Supply Chain

Species
Kanban System

"OK, you've swallowed the pig; now what do you do with it?" This is a common
problem in push production systems.

Constrictor snakes such as the one shown above are designed to process meals in
the indicated manner, and they often sleep for several months while they digest
their meals. This is not how we want a factory to operate; pig-swallowing should be
left to systems that are designed to handle it.
The Problem with Push Production

A method of JIT inventory replenishment that originated in Japan.
Kanban techniques can be used by both
manufacturingand non-manufacturing organizations
Kanban systems can be:
100% manual
100% Automated
A hybrid of Automated and manual techniques
Non-manufacturing companies may use a hybrid approach
Suited for particular types of inventory items such as
items with frequent usage
items with short lead times
items with willing suppliers


Can use different methods to trigger replenishment activity
kanban cards are the most common
kanban containers are also frequently used
bar coding of cards / containers helps when
automating kanban systems
McDonalds method of keeping burger lanes full during peak
periods is a recognizable example of a pull system in a service
application


Using an Andon System
Numero de Parte



Uso Suministro
Kanban card
THE KANBAN CYCLE
Planner determines when to
add / remove cards

When order minimum is
reached, a Job, PO, or Move
Order is created
In-Process
When received, kanban status is
updated and container is moved to
usage area

Full
Empty
Wait until minimum order
quantity is reached
When container is empty, signal sent
to source to replenish kanban
New
Wait
KANBAN BENEFITS
Reduce inventory and product obsolescence
Reduces waste and scrap
Increases output
Reduces wait time
Provides flexibility in production
In essence all the above lead to reduced total
cost of production and increased efficiency
Vendor Managed Inventory
aka(VMI)
Supplier responsible for replenishment
EDI, POS information provided by buyer
Shared risk format of doing business
Usually supplier buys back unsold inventory
Ownership passed to buyer on consumption and
not shipment
Wal-Mart, Nestle , Home Depot use VMI
Oil companies use this to maintain oil levels at
service stations
BILL OF MATERIAL
A list of materials (raw material / sub assembly / finished goods)
A document used for tracking and recording materials

Details covered in a Bill of Material (BOM)
Sl. No.
Item code
Item description
Make / Manufacturer
Relation with other components
Quantity
Relevant information as per document application
(e.g. Excise amount, vehicle information in EDGP etc.)
Bill of Material (BOM)

Data base of all parts

Part Number
Description
Engineer
Quantity
Item
PN Description Engineer Qty. Item Size Wei ght Each U/M Used On
110 Steel pipes Ryan N/A part A N/A each 100
120 vehicle cover Ryan N/A part A N/A each 100
130 seat Nick 1 part A N/A each 100
Size
Weight
Unit of Measure
Used on
Bill of Material (BOM)
Indented by subassemblies
400 Braking system
410 uprights
411 Mounting bolts
412 Nuts
420 calipers
421 Mounting bolts
422 Brake pads
430 brake discs
440 hubs (4)
450 tires (4)
460 rims (4)
470 master cylinder
471 brake cables
472 brake fluid
480 brake petals

Assembly
Subassemblies
Detailed Parts
Create a BOM for your Pen.

You dont buy refills you only buy plastic and metal components and Ink
PROJECT MANAGEMENT
PROJECT DEFINITION
THEORY
A temporary
endeavor
to create a unique
product or service:

a specific timeframe
a budget
unique
specifications
working across
organizational
boundaries




TATA NANO
Feasibility
(safety, power,
affordability)
Project Team,
Networking and
Project Scheduling

Tendering, Bidding,
Contracting; Quality,
IT and technology

Resource Management,

Project Close Out
INCEPTION




Planned Vs Unplanned
PROJECT MANAGEMENT TRIANGLE
COST MANAGEMENT
Resource Planning
Cost Estimating
Cost Budgeting
Cost Control
SCOPE MANAGEMENT
Scope Planning
Scope Definition
Scope Verification
Scope Change Control
TIME MANAGEMENT
Activity Definition
Work Breakdown
Activity Scheduling
Schedule Monitoring
RISK
QUALITY MANAGEMENT
Quality Planning
Quality Assurance
Quality Control
PROJECT PROCESS
Important Aspects:
Define Project structure organizational
Key responsibilities, deliverables
Define Documentation protocol and standards



CHANGE POSSIBILITY vs COST
PROJECT MANAGEMENT TOOLS
Work Breakdown Structure
Scheduling tools
MS PROJECT
MS EXCEL
PRIMEVERA etc.



WORK BREAKDOWN STRUCTURE (example)
System Hardware
Replacement
RFP Development
Needs Assessment
Needs Analysis
Write RFP
Finalize with
Purchasing
Vendor Selection
Research Vendors
Research Sites
Select Vendors to
mail RFP
Review Proposals
Rank Proposals
Recommendation
Staff Training
Identify training
Plan
Schedule Training
Train
Hardware
Implementation
Schedule
Installation
Prepare Site
Arrange Vendor
Support
Configure System
Install System
A methodology to divide work into small sub tasks
Identify the major task categories
Identify sub-tasks, and sub-sub-tasks
WORK BREAKDOWN STRUCTURE (example)
System Hardware
Replacement
RFP Development
Needs Assessment
Needs Analysis
Write RFP
Finalize with
Purchasing
Vendor Selection
Research Vendors
Research Sites
Select Vendors to
mail RFP
Review Proposals
Rank Proposals
Recommendation
Staff Training
Identify training
Plan
Schedule Training
Train
Hardware
Implementation
Schedule
Installation
Prepare Site
Arrange Vendor
Support
Configure System
Install System
PROJECT SCHEDULE (GANTT CHART)
Basics Of PERT/CPM
PERT=Project Evaluation Review Technique

CPM = Critical Path Method
The CPM Diagram
Tasks are Arrows Events are Circles
Dummy Tasks are Dashed Arrows
Critical Tasks are Thick Arrows
IMPORTANT TERMINOLOGY
PROJECT PHASES
Bid / No Bid
Acquired / Order Received
Order booked
Basic engineering phase
Detail Engineering phase
Supply
Installation
Commissioning
Acceptance Tests
IMPORTANT TERMINOLOGY
MILESTONES
It is the end of a stage that marks the completion of a work
package / phase
signals the completion of a key deliverable
Project monitoring is done based on milestones
CRITICAL PATH
The shortest path to complete the project
The activity sequence which impacts downstream milestones
and the overall timeline of project
If you miss a Critical Path, the entire project is delayed, or
You have to make up ground on downstream critical paths