Feb 2, 2011

Pull Scheduling Case Study

The Issue - Massive shortages were continuously clogging the assembly line.  Products were loaded to the line only to discover that components were missing.  In a feeble attempt to keep production associates working, the master production schedule was constantly changing; often multiple times in a single day.  It had reached the point where only 19% of the assemblies left the line completed.
  
The Results - To eliminate the chaos all this change was having on the assembly line and the supply base, we dramatically reduced the number of components being managed by our clients MRP system.  Instead we opted for a pull system consistent with lean principals.  The MRP database was still used to help manage the system, but KANBAN and other lean scheduling tools controlled supply.  To improve the master production schedule, we commissioned a cross functional production planning team.  They reviewed production schedules and component availability status one week ahead of actual production.  Over the next six months, these solutions reduced line stoppages and raised the completion rate to over 62%.
 
The Point - Both simple and complex manufacturing systems will perform at a higher level when lean principals replace the MRP scheduling systems.  While computer based solutions can help you, knowledge of the product, utilization of lean principals, and intelligent decision making cannot be replaced by MRP.