For many years small to midsize manufacturers and ERP software providers struggled with the notion that full system implementations included more complexity, not to mention cost, than could be incurred by organizations with limited resources. Fortunately, drastic improvements in price performance, enhancements to underlying technologies and introduction of new forms of delivery have made ERP solutions viable and affordable to manufacturing companies of all sizes.
Implementing Kanban Alternatives
in Lean Manufacturing
Enterprise Resource Management
WHITE PAPERAugust 2008EXECUTIVE SUMMARY......................................................................................................................................................................................................................................................
Manufacturing companies are adopting Lean because of its efficiency-lowering costs and lead-time, while improving "Time waste differs from material waste in that quality and performance. In today's highly competitive there can be no salvage. The easiest of all wastes and challenging markets, companies need every available and the hardest to correct is the waste of time, advantage. because wasted time does not litter the floor like Many people equate Lean manufacturing with the wasted material."use of kanbans: physical or visual signals that trigger replenishment. While kanban use is indeed a part of many Henry FordLean programs, it is not the only solution for triggering the movement of material. Kanban has its place, but there are more appropriate alternative approaches in situations where kanban is not a good fit.
It is important to remember that Lean is an approach and an attitude-not a specific set of techniques or tools. The most important aspect of Lean is a focus on the elimination of "waste" (i.e. anything that does not contribute directly to making the product). Kanban and kanban alternatives focus on inventory reduction, proper staging of parts and materials (reduced handling and delay), and efficient procurement/production of replenishments.
KANBAN AND LEAN...................................................................................................................................................................................................................................................... Kanban is a replenishment signal that acts as the primary linkage in a "pull" environment. Typically a substitute for a computer techniques are designed to track changes in manufacturing order or purchase order, the kanban signifies demand and usage and automatically adjust activities to that an item, material, or assembly has been used and that accommodate those changes. another can and should be made, moved or acquired to replace it. When properly applied, kanbans help reduce inventory and shorten lead-time, reducing waste in support of demand-driven "pull" operations.
Kanbans work best where demand is steady for a given period of time. Once the appropriate number of kanbans is put into circulation, material flow is timed to usage, inventory remains constant, and shortages should be eliminated. However, the kanban system is not designed for frequent demand changes. If demand increases, shortages occur; if demand decreases, there will be excess inventory. Management must continually monitor the number of kanbans in circulation and make the appropriate adjustments.
Where there is a varying demand and/or a mix of products being produced, particularly with small quantities, computer techniques do a much better job of having the right parts available with minimum inventory investment. In addition,
2ERP-NOT A FOUR-LETTER WORD............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
People tend to define ERP as a traditional system. In reality, Hose Master of Euclid, Ohio successfully pursues this strategy. these so-called traditional systems plan inventory availability This 200 employee firm makes both custom and standard quite precisely, based on the forecast. Best performance is hose products for domestic and export sales. The company achieved when the forecast is accurate (or at least closely uses a configurator-enabled ERP system to process 6,000 managed), and execution is carried out effectively. Also, quotes and 2,500 orders each month. Since implementing ERP can be a lot more forgiving of challe... [download for more]
