ekanban and XA at Simulaids Corporation
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1 ekanban and XA at Simulaids Corporation Session 401 Eric Wagner - Agility, Inc. Stephen Forschler Simulaids Corporation
2 Implementing LEAN manufacturing - Different Methods Demand Flow Demand Pull Continuous Flow Kaizen Kanban Visual Manufacturing Gateway Manufacturing Point of Production Manufacturing Point of Consumption Replenishment Toyota Production System Vendor Managed Inventory (VMI) Similar Results
3 What is KanBan? What is Kanban Signal A card, ticket, empty container, etc A system or a set of rules Shop floor execution tool Visual based pull system Moves parts to point of consumption Some Challenges Managing all the cards Update inventory in planning system Setting Kanban sizes, and revising as demand changes
4 Recommended Reading
5 Electronic Kanban What does Electronic KanBan do? Streamlines inventory moves and enhances inventory visibility Takes advantage of pre-existing procedures inherent in an N-Bin kanban system Provides Low Touch techniques to automatically release & complete Manufacturing Orders Purchase Orders (blanket, discrete or perpetual) Inventory Transfer Orders (TW, ISL, etc.) Easily extends kanban techniques to work with suppliers, sister plants, etc
6 University of Michigan Study 60% Reduction in Inventory (in house) 30% Reduction in Inventory (throughout the supply chain) 88% Reduction in Transaction Costs 75% Reduction in Lead Times Increased ability to customize products and increase margins
7 Closed-Loop MRP Master Schedule Rough Cut Capacity Plan Feasible Plan? No Yes Material Plan Capacity Plan Feasible Plan? No End Yes Kanban Execution
8 Business needs are varied We need to be able to simplify how we control inventory and execution on the plant floor Kanban But, we still need to Forecast and transmit our future requirements to suppliers MRP Be able to provide accurate inventory information to other areas of the organization. Perpetual Inventory
9 Electronic Kanban Proven Results Fast Implementation simple tailoring options No additional staff needed to manage kanban system Better historical information to manage inventory such as replenishment history Utilizes disciplines already in place fits your organizational needs
10 Electronic Kanban: Transactions Empty Bin Empty Bin FINAL ASSEMBLY E Feeder Manufacturing F Inventory Staging EF Sub-Assembly Bin Kanban Subassembly work area depletes one bin When we have an Empty Bin, the workers begins to work out of other bin. The Empty Bin is the signal to replenish the empty bin in the feeder area. Many ERP systems signal work with a Work Order for Manufactured parts Purchase Order for Purchased parts
11 Electronic Kanban: Transactions Full Bin Full Bin FINAL ASSEMBLY E Feeder Manufacturing F Inventory Staging F Sub-Assembly Bin Kanban The feeder area manufactures product and fills the Empty Bin The now Full Bin is moved back to the staging area. The Full Bin is the signal that Inventory has been replenished. Many ERP systems signal a Full Bin by Closing the Work Order for Manufactured parts, and backflushing components Receive and close the Purchase Order for Purchased parts
12 The Proven Results Fast Implementation simple tailoring options No additional staff needed to manage kanban system Better historical information to manage inventory such as replenishment history Utilizes disciplines already in place fits your organizational needs
13 Kanban Card
14 Electronic KanBan
15 Bin Sizing Kanban Lot-Size Formula Kanban lot size = 2*ADD*(RLT + SSD) Where ADD is Average days demand RLT is Replenishment Lead Time (or decimal fraction) SSD is Safety stock days (or decimal fraction)
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17 Electronic KanBan Adds the following transactions to (empty) Drives new MO, repetitive schedule, PO or blanket release, InterSite (full) takes appropriate action close oldest order and back flushes labor and/or (transfer print) Print kanban transfer (warehouse transfer) Internal kanban transfer
18 Let s see it! Tailoring
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27 Let s see it! Transaction
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45 The user receives an when a new PO is cut for them telling them that they have a new PO awaiting their acceptance.
46 Details The user can click on the link to log into EAX and view their orders or open the attachment to see their purchase order.
47 PO PDF The user can view the PO by opening up the attachment to the .
48 User logs in to EAX to view their purchase orders that are awaiting acceptance.
49 The user can then click on the PO number to see items, prices and dates.
50 At this point the user selects Accept PO.
51 Once the PO is accepted, it no longer appears on the list of PO s requiring acceptance.
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53 Required XA Modules CAS PM&C IM REP (Needed for automatic release of repetitive schedules/orders) PUR (Needed for automatic release of PO s or to add PO release) ISL (Needed for automatic release of InterSite Orders) PC&C (Needed for back flush of labor and materials) PLM&C (Needed to perform touchscreen transactions)
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55 Simulaids Today
56 Rescue
57 Advanced Life Support
58 Basic CPR
59 Rescue Randy Assembly
60 Simulaids Daycare
61 Double, double toil and trouble; Fire burn and Cauldron Bubble.
62 ekanban at Simulaids Strategy Kanban initiates materials movement- MRP Plans Finished Goods items with Consistent Sales Sub-Assembly Work order Generation High Velocity within Assembly Department Component Inventory Requisitioned from Warehouse
63 ekanban at Simulaids Benefits Bulk Picking Less work for Warehouse More flexibility in Component Usage More Reactive to Customer Demand Parts Controlled, yet available at point of entry
64 Brad/Baby Department
65 ekanban Challenges Need for Continual Education Shifted material handling load to Value-added personnel Need Materials at Point of Entry Cycle Counts Volume of transactions time consuming for Department Leads The Human Element
66 Forgot
67 ekanban with Auto-Triggers Transfer Requests Reorder Point Logic Two Bins Generated at Warehouse Printer
68 ekanban with Auto-Triggers Finished Goods Function of Ticket Quantity and Inventory On-Hand Work Order Printed on Shop Floor Only Manual transaction - Complete
69 ekanban with Auto-Triggers Sub-Assemblies Highest Velocity- Greatest Gains Function of Ticket Quantity and Inventory On-Hand Work Orders Printed on Shop Floor Quantity of Tickets Only Manual Transaction - Complete
70 Future of ekanban at Simulaids Expand Usage to New Product Lines Improve Department Layouts Parts Available at Points of Entry Extensive Purchasing MRO & Hardware
71 Rescue Randy Assembly
72 Questions?
73 THANK YOU Agility, Inc Fitzwater Road, Suite 220 Brecksville, OH
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