Kanban PULL System

 At the beginning of 2006, McKenzie Valve and Machining Co. used traditional inventory management systems.  These included a Push MRP system that caused excess inventory, low inventory turns, batch processing, and the use of shop orders.

 By the end of 2006, McKenzie Valve introduced a Pull Kanban system using Lean principles and 5S concepts.  This drastic change and mass implementation of new systems increased inventory turns by an additional 150%.

 In order to accomplish this achievement, several Kanban tools were used.  Release forms, release tags, 2-bin systems, 2-bin tags, rack labels, and release boards were implemented.

 The release form is the trigger that starts the entire process.  A requirement for a finished good is sent to McKenzie Valve for a finished good.

This release form is entered into the current MRP/ERP system for accounting purposes, but is no longer required to generate the paperwork to drive individual shop floor processes.  Instead, the release is sent to the shop floor and placed on a release board for shipment.

The shipping department reviews the board, selects the oldest orders first, pulls the finished goods and ships the components.  As components are removed from the shelf, one of three triggers can be activated.

Trigger 1:  If the component is set up on a visual system, the machinist or assembler is positioned so that they see the bins and can visually detect when parts have been removed.  When a bin is emptied, the machinist or assembler creates those components and fills the bin to the quantity listed on the rack label.

Trigger 2: If the component is not set up on a visual system and is manufactured, the person who depletes the bin removes a Kanban Release Tag and sends it to the appropriate department for replenishment. As with release forms and release boards, the machinist and assemblers use the release tags as signals to manufacture those components at the quantity listed on the tag and send a completed bin back to inventory.  These tags can be stored on the bins or organized on a rack board.  This board is placed so that the cell that creates the component can see that tags are missing.  This is a built in safety feature to ensure that when the machinist or assembler has fulfilled all tags, they can review the board and make sure no tags have been lost. 

Trigger 3: If the component is a purchased item, the person which depletes the bin removes the release tag and takes it to purchasing.  This tag has a part number, description, and quantity on it, allowing the purchaser to place a PO.

The release tag is then sent to receiving with a delivery date.  The tags are placed in a visual system so that receiving knows what products are arriving on that day and where they should be located when they arrive.

This movement of tags flows through the entire process down to each raw purchased component.  To facilitate this tag movement and location of parts, a materials coordinator was implemented, and the machinists and assemblers are not delayed by logistics.

To implement this one-piece flow, the organization of the assembly room was changed.  A conveyor was added  to bring the valve body and retainer directly from the visual storage place next to the machinist.

One (Single) - Piece Flow System

In order to utilize this quick pull system at it highest potential, a one piece flow was implemented to allow for quick discovery of inferior components or other issues that might interrupt production. 

(Instead of building 100 valves and determining that the o-ring has a defect, the first valve would be completely sent through the system, and the inferior component would detected immediately and replaced).

5S concepts (also known as 6σ)

This single piece flow was also implemented based on the 5S concepts (also known as six sigma).  Rather than just using these concepts as a basis for streamlining, they were measured, posted, and constantly updated.

Sort     ~     Straighten     ~     Shine     ~     Standardize     ~     Sustain

The top pocket contains a checklist to ensure the process is being followed. 

One example of the 5S principles implemented at McKenzie Valve and Machining Co is the reorganization of tooling.