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ERP - Containing the ability to link customers & suppliers into a complete supply chain - An enterprise wide set of management tools that balances demand & supply - Employing proven business processes for decision making and providing high degrees of cross functional integration among sales, marketing, operations, logistics, purchasing, finance, new product development, HR etc.
ERP - Sales Forecasting - Supplier rating & performance - MPS & MRP - Capacity - Shop floor planning - Customer order entry - Inventory in & out - Purchase order - Accounts payable, receivable, G. Ledger, Cash Mgt etc. - HR
MRP - What are we going to make - What does it take to make it
MRP
- What do we have - What do we have to get
Materials Planning
Production Planning
Process waste - Too many signature levels - Unclear job descriptions - Obsolete database - Purchase orders not matching quotation - Wrong data - Poor office lay out - Unnecessary e-mails - Waiting for next process step - Over production - Defects & extra inventory
Kaizen - Japanese term - Kai means “continuous” & zen means “improvement”. - Kai means “change” & zen means “good or for better”. - Derived from Gai San - Gai mean The action to correct - San mean action that benefit the society - “Just do it” by stakeholders (operators, owners, managers) - Ongoing improvement involving everyone
Lean - “A manufacturing philosophy that shortens the time line between customer order and the shipment by eliminating waste (non-value-adding activities).” - Commitment to continuous improvement - Systematic approach for Waste elimination from process - Doing more with less - Zero waiting time - Less of materials, time, resources, people, money
Lean / Continuous elimination of waste
Inactivity Excessive stocks
Dirt and disorder
Scrap and defects
5 S or Cando - Sort / Proper placing - Straighten/Arranging - Shine / Clean work area / Safety / e.g oil leakage - Standardize/systemize / Consistency - Sustain / To keep process going th. Training, communication etc.
Jidoka - Stop & notify the problem / abnormality - Rectify problem and then move - This system gave faith to worker & allow the worker to stop - This system gave liberty and authority to worker - Separate man’s work - Separate machine’s work - Quality in production process -
TPS (Toyota Production System) - Taiichi Ohno visited USA in 1956 where customer choose exactly what they wanted & in the quantities they wanted - Customer satisfaction - Just in time + Jidoka - Employee satisfaction - Mutual trust b/w employees & Mgt. - Team work - Delegate authority - Search for opportunities of further improvement -
Six Sigma - Motorola engineer Bill Smith pioneered the concept - A quantitative approach to measure quality & service - A metric that demonstrates quality levels at 99.9997% - Statistical approach to problem resolution & improvement -
Who Uses Six Sigma?
Sigma Levels and Defects per Million (DPM)
σ
Level
PPM or DPM
2
308,537
3
66,807
4
6,210
5
233
6
3.4
Comparison Six Sigma
Traditional
Focus on Prevention
Focus on Firefighting
Low cost
High cost
Stable/Predictable Processes
Processes based on Random Probability
Proactive
Reactive
Low Failure Rates
High Failure Rates
Focus on Long Term
Focus on Short Term
Efficient
Wasteful
Manage by Metrics and Analysis
Manage in haphazard wayants”
Just in time - Making only what is needed - Purchase only when it is required - It eliminates large inventories - Continuous flow
Kanban -The Japanese term means “signal” - Printed card contains the information like name, quantity etc. - Communication b/w workers / managers
ISO - Write what you say - Do What you write - More focus on documentation - DuPont, Toronto plastics, Sun Microsystems etc got benefits
Class A - Behavior - Process re-engineering - Involvement & integration - Trust & teamwork - Performance measurement - Root cause analysis - Frozen demand philosophy - Sales & operation planning - Open & honest communication - Internal customer agreements -Data accuracy , Success stories, projects etc.
Total quality - Perfection - Consistency - Eliminating waste - Speed of delivery - Compliance with policies - Doing it right the first time - Delighting customers - Total customer service & satisfaction - Hyundai, P&G
ERP - Sales Forecasting - Supplier rating & performance - MPS & MRP - Capacity - Shop floor planning - Customer order entry - Inventory in & out - Purchase order - Accounts payable, receivable, G. Ledger, Cash Mgt etc. - HR
MRP - What are we going to make - What does it take to make it
MRP
- What do we have - What do we have to get
Materials Planning
Production Planning
Process waste - Too many signature levels - Unclear job descriptions - Obsolete database - Purchase orders not matching quotation - Wrong data - Poor office lay out - Unnecessary e-mails - Waiting for next process step - Over production - Defects & extra inventory
Kaizen - Japanese term - Kai means “continuous” & zen means “improvement”. - Kai means “change” & zen means “good or for better”. - Derived from Gai San - Gai mean The action to correct - San mean action that benefit the society - “Just do it” by stakeholders (operators, owners, managers) - Ongoing improvement involving everyone
Lean - “A manufacturing philosophy that shortens the time line between customer order and the shipment by eliminating waste (non-value-adding activities).” - Commitment to continuous improvement - Systematic approach for Waste elimination from process - Doing more with less - Zero waiting time - Less of materials, time, resources, people, money
Lean / Continuous elimination of waste
Inactivity Excessive stocks
Dirt and disorder
Scrap and defects
5 S or Cando - Sort / Proper placing - Straighten/Arranging - Shine / Clean work area / Safety / e.g oil leakage - Standardize/systemize / Consistency - Sustain / To keep process going th. Training, communication etc.
Jidoka - Stop & notify the problem / abnormality - Rectify problem and then move - This system gave faith to worker & allow the worker to stop - This system gave liberty and authority to worker - Separate man’s work - Separate machine’s work - Quality in production process -
TPS (Toyota Production System) - Taiichi Ohno visited USA in 1956 where customer choose exactly what they wanted & in the quantities they wanted - Customer satisfaction - Just in time + Jidoka - Employee satisfaction - Mutual trust b/w employees & Mgt. - Team work - Delegate authority - Search for opportunities of further improvement -
Six Sigma - Motorola engineer Bill Smith pioneered the concept - A quantitative approach to measure quality & service - A metric that demonstrates quality levels at 99.9997% - Statistical approach to problem resolution & improvement -
Who Uses Six Sigma?
Sigma Levels and Defects per Million (DPM)
σ
Level
PPM or DPM
2
308,537
3
66,807
4
6,210
5
233
6
3.4
Comparison Six Sigma
Traditional
Focus on Prevention
Focus on Firefighting
Low cost
High cost
Stable/Predictable Processes
Processes based on Random Probability
Proactive
Reactive
Low Failure Rates
High Failure Rates
Focus on Long Term
Focus on Short Term
Efficient
Wasteful
Manage by Metrics and Analysis
Manage in haphazard wayants”
Just in time - Making only what is needed - Purchase only when it is required - It eliminates large inventories - Continuous flow
Kanban -The Japanese term means “signal” - Printed card contains the information like name, quantity etc. - Communication b/w workers / managers
ISO - Write what you say - Do What you write - More focus on documentation - DuPont, Toronto plastics, Sun Microsystems etc got benefits
Class A - Behavior - Process re-engineering - Involvement & integration - Trust & teamwork - Performance measurement - Root cause analysis - Frozen demand philosophy - Sales & operation planning - Open & honest communication - Internal customer agreements -Data accuracy , Success stories, projects etc.
Total quality - Perfection - Consistency - Eliminating waste - Speed of delivery - Compliance with policies - Doing it right the first time - Delighting customers - Total customer service & satisfaction - Hyundai, P&G
