You’re struggling to manage inventory. What Lean Manufacturing tools can help?

The idea of Kanban has many benefits, from internal efficiency to positive effects on customers. The purpose of Kanban is to visualize the flow of tasks and processes. companies that use Kanban often experience faster turnaround times. This includes faster production processes, faster packaging and handling, and more efficient delivery times to customers. This reduces the company's carrying costs (such as storage, insurance, risk of obsolescence) while turning capital to more efficient use more quickly. Ultimately, the ultimate goal of Kanban is to provide better customer service. With more efficient processes and less waste, lower prices may be charged to customers. With faster processes, customers may receive their goods faster

The reason most companies struggle with managing inventory is due to MRP. MRP was initially designed for MTO purposes. Then someone decided you could use it for build to stock by inserting a forecast instead of a build quantity. And that’s where it fails. The forecast (guess or estimate) is always off. Welcome to MRP! AKA Materials Random Predictions!!! Set up your Kanban, then turn off your MRP. You’ll be glad you did.

I really like Kanban to make sure a bottleneck is running. It allows a visual indicator to start/stop production that feeds your bottleneck and you can build in your own factor of safety. Once installed and understood, you can feel confident your bottleneck will be continuously supplied with material. I caution against falling in love with the Kanban concept and implementing them between all of your processes. It is better to create flow vs. inventory which is what a Kanban is at the end of the day. If you can, connect two processes and avoid the inventory.

The obvious answers include kanban and heijunka. There are other, more fundamental ways to understand and reduce inventory, before you take the plunge to more advanced tools. A quick analysis of the manufacturing flow can highlight tremendous opportunities and drive reductions especially in WIP. I strongly recommend the simplification of your processes and the implementation of flow manufacturing. Once you have your house in order, and a good planning system with reliable suppliers, then your approach can evolve to include kanban and heijunka.

For comes out of over inventory need to improve inventory turnover by JIT and Kanban since by using these tools we can also reduce carrying cost of inventory with improvement in utilisation of resources optimum level.

ABC analysis is a valuable tool, especially when used in conjunction with a well defined cycle counting effort. But most important to have are transactional disciplines that provide an accurate inventory. You must know what you have in order to know what you need. Many times I have seen companies pursue an upgraded manufacturing system thinking "this will solve my inventory problems", when in fact ANY system absent disciplined transactions will provide poor results.

Utilizing ABC classification is critical to inventory management - the key is also refreshing this classification on a regular basis, depending on product lifecycle and innovation cycle of the business. In a fleet management context, for example, overlaying product lifecycle allows for visibility to critical milestone or overhaul events to allow for the right inventory at the right time, especially for potential unplanned events.

In my experience, when struggling with inventory management, Lean Manufacturing tools like the ABC analysis method prove invaluable. This method categorizes inventory into three classes—A, B, and C—based on value and usage frequency. Class A items, like critical electronic components, are high in value and used frequently, necessitating stringent control. Class B items, such as accessories, are moderately valuable and used less frequently, while Class C items, like packaging materials, are of lower value and usage frequency. By prioritizing efforts based on this analysis, companies can allocate resources more effectively, ensuring optimal inventory control and improved efficiency in production processes.

ABC Analysis. I do not agree with the definition provided for ABC analysis here. You can use ABC analysis for many different things. "C" class items tend to be HIGH VOLUME, LOW COST whereas "A" class items tend to be LOW VOLUME, HIGH COST. Ideally you break the inventory down into 3 categories "A" account for 15% of your SKU's, "B" account for 35% and "C" make-up the last 50%. If anyone has ever been audited by finance, you know they look at the "A" class items knowing that if the inventory is incorrect on these items there is significant financial implications. "C" class, who cares if the inventory is off since the financial impact is very low.

A kan ban system backed up by 5s can certainly help .It is critical to keep every neat and in its place and cycle count on a regular schedule to ensure controls are in place and working . Excess inventory is costly and unnecessary if a good mini max system is in place and well controlled the impact of poor inventory control is also detrimental to you quality system and effect engineering changes and configuration control

5 S is the foundation of lean manufacture. Before you do any of inventory improvement please make sure that 5S is well deployed. Purpose of 5S is how to change mindset trough the activity.

Para utilizar o 5S no gerenciamento de estoque, comece classificando os itens, removendo os obsoletos e desnecessários. Depois, organize o estoque de forma acessível e identificável, usando sistemas de armazenamento e áreas específicas para diferentes produtos. Mantenha o local limpo e livre de bagun?a através de rotinas de limpeza. Estabele?a padr?es claros para a organiza??o e manuten??o do estoque, incluindo checklists. Promova uma cultura de responsabilidade e disciplina para manter os padr?es estabelecidos. Treine regularmente a equipe e incentive sua participa??o ativa na manuten??o da organiza??o. Com isso, você melhora a eficiência, reduz desperdícios e minimiza erros, garantindo um ambiente de trabalho mais seguro e organizado.

5s should be a culture across organisation. Not only focused on the store itself but as well in the way we manage all and keep taking away waste in all its forms ( physically and process)

Aplica??o de 5S deveria ser um item indispensável em todas organiza??es , pois este método deveria ser um assunto cultural no Brasil ou seja deveria aprender o conceito de organiza??o e aplica??o de 5S deste do primário , afinal nada melhor que aprendermos no início de tudo

5S will not work if it is a one dimensional perspective coming from a select few individuals. The only way you can make it succeed is to gain commitment from everyone involved. Once it’s standardized, keep it running like a well oiled machine.

The inventory turn ratio shows the time period in which the turnover of the goods has occurred. In fact, the main purpose of using indexes like the ITR index in the warehouse is to be able to check the level of productivity, the amount of inventories such as the nominal inventory and closing orders, etc. in general. To calculate ITR in simple language, you should follow the mentioned method: The number of product turnover times: that is, the cost price of the product sold divided by the stock of the product Average inventory: It means the sum of the inventory at the beginning and end of the period divided by two Product rotation period: 360 divided by the number of times the product is rotated

Para obter bons indicadores de giro de estoque é importante ter um sistema de controle eficaz e assertivo, com isso poderá dividir seu estoque e verificar oportunidades de melhoria no giro. Uma indústria por exemplo pode visualizar grupos como Matéria Prima, Elabora??o (WIP) e Produtos Acabados. Com o acompanhamento dessa métrica poderá propor estratégias para melhorar o retorno do capital investido entre outras oportunidades.

This measure is misunderstood with many organizations. Inventory turns is a financial measure not the number of times we've issues an item. I recommend NOT including the value of our critical spares into the equation. My definition of critical spares is life insurance policy. I don't want to use my policy!! The same with critical spares, we don't really want to use them, but the risk is too great not to have them available. A more meaningful measure would be to calculate turns on the remaining inventory values. Rolling 3-month average month end value / total value of items issued x 100. This gives a much better understanding how well we manage the inventory financially. Too low, too much inventory/obsolete. Too high, Overnight freight $

Important point to note is that inventory deviations occur due to differences in cycle time of the process in sequence. Combining processes so as to have same cycle times will ensure synchronised flow of material within the organisation and will result in minimum inventory deviations.

Dans l’après lean (hyper manufacturing) le juste à temps devient le flux pulsé. Composé de 5 éléments : -Ouverture : le lien entre l’offre et la demande via le digital -La Modularité : des unités de production qui deviennent de plus en plus découplées et flexibles -La connectivité des flux d’information et des flux physiques (RFID; QR code) -Le temps réel : Tableau collaboratif qui affichent les indicateurs de performance -Flux configuré : plateforme qui oriente les choix du consommateur en lui faisant des propositions en fonction du ??persona?? défini

Communication is the key that holds JIT together. Keeping transparency between the planners, buyers, vendors, and manufacturing teams ensures that there is sufficient stock all around. Cycle counting raw materials within the manufacturing department is another key. Keeping accurate count of inventory allows for products to be made without delay due to material shortages.

Just in time production would ensure inventory is kept to a minimum improving visibility and reducing wastages associated with excess inventory levels however keeping an effective JIT system running is easier said than done and would involve close coordination between suppliers and the manufacturing site. Inefficiencies in the system can lead to material shortages resulting in delayed production and increased lead times which can adversely impact customer satisfaction levels. Hence it is important to plan contingencies to address any possible issues that may arise in the supply chain.

Realmente a metologia de produ??o com base no JIT é uma excelente forma de se obter uma produ??o puxada onde produzimos e entregamos somente o que o nosso cliente necessita evitando assim um estoque desnecessário.

Many times the increase in inventory is caused by unnecessary demand signal. Value stream mapping can help discover areas of concern, be it incorrect customer demand signal, hidden factories or bad bulk buying behaviour. Defining the problem of bad inventory behaviour is the first step. Solutions can be provided using combination of some lean tools like Kanban, 5s, PDCA, JIT… The Lean principles within these tools work their magic to simplify the process and provide visualisation that enables tracking and managing of right KPI’s to drive optimised inventory

There are a handful of great lean tools to help manage inventory, but the first question should be this: what is the data telling us? Do you have too much or too little WIP? If so, where? and Why? Do you have too much or too little raw materials? Why? Asking questions like these and collecting data (and observing the process) will help provide some clarity on where to focus on your inventory issues. Once you identify those, you can then fix the root cause and implement lean tools (kanban, heijunka scheduling, one piece flow, etc.) to help maintain the right level of inventory needed throughout the value stream.

Procuring materials without customer order awareness results in unnecessary inventory buildup. Implementing a lean production system is crucial for inventory reduction. The Pull system, where materials are ordered based on customer demands, prevents overproduction and maintains optimal inventory. Given fluctuating customer orders, seamless system integration from inputs to supplier ordering is essential. This ensures smoother production flow. To mitigate line stoppage risk, maintain a safety stock of high-probability production materials. Aligning procurement with demand and creating a responsive, interconnected system enhances efficiency, reducing wasteful inventory accumulation.

Un autre élément clé du Lean à considérer est la chasse aux gaspillages. Spécifiquement, les gaspillages liés aux déplacments inutiles et à la non-qualité. Ceci a été mis en pratique dans un de mes mandats dans un entrep?t d'une grande multinationale du domaine automobile. Nous avons identifié plusieurs déplacments liés à des pièces localisées de fa?on non-optimale. Aussi, au niveau non-qualité, des quantités manquantes de certaines pièces.

One thing i find helpful is using VSM for better deep dive record on inventories between processes from dock to dock perspective. For semi finished good inventory there few more ways to limit the inventory, meaning to produce only what is needed for downstream process, by pulling with so called FIFO lane concept for low volume high mix , supermarket, by so called time buffers between processes. Usually inventory majority is at raw materials side. For this strong support by Purchasing and Logistics departments are needed. By reducing lot size, increasing delivery ?? frequencies, consignments management, parts localization, with all actions inventories of raw materials could be reduced, and to increase shipping of finish goods