(DFT) and Supply Chain Management to manufacturing

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Transcript (DFT) and Supply Chain Management to manufacturing

Slide 1

The Leader in Demand
Flow® Technology
Providing the proven tools of Demand Flow
Technology (DFT) and Supply Chain
Management to manufacturing professionals
through cost effective training and technology
transfer services.

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 2

Traditional Manufacturing

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 3

Demand-Driven Manufacturing

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 4

Two Forms of Manufacturing
SCHEDULED & FUNCTIONAL
MANUFACTURING TECHNIQUES
DIP

SPRAY

WAT

CURE

PICK/PLACE

VCD

REWORK

FLOW

2
3

4
5

TAKT

INSPECT

FINAL

FINAL

WAVE

1
JIT/LEAN

ASMBLY

SMT
AREA

WAVE

FUNCTIONAL
TEST AREA

RE-FLOW

TEST

TEST

TEST BAY

OVEN

STAGING

SEQ.

INSPECTION

PRODUCT BURN-IN
GOVERNMENT
CERTIFICATION
173 HRS.

DEMAND
DEMAND
DEMAND
SALES
ORDER

PRINT CIRCUIT AREA

CUT

MECHANICAL AREA

DEMAND DRIVEN
FLOW MANUFACTURING

ASSEMBLY
SHORTAGE
AREA

INSPECT

CELL

MATERIAL
STAGING
AREA
(KITS)

ICT-TEST AREA

TAKT
TAKT

TAKT

OPERATIONAL CYCLE
TIME

STORES
COMPLETED
ASSEMBLIES

STAGING AREA

SCHEDULING

WORKSTATION E

WORKSTATION D

WORKSTATION B

CNC
3

WORKSTATION C

CNC
2

WORKSTATION A

CABLE
ASSEMBLIES
CNC
1

BACKFLUSH

1
PRODUCTION

SUB-ASSEMBLY AREA

EXPEDITING & D/L REPORT

STAGING AREA

LINE 1- DEMAND FLOW® PROCESS

2
3

PULL

4

FORECAST-DRIVEN

DEMAND-DRIVEN

6-8 INV TURNS IS WORLD CLASS

80-100 INV TURNS IS NORMAL

$$$ WORKING CAPITAL

ZERO WORKING CAPITAL

1960

1980

Traditional
Demand Flow Technology

2000

2020

Demand Flow
Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 5

Foundation for Flow
A B C D E F W

FORECAST
(6) (3) (100) (20) (50) (1)
F
E
D
C
B
A

FGI
$ $ $

Certified and
Non Certified

SCHEDULED MRP II
SCH.
SCH.
SCH.

QUEUE

W/C

QUEUE

W/C

SUB-ASSEMBLIES

FAB
SALES
ORDER
SKU

Certified and
Non Certified

Demand Flow Technology

W

(5) (1)
B
A

$

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.

QUEUE

W/C


Slide 6

The DFT Model
FORECAST

A B C D E F W
FGI

RAW

(6) (3) (100) (20) (50) (1)
F
E
D
C
B
A

$10M

$10M

BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash
Accounts Receivable
Prepaid Expenses
Inventories:
Raw Material
Work in Process
Finished Goods
Average Inventory
Total Current Assets (less Cash)

$500,000
17,500,000
500,000
5,250,000
7,500,000
11,250,000
24,000,000

Simple Working Capital

SALES
ORDER
SKU
W

$

RAW

14,988,000
3,000,000
2,000,000
19,988,000
26,512,000

INCOME STATEMENT
Sales
Cost of Goods Sold
Gross Margin
Sales, General & Admin
Operating Margin
Total Inventory Turns
In-Process Inventory Turns

10 DAYS

42,000,000

LIABILITIES

Current Liabilities
Accounts Payable
Accrued Expenses
Accrued Employment Costs
Total Current Liabilities

238,000,000
170,027,200
67,972,800
42,506,800
25,466,800
7.1
22.7

$10 M

(5) (1)
B
A

$2M
14.3 HOURS

Zero Working
Capital Objectives
Demand Flow Technology

$10M

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.

CUSTOMER

$2M


Slide 7

Demand Flow Environment
Uncertified
Suppliers

Warehouse

Sales &
Marketing

Certified
Suppliers

Factory
Warehouse
Human
Resources
Accounting
Engineering

Information
Technology

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.

Customer
Service

Customers


Slide 8

Response Time Variability



µ = 14.3 hours
Demand Flow Technology

µ = 8-12 days
Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 9

Value Stream Maps - Proceed with Caution

Reference: Learning to See -Mike Rother, John Shook, Jim Womack, Dan Jones

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 10

Future State Value Stream Map

Reference: Learning to See -Mike Rother, John Shook, Jim Womack, Dan Jones

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 11

Tools & Methodology
DEMAND AT CAPACITY

TP c/t

OPERATION SHEETS

OT., Temps, 2nd Shift/Line,
3rd Shift/Line, Outsource
Max Capital
Min Inventory
6 - Months

MODEL #
1400

OPERATION
#
OP
120

PROCESS
I.D.
SYSTEM
DRIVE
ASSEMBLY

Peak Demand
Dc ??

PAGE
__of_
2
_2

TQC
WORK CONTENT
VERIFY

Avg. Demand
1

FIND PART# DESCRIPTION QTY
1402 Disk Frame

Volume

2

1421

3/8” Pan Head Screw

1
4

7.6 + 3.7 = 11.3
2 - Shift

Min Capital
Max Inventory

1 - Shift

7.6 + 6.4 = 14.0
14.0
17.7

P.C.O. #
SDA120P2
Rev. E

DATE
1/21/0
2

Time

PRODUCT
SYNCHRONIZATIONS
SEQUENCE OF EVENTS
Product P/N
Vacuum Brake

15.0

Check bracket
assembly with
valve body

16.
0

Load Stacker
with springs

17.
0

Install eject
spring in valve

.45
*

Dist.

TQC

Qty.

Quality Info.

Int./Ext.

Move

Lab
or
D/S

Labor
.
2
0

Machine

Machine

D/S

Qty.

Int./Ext.

Set-Up

Labor

V.A.

Task

Machine

Se
q.
#

Desc.
Confirm eject
mechanism works
freely.
Verify TQC on
green tag

S 50 E

.35

Install eject
button on spring

*

.10

Verify bezel slot signs
with body

19.0

Install bezel
onto valve body

*

.10

TQC bezel against
valve face

20.0

Pressurize valve
body assembly

18.0

KANBAN TOOLS

Process I.D.
Valve Assembly

.25

Verify 40 PSI

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 12

Product Synchronization Definitions

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 13

DFT Mathematical Foundation
HE(S)
 Dc

LEAD TIMES = TP c/t

RCELL =  (SU + RT + MV) + [ RT x (KCELL – 1)]
WORK = AT

X

ATw
TAKT

Demand Flow Technology

KCELL =

SU
TAKT-RT

Dc x Q x R
HR x P
Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 14

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2001. All rights reserved.

22697 REV. L


Slide 15

Forecasting and Kanban

Supplier Forecast
(Software)

Forecast (Software)

Close Supply

Close Supply

Kanban

Kanban

Forecast (Software)

Manage Min/Max
USA

SMI

JAPAN

Demand Trigger

FGI Levels

SMI

Distant Supply

Electronic Kanban

Distant Supply

Supplier Managed
Inventory

Raw Material
Suppliers
-- Tier 1, 2, 3 --

Re-supply based
on Demand Pull

Demand Flow Technology

Production
Facilities

UK
Re-supply based
on Demand Pull

GERMANY

Distribution
(Supply Point)

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.

Re-supply based
on Demand Pull

Customer Base


Slide 16

The Technology Based Lean Supply Chain
Customers

Actual Orders
Manufacturing

Flexible Production Planning
Suppliers

Distribution
Strategies
VMI
Consignment
Planning

Daily Rate
Linearity

Demand Flow Technology

Work Content
Response Time

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.

Certified Supplier
Pull Process Management
Planned Sequence Release


Slide 17

Power Train Components: Before DFT

VERTICAL
MACHINING

HORIZONTAL
MACHINING

SUB
SUB
ASMBLY ASMBLY

SAW

SUB
SUB
ASMBLY ASMBLY

SAW

DRILLING/
DE-BURR

SHIPPING

WIP

CNCS

SERVICE SERVICE
PACK
PACK

FINAL ASSEMBLY
FINAL ASSEMBLY

PAINT
BOOTH

UNLOAD

LOAD

RECEIVING

WIP

Stores

FINAL ASSEMBLY

WIP

WIP
STORES

WELD DEPARTMENT

OFFICE

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 18

Power Train Components: After DFT
Shifts

3 to 2

Response Time

24 Days
to <6 hrs

Floor Reduction Space

Past Due
Orders

32%

Reduced 65%
within 1 month

BORE MILL
DRILL TAP

WAIT/
WORK

P
O

BORE MILL

U

DEBURR

SAW

DEBURR

SAW

CNC

CNC

U

ASMBLY

WELD

SALES
ORDERS
SALES
ORDERS
SALES
ORDERS

OFFICE

Demand Flow Technology

FINAL
ASSEMBLY

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.

PAINT
BOOTH

UNLOAD

Eliminated 300
3’x4’x3’
containers

P
O

P.O.U.

Batch
Containers

PACK

DRILL TAP WAIT/
WORK


Slide 19

Plastics Manufacturer: Before DFT
Lead Time

35 Days

Service

88%

Schedule

Inventory

8.5 Turns

Record Accuracy

< 50% accurate

Weekly
BULK
MATERIALS

ADDITIVES

ADDITIVES

BLEND

RAW
MATERIAL
(ON-SITE)

20 MILES

RAW
MATERIAL
(OFF-SITE)

BLEND
EXTRUSION

FINISHED
GOODS
INVENTORY

80%

PACKING

20%
CUSTOMER

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 20

Plastics Manufacturer: After DFT
Lead Time

35 Days to 7 Days

Service

88% to 97%

Schedule

Weekly to 0

Inventory

8.5 Turns to 24 Turns

Record Accuracy

K

BULK
MATERIALS
ADDITIVES

ADDITIVES

< 50% accurate to 97%

RIP
(ON-SITE)

K

WAIT WORK
SUPPLIERS

K

BLEND

SALES
ORDER
BLEND SEQUENCE
EXTRUSION

SEQUENCE
CONTROL
BOARD

CHANGEOVER
CONTROL

OFF-SITE
WAREHOUSE

CLOSED!

K

FINISHED
GOODS

K

25%
PACKING

75%
CUSTOMER

Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.


Slide 21

The Proven Path

Information Systems

Demand-Driven
Vision

STAGE 3
DEMAND-DRIVEN

STAGE 2
PROCESS-DRIVEN

STAGE 1
FUNDAMENTALS

Business Processes
Demand Flow Technology

Copyright© Demand Flow Institute, LLC.
DBA JCIT International 2005. All rights reserved.