Professional Documents
Culture Documents
QUALITY TOOL
Case Study
QUALITY TOOLS MISSION
and LEAN OBJECTIVES
KANBAN/CONWIP
(Minimizes Inventory / Minimizes Lead Time)
Total Costs
Optimal Range
Inventory
Set up costs
costs
1000
unit
order
placed
Process time
Work Center A Work Center C
Work Center B
1000
units
ship
Batch Build with No Inventory
1000
unit
order
placed
Problem:
1000
unit 1000 Units
order Inventory
placed Replenished
1000
units
inventory Near zero lead time
ship 1000 unit inventory
Batch Build with Simple Stocking
Problem:
I want to reduce the amount of
inventory in the system.
Batch Build with Simple Stocking
A C A C
B B
Inv. = 500
500 500
units units
inventory ship
ship
Near zero lead time
Inventory cut to 500 units
Twice as many orders placed
Batch Build with Simple Stocking
Problem:
A C A C A C A C
B B B B
Inv. = 250
Week 1 Week 2 Week 3 Week 4
Lower
Shorter Turns = Inventory
order
order
order
order
order
order
order
order
order
order
order
order
ship
ship
ship
ship
ship
ship
ship
ship
ship
ship
ship
With no stock in the system our stocking program
turns into a CONTINUOUS FLOW system.
OBSTACLES TO DOING THIS
ON A PART BY PART BASIS, CUSTOMERS
ACTUAL DEMAND IS VERY SPORADIC - HOW
CAN WE CONTINUOUSLY MAKE THAT PART
WHEN DEMAND ISNT CONTINUOUS?
CONTINUOUS IMPROVEMENT /
LEAN
RESULT:
TYPICAL PART DEMAND OVER TIME PROCESS DEMAND OVER TIME
Process Demand
Part Demand
Time Time
The Solution - Step 3
RESULT:
2 Days 8 Days 4 Days 4 Days 6 Days 2 Days
120%
% of Set-Ups
100%
80%
60%
40%
20%
0%
1
52
103
154
205
256
307
358
409
460
511
562
# of Tools
The Solution - Step 4
ADDITIONAL RESULTS: