kblmt b000 intro kaizen based lean manufacturing

Business Basics, LLC 6003 Dassia Way, Oceanside, CA 92056

West Coast: 760-945-5596Email: BillGaw@bbasicsllc.com

KAIZEN BASED LEAN MANUFACTURING

(KBLM)

0-1

Introduction

HOW TO INCREASE SPEED, IMPROVE QUALITY AND LOWER COSTS

Business Basics, LLC 6003 Dassia Way Oceanside, CA 92056 760-945-5596

MASTERING THE EIGHT-BASICS OF KAIZEN BASED LEAN MANUFACTURING

Copyright © 2006 Business Basics, LLC

All rights reserved. No part of this tutorial may be reproduced for any purpose other than the in-house training of employees

of companies that have purchased this tutorial.

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MRP EVOLUTIONTo Much of a Good Thing ???

1950s COMPUTERIZED MRP

1970s CLOSED LOOP MRP (Manufacturing) Shop floor control Capacity Planning

1980s COMPUTRIZED MRPII (Finance) Cost accounting

1990s ERP (Engineering) Product Data Management (PDM) Computer Aided Design (CAD) Human Resource Management (HRM) Customer Relations Management CRM)

0-3

MATERIAL REQUIREMENTS PLANNING

The Balancing Act

Cancel Reorder

Reschedule

MASTER SCHEDULE

BILLS OF MATERIAL

LEADTIMES

LOT SIZES

INVENTORY

PURCHASEORDERS

WORK-IN-PROCESS

+_

REQUIREMENTS COVERAGE

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The Planner/Buyer Challenge

GROSS REQUIREMENTS

SCHEDULED RECEIPTS

PROJECTED ON-HAND

NET REQUIREMENTS

PLANNED ORDER RECEIPT

ORDER RELEASE DATE

1 2 3 4 5 6 7 8

15 45154040 30

100

60 20 80 50 35 35 90

10

100

100

PERIODS

5 6 7 8 9 10 11 8 9 10 11 12 13 1 2 3

151540 15 301525 30

PERIODS

1 31 2

X Y

MASTER SCHEDULE FOR “1”PLANNED ORDERS FOR “X” PLANNED ORDERS FOR “Y”

LEAD TIME = 4 LEAD TIME = 6

PART “1”

ON-HAND 95 ALLOCATED 20 SAFETY STOCK 0 LEAD TIME 3 LOT SIZE 100

PERIODS

MATERIAL REQUIREMENTS PLANNING

0-5

-10

The reality of statistical probabilityTHE MRPII CRUSADE – What went wrong, Ollie?

COMPUTERGENERATED

MASTERSCHEDULE

COMPUTERGENERATEDMRP TAKE-ACTIONS

Master ScheduleSales Forecast

Production BOMSales Configurator

Prod’n Inventory

Purchase Orders

FG Inventory

Product Design

_____ %MASTER SCHEDULE

INTEGRITY _____ %ORDER-LAUNCHAND CONTROL

ACCURACY

___%___%

___%

___%

___%

___%

___%

___%

___%

___%

Order Entry Shop Orders

MATERIAL REQUIREMENTS PLANNING

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World-Class Manufacturing Performance

MRPSHOP FLOOR

CONTROL SYSTEMS

0-7

REDUCE

COSTS

OPTIM IZE

"GEM BA" (Factory) PERFORM ANCE

EXCEED

BOTTOM -LINEEXPECTATIONS

INCREASE

SPEED IM PRO VE

QUALITY

INFO RM ATIO NINTEG RITY

CUSTO MER CO NNECTIVITY

BALANCEDSCO RECARD

Mastering the eight-basics of KBM that build a foundationfor MRP, ERP and lean manufacturing success

SEQ UENTIAL PRODUCTIO N

PO INT O FUSE

LO G ISTICS

CYCLETIM E

M GMT.

PRO DUCTIO N LINEARITY

RESO URCEPLANNING

#8.

#3.

#2.

#1.

#5.#4.

#7.

#6.

KAIZEN BASED M ANUFACTURING (KBM ) – W hat is it?

Kaizen is a set of quick-hitting, continuous improvement techniques that optimizes manu-facturing performance. Kaizen Based Manufacturing (KBM) establishes its eight-basics ofmanufacturing as the targets of kaizen. KBM provides a foundation for pursuing world classmanufacturing, achieving a lean enterprise and exceeding bottom line expectations.

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FACTORY FLOOR REALITIES

MRPII/ERP

Order Launch & Expedite

Stockrooms

EOM Syndrome

Inside-of-lead-time Chaos

Functional Responsibility

Management Structures

Vendors as Adversaries

Vertical Integration

Annual Goal Setting

KBLM

Sequential Production

Point-of-use Logistics

Production Linearity

Schedule Flexibility & Agility

Process Ownership

Self Directed Teams

Supplier Partnerships

Non-core Outsourcing

Balanced Scorecard

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KAIZEN BASED LEAN MANUFACTURING - KBLM EXPECTATIONS

CHANGE BENEFITS

Less direct supervision Increase in people creativity

Team empowerment Timely problem solving

Process ownership Built-in quality

Self-direction Enhanced performance

Direct communications Better decision-making

A “no status quo” mindset - schedule flexibility/agility - healthier profit margins

- higher inventory turns

Performance recognition Employee - job satisfaction - financial reward

Employer - people retention - financial reward

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TYPICAL RESULTS: MRP + KBLM

0 10 20 30 40 50 60 70 80 90 100

MRPII or ERP KBLM

Purchasing Costs

Manufacturing Costs

Factory Space

Build/Test Cycle Times

Quality Costs

Inventories

Results Displayed as Range of Percent Reductions

%% REDUCTION

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A CLIENT’S ACTUAL KBLM RESULTS

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Year 1 Year 2 Year 3

05

1015202530354045

Year 1 Year 2 Year 3

PRODUCT BUILD CYCLE( IN DAYS)

PROFIT MARGIN (IN %)

INVENTORY

(IN TURNS)

05

1015202530354045505560

Year 1 Year 2 Year 3

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EIGHT MANUFACTURING BASICS THE TARGETS OF KAIZEN

1. Information Integrity

2. Motivational Measurement

3. Sequential Production

4. Point-of-Use Logistics

5. Cycle Time Management

6. Production Linearity

7. Resource Planning

8. Customer Connectivity

0-13Email: BillGaw@bbasicsllc.com