Material Management

Vision

Material Management

Vision

Material Management PyramidMaterial Management Pyramid

MM - 3 Designated Storage

Agile/LEAN/Fast to Market

MM - 7 Supplier Delivery

MM - 5 Internal Pull Systems

3

4

6

Lean Enterprise Mfg. PC - L Engineering Purchasing Sales

BUSINESS PROCESSES ALL LINKED Customer order today - ship

today

Manufacturing System

Design Employee Environment

& Involvement Quality Workplace

Organization Operational Availability Material Movement

Support Communication Expectations Commitment Leadership Knowledge Planning Action

Education/Training Aligned Metrics Follow - up

The Foundation

2

1

7

5

MM - 4 Container Right Sizing and Supporting the Operator

Build to Order Modularity

Supermarket /Bulk Storage

Visual Management

Addressing Empty Container Storage

Standard Containerization

Small Lot

Common Lot

MM - 6 Internal Delivery Systems

Production Pull

Withdrawal Pull

Buffer Management

Standardized Routes

People Focused Practices

Changeover Process

Scheduled Window Receiving (Dock Boards)

Container Return Process

Supplier Pull

Frequent Delivery

Milk Runs

Scheduled Pickup

Pickup Sheets

Summary Billing

Lean Logistics

MM - 1 Plan for Every Part MM - 2 Ship to Schedule and Build to Plan

Maintenance Planning Production Leveling Small

Lot Buffer

Management Scheduled Window

Shipping (Dock Boards)

Overview

First StepFirst Step

Part NumberPurchase or MakeWeightStandard Pack QuantityContainer TypeContainer DimensionsSupplier NameSupplier LocationShip Frequency

Storage LocationStorage MethodVisual Min/MaxUsing LocationDelivery MethodAverage Rate of UsageUsage per Assembly

etc.

Database of All Part Numbers

Plan For Every Part is a material planning process that identifies/creates a detailed material flow plan for every part in the supply chain.

Production Leveling is used to create a production plan that levels the customer demand variation and

schedules production based on TAKT time of each line. AS400B-Line loading

0

100

200

300

400

500

600

700

800

Pastdue

21-Aug 22-Aug 23-Aug 24-Aug 25-Aug 28-Aug 29-Aug 30-Aug 31-Aug 1-Sep 4-Sep 5-Sep 6-Sep 7-Sep

Day

Un

its

AS400 Schedule

Production Plan

1 Shift Capacity

2 Shift Capacity

Cycle Stock

Safety Stock

Temporary Stock

Manufacturing and Demand Variation Stock

Max

Min

Cycle Stock

Safety Stock

Temporary Stock

Manufacturing and Demand Variation Stock

Max

Min

a buffer built and maintained for temporary conditions such as an engineering change, seasonal demand, part reallocation…

the buffer required based on frequency of manufacture and customer shipment; how frequently the part is produced and shipped

the buffer needed to protect from normal variation in daily production and customer demand

a buffer maintained to cover unplanned stock outages, equipment shortage or breakdown, tooling problems...

Supermarket/Bulk Storage

Second StepSecond Step

Supermarket/Bulk Storage is a designated area utilized to store material inventory (purchased, in-process and finished, both hand carriable and bulk).

Market Attendant picks carton based on Pull Card Order

Rack Label

Supermarket address Name

MAX 7 P90 Drum brake Adjusting screw

2

Row B

B C A

B C A

1 2 3 4 5 6 7 8 9 19 20 21 23 24 25 26 27 28 10 11 12 13 14 15 16 17 18

29 30

31

B2 C A

B C A

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Column T64

Stocking Aisle Stocking Aisle

Stocking Aisle Stocking Aisle

Stocking Aisle Stocking Aisle

Picking Aisle Picking Aisle

Picking Aisle Picking Aisle D ROW

C ROW

B ROW

A ROW

D ROW

C ROW

B ROW

A ROW

Traffic Flow

Traffic Flow

Column T65

1 2 3 4 5

Row A

T64 A1 T64

A2

SUPERMARKET 2

Part number 22152297

Pack 60

MIN Suppli er XYD Ind.

T64 - A1 - A - 05

Pa rt # ___ __ ___ ___ __ __ __ ___ ___ __ _ D esc rip t io n_ ___ __ __ ____ __ __ ___ __ St d . P ac k__ __ ___ ___ __ ___ ___ __ ___ M i n_ ___ ___ __ ___ M ax __ ___ ___ __ __ St o re Lo c_ ___ __ _ U se L o c__ ___ ___ Su pp l ie r___ __ ___ ___ __ ___ ___ __ ___ D el iv ery D at e - M - T - W - T - F - S Ti me ___ ___ __ ___ ___ __ __ ____ __ ___ STORE AC 5 3

Pa rt # ___ __ ___ ___ __ ___ ___ __ ___ __ D esc rip t io n_ ___ __ __ ____ __ __ ___ __ St d . P ac k__ __ ___ ___ __ ___ ___ __ ___ M i n_ ___ ___ __ ___ M a x_ ___ ___ __ ___ St o re Lo c_ ___ __ _ U se L o c__ ___ ___ Su pp l ie r___ __ ___ ___ __ ___ ___ __ ___ D el iv ery D at e - M - T - W - T - F - S Ti me ___ ___ __ ___ ___ __ __ ____ __ ___ STORE Pa rt # ___ __ ___ ___ __ ___ ___ __ ___ __ D esc rip t io n_ __ __ __ ___ ___ __ ___ ___ St d . P ac k__ __ ___ ___ __ ___ ___ __ ___ M i n_ ___ ___ __ ___ M ax __ ___ ___ __ __ St o re Lo c_ ___ __ _ U se L o c__ ___ ___ Su pp l ie r___ __ ___ ___ __ ___ ___ __ ___ D el iv ery D at e - M - T - W - T - F - S Ti me ___ ___ __ ___ _ __ ___ ___ __ ___ __

STORE

1 2 3

Hand carriable Bulk

Container Right Sizing & Supporting the Operator is the process of packaging and grouping parts to best support the operator and meet the needs of the customer.

Containerization is the process of packaging parts in the smallest lot possible resulting in the presentation of a quality part to eliminate waste of motion for the manufacturing operator

Overview

Third StepThird Step

Internal Pull Systems serve as the nervous system for a value stream. They provide the instruction for the what is to be produced. Well-designed pull systems provide this instruction in a clearly defined simple to understand manner.

Internal Delivery Routes is a system to replenish material (purchased, in-process and finished goods, both hand carried and bulk) and remove empty containers based on a predetermined delivery path and fixed start times supporting pull delivery to a specific number of production delivery points-of-use.

InternalDelivery Route

12345

7 8 9

6

12345

7 8 9

6

C1

C2

Overview

Forth StepForth Step

Supplier Delivery is the process of managing materials received from suppliers and materials returned to

suppliers (containers and dunnage).

Supplier Pull is a process that uses pull signals based on consumption to authorize replenishment of material from suppliers.

Suppliers