The document discusses material flow processes and how they can be used to support efficient and responsive supply chains. It describes four main material flow processes: milkrun, kanban, piece picking, and just-in-sequence. Milkrun is used for common components that go into all final goods variants, with replenishment to fixed locations for months. Kanban is for high-use common components, with replenishment for days/weeks. Piece picking delivers variant-specific components in exact quantities. Just-in-sequence is only used if all processes are tightly managed. The document advocates aligning material flow processes to component behaviors for optimal supply chain performance.
1 of 13
Download to read offline
More Related Content
MaterialFlowProcesses-FeketeIstvanPic
1. Material Flow ProcessesTheir strengths and requirementsWhen, what, why and how to usethem?
Istvan Fekete
(fekete.istvan.pic@gmail.com)
Nokia, 2012
2. How to support oursuccess?
2
How to create more responsive flow of values/resources downstream?
How weserveourcustomers
How we use our resources
Shorterresponseto change, demand
Cheapersupply chain, operation
More irregular quantitiesin more irregural timing
More regular quantitiesin more regural timing
How to create more regular flow of resources/values upstream?
4. Milkrun
Top Material
Center
Flowrack/
CrossDock
Robust and adaptive Logistics Centers can support any
Material Flow Process in any Factory
Materials @ Line/Cell PoU are made
to order or stock items
BB4.3.2
BB4.3.2
BB4.3.2
BB4.3.2
BB4.3.2
BB4.3.2
BB4.3.2
BB4.3.2
BB4.3.2
Close Supplier
and/or IHUB
(Re)filling the trolley/train
NOK
OK
Piece Pick
Sequence
Kanban
Milkrun
Hand Buffer
Replacement of
urgent NOK
material
Returning OK leftovers and
not-urgent NOK materials
Shipping
OHUB
Finished goods, OK leftovers and not-urgent NOK material collection from line/cell
Material Flow Process
of a material aligned
to its behaviour
OK
Visual control on ordering
Hand Buffer material or
moving back consolidated
lot to FlowRack
5. BB4.3.2
BB4.3.2
BB4.3.2
Supplier
IHUB
Close
Supplier
MRP
Top Material
Center
BB4.3.2
BB4.3.2
BB4.3.2
Flowrack/
CrossDock
Non-Kanban
Components
Kanban Card,
Empty Bin or E-kanban
Milkrun in 30 to deliver all
items to and from cells
Team Leader
schedules next
orders
Combination of piece-picking and kanbans covers all needs
efficiently and effectively; creates so-called degenerative
redundancy, a prerequisite of robustness
Kanban
Replenishment
7. RMSpec
RMCom
Level
FORELOG
GLOBAL ALLOCATION
KANBAN VMI VENDOR/SUPPLIER MANAGED INVENTORY
Bin 2/2
Bin 1/2
Line Feed Kanban
Piece Pick to Order
Pick to Order
E-ban (electronic kanban)
PON in use
Next PON
PON in use
Next PON
Typical case
Rare case
8. Hectic
Stable
$
$
To
BOM
Quant
Quant
From
Many
SyncEffect
Commo- nality Effect
Size
Size
Price
Price
10. Widespread Pareto-Distribution in supply chain networks, though largemeans different in three dimensions
Irregularity= Coefficientof Variation, NormalizedStandard Deviation
Numberof Outgoing/downstreamLinks
Irregularity distributionof interactionsintime
Intensityof interactions(UsedvolumePareto)
13. 4 material flow processes as modular optionsonCombinedQuantityIrregularityGraph
1.Milkrun-For fully common components what go into allFG variants-Replenishmentto fixed location for months
2.Kanban-For common components of high runner variant group-Replenishmentto fixed location fordays/weeks
3.Piece-picked-For variant specific components-Deliveryof component in exact quantity
4.Just-in-Sequence-Onlyifallprocessesaretightlymanaged