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<channel>
	<title>Lean Sigma Supply Chain &#187; Lean</title>
	<atom:link href="http://www.resourcesystemsconsulting.com/blog/archives/category/lean/feed" rel="self" type="application/rss+xml" />
	<link>http://www.resourcesystemsconsulting.com/blog</link>
	<description>Thoughts on Supply Chain with a Lean and Six Sigma twist.</description>
	<lastBuildDate>Sat, 03 Jul 2010 06:57:32 +0000</lastBuildDate>
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		<title>Overall Plant Effectiveness</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/2226</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/2226#comments</comments>
		<pubDate>Sun, 27 Dec 2009 22:44:48 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Definitions]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Maintenance]]></category>
		<category><![CDATA[OEE]]></category>
		<category><![CDATA[TPM]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=2226</guid>
		<description><![CDATA[<p id="top" />The Eight Major Plant Losses</p>

Shutdown
Production adjustment
Equipment failure
Process failure
Normal production loss
Abnormal production loss
Quality defects
Reprocessing

<p></p>
]]></description>
			<content:encoded><![CDATA[<p id="top" /><a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/TPM.jpg"><img class="alignleft" style="margin-right: 25px;" title="TPM" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/TPM.jpg" alt="" width="250" height="304" /></a>The Eight Major Plant Losses</p>
<ol>
<li>Shutdown</li>
<li>Production adjustment</li>
<li>Equipment failure</li>
<li>Process failure</li>
<li>Normal production loss</li>
<li>Abnormal production loss</li>
<li>Quality defects</li>
<li>Reprocessing</li>
</ol>
<p><a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/OPE.png"><img class="alignleft" style="margin-bottom: 65px;" title="OPE" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/OPE.png" alt="Overall Plant Effectiveness" width="830" height="494" /></a></p>
]]></content:encoded>
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		<item>
		<title>Waterspiders as continuous improvement innovators</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/2113</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/2113#comments</comments>
		<pubDate>Tue, 08 Sep 2009 11:34:14 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Definitions]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Supply Chain]]></category>
		<category><![CDATA[Continuous Improvement]]></category>
		<category><![CDATA[Roles]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=2113</guid>
		<description><![CDATA[<p id="top" />The term Waterspider or water beetle (mizusumashi in Japanese) comes from the behavior of the insect known in the States as a whirligig, an aquatic animal that skitters around on the top of a pond quickly changing direction as it goes.  For a lean enterprise the role of material handlers, expediters, and support staff changes.  In the Toyota Production System this is the common name for a person assigned to support a production operation, so that others may focus exclusively on value-added work.  The waterspider delivers parts to the other associates in the cell or on the line so that they don&#8217;t need to stop to replenish their work stations.</p>
<p>Unlike a &#8216;floater&#8217;, a waterspider is assigned specific tasks, such as replenishing raw material inventories (via milk run), common area clean-up, communicate status, maintain visual metrics, etc&#8230; Waterspider duties usually don&#8217;t include tasks which take them away from the production area, or [...]]]></description>
			<content:encoded><![CDATA[<p id="top" /><a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/water_beetle.jpg"><img class="alignleft size-full wp-image-2115" style="margin-right: 10px;" title="water_beetle" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/water_beetle.jpg" alt="water_beetle" width="457" height="342" /></a>The term <em>Waterspider</em> or water beetle (mizusumashi in Japanese) comes from the behavior of the insect known in the States as a whirligig, an aquatic animal that skitters around on the top of a pond quickly changing direction as it goes.  For a lean enterprise the role of material handlers, expediters, and support staff changes.  In the Toyota Production System this is the common name for a person assigned to support a production operation, so that others may focus exclusively on value-added work.  The waterspider delivers parts to the other associates in the cell or on the line so that they don&#8217;t need to stop to replenish their work stations.</p>
<p>Unlike a &#8216;floater&#8217;, a waterspider is assigned specific tasks, such as replenishing raw material inventories (via milk run), common area clean-up, communicate status, maintain visual metrics, etc&#8230; Waterspider duties usually don&#8217;t include tasks which take them away from the production area, or detract from their specific, assigned duties (the waterspider is not the &#8217;5S&#8217; person or a &#8216;fill in&#8217;). Think of the waterspider as the &#8216;race car pit crew&#8217; for the production team, without which it would be impossible to win or even run the race.</p>
<p>Waterspiders quickly become experts in the withdrawal and production kanban system.  They can &#8216;see&#8217; more of the up and down stream flow in real time than most others, and because of this often making it possible to identify and eliminate errors.  From recent experience the waterspiders often have a better grip on reality than their managers, planners, and engineers.</p>
<p>Non manufacturing examples abound in restaurants, hospitals, insurance claims processing; serving the folks that add the value isn&#8217;t just for manufacturing.  In product and software development the role of the program manager is sometimes something like that of the waterspider, except bringing knowledge to the various development team members instead of parts.</p>
<p>Here are a few references:<br />
<a href="http://www.sme.org/cgi-bin/get-newsletter.pl?LEAN&amp;20061110&amp;1">Single piece flow</a> at ConMed Linvatec<br />
<a href="http://www.med.umich.edu/insideview/Volume3/issue3/spiders.html">Improving Workflow With Water Spiders</a> at University of Michigan Health System<br />
Inventory management in electronics manufacturing: <a href="http://www.electroiq.com/index/display/smt-article-display/229923/s-articles/s-smt/s-volume-19/s-issue-6/s-ems-trends/s-the-move-to-lean-inventory-management-at-the-foundation.html">The Move To Lean</a><br />
<a href="http://progressivedge.com/lean_in_the_oil_fields.html">Lean in the Oil Fields</a></p>
<p>Have any examples you&#8217;d like to share?</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
]]></content:encoded>
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		<title>How many kanban do you need?</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/2110</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/2110#comments</comments>
		<pubDate>Sat, 05 Sep 2009 14:00:13 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Lean]]></category>
		<category><![CDATA[Lean Sigma]]></category>
		<category><![CDATA[Kanban]]></category>
		<category><![CDATA[Kanban Calculation]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=2110</guid>
		<description><![CDATA[<p id="top" />Kanban is a system that supports level production by helping maintain stable supply and efficient operations.  The question of how many kanban are needed is at the core of designing and running a kanban system.  If your business process performs mostly standard, repeated operations the number of kanban can be calculated as follows:</p>
<p>Number of kanban = (Daily Demand * (Replenishment Time + Safety Margin))/Standard Container Quantity</p>

Daily Demand = monthly orders / work days in the month;
(Can use historical actual orders if demand is stable, may need to use current booked orders or forecast)
Replenishment Time = sum of all the processing, transportation, handling, and queue times from freshly empty container to full container back to empty again
Safety Margin = either a statistical calculation to accommodate variation in demand and/or supply, or an intuition to add zero to a few extra days
(Regardless of which approach you pick, once up and running begin removing kanban one [...]]]></description>
			<content:encoded><![CDATA[<p id="top" />Kanban is a system that supports level production by helping maintain stable supply and efficient operations.  The question of how many kanban are needed is at the core of designing and running a kanban system.  If your business process performs mostly standard, repeated operations the number of kanban can be calculated as follows:</p>
<p><strong>Number of kanban = (Daily Demand * (Replenishment Time + Safety Margin))/Standard Container Quantity</strong></p>
<ul>
<li>Daily Demand = monthly orders / work days in the month;<br />
(Can use historical actual orders if demand is stable, may need to use current booked orders or forecast)</li>
<li>Replenishment Time = sum of all the processing, transportation, handling, and queue times from freshly empty container to full container back to empty again</li>
<li>Safety Margin = either a statistical calculation to accommodate variation in demand and/or supply, or an intuition to add zero to a few extra days<br />
(Regardless of which approach you pick, once up and running begin removing kanban one at a time until you&#8217;ve gone too far, then add one back and spend some time to figure out the cause &#8211; i.e. lower the water level and expose a few rocks.)</li>
<li>Standard Container Quantity is where we often have the greatest latitude.  We usually can&#8217;t change the daily demand.  Speeding up the replenishment time takes time.  Selecting the right size container we can do right now.  Sometimes we&#8217;ll turn the equation around and instead of solving for the number of kanban we&#8217;ll pick the number of kanban and then determine the right container size, like so &#8230;</li>
</ul>
<p><strong>Standard Container Quantity = </strong><strong>(Daily Demand * (Replenishment Time + Safety Margin))/Number of Kanban</strong></p>
<p>Rule of thumb: try to keep the number of kanban between 2 and 10 by adjusting the size of the kanban container.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
]]></content:encoded>
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		<title>Brown Paper Value Stream Mapping</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/1971</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/1971#comments</comments>
		<pubDate>Mon, 17 Aug 2009 15:17:13 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Lean]]></category>
		<category><![CDATA[Supply Chain]]></category>
		<category><![CDATA[VSM]]></category>
		<category><![CDATA[Value Stream Map]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=1971</guid>
		<description><![CDATA[<p id="top" /></p>
<p>&#160;</p>
<p>Many engineers and black belts will immediately jump on a computer and start picking icons and naming data elements perhaps out of habit, maybe confusing quantitative tools with qualitative.  VSM is good for describing what we are going to do to affect the numbers we collect.  Building databases, multiple future state scenarios, or heaven forbid monthly performance metrics perhaps misses the point of being able to visualize the &#8220;what&#8221;.  All too often folks will get so mesmerized by the technology they loses sight of the group dynamic of discussing the process they are meant to be studying.</p>
<p>Don&#8217;t waste your time and money fiddling with a new software application.  Just get the right people together physically or virtually, and with some paper, pencils, markers, and sticky notes start sketching and talking.  Save the computer for later.</p>
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]]></description>
			<content:encoded><![CDATA[<p id="top" /><a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/DSC01659a.jpg"><img class="alignleft" style="margin-right: 10px;" title="Brown Paper Value Stream Map" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/DSC01659a.jpg" alt="Brown Paper Value Stream Map" width="500" /></a></p>
<p>&nbsp;</p>
<p>Many engineers and black belts will immediately jump on a computer and start picking icons and naming data elements perhaps out of habit, maybe confusing quantitative tools with qualitative.  VSM is good for describing what we are going to do to affect the numbers we collect.  Building databases, multiple future state scenarios, or heaven forbid monthly performance metrics perhaps misses the point of being able to visualize the &#8220;what&#8221;.  All too often folks will get so mesmerized by the technology they loses sight of the group dynamic of discussing the process they are meant to be studying.</p>
<p>Don&#8217;t waste your time and money fiddling with a new software application.  Just get the right people together physically or virtually, and with some paper, pencils, markers, and sticky notes start sketching and talking.  Save the computer for later.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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]]></content:encoded>
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		<item>
		<title>Kanban in 10 Steps</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/1141</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/1141#comments</comments>
		<pubDate>Wed, 22 Jul 2009 20:58:24 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Lean]]></category>
		<category><![CDATA[Kanban]]></category>
		<category><![CDATA[Kanban Implementation Plan]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=1141</guid>
		<description><![CDATA[<p id="top" />Kanban isn&#8217;t always the right answer or even possible.  But when it is and makes sense here&#8217;s what to do; a simple kanban implementation plan:</p>

Customer requirements: ABC analysis, demand segmentation &#38; linearity
People: involvement, training
Process: observation, mapping, layout, changeover, run size, OEE, process linearity
Kanban: one card, two card
Materials handling, buffer stock location, organization
Container: sizing, selection or design
Visual design: card or container labels
Kanban math
Control system: recalculate # of cards, missing cards
Design documentation

<p>&#160;</p>
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]]></description>
			<content:encoded><![CDATA[<p id="top" /><a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/KanbanSimulation.jpg"><img class="alignright size-medium wp-image-1142" title="KanbanSimulation" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/KanbanSimulation.jpg" alt="KanbanSimulation" width="300" height="199" /></a>Kanban isn&#8217;t always the right answer or even possible.  But when it is and makes sense here&#8217;s what to do; a simple kanban implementation plan:</p>
<ol>
<li>Customer requirements: ABC analysis, demand segmentation &amp; linearity</li>
<li>People: involvement, training</li>
<li>Process: observation, mapping, layout, changeover, run size, OEE, process linearity</li>
<li>Kanban: one card, two card</li>
<li>Materials handling, buffer stock location, organization</li>
<li>Container: sizing, selection or design</li>
<li>Visual design: card or container labels</li>
<li>Kanban math</li>
<li>Control system: recalculate # of cards, missing cards</li>
<li>Design documentation</li>
</ol>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
]]></content:encoded>
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		<title>Frederick Taylor</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/1098</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/1098#comments</comments>
		<pubDate>Wed, 22 Jul 2009 18:09:32 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Definitions]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Lean Sigma]]></category>
		<category><![CDATA[Frederick Taylor]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=1098</guid>
		<description><![CDATA[<p id="top" /></p>
<p>&#160;</p>
<p>Taylor, Frederick Winslow (1856-1915), American industrial engineer, who originated scientific management in business. He was born in Germantown (now part of Philadelphia), Pennsylvania. In 1878, he began working at the Midvale Steel Company. He became foreman of the steel plant and applied himself to studies in the measurement of industrial productivity. Taylor developed detailed systems intended to gain maximum efficiency from both workers and machines in the factory. These systems relied on time and motion studies, which help determine the best methods for performing a task in the least amount of time. In 1898 he became joint discoverer of the Taylor-White process, a method of tempering steel. Taylor served as consulting engineer for several companies. His management methods were published in The Principles of Scientific Management.</p>
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			<content:encoded><![CDATA[<p id="top" /><a title="Frederick Taylor" href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/Frederick_Taylor.jpg"><img style="float: left; margin-right: 10px;" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/Frederick_Taylor.jpg" alt="Frederick Taylor" width="150" height="225" /></a></p>
<p>&nbsp;</p>
<p>Taylor, Frederick Winslow (1856-1915), American industrial engineer, who originated scientific management in business. He was born in Germantown (now part of Philadelphia), Pennsylvania. In 1878, he began working at the Midvale Steel Company. He became foreman of the steel plant and applied himself to studies in the measurement of industrial productivity. Taylor developed detailed systems intended to gain maximum efficiency from both workers and machines in the factory. These systems relied on time and motion studies, which help determine the best methods for performing a task in the least amount of time. In 1898 he became joint discoverer of the Taylor-White process, a method of tempering steel. Taylor served as consulting engineer for several companies. His management methods were published in <a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/PSM.pdf">The Principles of Scientific Management.</a></p>
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		<title>Facility Block Layout</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/770</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/770#comments</comments>
		<pubDate>Mon, 06 Jul 2009 16:16:15 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Definitions]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Block Layout]]></category>
		<category><![CDATA[Facility Layout]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=770</guid>
		<description><![CDATA[<p id="top" />
<p style="text-align: left;">A standard approach for creating a new production facility layout for either a green field or an existing facility is as follows:</p>

Perform PQ Analysis
Preparing a Product Process Routing Matrix
Develop Block Layout alternatives
Optimize the size, shape, placement of the blocks.
Nimawashi

<p style="text-align: left;">PQ (Product Quantity Pareto ABC Analysis) and Product Process (find common routings in a mixed model business) are defined elsewhere. For many practitioners Block Layout seems be be either a bit of artistry or is mired in software complexities.  Here are a few thoughts on how to approach this step in the facility design process.</p>
<p style="text-align: left;">First a few considerations:</p>
<p style="text-align: left;">In a green field we know the product and process and want to determine the size of the building we need and it&#8217;s layout.  For a brown field we&#8217;re trying to make the best use of the use of the four walls we already have.  In both scenarios there are [...]]]></description>
			<content:encoded><![CDATA[<p id="top" />
<p style="text-align: left;">A standard approach for creating a new production facility layout for either a green field or an existing facility is as follows:</p>
<ol>
<li>Perform <a href="http://www.resourcesystemsconsulting.com/blog/wp-content/photos/ABC.png"><strong>PQ Analysis</strong></a></li>
<li style="text-align: left;">Preparing a <a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/Product_Process_Matrix.png"><strong>Product Process Routing Matrix</strong></a></li>
<li style="text-align: left;">Develop <strong>Block Layout</strong> alternatives</li>
<li style="text-align: left;"><strong>Optimize</strong> the size, shape, placement of the blocks.</li>
<li style="text-align: left;"><a href="http://www.resourcesystemsconsulting.com/blog/archives/100"><strong>Nimawashi</strong></a></li>
</ol>
<p style="text-align: left;">PQ (Product Quantity Pareto ABC Analysis) and Product Process (find common routings in a mixed model business) are defined elsewhere. For many practitioners Block Layout seems be be either a bit of artistry or is mired in software complexities.  Here are a few thoughts on how to approach this step in the facility design process.</p>
<p style="text-align: left;">First a few considerations:</p>
<p style="text-align: left;">In a green field we know the product and process and want to determine the size of the building we need and it&#8217;s layout.  For a brown field we&#8217;re trying to make the best use of the use of the four walls we already have.  In both scenarios there are trade offs to make.  Having a decision making at the beginning of the project can save a lot of time and money.  Some will take a mathematical approach, others organic consensus.  Either way agree on the design process methodology up front.</p>
<p style="text-align: left;">Determine &#8220;best&#8221; layout type based on customer demand, product and processing characteristics, and business strategy.  Common layout types include:</p>
<ol>
<li>process functional &#8211; group common machines or processes together</li>
<li style="text-align: left;">product &#8211; line up equipment in sequence of operation</li>
<li style="text-align: left;">fixed position &#8211; for large projects where you can&#8217;t move the product</li>
<li style="text-align: left;">hybrid &#8211; mixed model, shared monument, group technology cells</li>
</ol>
<p>In brown field facilities the main layout consideration is often in fact moving from one layout type to another as business conditions and strategies evolve.</p>
<p>Determine the activity and proximity relationships between the various blocks.  A great approach for understanding relationships is the <a href="http://www.resourcesystemsconsulting.com/blog/archives/61">Simplified Systematic Layout Planning</a> method by Muther and Wheeler.</p>
<p style="text-align: left;"><a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/paper_dolls.jpg"><img class="alignleft" title="paper_dolls" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/paper_dolls.jpg" alt="paper_dolls" width="300" height="341" /></a>The Product Process Routing Matrix noted above  determines the quantity and type of equipment needed.  One complication is that very expensive or large machines may need to be shared, so compromises may need to be made.  I like the table top trial and error <strong>Paper Doll</strong> approach.  Once we&#8217;ve gathered data on the importance of proximity and activity relationships between blocks, equipment footprints, maintenance and material handling access and clearance requirements, utilities, building codes, facility constraints, etc. and then we determine the gross footprint size. Now through trial and error we arrange the equipment in the block in a logical flow or sequence manner.  We then have a <strong>beauty contest </strong>and subject each alternative to a decision selection matrix where we score and rank various design factors such as compactness, adjacency (relationship closeness), least travel distance (material handling cost and speed), etc.</p>
<p style="text-align: left;">The number of permutations can be huge, so either use group intuition for the block details or investing in one of the current software packages such as <a href="http://www.proplanner.com/Product/Details/layoutplanner.aspx">Pro Planner</a>, <a href="http://www.planopt.com/index.htm">PlanOpt</a>, <a href="http://pmcorp.com/Products/Layoutoptimization.asp">Flow Planner</a>.</p>
<p style="text-align: left;">
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>Kanban</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/305</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/305#comments</comments>
		<pubDate>Mon, 06 Jul 2009 00:09:50 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Lean]]></category>
		<category><![CDATA[Reviews]]></category>
		<category><![CDATA[Kanban]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=305</guid>
		<description><![CDATA[<p id="top" />
<p style="text-align: left;">When asked recently to recommend reference books on Kanban here&#8217;s what I came up with&#8230;</p>
<p>  </p>
<p style="text-align: left;">Kanban for the Shopfloor is a straightforward implementation instruction manual.  The language is plain and simple.  The implementation checklist is complete.  Kanban Just-In-Time at Toyota is a translation of a book published by the Japanese Management Association in 1986 and is based on the seminars given by Taiichi Ohno to Toyota suppliers.  The language is a bit rough in places, but the concepts are presented in logical manner.  The philosophical parts may not play well with factory workers, the prior book would be a better choice.  Custom Kanban by Ray Louis comprehensive, detailed, and well written.  The methodical approach offers some 20 design options for adapting the kanban tools to a variety of situations.  This work is invaluable for implementers.  All three works can be found at Amazon and Productivity Press.</p>
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<p style="text-align: left;">When asked recently to recommend reference books on Kanban here&#8217;s what I came up with&#8230;</p>
<p><a href="http://www.amazon.com/Kanban-Shopfloor/dp/1563272695%3FSubscriptionId%3D1N9AHEAQ2F6SVD97BE02%26tag%3Dleansigmasupp-20%26linkCode%3Dxm2%26camp%3D2025%26creative%3D165953%26creativeASIN%3D1563272695"><img src="http://ecx.images-amazon.com/images/I/51UInQwB3GL._SL500_.jpg" alt="http://ecx.images-amazon.com/images/I/51UInQwB3GL._SL500_.jpg" width="165" height="250" /></a> <a href="http://www.amazon.com/Kanban-Just-Time-Toyota-Management/dp/0915299488%3FSubscriptionId%3D02E5W5871AJF7PMMMS82%26tag%3Dleansigmasupp-20%26linkCode%3Dxm2%26camp%3D2025%26creative%3D165953%26creativeASIN%3D0915299488"><img src="http://ecx.images-amazon.com/images/I/41W17yGuDpL._SL500_.jpg" alt="" width="160" height="250" /></a> <a href="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/CustomKanban.png"><img class="alignnone size-full  wp-image-2272" title="CustomKanban" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/CustomKanban.png" alt="Custom Kanban" width="155" height="250" /></a></p>
<p style="text-align: left;"><em>Kanban for the Shopfloor</em> is a straightforward implementation instruction manual.  The language is plain and simple.  The implementation checklist is complete.  <em>Kanban Just-In-Time at Toyota</em> is a translation of a book published by the Japanese Management Association in 1986 and is based on the seminars given by Taiichi Ohno to Toyota suppliers.  The language is a bit rough in places, but the concepts are presented in logical manner.  The philosophical parts may not play well with factory workers, the prior book would be a better choice.  <em>Custom Kanban</em> by Ray Louis comprehensive, detailed, and well written.  The methodical approach offers some 20 design options for adapting the kanban tools to a variety of situations.  This work is invaluable for implementers.  All three works can be found at Amazon and Productivity Press.</p>
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		<title>More Kanban Calculations</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/495</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/495#comments</comments>
		<pubDate>Fri, 22 May 2009 13:13:46 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Definitions]]></category>
		<category><![CDATA[Lean]]></category>
		<category><![CDATA[Lean Sigma]]></category>
		<category><![CDATA[Kanban]]></category>
		<category><![CDATA[Kanban Calculation]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=495</guid>
		<description><![CDATA[<p id="top" /></p>
<p>First listed various formulations of calculating kanban quantities in July 2006.  Here are a few more &#8230;</p>
<p>9.  wmarhel at Elsmar Cove writes &#8230;</p>
<p>The formula for calculating the number of kanban cards in a system for a particular product is:</p>
<p>(Daily Demand x (Run Frequency + Lead Time + Safety Time)) / Container Capacity</p>
<p>Where:</p>
<p>Daily Demand = Customer Consumption expressed as # of units
Run Frequency = Frequency which you decide to set-up and produce that item. This is expressed as a unit of time. For a five day work week, running the product every day would equal (1), every third day would equal (3), etc.
Lead Time = Manufacturing lead time (processing time + Set-up time + queue time) + lead time for kanban retrieval expressed as a unit of time.
Safety Time = Allowance for variations in demand and supply, also expressed as a unit of time. Keep as low as possible.
Container Capacity = Number of units [...]]]></description>
			<content:encoded><![CDATA[<p id="top" /><img src="http://www.resourcesystemsconsulting.com/blog/wp-content/photos/kanbancard.jpg" alt="Kanban Card" width="300" height="133" /></p>
<p>First listed various formulations of calculating kanban quantities in <a href="http://www.resourcesystemsconsulting.com/blog/archives/58">July 2006</a>.  Here are a few more &#8230;</p>
<p>9.  <a href="http://elsmar.com/Forums/showthread.php?t=21902">wmarhel at Elsmar Cove</a> writes &#8230;</p>
<p>The formula for calculating the number of kanban cards in a system for a particular product is:</p>
<p><strong>(Daily Demand x (Run Frequency + Lead Time + Safety Time)) / Container Capacity</strong></p>
<p>Where:</p>
<p>Daily Demand = Customer Consumption expressed as # of units<br />
Run Frequency = Frequency which you decide to set-up and produce that item. This is expressed as a unit of time. For a five day work week, running the product every day would equal (1), every third day would equal (3), etc.<br />
Lead Time = Manufacturing lead time (processing time + Set-up time + queue time) + lead time for kanban retrieval expressed as a unit of time.<br />
Safety Time = Allowance for variations in demand and supply, also expressed as a unit of time. Keep as low as possible.<br />
Container Capacity = Number of units per container (# of units in a container is always the same number).</p>
<p>10.  World Class Manufacturing has an on-line <a href="http://wcm.nu/Kanban/kanban%20size.html">Kanban Size Calculator</a> that uses the following formula:</p>
<p><strong>Total Required Inventory (TRI) = Weekly Part Usage * Lead-time * Number of locations for stock</strong><br />
<strong># Kanban = TRI / Container Capacity</strong></p>
<p>11.  <a href="http://download.oracle.com/docs/cd/A60725_05/html/comnls/us/mrp/kbovw.htm">Oracle</a> uses</p>
<p>By default, the standard calculation is:</p>
<p><strong>(C &#8211; 1) * S = D * L</strong></p>
<p>where:</p>
<ul>
<li>C is the number of kanban cards</li>
<li>S is the kanban size</li>
<li>D is the average daily demand</li>
<li>L is the lead time (in days) to replenish one kanban</li>
</ul>
<p>&nbsp;</p>
<p>12.  <a href="http://help.sap.com/saphelp_40b/helpdata/en/cb/7f8bde43b711d189410000e829fbbd/content.htm">SAP</a> says &#8230;</p>
<p><strong>K = ((RT * AC)/CONT) * (SF + C)</strong></p>
<p>where</p>
<ul>
<li>K          numbers of Kanban</li>
<li>CONT    contents per Kanban</li>
<li>RT        replenishment lead time per Kanban</li>
<li>AC        average consumption per time</li>
<li>SF        safety factor</li>
<li>C          constant (default 1)</li>
</ul>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>Entropy and the death of peaceful order</title>
		<link>http://www.resourcesystemsconsulting.com/blog/archives/442</link>
		<comments>http://www.resourcesystemsconsulting.com/blog/archives/442#comments</comments>
		<pubDate>Wed, 20 May 2009 18:54:31 +0000</pubDate>
		<dc:creator>Lawrence Loucka</dc:creator>
				<category><![CDATA[Lean]]></category>
		<category><![CDATA[Lean Sigma]]></category>
		<category><![CDATA[Change]]></category>
		<category><![CDATA[Heijunka]]></category>
		<category><![CDATA[Lean Failures]]></category>
		<category><![CDATA[Sustaining]]></category>
		<category><![CDATA[Sustaining Lean]]></category>

		<guid isPermaLink="false">http://www.resourcesystemsconsulting.com/blog/?p=442</guid>
		<description><![CDATA[<p id="top" />
<p>Had dinner last night with Richard Zuber, Lean Six Sigma Master Black Belt at Honeywell.&#160; He was a student of mine some years ago at AlliedSignal before the Honeywell merger.&#160; Richard posed a question as to why so many organizations that have mastered demand smoothing and flow eventually revert back to month end madness, chaos and noise.&#160; He&#8217;s seen good applications of heijunka and demand segmentation fail.&#160; Why?</p>
<p>&#160;</p>
<p>&#160;</p>
<p>&#160;</p>
<p>&#160;</p>
<p>&#160;</p>
<p>&#160;</p>

How long did we pay attention to &#8216;doing it the new way&#8217;?&#160; Was it 2 weeks, 2 months, 2 years, or 2 management regime changes?
The forcing function turned his back, got reassigned, promoted, fired.&#160; Cultural change and the new way of life that Lean presents have not been embraced by the organization.&#160; Real Change/Transformation has not occurred.
How much did we like &#8216;peaceful order&#8217;? &#160;Many organizations are addicted to chaos, and find it difficult to stay calm.
Did Leadership incent peaceful order, and dis-incent chaos? &#160;If not&#8230;
When the [...]]]></description>
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<p><img hspace="10" height="305" align="right" width="459" alt="" src="http://www.resourcesystemsconsulting.com/blog/wp-content/uploads/flow.jpg" class="i_left" />Had dinner last night with Richard Zuber, Lean Six Sigma Master Black Belt at Honeywell.&nbsp; He was a student of mine some years ago at AlliedSignal before the Honeywell merger.&nbsp; Richard posed a question as to why so many organizations that have mastered demand smoothing and flow eventually revert back to month end madness, chaos and noise.&nbsp; He&#8217;s seen good applications of heijunka and demand segmentation fail.&nbsp; Why?</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><span id="more-442"></span>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<ol>
<li><how long="" did="" we="" pay="" attention="" to="" doing="" the="" new="" way="" it="" or="" management="" regime=""></how>How long did we pay attention to &#8216;doing it the new way&#8217;?&nbsp; Was it 2 weeks, 2 months, 2 years, or 2 management regime changes?</li>
<li>The forcing function turned his back, got reassigned, promoted, fired.&nbsp; Cultural change and the new way of life that Lean presents have not been embraced by the organization.&nbsp; Real Change/Transformation has not occurred.</li>
<li>How much did we like &#8216;peaceful order&#8217;? &nbsp;Many organizations are addicted to chaos, and find it difficult to stay calm.</li>
<li>Did Leadership incent peaceful order, and dis-incent chaos? &nbsp;If not&#8230;</li>
<li>When the pressure came (e.g., end of month, quality issues, mix shift, demand spike,&nbsp;etc.) how did the local management respond? &nbsp;Did they stay the course (peace, my brothers and sisters), or fold like a cheap suit?&nbsp; &nbsp;&ldquo;Ship it &hellip; got to make the month, quarter, year, bonus &#8230;&rdquo;</li>
<li>Did we leave system, process or responsibility&nbsp;&#8217;loopholes&#8217; that allow relapse? Irreversible structural changes wouldn&rsquo;t allow excess labor to service the month end crunch.&nbsp; Little or no stock storage racks would make it harder to accommodate large batch receipts from vendors. &nbsp;Compensation tied to linearity.</li>
<li>Just like when a single one-piece flow cell fails in a factory of functional and batch &ndash; organizational foreign tissue transplant rejection, except a &lsquo;lean&rsquo; site is only a slightly bigger island (than the cell) in an enterprise or industry of old ways.</li>
</ol>
<p>In the end, old habits die hard&#8230; or not at all.</p>
<p>&nbsp;</p>
<p>Thanks for thoughts from John Connor and Ken Branco.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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