Control Systems.ERPJITKanban.ppt

Control Systems ERP\JIT\Kanban APICS/NAPM October 20, 2004 Bruce Fischer Elmhurst College ERP\JIT\Kanban The World We Live In Highly Competitive Dynamic – Fluid – Ever Changing Companies Require - responsiveness flexibility profitability/consistent cash flow ERP Enterprise Resource Planning A system of interconnected data tables (usually using the general ledger as its ‘backbone’) driven by an MRP/MRPII calculation engine. MRP Material Requirements Planning A system for determining the quantity and timing requirements for materials used in a production operation. MRPII Manufacturing Resource Planning An expanded system for determining manufacturing resource requirements and for scheduling production. JIT Just-in-Time A system for producing and delivering the right items at the right time in the right amounts Key elements of Just-in-Time are flow, pull, standard work, and takt time Standard Work A precise description of each work activity specifying cycle time, takt time, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity. Takt Time An important concept in pacing operations The “heartbeat” of a lean system Takt time = (available production time) / (rate of customer demand) Example: Customer demand is eight widgets per day. The plant operates 16 hours per day. Takt time is two hours (16/8 = 2). Kanban Card Pull A system of cascading production and delivery instructions from downstream to upstream activities in which nothing is produced by the upstream supplier until the downstream customer signals a need. Nothing is produced without a signal from the next station in the line. Lean Approach Single piece flow Eliminate bureaucracy, departmentalization Eliminate batch and queue (Lean Approach) Tear out conveyors (moving warehouses) Adopt a just-do-it mindset Focus on value Value Created by the producer May be hard for producers to de