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

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 EnvironmentWhat Kanban DoesDefinitions: Building a Common LanguageBuilding a Lean EnvironmentTakt TimeBackflushingJIT Preparation for KanbanBegin with 5S Supply Chain Management PrinciplesDefining the Supply ChainWhat Is Supply Chain Management (SCM)? Applying the ABC Classification Applying ABC Classification Step-by-StepThe Sawtooth Diagram: Analyzing Inventory BehaviorSawtooth Diagram BasicsSawtooth Example: Analyzing the Behavior of a Part NumberSawtooth Assumptions versus RealityAnalyzing Demand Pattern VariabilityPotential Solutions for Covering Potential StockoutsLead Time and Lot Size GuidelinesUsing the EOQ FormulaFine-Tuning the EOQEstablishing Carrying CostSetting Lot Size GuidelinesManaging Replenishment Lead TimesDetermining Lead Time ObjectivesStatistical Analysis 101 and Demand VariabilityCustomer Demand VariabilityUsing Z ScoresRecommended FormulaOptimizing Inventory for On-Time Delivery: The Case for Data CleansingHow Much Safety Stock Is Enough? Deciding Which Parts to Put on KanbanUsing Correlation Analysis to Guide Kanban Candidate SelectionA Simplified "Stair-Step" ApproachSawtooth ExercisesManaging Kanban during Decreasing DemandRecommend Actions for Adjusting to Decreasing DemandApplying the Solution for Decreasing DemandFurther Lot Size Reduction Is Possible Using a Multicard ApproachOther Supply/Demand IssuesThe Problem of Early DeliveriesTwo Potential Actions for Early DeliveryThe Problem of Late Deliveries Physical Techniques of Kanban Replenishment SystemsUsing Kanban’s Manual–Visual Control TechniquesPainted Squares on the FloorTechnique for Storing Single Card PartsTechnique for Storing Multicard PartsTechniques to Identify the Order Point Inside the BinInformation on the Kanban CardHandling the Kanban CardOptions for Designating Permanent LocationsKanban Management for Raw MaterialsChallenges and Recommendations for Managing Raw MaterialEmploying a Ledger System for Managing Raw MaterialsCautions and Recommendations for Setting the Order Point Kanban MaintenanceKanban Adjustment Report and Card MaintenanceSupplier Performance Reports and Stockout/Expedite Tracking ReportStockout and Expedite TrackingSupplier PerformanceKanban Audits Kanban ImplementationRoles and Responsibilities in Kanban ImplementationUsing a Project Plan for Implementing Kanban Stabilizing ProductionCreating a Hybrid Push/Pull Model: Min/Max Stabilization ProcessCalculating Min/Max Levels ConclusionWhat You Have Learned—What You Need to PracticeNext StepsFinal Word on LeanIndex

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.