Kanban for the Supply Chain

Book excerpt: Following in the footsteps of its popular predecessor, the second edition of this workbook explains how to apply kanban replenishment systems to improve material flow. Kanban for the Supply Chain: Fundamental Practices for Manufacturing Management, Second Edition provides readers with a detailed roadmap for achieving a successful and sustainable kanban implementation. Detailing the steps required for each stage of the manufacturing and supply chain management process, this updated edition focuses on creating an environment for success. It addresses internal mechanisms, including leveling production schedules, as well as external elements, such as conducting a thorough analysis of customer demand. Numerous techniques are presented for setting up kanban that consider a wide array of material types, dimensions, and storage media. This edition presents a wealth of new tools and techniques useful across the broad spectrum of manufacturing environments, including: A statistical data cleansing technique to remove questionable or irrelevant data from kanban calculations Correlation analysis based on simple Excel techniques to guide the decisions around which part numbers "qualify" for kanban An alternative "stair-step analysis" approach for those who are unable to generate correlation data and prefer to use more readily available monthly demand history An approach to analyze supplier performance data vs. lead time and lot size expectations, with risk mitigation strategies for poor performing suppliers This book is for those who are ready to stop thinking about a conversion from materials requirements planning push techniques to kanban pull techniques and want to make it happen now. Stephen Cimorelli provides actionable advice for installing fundamental kanban concepts that can immediately help you increase manufacturing productivity and profitability. The book includes team-based exercises that reinforce key principles as well as a CD with helpful outlines, charts, figures, and diagrams.