Pull / Kanban Systems
Kaizen Event

       Pull/Kanban Material Replenishment systems, when applied in appropriate areas, can provide the stability and predictability required to improve On-Time-Delivery performance of the overall business system.  Most often, entire production operations and most supplied materials can be managed through the use of simple and visual signals. Material Management personnel can then focus on true supplier management and increasing inventory turns.  These concepts have been successfully applied in both repetitive and non-repetitive manufacturers, as well as seasonal businesses.  The key is to adapt the basic concepts to meet the unique needs of each organization.

Design and Implementation of the Pull/Kanban system will be by a cross-functional team that will follow the six-step methodology that is outlined below.  Education in pull/kanban concepts will be provided throughout the effort.

It has often been said that many of the lean concepts converge during the development of a Pull System.  Current circumstances such as changeover frequency and set-up/changeover time, unplanned downtime, quality performance, replenishment lead time, demand variability are all considered during the design of an effective Pull System.  In much the same way, an organization can clearly assess the impact of flow, set-up reduction, quality improvement, leveling, and other lean efforts on the amount of inventory needed to be carried.  In this way, an organization can prioritize other lean efforts based on the impact it will have on inventory and customer service levels.

Typical Kaizen Event Agenda

Pre-event:      

• Scoping: identify inventory items to be addressed during the event
• Collect demand data

Day 1:

• Education in Pull Systems

Day 2:

• Steps 1 and 2: Map out the Current System and Conceptualize the New System (typically accomplished beforehand using Value Stream Mapping)
• Step 3: Calculate Kanban quantities, develop spreadsheets, as required
• Step 4: Design Kanban(s), develop cards, boards, etc., as required.

Day 3:

• Step 4: Design Kanban(s) – complete
• Step 5: Train personnel, or identify training needs
• Step 6: Design means to Audit the system
• Implement Pull System: organize storage areas, put in place kanbans, signage, etc.

Typical Kaizen Event Agenda (continued)

The actual number of days required will depend on the number of SKUs/Part numbers involved in the initial pilot, the availability of historic demand information, and amount of ongoing support required.  Typically, several dozen SKUs representing a common inventory type (e.g. raw/supplied, work-in-process, finished goods) are the subject of the three day pilot.

Typical Deliverables

• A cross functional team of people who will understand Pull/kanban concepts and the methodology used to implement them, and who will be experienced in their actual application.
• Analysis spreadsheets that calculate the kanban quantities for all items that are part of the pilot.  The spreadsheets can be expanded to include other items over time.
• Kanbans (e.g. boards, cards) that can be used on other items in the operation.
• Projected inventory levels with the proposed system, as well as the benefits to be expected.
• Actions List and implementation plan to assist in follow-up and roll out to include other inventory items.

Pull / Kanban Systems
One Day Workshop

Achieving shop floor control of inventory and production scheduling without the aid of MRP is the hallmark of pull signals.  When used correctly, pull signals can bring order and predictability to the operation by linking supplying and consuming processes in a simple and visual way.  The impact on an organization can be substantial.  A company’s planning and execution systems can be significantly simplified, the number of stock-outs greatly reduced, and inventory levels often reduced by up to 50%.

The workshop will define a six step methodology to implement Pull Systems.  In addition, attendees will see the concepts in practice in repetitive and non-repetitive, as well as seasonal demand applications.  Attendees will learn to set-up point-of-use material storage, interface pull systems with existing planning systems, and set lot sizes based on capacity, not economic order quantity theory.  Photographed examples from different industries will be provided throughout.  A case study and handout exercises will reinforce the participants’ understanding of the concepts.

The six step methodology is:

• Map out current system (material and information flows)
• Develop Concept for new system (materials and information flows)
• Calculate kanban buffers based on demand and supplier information.
• Design kanbans (visual signals to execute system)
• Train personnel in use of system
• Audit the system to verify effectiveness

It has often been said that many of the lean concepts converge during the development of a Pull System.  Current circumstances such as changeover frequency and set-up/changeover time, unplanned downtime, quality performance, replenishment lead time, demand variability are all considered during the design of an effective Pull System.  In much the same way, an organization can clearly assess the impact of flow, set-up reduction, quality improvement, leveling, and other lean efforts on the amount of inventory needed to be carried.  In this way, an organization can prioritize other lean efforts based on the impact it will have on inventory and customer service levels.  This workshop will clearly demonstrate how this works.

Duration: One day

Who should attend: anyone involved in the inventory management and control function of a manufacturing company, including purchasing personnel and managers.  Production supervisors and managers will also benefit by attending.