By Stephen Cimorelli
This workbook for production provide chain administration (SCM) pros illustrates the best way to follow kanban replenishment platforms and enhance fabric move. people who find themselves now able to make the conversion from fabrics requisites making plans (MRP) push innovations to kanban pull thoughts needs to learn this publication!
In Kanban for the provision Chain: basic Practices for production Management., Stephen Cimorelli presents SCM groups with a roadmap for fitting primary kanban suggestions - the tactic is straight away actionable thereby expanding production productiveness and profitability. via an iterative strategy of making plans, adjusting, and executing, kanban pull concepts continue stock degrees synchronized with call for, and the availability chain synchronized with genuine production.
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Extra info for Kanban for the Supply Chain : Fundamental Practices for Manufacturing Management
1 ABC classification: The 80/20 rule. 2 ABC classification: Graphical portrayal. no matter how “trivial,” can shut down a production line as easily as a missing A or B item. Because C items account for a small percentage of inventory investment, you can add additional safety stock to these parts with very little cost, ensuring their availability at all times and allowing more attention and control to be paid to higher-valued A and B items. 2 show how the Pareto 80/20 rule (80% of the value in any population is held by 20% of the items) generally holds true for inventory.
Review the results of your ABC classification. Are any patterns or commonalties apparent? For example, are many of the A items from the same product line or common to multiple products? Do you purchase them from the same supplier? Do they share a material commodity? Is unit cost or volume the determining factor, or is it a combination of the two? Discuss any other patterns that jump out. What adjustments might be appropriate for your ABC assignments? 2 that the classical breakpoints are not met exactly.
In this chapter, you will learn about the formulas and basic patterns of the sawtooth diagram. In Chapter 7, we will use the sawtooth diagram to analyze a number of real-world scenarios. 1 depicts the inventory level for a typical part number, showing inventory declining over time as it is consumed (downward sloping lines), then jumping back up as replenishment orders are received (vertical lines). The process begins with inventory at some level above order point (OP). As soon as inventory drops below the order point (called “breaking the order point”), a replenishment order is placed.