Lean Manufacturing an Overview
Content
Inventory and Variation
Presented by: Vinny Monteiro
» Inventory Costs a lot of Money!
˃ One of the reasons IEs have jobs
» 1. What is the basic purpose of inventory?
˃ Protect Sales
» 3 parameters
˃ Stock Replenishment Volume ˃ External Variations ˃ Internal Variations
» Finished Goods Inventory
˃ Cycle Stocks
+Planning time +Waiting Time +Production Time +Delivery Time
˃ Buffer Stocks ˃ Safety Stocks
» What IS causing the need for inventory?
˃ VARIATION inevitable
» » » »
Cycle Stocks Buffer Stocks Safety Stocks WIP
» Variation + Dependent Events » Causes reduction in production rates » The need of Inventory » Variation directly affects inventory » Little’s Law LT = WIP/TH
» T/F - Anytime there is variation we need inventory » Buffer
˃ Inventory ˃ Capacity ˃ Time
» Means Sign Board » Facilitates Flow » Bring about pull » Limit inventory » Serves as the communication system » Continuous Improvement Tool
1. Later process goes to earlier process and picks up the number of items indicated by the kanban 2. Earlier process produces items in a quantity and sequence indicated by the Kanban 3. No items are made or transported without a Kanban 4. Always attach a kanban to the goods 5. Defective products are not sent to the next process 6. Reducing the number of kanban increases their sensitivity
» Start with the customer » Order pulled, signals previous process that more parts are needed » Kanban sent back. » Order fulfilled, sent w/ KanBan
» » » » »
Achieved by reduction in inventory Reducing any of the 4 replenishment times Reducing the variation in the production rate Reducing the variation in the customer demand Goal is to reduce inventory and still supply the customer with high levels of on-time delivery
» All systems vary, all systems will need some buffer to maintain rate » Inventory is a waste, but a necessary waste. » To minimize inventory, minimize variation. » Kanban is typically a Lean Manufacturing tool for make-to-stock, pull production system » Kanban one of the most powerful tools
Presented by: Vinny Monteiro
» Inventory Costs a lot of Money!
˃ One of the reasons IEs have jobs
» 1. What is the basic purpose of inventory?
˃ Protect Sales
» 3 parameters
˃ Stock Replenishment Volume ˃ External Variations ˃ Internal Variations
» Finished Goods Inventory
˃ Cycle Stocks
+Planning time +Waiting Time +Production Time +Delivery Time
˃ Buffer Stocks ˃ Safety Stocks
» What IS causing the need for inventory?
˃ VARIATION inevitable
» » » »
Cycle Stocks Buffer Stocks Safety Stocks WIP
» Variation + Dependent Events » Causes reduction in production rates » The need of Inventory » Variation directly affects inventory » Little’s Law LT = WIP/TH
» T/F - Anytime there is variation we need inventory » Buffer
˃ Inventory ˃ Capacity ˃ Time
» Means Sign Board » Facilitates Flow » Bring about pull » Limit inventory » Serves as the communication system » Continuous Improvement Tool
1. Later process goes to earlier process and picks up the number of items indicated by the kanban 2. Earlier process produces items in a quantity and sequence indicated by the Kanban 3. No items are made or transported without a Kanban 4. Always attach a kanban to the goods 5. Defective products are not sent to the next process 6. Reducing the number of kanban increases their sensitivity
» Start with the customer » Order pulled, signals previous process that more parts are needed » Kanban sent back. » Order fulfilled, sent w/ KanBan
» » » » »
Achieved by reduction in inventory Reducing any of the 4 replenishment times Reducing the variation in the production rate Reducing the variation in the customer demand Goal is to reduce inventory and still supply the customer with high levels of on-time delivery
» All systems vary, all systems will need some buffer to maintain rate » Inventory is a waste, but a necessary waste. » To minimize inventory, minimize variation. » Kanban is typically a Lean Manufacturing tool for make-to-stock, pull production system » Kanban one of the most powerful tools
