Cover image for Lean materials planning and execution : a guide to internal and external supply management excellence
Title:
Lean materials planning and execution : a guide to internal and external supply management excellence
Personal Author:
Publication Information:
Boca Raton, FL : J. Ross Publishing, 2008
Physical Description:
xvii, 252 p. : ill. ; 24 cm.
ISBN:
9781932159653

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30000010206230 HD38.5 S54 2008 Open Access Book Book
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Summary

Summary

Lean materials management is a constant challenge in most supply chains and is one of the most critical issues facing manufacturing organizations. Success is defined by controlling all components of an operation, including the costs of quality, delivery speed and flexibility, and the synchronization of the correct parts delivered as needed. Lean Materials Planning & Execution shows how to capitalize on Lean systems and thinking to cut costs, increase performance and make internal and external customers happy.This book explores the roots of high-performance materials management to guide today's professional toward the right process controls at the right time. Written in a practical, easy-to-understand format, Lean Materials Planning & Execution describes supply chain management best practices and delineates a variety of important Lean and Class A metrics as tools for achieving maximum effectiveness. It covers all important management systems that are essential to high performance, such as sales and operations planning, clear-to-build and process ownership, along with the role of materials manager in getting maximum effectiveness from these tools. This is a must read for materials managers, production managers and top management in manufacturing organizations.


Author Notes

Donald H. Sheldon, CFPIM, CIRM, is President of DH Sheldon & Associates, an international consulting firm headquartered in New York. Mr. Sheldon is a seasoned practitioner and leading expert in the various processes required to achieve world-class manufacturing excellence. He is a sought-after speaker, has been published in numerous magazines and journals and is the author of Achieving Inventory Accuracy, Class A ERP Implementation, World-Class Master Scheduling and co-authored The Road to Class A Manufacturing Resource Planning (MPR II).


Table of Contents

Prefacep. xiii
About the Authorp. xv
Web Added Valuep. xvii
Chapter 1 Evolution of Materials Management and Leanp. 1
Introductionp. 1
Historyp. 2
Enterprise Resource Planningp. 4
Lean and Materials Management Definedp. 9
Discussion Questionsp. 10
Chapter 2 Applying Lean to the Planning Process and How It Affects Materials Planningp. 13
Introductionp. 13
Pull Systems and Planningp. 13
5-Sp. 14
Red Taggingp. 20
Kanbanp. 21
MRP and Lean Pull Systemsp. 23
Waste in Materials Managementp. 25
Unnecessary Material Movementp. 26
Unnecessary Worker Movementp. 26
Spacep. 28
Timep. 28
Materialp. 29
Effortp. 29
Creativity and Knowledgep. 30
Kaizenp. 30
1-Day Kaizen (Blitz)p. 31
The Week-Long Kaizenp. 32
Typical Kaizen Projects in Materials Managementp. 33
Setup Reduction/Single Minute Exchange of Diep. 34
Lean Inventory Strategyp. 35
Make to Stockp. 37
Assemble to Orderp. 38
Make to Orderp. 38
Engineer to Orderp. 39
Discussion Questionsp. 40
Chapter 3 Lean and Excellence in Supply Managementp. 43
Lean and Choosing Suppliers and Supply-Chain Partnersp. 43
Partner Development Criteriap. 44
Implementing Supplier Partnershipsp. 48
Reverse Auctionsp. 49
Vendor Managed Inventoryp. 31
Consigned Inventoryp. 52
Time Fences in Lean Materials Managementp. 53
Logistics as a Competitive Advantagep. 54
Supplier Performance Ratings and Certificationp. 56
Class A ERPp. 57
Maturity Profilesp. 57
Metrics in Procurementp. 58
Class A ERP Procurement Metricp. 59
Discussion Questionsp. 60
Chapter 4 Data Integrity in Lean Environmentsp. 63
Introductionp. 63
Inventory Balance Accuracyp. 64
Inventory as an Assetp. 65
Allowing for the Elimination of Buffer Inventoryp. 65
Control Group Method: Effective Steps and Resultsp. 66
Control Group: Step 1-Item Selectionp. 67
Control Group: Step 2-Recounting the Same Locationsp. 67
Control Group: Step 3-Determining Root Causep. 69
Control Group: Step 4-Eliminating the Reason for Inaccuraciesp. 70
Control Group: Step 5-Ten Error-Free Daysp. 70
Control Group: Step 6-Initiating a Second Control Groupp. 72
Control Group: Step 7-Establishing a Cycyle Count Processp. 72
Physical Inventoryp. 72
Cycle Countingp. 74
The Objectives of Cycle Countingp. 76
ABC Stratificationp. 76
Inventory Accuracy Metricsp. 78
Bills of Material and Routing Record Accuracyp. 81
Components of Bills of Material Accuracyp. 81
The Process Owner of Bills of Materialp. 82
Measuring Bills of Material Accuracyp. 33
Simple Make-to-Stock Environmentsp. 85
Routing Recordsp. 86
Where Routing Record Accuracy Is Paramountp. 87
Summary on Data Accuracy in Lean Environmentsp. 88
Discussion Questionsp. 88
Chapter 5 Master Scheduling in Lean Materials Managementp. 91
Introductionp. 91
The Master Production Schedulep. 91
Inventory Strategyp. 93
Product Familiesp. 95
Bills of Materialp. 95
Planning Bills of Materialp. 97
Capacity Planning in the Master Production Scheduling Processp. 100
Customer Orders and Schedule Levelingp. 102
Massaging the Daily Schedulep. 102
Rule for Master Production Schedule Level Loadingp. 104
Fence Rules in Master Schedulingp. 105
Management System Requirementsp. 106
The Sales and Operations Planning Processp. 107
Master Scheduling Process Ownership and Summaryp. 108
Discussion Questionsp. 108
Chapter 6 Materials Planning for Excellence in Lean Environmentsp. 111
Introductionp. 111
Order Policy Decisionsp. 114
ABC Stratificationp. 116
Process Ownership and Lean Materials Planning Metricsp. 116
Enterprise Resource Planning Integration with Lean and Six Sigmap. 118
Running the Material Requirements Planning Net-Change Calculationp. 120
Inventory Managementp. 121
Discussion Questionsp. 123
Chapter 7 Warehouse Management and Organizationp. 125
Introductionp. 125
Good Inventory Organization and Storage Patterns-The Beginning Checklistp. 126
Point-of-Use Storagep. 134
Storage Patternsp. 134
Dedicated Storagep. 134
Random Storagep. 135
Zone Storagep. 136
Golden Zoningp. 137
Storage Layoutp. 138
Carousels for Storagep. 138
Location Systemsp. 139
Stock Determinationp. 140
Aftermarket Stockingp. 140
Discussion Questionsp. 142
Chapter 8 Top Management Sales and Operations Planningp. 145
Introductionp. 145
What Is the Sales and Operations Planning Process?p. 146
Historyp. 147
Balancing the Needs of Businessp. 147
Enterprise Resource Planning Process at the Centerp. 149
Summary of the Roles of Players in Sales and Operations Planningp. 151
Timetable for Sales and Operations Planningp. 153
Decisions in the Sales and Operations Planning Processp. 154
Sales and Operations Planning Agendap. 155
What Businesses Need a Sales and Operations Planning Process?p. 162
Who Drives the Sales and Operations Planning Process?p. 163
Discussion Questionsp. 164
Chapter 9 Demand Planningp. 167
Introductionp. 167
Business Planning as an Input to Demand Planningp. 168
Marketing Plans as an Input to Demand Planningp. 169
Sales Planning as an Input to Demand Planningp. 172
Historical Inputs to the Demand Planning Processp. 173
Understanding the Outputs of Demand Planningp. 174
The Weekly Demand Reviewp. 175
Process Ownership in the Weekly Demand Reviewp. 177
Measuring the Demand Planp. 177
Discussion Questionsp. 179
Chapter 10 Integrating Lean and Six Sigma with Enterprise Resource Planningp. 181
Introductionp. 181
Continuous Improvementp. 181
Unnecessary Worker Movement Revisitedp. 184
Lean and Process Mapping Toolsp. 184
Functional Manufacturing Versus Process Flowp. 187
Customer-Focused Quality (Six Sigma)p. 189
DMAIC Processp. 190
D-Define the Problem and the Tools to Usep. 190
M-Measure and Collect Datap. 192
A-Analyze the Data for Possible Solutionsp. 192
I-Improve the Processp. 193
C-Control the Process and the Solutionp. 193
Other Six Sigma Toolsp. 194
Six Sigma Belt Recognitionp. 194
Discussion Questionsp. 195
Chapter 11 Metrics in Lean Materials Managementp. 197
Introductionp. 197
Two Basic Types of Metricsp. 197
Major Class A Enterprise Resource Planning Measuresp. 198
Starting the Measurement Processp. 202
Lean Measuresp. 203
Customer-Driven Qualityp. 205
Discussion Questionsp. 206
Chapter 12 High-Performance Management Systemsp. 209
Introductionp. 209
Monthly Sales and Operations Planning Management Systemp. 209
Monthly Project Management Review Systemp. 210
Weekly Management System Performance Reviewp. 212
Agenda for the Weekly Performance Reviewp. 214
Weekly Clear-to-Buildp. 216
Weekly Project Reviewp. 217
Daily Class A Enterprise Resource Planning Management System Eventsp. 217
Daily Schedule Alignmentp. 218
Daily Walk-Aroundp. 218
Visible Factory Boardsp. 220
Shift Change Communicationp. 220
Other Management Systems in High-Performance Businessesp. 221
Discussion Questionsp. 222
Chapter 13 Software Toolsp. 225
Introductionp. 225
Role of Enterprise Resource Planning Software in Lean Materials Managementp. 228
Simple Enterprise Resource Planning Software System Criteriap. 228
The Next Level of Detail: Software Specsp. 231
What about the "Corporate Standard" System View?p. 232
Final Thought on Softwarep. 233
Discussion Questionsp. 234
Chapter 14 Education and Training in Lean Materials Managementp. 237
Importance of Educating All Partiesp. 237
Trainingp. 239
Discussion Questionsp. 240
Answers to Discussion Questionsp. 241
Indexp. 243