The book name is Factory Physics, 3rd edition, Learning to See Lean Manufacturin

Question

The book name is

Factory Physics, 3rd edition,

Learning to See

Lean Manufacturing a Plant Floor Guide

Contrast MRP, Kanban, and CONWIP from a human issues standpoint by considering: 1. a. 2. b. What implications do each of these systems have for the working environment of the employees on the factory floor? What implications do each of these systems have for the managers responsible for supervising direct labor? Be sure to point out that each particular type of production system has inherent benefits that cannot be adapted to one or more of the other types.

Explanation / Answer

Before analyzing the implications, we need to understand the 3 systems. MRP or material requirement planning is a computer based invntory management system which is used to understand the dependant demand of the sub parts that together make up the father part. These could be raw materials, components, subassemblies, etc. This system assists managers in scheduling and procurement planning. MRP works on backward scheduling i.e it takes in the production plan and bill of material as input and coverts into a schedule for sub assemblies, components and raw materials. It answers the 3 basic questions of what, how much and when the products are required. When utilized fully, MRP not only helps in scheduling but also in capacity planning, inventory management and cost control.

Kanban - This is a visual management system used for replenishment and inventory control. This is one of the basic requirements for implementing Just in Time manufacturing. One of the main advantages of Kanban is that it establishes the upper limit for work in progress inventory. Kanban results in a pull form of demand where the replenishment is governed by consumption and level pulls the requirement from the preceding stage based on the number of units used in production. Some common systems used for implementing Kanban are the 3 bin system, kanban cards, etc

CONWIP (Constant Work In Progress)- This is another form of pull oriented production system. While Kanban uses single cards for each workstation to pull the WIP from the preceding station, CONWIP uses only 1 card to control the WIP. When a finished part is completed, the card is transferred to the first workstation only after which a new part is pushed through the system for processing. We can thus acheive lower levels of WIP through this system as compared to Kanban

Implications on employees

MRP - MRP is largely a data driven system and this means that employees need to maintain accurate data on the inventory levels, consumptions, bills of material and all related data. A system which does not focus on accurate data collection will not be able to successfully use MRP. Each input that goes into the MRP such as the production schedule, BoM, inventory levels, lead times of production, lot size, supplier lead time, etc needs to be rigorously maintained and updated. MRP is highly data driven unlike the other 2 systems which are visual and can be more easily implanted. Employees thus find it difficult to adapt to MRP since they first have to be trained on using the MRP system and then should maintain the data accurately

Kanban - One of the key advantages of Kanban is that it is very successful in eliminating waste WIP from the cycle. The shop floors are thus neat and clean and minimize un-approved WIP on the shop floor. For the employees kanban means that the production has to keep running, Downtime needs to be minimum so the machines cannot afford to be down, Since the WIP control is visual, employees find it easier to implement and follow

CONWIP - Most of the advantages of kanban are relevant for CONWIP also. But this also ensures a tigher control over WIP inventory. Since there is only a piece flow of WIP, the quality levels at each stage need to be very high and there is no room for wastage, else the entire cycle needs to be repeated

Implications for Managers

MRP - For managers, MRP calls for a lot of investment both in terms of money and time. The existing system needs to be thoroughly analyzed and the same needs to be developed in the MRP system. The masters that are entered and controlled need to be carefully monitored. All the employees need to be trained on maintaining accurate data thus ensuring that the MRP data is accurate. A number of training sessions also need to be arranged for all employees. Thus the lead time for the implementation of an MRP is very high and so are the chances of failure

Kanban - This is one of the easier systems to implement and control. Since it is a visual system with signboards across the shop floor, managers find it easier to communicate the importance of the system and employees are also able to relate to it better. Kanban puts pressure on the preceding stages to ensure availability as per the consumption and hence managers would also have to educate the vendors regarding supplying parts on time as per the requirement of the shop floor

CONWIP - Though a simple system, CONWIP has little room for error in actual production. There is generally only 1 piece in the production system on which the processing is done and unless completed, a new WIP cannot be bought into the system. This calls for managers to ensure high levels of quality and up time of the systems

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