Supply Chain

Species
Kanban System
The Problem with Push Production

"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.
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

Numero de Parte

Uso Suministro

Kanban card
Using an Andon System
 THE KANBAN CYCLE
When container is empty, signal sent
to source to replenish kanban

Wait until minimum order

quantity is reached
Empty
New

Planner determines when to Wait

add / remove cards

Full

When received, kanban status is

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

Description Weight
Engineer Unit of Measure
Quantity Used on
Item

PN Description Engineer Qty. Item Size Weight 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
 Bill of Material (BOM)
Indented by subassemblies
400 Braking system
410 uprights
411 Mounting bolts
412 Nuts
420 calipers
Assembly 421 Mounting bolts
422 Brake pads
430 brake discs
440 hubs (4)
Detailed Parts
450 tires (4)
460 rims (4)
470 master cylinder
471 brake cables
Subassemblies 472 brake fluid
480 brake petals
Create a BOM for your Pen.

You dont buy refills you only buy plastic and metal components and Ink
PROJECT MANAGEMENT
 PROJECT DEFINITION
THEORY TATA NANO INCEPTION
A temporary Feasibility
endeavor (safety, power,
to create a unique affordability)
product or service: Project Team,
Networking and
a specific timeframe Project Scheduling
Planned Vs Unplanned
a budget
unique
Tendering, Bidding,
specifications
Contracting; Quality,
working across
IT and technology
organizational
boundaries
Resource Management,

Project Close Out

 PROJECT MANAGEMENT TRIANGLE

TIME MANAGEMENT COST MANAGEMENT

Activity Definition Resource Planning
Work Breakdown Cost Estimating
Activity Scheduling Cost Budgeting
Schedule Monitoring Cost Control

SCOPE MANAGEMENT QUALITY MANAGEMENT

Scope Planning
Scope Definition
RISK Quality Planning
Quality Assurance
Scope Verification
Scope Change Control 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)
A methodology to divide work into small sub tasks
Identify the major task categories
Identify sub-tasks, and sub-sub-tasks

System Hardware
Replacement

Hardware
RFP Development Vendor Selection Staff Training
Implementation

Identify training Schedule

Needs Assessment Research Vendors
Plan Installation

Needs Analysis Research Sites Schedule Training Prepare Site

Select Vendors to Arrange Vendor

Write RFP Train
mail RFP Support

Finalize with
Review Proposals Configure System
Purchasing

Rank Proposals Install System

Recommendation
WORK BREAKDOWN STRUCTURE (example)
System Hardware
Replacement

Hardware
RFP Development Vendor Selection Staff Training
Implementation

Identify training Schedule

Needs Assessment Research Vendors
Plan Installation

Needs Analysis Research Sites Schedule Training Prepare Site

Select Vendors to Arrange Vendor

Write RFP Train
mail RFP Support

Finalize with
Review Proposals Configure System
Purchasing

Rank Proposals Install System

Recommendation
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

Critical Tasks are Thick Arrows
Dummy Tasks are Dashed 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