Sometimes, when you need a part or product from your inventory, you may have more than one item in stock. Which one do you pick? In this blog post I want to present a few strategies for choosing which item to take. The most famous one is FIFO, but there are more options available. In my next post I will present similar strategies if you need to start production before the item becomes available. Continue reading Delivery Sequences: FIFO, LIFO, and Others
How to Make CONWIP Loops
CONWIP (Constant Work in Progress) is an easy way to establish pull production for custom-made products. Traditionally there is only one large loop for the product. However, there may also be situations where it is sensible to split a longer CONWIP loop into smaller segments. Let’s have a look at the details. Continue reading How to Make CONWIP Loops
Should You Use Physical or Digital Kanban Cards?
Kanban and similar pull systems like CONWIP or POLCA are basic parts of lean production. They limit the maximum number of parts by attaching a sort of token (i.e., the kanban card) to the part, and return to the beginning when the part leaves the system.
These kanban can be physical cards or digital representations. In this post I look into when you should use a physical kanban and when you should use a digital kanban. Continue reading Should You Use Physical or Digital Kanban Cards?
Hoshin Kanri and the Kanri Noryoku Program: Rejuvenating Toyota
In my previous posts I explained how Hoshin Kanri works. This post looks at how Toyota embeds Hoshin Kanri as part of their overall management structure. Toyota started this in 1979 when director Masao Nemoto started the Kanri Noryoku Program (管理能力プログラム), usually shortened to KanPro. Continue reading Hoshin Kanri and the Kanri Noryoku Program: Rejuvenating Toyota
Hoshin Kanri – Part 4: The X-Matrix?
When googling Hoshin Kanri, you will sooner or later come across an X-Matrix. It is a visually very impressive tool, but I am in serious doubt about its usefulness. It focuses on the creation of the Hoshin items, but to me this approach is overkill, and – even worse – may distract the user from actually following the PDCA, especially the Check and Act parts. While the article is highly critical, I hope reading it and understanding the shortcomings help you better understand how Toyota thinks. Continue reading Hoshin Kanri – Part 4: The X-Matrix?
Hoshin Kanri – Part 3: Hierarchical Hoshins
Hoshin Kanri can be used individually, but its full potential is shown across the levels of corporate hierarchy. The goals of a Hoshin Kanri should be derived from the Hoshin Kanri of the next-level hierarchy above. This post is part of a larger series on Hoshin Kanri. Let’s look at the hierarchy structure: Continue reading Hoshin Kanri – Part 3: Hierarchical Hoshins
Hoshin Kanri – Part 2: PDCA
In my first post on Hoshin Kanri I explained the details of making the list for the Hoshin. This now has to be combined with a PDCA (Plan, Do, Check, Act). The rigor of PDCA gives value and life to what would otherwise be a simple action list. Let me show you: Continue reading Hoshin Kanri – Part 2: PDCA
Hoshin Kanri – Part 1: The To-Do List
This week I will look at Hoshin Kanri (方針管理, policy management). The word is often used as a sort of miracle cure for the problems in your organization. The tool itself, however, is rather mundane, although it did significantly help Toyota. This, of course, did not stop the West from over-complicating and over-hyping it. This post is the start of a small series on Hoshin Kanri. Continue reading Hoshin Kanri – Part 1: The To-Do List