Feb 24 2014
One on one with John Shook | Lean Management Journal
See on Scoop.it – lean manufacturing
“LMJ Editorial Director, Jon Tudor, meets chairman and CEO of the Lean Enterprise Institute, John Shook, for the second in our One on one series. Jon asks some tough questions posed by a select few of the lean community’s …”
See on www.leanmj.com




Feb 27 2014
A brief rant about the ABC’s | Bill Waddell
See on Scoop.it – lean manufacturing
“Apparently the folks writing about stratifying inventory into A, B and C items and building calculations of such into ERP packages didn’t get the lean memo.
Wikipedia is typical of such thinkers when they describe the ABC thought process as:
The idea of micromanaging some items and slacking off on others based on purchase price is the very same theory they taught me at the University of Cincinnati back in the days when … ”
I agree with Bill that, from the point of view of manufacturing operations, the purchase price of materials is not the most important parameter. because the lack of a nail can prevent the completion of a product as effectively as the lack of a pump costing 1,000 times more.
It doesn’t mean, however, that classifying items to treat them differently is wrong, but it must be done by frequency of use rather than price, and I prefer to call the categories “Runners,” “Repeaters,” and “Strangers” rather than A, B, and C.
As a function of rank, I then look for the percentage of units actually built that can be fully assembled with only the items of this rank and higher. It starts at 0%, and, as long as it stays at 0%, I consider the items to be Runners, essentially items you can’t build any product without. At the other end of the spectrum, I call Strangers all the items without which you can make 95% of the units. And everything in-between is a Repeater.
Then you may decide, for example, to dedicate an easily accessible storage location to each Runner, and make special arrangements with suppliers. For Repeaters, you may use the Kanban system, with smaller dedicated locations. And you don’t keep any stock of Strangers, but order them as needed and store them, if at all, in dynamically allocated slots.
See on www.idatix.com
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By Michel Baudin • Blog clippings 3 • Tags: ABC analysis, Lean, Low-Volume/High-Mix, Pareto, Runner-Repeater-Stranger