2nd Edition

Kanban for the Supply Chain Fundamental Practices for Manufacturing Management, Second Edition

By Stephen Cimorelli Copyright 2013
    137 Pages 71 B/W Illustrations
    by Productivity Press

    144 Pages
    by Productivity Press

    137 Pages 71 B/W Illustrations
    by Productivity Press

    Following in the footsteps of its popular predecessor, the second edition of this workbook explains how to apply kanban replenishment systems to improve material flow. Kanban for the Supply Chain: Fundamental Practices for Manufacturing Management, Second Edition provides readers with a detailed roadmap for achieving a successful and sustainable kanban implementation.

    Detailing the steps required for each stage of the manufacturing and supply chain management process, this updated edition focuses on creating an environment for success. It addresses internal mechanisms, including leveling production schedules, as well as external elements, such as conducting a thorough analysis of customer demand. Numerous techniques are presented for setting up kanban that consider a wide array of material types, dimensions, and storage media. This edition presents a wealth of new tools and techniques useful across the broad spectrum of manufacturing environments, including:

    • A statistical data cleansing technique to remove questionable or irrelevant data from kanban calculations
    • Correlation analysis based on simple Excel techniques to guide the decisions around which part numbers "qualify" for kanban
    • An alternative "stair-step analysis" approach for those who are unable to generate correlation data and prefer to use more readily available monthly demand history
    • An approach to analyze supplier performance data vs. lead time and lot size expectations, with risk mitigation strategies for poor performing suppliers

    This book is for those who are ready to stop thinking about a conversion from materials requirements planning push techniques to kanban pull techniques and want to make it happen now. Stephen Cimorelli provides actionable advice for installing fundamental kanban concepts that can immediately help you increase manufacturing productivity and profitability. The book includes team-based exercises that reinforce key principles as well as a CD with helpful outlines, charts, figures, and diagrams.

    Overview of Kanban in a Lean Environment
    What Kanban Does
    Definitions: Building a Common Language
    Building a Lean Environment
    Takt Time
    JIT Preparation for Kanban
    Begin with 5S

    Supply Chain Management Principles
    Defining the Supply Chain
    What Is Supply Chain Management (SCM)?

    Applying the ABC Classification Applying ABC Classification Step-by-Step

    The Sawtooth Diagram: Analyzing Inventory Behavior
    Sawtooth Diagram Basics
    Sawtooth Example: Analyzing the Behavior of a Part Number
    Sawtooth Assumptions versus Reality
    Analyzing Demand Pattern Variability
    Potential Solutions for Covering Potential Stockouts

    Lead Time and Lot Size Guidelines
    Using the EOQ Formula
    Fine-Tuning the EOQ
    Establishing Carrying Cost
    Setting Lot Size Guidelines
    Managing Replenishment Lead Times
    Determining Lead Time Objectives

    Statistical Analysis 101 and Demand Variability
    Customer Demand Variability
    Using Z Scores
    Recommended Formula
    Optimizing Inventory for On-Time Delivery: The Case for Data Cleansing
    How Much Safety Stock Is Enough?
    Deciding Which Parts to Put on Kanban
    Using Correlation Analysis to Guide Kanban Candidate Selection
    A Simplified "Stair-Step" Approach

    Sawtooth Exercises
    Managing Kanban during Decreasing Demand
    Recommend Actions for Adjusting to Decreasing Demand
    Applying the Solution for Decreasing Demand
    Further Lot Size Reduction Is Possible Using a Multicard Approach
    Other Supply/Demand Issues
    The Problem of Early Deliveries
    Two Potential Actions for Early Delivery
    The Problem of Late Deliveries

    Physical Techniques of Kanban Replenishment Systems
    Using Kanban’s Manual–Visual Control Techniques
    Painted Squares on the Floor
    Technique for Storing Single Card Parts
    Technique for Storing Multicard Parts
    Techniques to Identify the Order Point Inside the Bin
    Information on the Kanban Card
    Handling the Kanban Card
    Options for Designating Permanent Locations
    Kanban Management for Raw Materials
    Challenges and Recommendations for Managing Raw Material
    Employing a Ledger System for Managing Raw Materials
    Cautions and Recommendations for Setting the Order Point

    Kanban Maintenance
    Kanban Adjustment Report and Card Maintenance
    Supplier Performance Reports and Stockout/Expedite Tracking Report
    Stockout and Expedite Tracking
    Supplier Performance
    Kanban Audits

    Kanban Implementation
    Roles and Responsibilities in Kanban Implementation
    Using a Project Plan for Implementing Kanban

    Stabilizing Production
    Creating a Hybrid Push/Pull Model: Min/Max Stabilization Process
    Calculating Min/Max Levels

    What You Have Learned—What You Need to Practice
    Next Steps
    Final Word on Lean



    Steve Cimorelli is an educator, speaker, and author in the field of materials and supply chain management. He holds a BS degree in industrial engineering from the University of Central Florida and is certified at the Fellow level by APICS in production and inventory management (CFPIM). He has more than 30 years of experience in manufacturing, engineering, materials, and supply chain management in a variety of industries, including aerospace and defense, industrial equipment, and commercial products. For the past 10 years, Steve has led and consulted with numerous distribution centers and manufacturing plants around the world, developing and implementing Lean manufacturing and materials excellence practices, especially in the areas of kanban, forecasting, line balancing, and production stabilization.Mr. Cimorelli was first introduced to Lean manufacturing and just-in-time principles in the late 1980s while working toward his certification in production and inventory management (CPIM) with APICS, the Association for Operations Management. As he explains, These ideas resonated so strongly with me that I began to actively seek opportunities to put them into practice. It wasn’t until 1995, when I joined Square D–Schneider Electric that I saw first-hand how they actually worked. From that point on, I became a vocal advocate and implementer of these practices throughout Schneider Electric and elsewhere through consulting work, teaching, and publishing.His other published works include Lean Six Sigma for a Leaner Supply Chain in Driving Operational Excellence (Metaops Publishing, 2010), Control of Production and Materials in the Handbook of Manufacturing Engineering (Marcel Dekker, 1995), and two cover stories in APICS— The Performance Advantage magazine, Reduced Demand (2002) and Anticipating the Reemergence of Demand (2010). These and other works can be found online at SCCInventory.com.Mr. Cimorelli lives in Titusville, Florida, with his wife, Cindi, English Springer Mr. Darby, and the enduring memory of their Springer Spaniel Ranger the Dog.