Helpful to understand KanBan, CONWIP, TOC, IT in planning etc.

1. “Advance Concepts in OPC”
Presented By:-
SWAPNILKUMAR PAWAR(13253)
1

2. Contents
• OPC
• Push –Pull Systems
• KanBan
• KanBan cards
• Advantages
• ConWIP model
• TOC
• Applications of TOC
• IT in planning
• Planning for services
2

3. What Is PPC?
• Production planning is the system for
specifying the production procedure to obtain
the desired output in a given time at optimum
cost in conformance with specified standard of
quality
• Control is essential to ensure that
manufacturing takes place in the manner stated
in the plan
3

4. Push And Pull Systems
Push Strategy Pull Strategy
Push-
Pull
boundary
End
Customer
Raw
Materials
Supply chain time line
4

5. 5

6. • Kanban is the Japanese word for
card
• The card is an authorization for the
next container of material to be
produced
• A sequence of kanban pulls material
through the process
• Many different sorts of signals are
used, but the system is still called
a kanban
6

7. ORIGIN
• In late 1940’s Toyota was studying supermarkets
• Customer can get what is needed, at the time needed, in
the amount needed
• Supermarkets stock what it believes it will sell
• Customers only take what they require
• In 1953, Toyota applied this logic in their main plant
machine shop
7

8. 1. User removes a
standard sized
container
2. Signal is seen by the
producing department
as authorization to
replenish
Part numbersPart numbers
mark locationmark location
SignalSignal
marker onmarker on
boxesboxes
8

9. • When the producer and user are not in visual
contact, a card can be used
• When the producer and user are in visual contact,
a light or flag or empty spot on the floor may be
adequate
• Since several
components may
be required,
several different
kanban techniques
may be employed
9

10. • Usually each card controls a specific quantity
or parts
• Multiple card systems may be used if there
are several components or different lot sizes
• In an MRP system, the schedule can be
thought of as a build authorization and the
kanban a type of pull system that initiates
actual production
10

11. • Need to know the lead time needed to
produce a container of parts
• Need to know the amount of safety stock
needed
Number of kanbansNumber of kanbans
(containers)(containers)
Demand duringDemand during SafetySafety
lead timelead time ++ stockstock
Size of containerSize of container
==
11

12. Daily demand = 500 cakes
Production lead time = 2 days
(Wait time +
Material handling time +
Processing time)
Safety stock = 1/2 day
Container size = 250 cakes
Demand during lead time = 2 days x 500 cakes = 1,000
Number of kanbans = = 5
1,000 + 2501,000 + 250
250250
12

13. • Reduce WIP
• Allow only limited amount of faulty or
delayed material
• Problems are immediately evident
• Puts downward pressure on bad aspects of
inventory
• Standardized containers reduce weight,
disposal costs, wasted space, and labor
13

14. ADVANTAGES contd…
• A simple and understandable process
• Provides quick and precise information
• Low costs associated with the transfer of information
• Avoids overproduction
• Is minimizing waste
14

15. Feature to
develop Tasks in queue
Tasks in progress Tasks
complete
Feature complete
KanBan Example
15

16. KanBan Boards
16

17. Constant Work In Process
(CONWIP)
It is one of the variant of pull system.
It is known for its ease of implementation.
CONWIP systems are easier to implement and
adjust, since only one set of system cards is used to
manage system WIP
For example, no part is allowed to enter the system
without a card (authority). After a finished part is
completed at the last workstation, a card is
transferred to the first workstation and a new part is
pushed into the sequential process route.
17

18. Assumptions for CONWIP
• The production line consist of single routine
along which all parts flow.
• WIP can be measured in units, i.e. number of
jobs or parts in the line.
18

19. A CONWIP Production Line.
19

20. COMPARISON
Sr. No Kanban CONWIP
1 Focuses on individual work
station
Focuses on system as whole
2 Best in environment that is
stable and predictable
Best in environment that has
variability in production
3 Focuses on specific part no Does not focuses on specific
part no
4 Comparatively difficult to
implement
Easier to implement
5 Suitable for continuous or
repetitive production
Suitable for job shop
production
20

21. Theory Of Constraints(TOC)
• Theory of Constraints (TOC) is an overall
management philosophy introduced by Dr.
Eliyahu M. Goldratt in his 1984 book titled
The Goal.
• A system's constraint "is that part of the system
that constrains the objective of the system.“
• The TOC process of ongoing improvement seeks
to identify the constraint and restructure the rest
of the organization around it, through the use of
the Five Focusing Steps
21

22. The Basic principles of TOC
 Convergence
" that the more interconnected a system is the
fewer degrees of freedom it has, and consequently
the fewer points must be touched (managed) to
impact the whole system.
 Consistency
"If two interpretations of a natural phenomenon are
in conflict, one or possibly both must be wrong".
 Respect
this principle is states that people are not
inherently irrational.
22

23. BASIC PROCESSES
1. Identify the constraint (the resource/policy that
prevents the organization from obtaining more of the
goal)
2. Decide how to exploit the constraint (make sure the
constraint's time is not wasted doing things that it
should not do)
3. Subordinate all other processes to above decision
(align the whole system/organization to support the
decision made above)
4. Elevate the constraint (if required/possible,
permanently increase capacity of the constraint; "buy
more")
5. If, as a result of these steps, the constraint has moved,
return to Step 1. Don't let inertia become the
constraint.
23

24. Application of TOC
• Operations
 Drum-Buffer-Rope
 Simplified Drum-Buffer-Rope
• Supply chain / logistics
 TOC-Distribution
 TOC-VMI( Vendor Managed Inventory)
• Finance and accounting
• Project management
 A-Plants.
• Marketing and sales
24

25. IT IN PLANNING
 Information technology is the term used to describe
technologies which enable users to record ,store ,process ,
retrieve ,transmit and receive information which helps the
users for strategic planning and control of organization.
 Information Technology Management is concerned with
exploring and understanding Information Technology as a
corporate resource that determines both the strategic and
operational capabilities of the firm in designing and
developing products and services for maximum customer
satisfaction, corporate productivity, profitability and
competitiveness.
25

26. IT IN PLANNING
• IT is playing a significant role in planning
various activities in an organization ‘
• Due to IT we are able to store data in software
and retrieve it at any time and anywhere
through Internet.
• Organization is able to process data faster and
more reliably.
26

27. IT IN PLANNING
Computer
entry
Computer entry
Information system
Computer
Computer
Intranet
27

28. IT IN PLANNING
28

29. PLANNING FOR SERVICES
Service Management is integrated into Supply Chain
Management as the joint between the actual sales
and the customer
The aim of high performance Service Management
is to optimize the service-intensive supply chains,
which are usually more complex than the typical
finished-goods supply chain.
Most service-intensive supply chains require larger
inventories and tighter integration with field service
and third parties.
29

30. BENEFITS
High service costs can be reduced, i.e. by integrating
the service and products supply chain.
Inventory levels of service parts can be reduced and
therefore reduce total inventory costs.
Customer service or parts/service quality can be
optimized.
Increasing service revenue.
Reduce obsolescence costs of service parts through
improved forecasting.
Improve customer satisfaction levels.
Reduce expediting costs - with optimized service
parts inventory, there is no need to rush orders to
customers.
30

31. THANK YOU
31