Theory and Practice on FiFo Lanes – How Does FiFo Work in Lean Manufacturing?

FiFo LaneFiFo lanes are an important part of any lean material flow. They are a very simple way to define both the material flow and the information flow. In this post I want to tell you why to use FiFo, how to use FiFo, and the advantages of FiFo, as well as show you a few examples of FiFo lanes.

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The Hidden and not-so-hidden costs of Inventory

Gold Bullion Missing
1/3rd to 2/3rd gone every year!

Inventory is one of the seven types of waste. There is usually quite a significant cost associated with having inventory, usually much more than what traditional bookkeeping accounts for. Between 30% and 65% of the value of your inventory is spent every year as inventory-related costs! This post looks into more detail at the cost of this inventory.

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The Bottleneck Walk – Practical Bottleneck Detection Part 2

Six empty green wine bottlesThe bottleneck walk is far and wide my most favorite method to detect bottlenecks on the shop floor (not only because it was developed by me, but also because it is really good!). You can detect shifting bottlenecks, using no math whatsoever and no time measurements, simply by walking along the production line and observing the line. It’s almost too easy to believe, but it works like a charm! Due to the length of this topic, I have broken the article into two posts. The first post “The Bottleneck Walk – Practical Bottleneck Detection Part 1” details how to find the current temporary bottleneck. This second post details how to determine the big picture regarding the bottlenecks. See below for a complete list of posts on this series on bottlenecks. 

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The Bottleneck Walk – Practical Bottleneck Detection Part 1

Five empty green wine bottlesThe bottleneck walk is far and wide my most favorite method to detect bottlenecks on the shop floor (not only because it was developed by me, but also because it is really good!). You can detect shifting bottlenecks, using no math whatsoever and no time measurements, simply by walking along the production line and observing the line. It’s almost too easy to believe, but it works like a charm! Due to the length of this topic, I have broken the article into two posts. This first post details how to find the current temporary bottleneck. The second post details how to determine the big picture regarding the bottlenecks. See below for a complete list of posts on this series on bottlenecks. 

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How Many Kanbans? – Estimation Approach and Maintenance

Number of Kanban
How many Kanban?

In my previous two posts, I described how to calculate the number of kanbans (Post 1 and Post 2). However, this calculation is complex, and the result is nothing more than a very rough estimate. Hence my preferred method for determining the number of kanbans is, broadly speaking,  “just take enough, and then see if you can reduce them.” In this post, I would like to explain this approach and also discuss how and when to update the number of kanbans.

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How Many Kanbans? – The Kanban Formula, Part 2

Number of Kanban
How many Kanbans?

This is the second post on kanban calculation (if possible, please read the first post on kanban calculation first). There are two possible approaches. First, you can calculate the number of kanbans using a kanban formula (due to its length, split into a first post and this second post). Alternatively, you can estimate the number of kanbans and adjust the system as it is running (as shown in a third post).

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How Many Kanbans? – The Kanban Formula, Part 1

Number of Kanban
How many Kanbans?

One frequent and tricky question when designing a pull system is to determine how many kanbans to use in the system. There are two possible approaches. First, you can calculate the number of kanbans using a kanban formula. Due to the length of the process, I have broken this into two posts (For the second part click here). Alternatively, you can estimate the number of kanbans and adjust the system as it is running (as shown in a third post).

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Cost of Complexity

Array of carsThe cost of complexity can significantly impact the bottom line of manufacturing companies. According to A. T. Kearney, the top 30 companies in Germany could earn €30 billion more if they would reduce complexity, increasing their EBIT by three to five percentage points.  After discussing the cost of complexity in a previous post, using the Maybach as an example, this post describes the general levers influencing complexity cost.

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