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Seminar details

Virtual Pull Systems  

Most companies who implement kanban struggle with two issues. First, how do we right-size our supermarkets to get the best possible flow? And, how do we make sure supermarket sizes are adjusted as product structures, manufacturing processes and customer demands change? Supermarkets may be too large, resulting in production of unneeded items, or too small, resulting in stockouts. Either way, resources are too often engaged in producing what we do not need, and not available to produce what we do need. The expediting and firefighting continue, and inventory levels remain static – even with kanban!

Second, what techniques are appropriate for signaling replenishment? Do we signal with empty containers, kanban cards, first-in-first-out lanes, min/max, or some other technique? Too often, cumbersome manual techniques are chosen, the pull system deteriorates for lack or maintenance, or is limited in its scope to only a few products, or we spend a much non-value adding time making – and remaking - kanban cards! Each pull signal must be appropriate to its supplier – and must be sustainable - no one approach fits all.

This workshop focuses on answering all of these questions. You will learn how to harvest data which resides in every automated Material Requirements Planning system to size and resize your supermarkets with ease. You will study the effects of management policies on your ability to implement and maintain an effective system for controlling and improving material flow. You will explore the application of both manual and automated pull techniques – and under which conditions each is applicable. You will hear of companies’ successes with virtual pull systems, and how their systematic approach integrates with their lean strategy and other lean techniques. Finally, you will have the opportunity to explore how you can get started with virtual pull systems in your company.

Agenda:

How Pull/Kanban fits in Lean Manufacturing reviews the elements of lean, definition of pull, the distinctions between push and pull, and the prerequisites for pull.

A review of Omega Industries’ current state uses a value stream map to describe the current production process, including demand patterns, push scheduling, production changeover, cycle times, and lead times, outside supplier constraints, and beginning inventories.

Omega Industries’ lean transition takes you to Omega’s future state, including the results of their efforts at uptime improvement, changeover reductions, cellular layouts, and vendor consolidation. The future state then becomes the basis for Omega’s pull implementation.

Leveling the load in the future state shows how to deal with the variable demand implied in the current state, including finished goods supermarkets and level-loading the value stream.

Leveling the mix shows how to calculate the minimum production interval on the changeover-intensive resources at Omega Industries. Also discussed are additional EPEI (every part every interval) variables, such as tooling families, run sequencing, non-repetitive demand, and labor constraints.

Locating supermarkets in the future state provides a definition of supermarkets, and how to decide where supermarkets should be located in the value stream.

Sizing supermarkets in the future state provides a quantitative method for sizing the supermarkets to provide the minimum inventory required to maintain the flow, including order points, safety stocks, and batch sizing. We then project current state inventory levels after pull, and "deconstruct" the supermarkets into the root causes of poor flow.

Types of pull signals shows photographic examples of various pull/kanban techniques, and under what conditions each is appropriate, including kanban squares, containers, kanban cards, trigger boards, reorder reports, heijunka boxes, and virtual electronic kanban.

Omega’s Future State Pull System allows participant teams to design the current state pull system and to present their designs to the class for feedback. Simulation of changes in Omega’s supply and demand is explored to show the focusing impact of virtual pull systems.

Keys to success  presents one company’s pull transition, to show how they dealt with many of the real-world pull issues, such as unpredictable customer demand, frequent schedule changes, resizing supermarkets, and changing pull system logistics as processes improve.

Remember to signup soon as soon as possible for this very informative seminar.