Lean Manufacturing: Heijunka Leveling (253)

1. Lean Manufacturing: Heijunka Leveling (253) SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario focuses on the Kanban-supported production planning and optimization in repetitive manufacturing • By using a special algorithm the production process is optimized and demand fluctuations are balanced • Benefits • Stabilization and optimization of production process • Transfer of uneven customer demands in smooth, stable and predictable production schedule • Optimization of stocks and value flow • Components are not procured before they are needed (just in time). • Prevention of overproduction. Reduction of required storage space. • Event control enables timely reaction to changes and issues in the production process • Key Process Steps • Creation of strongly fluctuating planned independent requirements • Production Planning in repetitive manufacturing • Heijunka sequencing and optimization • Kanban Processing with repetitive manufacturing backflush • Production Schedule Evaluation • Postprocessing

3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Production Planner • Shopfloor Specialist

4. Detailed Process Description • Lean Manufacturing: Heijunka Leveling • The scenario Lean Manufacturing – Heijunka Leveling focuses on a lean production control method within a repetitive manufacturing environment: using a special leveling algorithm to optimize the production process. • The production worker executes according to this schedule and calls consumed components within an upstream Kanban process. • The warehouse clerk fills the shipping warehouse via Kanban calls from the finished goods production line. • The KANBAN method for controlling production and material flow is based on the actual stock quantity in production. Material that is required on a regular basis is continually provided in small quantities in production. Replenishment or the production of a material is only triggered when a higher production level actually requires the material. • With KANBAN, the production process controls itself and manual posting is reduced as much as possible. The effect of this is a reduction in lead time and in stock. • Heijunka is a core concept in Lean Manufacturing environments that helps to bring stability to a manufacturing process. It converts uneven customer pulls into an even and predictable manufacturing schedule. Heijunka is generally used in combination with other Lean key principles to stabilize the material and value flow like Kanban.

5. Process Flow Diagram Lean Manufacturing: Heijunka Leveling (253) Purchaser Procurement of Materials Production Planner Planned Independent Requirements Operative MRP Display Stock/ Requirement Situation REM Planning Table Heijunka Sequencing Create event-dr. Kanban for external proc./ stock transfer Set Kanban to “FULL” Classic Kanban: In-house Production Set Kanban to “EMPTY” Display Sequence Schedule Set Kanban to “FULL” Repetitive Manufacturing Backflush Shopfloor Specialist Postprocessing List Reprocessing List Additional Processes Period-End Closing “General” Plant (181)

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision