I.

Internal Logistics Flow – Extended Overview

II. Internal Logistics Flow • Targets:

• Creation of Logistics Flow;

5. Production Pull
Planning
• Creation of Information Flow, starting with
4. Leveling Customer Order;

3. Synchronization • Link Production with Logistics to Implement

(KB/JJ)
a “Pull Flow System”.
2. Mizusumashi

1. Supermarkets

1
I. Internal Logistics Flow – Extended Overview

III.4. Leveling III.5. Pull Planning

III.3.
Synchronization
(KB/JJ)

III.1. Supermarkets

III.2. Mizusumashi

III. Internal Logistics Flow

(flow unit: One Small Container)

2
I. Internal Logistics Flow – Overview

ar ket
up erm
S

Mizusumashi
Movies

3
 What is Push Flow

Forecasts
Weekly
Program
Cust.
Production Fixed Orders
Program
Daily
Program
Dispatch
Program

Warehouse Dispatch
Operation Operation Operation Operation Warehouse
Material Material Material Material Material
Flow Flow Flow Flow Flow External
(Push Flow) (Push Flow) (Push Flow) (Push Flow) (Push Flow) Transport

Standard MRP Execution Model

Push Flow
Programs Based on Grouping and Forecast
(MRP Execution Model) Manufacturing and Purchase Orders Issued by Central Planning
Big Batches, Long Lead-time, Slow (no) Flow

4
 What is Pull Flow

Pull Fixed Orders Cust.

Planning

Leveling

Supplier Dispatch

External
Transport

Picking to Order (PTO)

Total Pull Flow Assembly to Order (ATO)
(Toyota Model) Build to Replenish (BTR)
Pull Material Supply
Production and Logistics Flow

5
 1. Supermarkets
• A supermarket is a storage area working to the
following rules:
• Fixed location for every part number;
• Easy picking access (ground storage level);
• Allowing Visual Management; C
A
• Assuring the FIFO principle;
• Designed to enable Flow and easy handling of:
D
• Small Containers; B

• Containers on Wheels (Rollers);

• Trolleys.

6
 Logistic Cells

Reserve

CAF

Flow Rack

Finished
Supermarket Product
Supermarket Picking
Supermarket and Reserve Inbound

Finished CAF

Supermarket Product

Supermarket Picking

Logistics Cell:

Pallet Supermarket Picking Components and

Finished Product Storage Finish Product Outbound
7
 2. Mizusumashi

• The Mizusumashi makes the supply

of components and the withdrawal
of FP – Finished Products;

• Makes the flow of all information

and orders;

• Follows a Standard Work cycle;

• Supplies the components to the

POU: Point-of-Use.

Mizusumashi = Water Spider

8
 What is a Mizusumashi

Reserve
Mizusumashi

CAF

Flow Rack

Supermarket

CAF

Finished
Product

• In order to eliminate empty return trips

the Mizusumashi needs “Load Capacity”;
Logistics Cell
• This is achieved by using a Train with Movie:
Wagons adapted to the characteristics of Mizu Valeo
the load.
Movie:
Mizu Blau

9
 3. Synchronisation (KB/JJ)

JJ:
1: A
KB
KB Start 2: B
KB 3: C

KANBAN Logistic Cycle JUNJO Logistic Cycle

(also called Continuous Supply) (also called Sequenced Supply)

Start

End
AAAA AAAA
AAAA End CBA

BB BB
BB

C C
C
Supplier Supermarket: Customer Supermarket:
Supplier Supermarket: Customer Supermarket:
Point of Supply Point of Use
Point of Supply Point of Use
10
 What is a KANBAN

• The word Kanban means card;

• It is a card (or a document) that represents an Order of material from one
Customer to one Supplier;
• The basic information printed on the Kanban is:
• Material identification (and code);
• Customer identification;
• Supplier identification;
• Quantity to be supplied.

KANBAN
Part Identification: Part Number
Pump type A 18407
Customer

Assy line R8
Supplier

Sub assy line PA

Quantity
50

11
 6 Different types of KANBAN loops

1 Transport Order KB 4 Production Flow KB

External 2 Transport Delivery KB 5 Production Signal KB External

Supplier Customer
3 Transport Delivery KB 6 Production Batch KB
1

Divided by 20 min, 1 day

1x Day
1x Day

3 Lines
2 6 Leveling
Box
T T T T

3
Welded
4
Components Subassy line
For Welded Sub Assys
Setup = 5’ (>0)
Sub Assys

5 Assy line Finished

FP Product
Setup = 0’
Production Warehouse
Supermarket

Machine Machined
Components
Setup = 30’ Sub Assys
For Machined
Sub Assys

12
 Transport Delivery KANBAN
Definition:
• Customer is a Border of Line supermarket;
Transportation:
• Supplier is a End of Line supermarket or a
Bought Components supermarket; Mizusumashi with standard
cycle (20 min or 60 min)
• Transport is made by a Mizusumashi with
Standard Work Cycle (usually a fixed 20 min or
60 min Leadtime).

3
Assy line
Machine Machined Setup = 0’
Setup = 30’ Sub Assys

Supplier: Customer:
Machined parts supermarket Border of Line Supermarket

13
 Production Batch KANBAN

Definition:
• Customer is a End of Line supermarket;
• Supplier is a Production or Assembly Line with product reference change over (setup
time bigger than 0);
• Transport of Kanbans to the beginning of the line is made by a Mizusumashi or using
other means;
• The Batch Building Box should be a physical device in order to have Visual Control of
line performance;
• The product is inside a standard container, each one with a Kanban inside.

Batch Building Box

A B C

Batch
A
6
Size A
A B C AA T T T T

A A

Sequencer Welded
Subassy line Sub Assys
Setup = 5’ (>0)

Customer:
Supplier: End of Line Supermarket
Production Line 14
 4. Leveling

• Order to Kanban:
• 2 types of orders can be transformed in Kanbans: Order 20
• Customer orders;
• Replenishment orders. 1. Order to Kanban
• The Kanban is a subset of the order (called Order Kanban, check Kanban
type 1 in the synchronization file).
• Logistics Box:
• Shuffling the Order Kanbans according to Production start day, 2. Logistics Box
and Leveling the monthly load;
• Respecting the daily production capacity agreed in the
Production-Logistics contract (Capacity Leveling);
• Leveling Box:
3. Leveling Box
• Pacing the Mizusumashi picking cycle, and Scheduling the daily
load;
• Respecting the production capacity available in the picking cycle.
• Line Sequencing: Production Line

• Visual scheduling the production lines. 4. Line Sequencing

15
 Toyota´s Definition of Leveling

• Production Leveling means to repeat a product in a constant cycle of time

(also called EPE – Every Product Every cycle):

• According to Toyota there are 5 Levels of Leveling:

EPE =
# Product Ref´s / # of Setups

3 setup/month Ref Monthly 1 Month

Level 1: Qty EPE =
Big Batch A 100 3 Products / 3 Setups =
Monthly Production B 200 1 month =
C 300
20 days

Ref Monthly 1 Month

Level 2: 6 setup/month
Qty EPE =
Smaller Batch 3 Products / 6 Setups =
A 100
More than 1 batch per 0,5 month =
B 200
month C 300
10 days

16
 Toyota´s Definition of Leveling

Ref Quant. 1 day

day
A 5
B 10
C 15

Ref Monthly Daily Month Day

60 setup/month Qty Qty EPE =
Level 3: 3 setup/day 3 Products / 60 Setups =
A 100 5
Daily Production B
0,05 month =
200 10
Different Qty 1 day =
C 300 15 8 hours

120 setup/month Ref Daily 1 Day EPE =

Level 4: 6 setup/day Qty
3 Products / 120 Setups =
Constant Batch A 5 5
0,025 month =
Several Batches per day B 10 5 5 0,5 day =
C 15 5 5 5 4 hours

Ref Daily 1 Day EPE =

600 setup/month
Level 5: 30 setup/day
Qty
3 Products / 600 Setups =
Unit Batch A 5 0,005 month =
Mixed Production B 10 0,1 day =
C 15 0,8 hours

This sequence repeated over time simulates only 1 =

reference Is produced = Mass Customization
17
 The Bullwhip Effect

• Small changes in the Final Customer Demand will

generate demand increases in every step of the
Supply Chain; Consumer 5%

Procura
• This phenomena is the main direct cause of Muda
of Stock and Muda of Excess Production; Tempo

• Causes:
Producer 10%
• Order Grouping to increase lot size (low leveling);

• Using data from the immediate customer, instead of

Procura
data from the final customer; Tempo

• Excessive reaction to small changes in demand

(safety non standardized stock building);
Components 20%
• Anticipated buying of seasonal products; Supplier

Procura
• Lack or Excess of Capacity to respond to real
demand. Tempo

• Most of the ERP systems are modeled with rules

that increase this effect; 40%
Raw Materia
Supplier
• Only Pull Planning and Leveling can strongly
reduce this effect.

Procura
Tempo

18
 Why Leveling?

Source: Toyota Source: Toyota

Levelling will smooth the Levelling will smooth the Work

Consumption of Materials, Content Load, allowing lines to
reducing the Bullwhip effect and work with a Fixed Crew (enabling
allowing suppliers to work with the best Line Balancing and
Kanban. Standard Work).

19
 Logistics Box

• It is a physical device (a box) where

each column corresponds to 1 day;
• It is maintained and used by DIAS
Days

Logistics; PRODUTO
Product
1 2 3 4 5 6 7 8 9 10 11 12

• Place the Kanbans (multiple of

A

orders), according to the B

Production start day; C

• Gives a visual image of the Order D

Book;
Outros
Others

• Makes the QUANTITY LEVELING

according to the Contract;
Logistics Orders
• It is a buffer of orders before the Box Converted
in Kanbans
Leveling box.
Leveling Box

20
 Logistics Box

• 1 Box for the plant, 3 weeks

horizon.
• Vertical axis:
• 1 line for each Production Line.

• 1 Box for each Production Line, 2

weeks horizon.
• Vertical axis:
• 1 line for each “A” product;
• 1 line for all “B” products;
• 1 line for all “C” products.

21
 Leveling Box

• Located in the Picking or Dispatch Area

(the starting point of the Mizusumashi
cycle);
Hours

• Respects the Lines Capacity (each column Product

9 10 11 12 14 15 16 17 18 19 20

has a 20 or 60 minutes interval, and the A

right number of Kanbans); B

• The time in each column is equal to a full C

Mizusumashi standard cycle (also called D

the Pitch Time);

Others

• Sets the Line Takt;

Leveling Box
• The Scheduling inside the day is
physically done here:
• “A” products: EPE < of 1 day; Line
Sequencing
• “B” products: EPE = of 1 day;

• “C” products: “reserved slot”, EPE > 1 day Logistics Box

22
Leveling Box

23
 Line Sequencing

• 2 situations may arise:

C
• Production Line with setup time bigger C Batch = 4
C
than zero; C

• Production Line with setup time equal to

zero. A B C
C
• In the first case it is necessary to receive C
the Kanbans from the Leveling Box until
a Batch is Built (for the sequencer); A C
Sequencer
• The number of slots is equal to batch A B C
size-1;
• Attention: final target will be to eliminate Batch Building Device
the need for this device, after set up time
is reduced and flexibility is achieved;
• The batch size can be calculated using
the “Production Batch Kanban” Leveling Box
algorithm (check sync. file).

24
 Line Sequencing

• Next it is necessary to place the

Kanbans at the start of the
Production Line;

• The Mizusumashi will do this

task (included in his Standard C
A
Work Sheet); B A B C
B C

• The sequencer
A C

assures the A B C

Kanbans FIFO;
Batch Building
• It shows an image of the line Device…
advance or delay;

• It helps take the decision to

U Sequencer
Or
…Leveling Box

reinforce capacity (extra time,

more workers, etc…); Production Line

• In the case of zero setup time

there will be no Batch Building
Box.
25
 Line Sequencing

Line Sequencer + Box for delayed KB´s

Line Sequencer

26
 Standard Pull Flow Loop

A B C Leveling Box

Batch Building HORAS

Device REF. 9 10 11 12 14 15 16 17
A
B
C
D

Logistics Box

Sequencer DIAS
REF. 1 2 3 4 10 20
A
U
B

A C
D
B

Production D
Order to KB
Line
FP Supermarket Dispatch
Preparation
Order
Material Flow
Production KB
Picking KB

27
 Standard Pull Flow Loop Extended

A B C D E
BB Device BB Device
BB Device
a b c d e
x y

Leveling Box
Sequencer Auto Finishing A
a
b B HORAS
REF. 9 10 11 12 14 15 16 17
x A
Presses Components B
y C
c D

d Finishing
Supermarket
e
Supermarket C
Manual D Dispatch
E Preparation
Material Flow

Production KB
FP Supermarket

Picking KB

28
Pull Flow Loop Without End of Line Supermarket

A B C Leveling Box

Batch Building HORAS

Device REF. 9 10 11 12 14 15 16 17
A
B
C
D

Logistics Box

Sequencer DIAS
REF. 1 2 3 4 10 20
A
U
B
C
D

Production
Order to KB
Line
Dispatch
Preparation
Orders
Material Flow

Picking KB

29
 Sequenced Pull Flow Loop

Sequencer BB Device Leveling Box

HORAS
A B C REF. 9 10 11 12 14 15 16 17
A
B
Operation
2.1 C
1 D
2.2

Logistics Box
DIAS
REF. 1 2 3 4 10 20
Operation A
2.1 B
C
D

Order to JJ
Dispatch
Operation Preparation
2.2
Order

JJ / PO
Material Flow

30
 5. Pull Planning

1 2 3
Planning Strategy: Capacity Planning: Execution Planning:
• MTO (Make to Order); • Lines/Machines; • Customer Orders;
• MTS (Make to Stock). • Logistics. • Replenishment Orders.

Order 20

Program
Programa 1. Order to Kanban
Weeks
Semanas 40-43

Kaizen Leveling
Sales Quantity

Total:
24.00024.000 units
unidades

A Ref.
Ref. A A50%
Ref.
Ref.
12.000 +-10%
B B25%6.000 +-25%
2. Logistics Box

Ref.
Ref. C C15%3.600 +-50%
Ref.
Ref. D D10%2.400 +-50%
3. Leveling Box

B Produção
Production Logística
Logistics
C
Products Production Line
4. Line Sequencing

31
 3) Execution Planning

3
• The Planning Strategy and The Capacity
Planning processes are needed as a preparation Execution Planning:
for the Execution Planning; • Customer Orders;
• Replenishment Orders.
• Execution Planning deals only with Fixed and
Short Term Customer Orders;
• It is used to decide “What” and “How Much” to
Manufacture and Deliver to Customers; Order 20

1. Order to Kanban
• Three types of orders will be calculated:

Kaizen Leveling
• Final Customer Orders, for MTO products;
2. Logistics Box
• Replenishment Orders, for MTS products;
• Special Final Customer Orders, for MTS products
when the size of the order is big (and hence the
delivery date). 3. Leveling Box

• After the Order List is finished, the Leveling

process can be started. This should be done on a Production Line
daily basis. 4. Line Sequencing

32
 3) Execution Planning – Pull Replenishment Loops

Customer Demand
1) Order Processing Leadtime Replenishment
Order
2) Order Picking Leadtime

4) Inbound Leadtime
Total Replenishment
Leadtime = 1) + 2) + 3) + 4) Order Level

3) Transport / Production Leadtime

Supplier Replenishment Customer

Inventory Batch Inventory
Location

• The loop starts on a Customer Inventory Location;

Units in Stock
Replenishment
• The part is available for immediate customer delivery (MTS part);
Order
• The part must be replenished when the stock reaches the Order Level;
Order Level
• The Order Level = Demand During Replenishment Leadtime + Leveling
Stock;
• Leveling Stock = Demand Variation + Leadtime Variation.
Leveling Stock

Time

Total Leadtime 33