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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
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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

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(Optional)
Receive Procurement Kanban

Yes

No Yes Perform PO Update Kanban


Initiated?
Receipt History Record
Yes
No

Signal Error &


No
Disallow

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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

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