A pull system is a technique used to produce only what has a demand attached to it. Pull systems are also used to replace inventory items or information which may have been taken to fulfill a demand. Pull systems use triggers to notify individuals when a demand or a need has been generated for the part or service.
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A work order is not the same thing as a manufacturing order. A work order gives someone the authority to begin working on a task, activity or even a project.
Put quite simply, a manufacturing order gives you the authority to manufacture.
Managing inventory would be impossible without a means to track how much inventory is on hand and if it is an appropriate amount of inventory. With that being said, the days of supply metric is a useful metric that can show an organization how many days their existing inventory will last before it reaches zero or drops into their safety stocks.
Andon is a japanese term that refers to a system of notification which is widely used today. The system provides management, maintenance or other employees of a quality issue, line stop or process problem. The andon system utilizes sensory notifications to alert others of a problem and more importantly the need for support. The alerts are are normally activated manually by a worker who observes the issue or by automated means that senses an abnormality somewhere in the process.
Implementing pull systems can be complicated. Fortunately we can follow six basic steps that will help us stay on track and get pull set up. So, what are those steps? Pull-it! Pull-it is a simple way to remember the six steps shown below.
Holding costs are all of the expenses a company incurs to hold inventory items over a period of time before they are used to fill orders. Generally speaking, Inventory carrying/holding costs are the costs you incur as a result of holding inventory. It is most often described as a percentage of your inventory value. The percentage is often unique to organizations and includes the amount of capital invested in inventory as well as depreciation, space occupied, insurance and opportunity costs. Inventory carrying or holding costs generally account for 15-30% of a business’s total inventory value.
Cross-training, also known as multi-skills training, involves training employees for a flexible response to more than one of the company needs. Cross-Training frequently does this through developed training programs or giving an employee the opportunity to develop experience.
Cellular layouts are the optimal flow based layout. A cell is a close arrangement or setup of people, machines or workstations. The purpose of a cellular layout is to fulfill a processing sequence while simultaneously reducing wait times, transportation and other forms of muda. In addition to removing various forms of waste, cells are very effective and promote and facilitate effective flow. Cells can be in many different shapes and attempt to spread work evenly amongst the resources.
Participative Management is a system of management that requires the cooperation of both management and personnel. In participative management employees share the decision-making power with their managers.
An unusual, uncommon or irregularly high product demand that is outside the normal parameters established by the management policy is called an Abnormal Demand.
Monuments are items that are large and difficult or expensive to move or re-setup.
A queue is often compared to a line. A queue can be associated with any item, person or service that spends any amount of time in a line before work begins. With this in mind, queue time is the amount of time that an item, order or job waits before any work is performed. It is important to note also that queue time occurs before setup time.
This is one of the basic costs that is associated with your inventory. When thinking of item level inventory, item cost typically includes the price that you pay to acquire the item as well as any costs that you may incur when purchasing. Some examples of extra costs that may be incurred as part of your item costs are taxes, duties, fees, packing and even transportation fees. Unit costs generally change based on the size of your order.
Have you ever wondered, what does it mean actual finish date? The actual finish date is the point in time that an activity, work or the project was actually completed.
A huddle is an action by a team to strategize, support and motivate one another towards accomplishing or aligning objectives and goals. Huddles are typically held before an activity takes place. Huddles can be held in any area or department of an organization, they do not need specific rooms just a format to conduct the huddle. The main difference between a huddle and a meeting is both how it is conducted and the amount of time the huddle takes compared to a meeting. Huddles can be performed in under 7 minutes.
The 8 forms of waste are also referred to as the 8 forms of muda. A Lean strategy attempts to remove any and all forms of waste from business processes.
Whether its Lean Six Sigma, just in time or a pull system, flow is the term used to refer to a production or service environment that continuously moves value through the value stream without interruptions. An environment that has flow would have very low levels of muda, muri and mura. Flow can also be described as the progression of tasks involved in creating products and information minus stoppages, delays, scrap, rework, reversals and backflows. Flow applies to both materials and information.
Actual demand is made up of "actual" or "real" customer orders. This can sometimes include allocations/reservations of items for order, ingredients or items driven by MRP for orders, or raw materials for production or distribution against orders.
Standard work is a detailed definition of the current agreed-upon steps needed for a person to complete one work cycle in the absolute best and most reliable method possible.
Change management is a method or an approach that is generally systematic in the way it works. Different change management approaches can be used when dealing with the transformation or transition of a business or organizations objectives, goals, processes, culture and of course technology. It even works with behavior. One of the main purpose of change management is simply to guide or manage the change that a company, department or individual will experience during transitions.
Brainstorming is one of the most powerful techniques a team or individual can use to address topics and solve issues. Brainstorming promotes innovative thinking and helps people creatively use their skills and talents on a particular subject.
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March 2024
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