INTENTIA AND MOVEX:

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INTENTIA AND MOVEX GATEWAY TO COMPETITIVE
LEADERSHIP
Presenter David F. Ross, CFPIM Education
Business Group Manager Intentia-Americas
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Title Education Business Group Manager -
Americas Years with Intentia 6 years Years of
Experience 30 years - 13 years Manufacturing
and Distribution Industries - 17 years
MRP II, ERP, e- Business
Software Professional Certified APICS CFPIM
and APICS Instructor
Meet Dave Ross
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• Defining Lean Manufacturing
• Exploring the Five Principles of Lean
  Manufacturing
• Understanding the Pull System Concept
• Lean Manufacturing Functions in Movex
• Practical Exercises
• Implementation Implications

Presentation Overview
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A philosophy of manufacturing based on the
planned elimination of all waste, the continuous
improvement of productivity, and a relentless
search to convert waste into customer winning
value
Defining Lean Manu-facturing
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• Production of Value
• Optimizing the Value Stream
• Converting the Process to Flow
• Activating Demand Pull
• Perfection of All Products, Processes, and
  Services

Five Principles of Lean Thinking
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The Pull System - Concept

• Physical/visible pull signal initiates
  manu-facturing and material movement of material
• Level of inventory and work controlled by the
  number of Kanbans in the system

Pull Signal
Customer Order
Buffer Area 1
Buffer Area 2
Buffer Area 3
Buffer Area 4
Material Flow
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Movex Supports Two Types of Lean Manufacturing
Processing

• Physical Kanban System

Two Types of Kanban Processing
Production kanban
10/08/98
KAN-001
Item no . . . . . .
Kanban item
Name . . . . . . . .
KANBAN11
To location . . .
85
Order Quantity .

• Electronic Kanban System

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• Use of Physical Kanban
• Use of Production and/or Trans-portation Kanban
  both Printed by Movex
• Kanbans contain information such as item number,
  des-cription, location, quantity, and lead time
• Number of Kanbans can be entered manually or
  auto-matically

Physical Kanban - Overview
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• Movex used to report production and record
  transaction issues
• Movex Business Engine and Advanced Production
  Planning applications are not used
• Performance measurement and continuous
  improvement focused on number of Kanbans in the
  system

Physical Kanban - Overview
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• Full container is moved to assembly

Physical Kanban FlowDetail
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T
P
Transportation Card
Production Card
1
ASSEMBLY
ASSEMBLY AREA BUFFER
T
T
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• Full container is moved to assembly
• Transportation Kanban removed from container and
  sent with empty container to subassembly

KANBAN FlowDetail
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T
P
Transportation Card
Production Card
1
ASSEMBLY
ASSEMBLY AREA BUFFER
T
T
2
T
SUBASSEMBLY PRODUCTION
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• Full container is moved to assembly
• Transportation Kanban removed from container and
  sent with empty container to subassembly
• Production Kanban removed from container and
  replaced with transportation Kanban and container
  moved to assembly

KANBAN FlowDetail
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T
P
Transportation Card
Production Card
1
ASSEMBLY
ASSEMBLY AREA BUFFER
T
T
2
T
T
3
SUBASSEMBLY PRODUCTION
P
SUBASSEMBLY AREA BUFFER
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• Full container is moved to assembly
• Transportation Kanban removed from container and
  sent with empty container to subassembly
• Production Kanban removed from container and
  replaced with transportation Kanban and container
  moved to assembly
• Production Kanban and empty container moved to
  subassembly

KANBAN FlowDetail
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T
P
Transportation Card
Production Card
1
ASSEMBLY
ASSEMBLY AREA BUFFER
T
T
2
T
T
3
SUBASSEMBLY PRODUCTION
P
4
P
P
SUBASSEMBLY AREA BUFFER
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• Full container is moved to assembly
• Transportation Kanban removed from container and
  sent with empty container to subassembly
• Production Kanban removed from container and
  replaced with transportation Kanban and container
  moved to assembly
• Production Kanban and empty container moved to
  subassembly
• Production Kanban and full container moved to
  subassembly storage

KANBAN FlowDetail
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T
P
Transportation Card
Production Card
1
ASSEMBLY
ASSEMBLY AREA BUFFER
T
T
2
T
T
3
SUBASSEMBLY PRODUCTION
P
4
5
P
P
SUBASSEMBLY AREA BUFFER
P
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Item. Connect to Warehouse (MMS002/G)

• Set Issue method for com- ponents to lt5 or 6gt
  (backflush putaway/operation).

Product. Connect Materials/Operations (PDS002/U1)

• Create Product Structures. Enter issue from
  warehouse and location

Setup Steps- Detail Flow
Item. Connect To facility (MMS003/E)

• ltEnablegt Orderless production field.

• Determine type (production/ transportation) and
  number of Kanbans. Set Replenishment method to
  lt1Kanbansgt. Set Kanban print to lt3both prod
  and trans Kanbans.

Item Location. Open (MMS065)
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• Transportation Kanban Calculation

Formula
y number of Kanban cards D
daily demand L replenishment lead
time a safety factor a order quantity
(container quantity)
D x L (1 a )
y
a
Setup Steps- Transport Kanban/ Order Quantity
Generation

• Order Quantity Calculation

Formula
Annual demand
Order qty
x No days Oq
365
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Item Location. Open (MMS065)
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Kanban Card. Print (MMS695)

• Generate number of transport Kanbans and
  production Kanban.

Manufact Order. Report Orderless (PMS260)

• Report work center production and backflush
  inventory.

Processing Steps- Detail Flow
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Kanban Cards
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• Use of Movex Business Engine
• Use of Reorder Points (production Kanban)
  entered manually or automatic
• Use of Requisition Orders (transport Kanbans) for
  location replenishment
• Order Point corresponds to the number of Kanbans
  and can be automatically calculated

Electronic Kanban - Overview
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• A demand generates a stock issue

ElectronicKanban FlowDetail
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1
EKANBAN
DEMAND
ISSUE
FG01
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• A demand generates a stock issue
• ROP (MMS002) tripped, triggering an assembly and
  issue of subassembly

ElectronicKanban FlowDetail
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2
RoP in MMS002
RoP in MMS065
1
Trigger Assembly
EKANBAN
EKANBAN1
DEMAND
ISSUE
ASSEMBLY
FG01
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• A demand generates a stock issue
• ROP (MMS002) tripped, triggering an assembly and
  issue of subassembly
• ROP (MMS065) tripped, replenishment order
  (MMS170) created for move from LOC01 to SUB01

ElectronicKanban FlowDetail
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2
3
RoP in MMS002
RoP in MMS065
1
Trigger Assembly
Trigger Transport
EKANBAN
EKANBAN1
DEMAND
ISSUE
ASSEMBLY
FG01
SUB01
EKANBAN1
LOC01
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• A demand generates a stock issue
• ROP (MMS002) tripped, triggering an assembly and
  issue of subassembly
• ROP (MMS065) tripped, replenishment order
  (MMS170) created for move from LOC01 to SUB01
• ROP (MMS002) tripped, triggering an assembly and
  issue of components

ElectronicKanban FlowDetail
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2
3
RoP in MMS002
RoP in MMS065
1
Trigger Assembly
Trigger Transport
EKANBAN
EKANBAN1
DEMAND
ISSUE
ASSEMBLY
FG01
SUB01
EKANBAN1
PRODUCTION
LOC01
RoP in MMS002
Trigger Production
4
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• A demand generates a stock issue
• ROP (MMS002) tripped, triggering an assembly and
  issue of subassembly
• ROP (MMS065) tripped, replenishment order
  (MMS170) created for move from LOC01 to SUB01
• ROP (MMS002) tripped, triggering an assembly and
  issue of components
• ROP (MMS002) tripped, triggering a replenishment
  PO

ElectronicKanban FlowDetail
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2
3
RoP in MMS002
RoP in MMS065
1
Trigger Assembly
Trigger Transport
EKANBAN
EKANBAN1
DEMAND
ISSUE
ASSEMBLY
FG01
SUB01
EKANBAN1
EKANBAN2
PO
PRODUCTION
LOC01
REC01
RoP in MMS002
RoP in MMS002
Trigger Purchasing
Trigger Production
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5
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• Enter the production location were the materials
  should be issued if issue method set to lt5gt or
  lt6gt (MMS002/G).

Work Center. Open (PDS010/F)
Item. Connect to Warehouse (MMS002/G)

• Set Issue method for com- ponents to lt5 or 6gt.
  Set Storage method to lt3gt and enter feeding
  location as the Location.

Setup Steps- Detail Flow
Item. Connect To facility (MMS003/E)

• ltEnablegt Orderless production field for
  assemblies.

Product. Connect Materials/Operations (PDS002/U1)

• Create Product Structures. Enter issue from
  warehouse and location.

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• Set relation between the feeding and production
  locations. Set Replenishment method to lt2gt.
  Enter the replenishment location as the Goods
  sender. Calculate Reorder point and Order
  quantity.

Item Location. Open (MMS065)

• Field lt01gt define default auto-replenishment
  order type.
• Field lt05gt auto-generation of replenishment
  orders

Setting Location Replenishment (CRS783)
Setup Steps- Detail Flow
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• Order Point Calculation

Formula
Annual demand
x No days RoP
ROP
365
Setup Steps- Kanban Order Point/ Order Quantity
Generation

• Order Quantity Calculation

Formula
Annual demand
x No days Oq
Order qty
365
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• Order Point Calculation

Formula
ROP Safety stock (Daily usage Lead
time)
Setup Steps- Standard ROP
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• Generate MRP for ROP items.

MRP Generation
Manufact Order. Report Orderless (PMS260)

• Report work center production and backflush
  inventory for finished goods.

Processing Steps- Detail Flow
Req/Dist Order. Open (MMS100/B0)

• Review Requisition Distribution Order.
• Select ltOpt 43gt to move to (MWS410)

Delivery. Open Toolbox (MWS410/B)

• Highlight replenishment order and select ltOpt
  19Pick reportgt

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• Generate MRP for ROP items.

MRP Generation
Manufact Order. Report Orderless (PMS260)

• Report work center production and backflush
  inventory for Subassemblies

Processing Steps- Detail Flow
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Ten Technical Elements Of Lean
5Ss
Cellular Prod.
Mistake Proofing
Lean
Pull System
Takt Time
Setup Reduction TPM
Visual Control
Level Prod.
Standard Work
Continuous Flow
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Ten Cultural Managerial Elements
Employee Involve- ment
Quality _at_ Source
Continuous Learning
Team Responsi- bility
Lean
Continuous Improve- ment
Open Communi- cations
Flexible Workforce
Employ- ment Stability
Procedural Discipline
System Process Thinking
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