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r and each time period. MRP allows effective scheduling under the most difficult conditions. This ability to connect a disjointed production es with a price. MRP permits some forms of sloppy engineering. The administrative costs are high. Throughput times are long and inventory turns low. Errors in inventory, BOM39。 from microelectronics to heavy steel– Kanban scheduling systems reduce inventory, eliminate stockouts, displace massive puters and slash overhead. They improve both service and quality. So why doesn39。Page 1 MQIP Management Consultants Co. LTD Your Professional Quality Improvement Partner . Tel: 02033689262, 38761191 Kanban Scheduling Systems The Challenge of Simplicity Page 2 MQIP Management Consultants Co. LTD Your Professional Quality Improvement Partner . Tel: 02033689262, 38761191 What Is Kanban Scheduling Kanban scheduling systems are among the most simple, effective and inexpensive means for manufacturing production and inventory control. The concept is proven. From Nagoya to Wichita Falls。 from Windsor to Geelong。t every manufacturer employ this miracle? In many situations, it is inappropriate–– other methods work better. Even When Kanban is an excellent choice, firms may ignore it. Kanban scheduling often evokes strong emotional responses from both proponents and detractors and sets a variety of anizational phenomena at work against it. Kanban scheduling systems operate like supermarkets. A small stock of every item sits in a dedicated location with a fixed space allocation. Customers e to the store. They visually select and purchase their items. An electronic signal goes to the supermarket39。s or lead times disrupt the system. About 50%80% of installed MRP systems do not meet their user39。 Error In Boundary Analysis, key people mentally step through system operation using ProductVolume and other data. With simplified methods and risk estimates, they put upper and lower limits on the stock. Predetermined formulae are available. Such formulae usually contain guess factors and unavailable data. They often apply to specific situations and have limited usefulness. Factor Analysis identifies the various factors that affect stocks. Examples are setup costs, order volatility, quality issues, stockouts consequences and gross volume. Computer Simulation uses specialized software to build a model of the system. The analyst can vary parameters and arrive at desired levels. Simulation is expensive to do properly. Oversimplified simulations rarely show true operation, the role of human intelligence or effects of continuous improvement. With Trial and Error, you set up the system and go. If it operates poorly, add more stock. If it operates too smoothly, take some away. At the ideal Kanban level the system operates near the edge and sometimes demands extraordinary measures. In practice, most designers use a bination of Boundary Analysis, Factor Analysis and Trial a