"Kanban Pull System" & "6 S"

                 

As the Ashburton and McDougal Projects at Capsys are nearing turnover to their respective owners, the plant “Kanban Pull System” project is out of the planning stages into the implementing stage. The Japanese word, “Kanban” can be translated into English as “Sign Board” and is an important part of our “Pull System”. Taichi Ohno, the creator of the Toyota Production System,  devised a plan in the 1950’s to have demand and actual production determine quantity and timing of re-orders in purchasing. This plan was thought up into existence after Mr. Ohno and the Toyota team visited a United States Supermarket and could not believe its efficiencies.  Using Visual Re-fill points (flags, measuring rods, marked bins, three bins, etc.) and Re-order points coupled with a Daily Patrol and thorough 6S, we can achieve a “pull system” instead of the very wasteful “push system”.

Here is a quick link for seeing a "Supermarket Kanban" illustration:

http://www.youtube.com/watch?v=bK78YS9j51k

Our System is nearly 75% complete and on schedule to be fully implemented by November of 2011. We are performing our tagging system by way of daily rounds. The 6S methodology will give our plant a very aesthetically pleasing environment with a clear vision of continuous improvement in the Inventory Scheduling and Control Systems.

The initial Value Added Space Percentage was recorded at 60% (40231/66816). After the 6S, we are estimating at improving that number to 80% then continuously improving from there.  The 6S methodology consists of:

1.       Sorting – Recognizing waste and discarding. Use the 7 deadly wastes as a guide to discarding waste. 

          First identified by Taiichi Ohno of Toyota, the “7 Wastes” are as follows:

a.         Overproduction: Making more parts than you can sell.

b.         Delay: Waiting for processing, parts sitting in storage, etc.

c.         Transporting: Parts/Materials: Moving parts to various storage locations, from processes to process

d.         Over-Processing: Doing more “work” to a part than is required.

e.         Inventory: Committing money and storage space to parts not sold.

f.          Motion: Moving parts more than the minimum needed to complete and ship them.

g.         Making Defective Parts: Creating parts that cannot be sold “as is” or that must be reworked.
    
I would also include the 3 M's (Mura, Muri, and Muda) in everything you do!     (See my first post)

 Here is quick video reference for you.www.youtube.com/watch?v=u1kWF5gdXYU

2.     Setting in Order: Everything (Materials/Processes) has its place (marked, pictures)              

3.     Shining – Keeping things clean

4.     Standardizing – Everything should be consistent and identical. Every process and worker should know exactly what their roles and responsibilities are.  

5.     Sustaining – This is easily the most difficult part of the process and a clear system of sustaining the gains made while continuing to improve must be part of the corporate charter. 

6.     Safety - Safety should be paramount in everything we do. It is the added S to a much more common 5S.  

      A quick history lesson: The 6S methodology that Toyota used as a part of the Toyota Production System, had its roots from America in the early 20th century. Federick Taylor, the father of scientific management and industrial engineering, created the CANDO method. The CANDO method was: Cleaning up, Arranging, Neatness, Discipline, Ongoing Improvement.  

    

With that said, the best part about creating a "Kanban Pull System" is that it makes the purchasing manager's job more manageable because it is very proactive versus a reactive "Push System". The "Push Supply Chain" is reactive because it depends a lot more on forecasting and forecasting is nothing more than an educated guess. These "guesses" are surprisingly wrong most of the time, no matter which technique a person uses.

I worked with one company in the Bronx that fabricates plastic containers and they used the statistical forecasting exponential smoothing technique and ended up accruing large amounts of inventory. Even though exponential smoothing coupled with seasonal weights are a very proven model for forecasting it is still educated guessing.  

Here is another visual illustration that may help you:

http://www.youtube.com/watch?v=ZIv2e61SH1A&feature=related

When implementing a system, it is always best to make each departments key players think of this system as their own; thus, creating ownership in its success.If they feel that they are the ones making the improvements than they will try their best to make the system succeed and most importantly sustain those successes. Include the stakeholders in the process early and receive their input often.

Some mistakes that many interns make is believing change happens fast. It does not, it is very important for the workers to understand and be apart of the change. The understanding takes time and workers will not work very hard unless there is a clear vision and understanding to what and why they are doing the tasks you ask of them. This is not unlike dealing with a friend who everyone knows is on the wrong track and you would like to help them. It would not be wise to just tell them what to do, but it would be to guide them in finding out what they need to do for themselves.

In closing, I would like to inform everyone that I will be leaving Capsys Corp as their Program Manager and will be joining the Sandia National Laboratory Team in Albuquerque, New Mexico!! I will be staying on as an outside consultant with Capsys Corp if you need to contact me with any questions regarding Capsys Corp but will be now focusing on the improvement of our National Laboratory. I am very excited about this opportunity and can not wait to get started with this Shigeo Shingo Award Winning Orgarnization. 

Let me know if you have any questions about the "Kanban Pull System," which I know you will considering this blog post was just a high level overview of it, and I will be happy to answer them.

Albuquerque Ikimashow!!

Ja Matta Ne...

Next Blog,

A background into the Kaizen Methodology (should be interesting)