pull systems: overview, challenges and success factors
TRANSCRIPT
© 2016 Osterling Consulting, Inc.
Pull Systems
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Pull Systems: Overview, Challenges and Success Factors
Mike Osterling 619-572-3632
Session Objectives
• Cover the most common types of pull systems
• See some examples of application• Discuss implementation issues• Cover common factors of success
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© 2016 Osterling Consulting, Inc.
Pull Systems
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Principles of “Lean Thinking”
1. Specify value from the external customer’s perspective
2. Identify and understand the value stream3. Make value‐creating steps flow 4. Pull
• Flow at the pull of the customer• Pull where flow isn’t possible
5. Pursue perfection
Lean Thinking, Womack & Jones3
Forecast & Orders
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Traditional MRP Execution
Customer
MRP Execution
Supplier
Process 1 Process 2 Process 3 Process 4
Why is this referred to as “push”?
Production Schedule
POs
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Pull Systems
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MRP ‐ A Great Execution Tool, if…
• 100% accurate bills of materials• Accurate transactions (receipts, issues, returns). • Accurate counts: WIP, finished‐goods and parts• Accurate forecast: volume, timing and mix• No variation in actual usage versus planned usage• No unplanned usage (engineers, service…)• No lost parts or WIP• Accurate scrap rates. Scrap reporting is 100% accurate• Accurate lead times • Schedule priorities don’t change• Open order status is perfect
Pull Systems ‐ Definition
A method of production control in which downstream
consumption triggers replenishment.
“I used some, you now have permission to replace.”
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Pull Systems
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Purpose of Pull Systems• It’s the schedule• Self control to manage overproduction• Simplified scheduling process (less demand
on planning & scheduling)• Rapid response to changes in demand• Visualize
– Expectations / needs– Performance– Problems
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Types of Pull Systems
• One-piece flow• Kanban
– Pulling specific part numbers• Min / max; re-order point • Vendor managed inventory (VMI)• FIFO Lanes
– Pulling capacity (the next job)• Other (construction, office, software…)
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Pull Systems
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Kanban Signal Communicates:
• What to produce• Where it is made• How much to
produce• When to produce it• Who the customer
is
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Kanban – Purchased Parts
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Pull Systems
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Multi‐card Kanban System• Fixed quantity per kanban • Adjust number of cards as demand changes• (Relatively) easy to adjust when demand changes
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FIFO
Visual Kanban (no cards) - Subassemblies
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Pull Systems
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Vendor Managed Inventory (VMI)Vendor: Sets up, reorders, delivers, restocks…
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Pull Systems ‐FIFO Lane:
Pulling the next job; pulling capacity
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Pull Systems
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FIFO LanesMultiple Suppliers for Single Process
Pull in the Office
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Pull Systems
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Breakout Activity – 2 or 3 people(at least one person with pull in place)
1. For those who work in an operation with pull systems in place: which form of pull is it (excluding one-piece flow)?
2. Pick one – identify who sends what signal to who?
5 minutes
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Type of Pull System Sends Signal to produce
Receives signal to produce
KanbanMin/Max; ROPVendor Managed InventoryFIFO Lane
Common Problems
• Timing (often late, or come in wrong sequence, or unclear priorities)
• Quantity (not enough, or too much, inventory)
• Missed signal (didn’t see it / didn’t pull card)
• Lost signal (where’s the card?)• …?
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Pull Systems
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Breakout Activity – 2 or 3 people(at least one person with pull in place)
• Focus on one of your pull systems• What are the top one or two problems you
are having with execution? (e.g. lost cards, late receipts, missed signals, not enough / too much…?)
5 minutes
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Before you “Fix” it….Make sure you understand root cause!
• 5 Why & Cause-Effect Diagrams (aka: fishbone or Ishikawa)– Facilitates brainstorming of potential
causes of a problem (“undesired effect”)– Start with categories of causes. – Decreases chance that overlook a cause– Doesn’t show how much each cause
contributes, if at all, to the problem– Doesn’t provide solutions
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Pull Systems
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Cause-Effect Diagram
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Undesired Effect
Potential Causes
Categories
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Root Cause AnalysisCategories – “The Six Ms”
(“man”)
(“mother nature”)
© 2016 Osterling Consulting, Inc.
Pull Systems
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Breakout Activity – 2 or 3 people(same groups)
• Focusing on one of the two top challenges you have with your pull system, start creating a “cause-effect” (fishbone) diagram– The head of the fish is the “bad thing” (e.g.
“lost kanban cards,” “out of inventory,”, etc.– Categories - 6 M (or other)
• Man, machine, materials, method, metrics, mother nature
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After the Fishbone…
• Narrow down the causes to the significant few
• Design countermeasures (improvements) to address the significant few
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Pull Systems
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Kanban (Fixing the “Bin”)
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Kanban Cart (Visualizing Shortages)
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Pull Systems
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Kanban Scheduling Board (Visualizing the Schedule and Priorities)
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a.k.a. Heijunka Board / (Load Leveling)
Scheduling Board for Signal Kanban (Visualizing the Schedule, Problems & Priorities)
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Pull Systems
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Visual Status & Prioritization
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Visual Status & Prioritization
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Pull Systems
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Automation
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FIFO Lanes – Multiple Suppliers & Customers
Output Input
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Pull Systems
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FIFO Lane with Simple Visual Aids33
Pull system for fab and field work – more flexible, less rework, balanced demand
Pull on Complex Projects
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Pull Systems
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Keys to Success• Start with the purpose (what problem are you
trying to solve)• Don’t copy what the other guys are doing –
adapt• Pilot & experiment – start small• Early engagement of the frontlines; and train
(but not too soon)• Standardize, document, and change• There will be problems!
– Measure, monitor and perform root-cause analysis
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Resources
• Kanban for the Supply Chain, Cimorelli• Kanban Made Simple, Gross & McInnis• Kanban for the Shop Floor, Productivity Press• Implementing a Mixed Model Kanban System: The Lean Replenishment Technique for Pull Production, Vatalaro
• Video: Kanban Systems, Society of Manufacturing Engineers
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© 2016 Osterling Consulting, Inc.
Pull Systems
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Mike Osterling(619) 572-3632
Thank You!Questions?