Kanban for the Supply Chain: Fundamental Practices for Manufacturing Management, Second Edition, 2nd Edition (Paperback) book cover

Kanban for the Supply Chain

Fundamental Practices for Manufacturing Management, Second Edition, 2nd Edition

By Stephen Cimorelli

Productivity Press

137 pages | 71 B/W Illus.

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Paperback: 9781439895498
pub: 2013-01-02
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Description

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.

Table of Contents

Overview of Kanban in a Lean Environment

What Kanban Does

Definitions: Building a Common Language

Building a Lean Environment

Takt Time

Backflushing

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

Conclusion

What You Have Learned—What You Need to Practice

Next Steps

Final Word on Lean

Index

About the Author

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 Advantagemagazine, "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.

Subject Categories

BISAC Subject Codes/Headings:
BUS076000
BUSINESS & ECONOMICS / Purchasing & Buying
BUS082000
BUSINESS & ECONOMICS / Industrial Management
TEC020000
TECHNOLOGY & ENGINEERING / Manufacturing