TOC
- (MTO)(MTA)
Using TOC Replenishment to transform production from MTO to MTA
/
19 th May, 2016
Junichi Sato
1991
2008
2012
Junichi_Sato@y-k-p.co.jp
Overview
Overview
Overview
YAMAHA Kumamoto Products (YKP) is a manufacturing sister company of YAMAHA Motorcycle
produces marine engines and supply them to 180 countries.
Even through their products are supplied to the distribution chain, YKP run under the MTO mode of
operation and made the master production schedule driven by assembly.
Part production had a lot of chronic problems, such as lack of capacity and mis-synchronization with
subcontractors.
For solving these problems, YKP started the MTIA Make to Internal Availability Pilot implementation in
February 2013. In 2-3 months, YKP saw that the production lead time was reduced significantly while
increasing productivity. Management decided to move to the full execution.
Since then, YKP developed their own IT tool for MTIA and started the preparation for expanding the
implementation to the distribution.
Agenda
Company Profile
Background
Consensus
Win-Win
Respect
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
Company Profile
YAMAHA Motorcycle
Outboard Motors
YAMAHA
www.tocpractice.com
Company Profile
Yatsushiro, Kumamoto, Japan
Name
Established
November 1998
Capital
Employee
Business
Igusa
Sales
556
Manufacturer of Marine Engines
21,800 Million yen
Banpeiyu
www.tocpractice.com
Smoothing
Machining
Painting
Assembly
Shipping
Chartering
RWH
Distributer
Stock
Stock
Stock
Purchasing
YAMAHA Kumamoto
To 180 countries
www.tocpractice.com
Manufacturing Process
RM
122 SKUs
Casting
Dependent Set-up
Long set-up time(3-10H)
Multiple CCRs
Machining
PI
390 SKUs
Common Parts 100 SKUs
5,500 SKUs
Painting
Assembly
425 SKUs
Packing
445 SKUs
Ship
www.tocpractice.com
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
Why TOC?
Tops dream
Coherent Plant
Nimble & Strong Chain
Inventory is
Enemy?
Whats wrong with inventory?
Implementing APS
Is it ??
Backward scheduling
But Murphy in execution
OE reduced
Demand satisfied
Flow
Increase Efficiency
Same Demands?
We have focused on higher DDP for HQ
But the need of customer in US is
same as in Indonesia?
www.tocpractice.com
Reduce Inventory
10
There are too many items that have excess stock in front of assembly
B
Control cost
D
Stick to the plan
that was set
or officially updated
A
Manage well
C
Meet assembly schedule
www.tocpractice.com
D
Take expensive
corrective actions to
add capacity
11
Suggested Solution
Make to Internal Availability
Build enough Stock Buffer at SFWH, and replenish based on consumption from it
Purchased
Item
PTA
Procure
ment
Replenish
Consume
MTIA
X4
X180
countries
Casting
Smoothing
M/C
SFWH
Paint
Assy
Pack
Dock
WH
SFWH
Request
Press
fitting
PTA
RWH
Procure
ment
Pack
RM
Dealers
www.tocpractice.com
Parts
Center
CKD
Complete Knock-Down
12
4 Gates to overcome
Many Obstacles
Gate3
Twice
Technology
Management
Gate1
7 times
Production
Gate2
3 times
Gate4
Business
Planning
HQ havent
implemented
PPC
Production
Is it
magic stick?
Use Transition Tree (TrT) to plan my actions
www.tocpractice.com
13
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
14
Timeline
2012
Jan
Feb
Mar
Apr
May
Information
Gathering
Jun
Jul
2013
Aug
Consensus
Building
Sep
Oct
CRS &
Solution
Design
Nov
Dec
Getting
Buy-in
by Juntos
Jan
Feb
Pilot
Prepar
ation
Mar
Apr
May
Jun
Pilot
Execution
Management WS
WS
Solution Offer to Director
Implementation SetSet-up WS
WS
Knowledge Transfer to Core Team
Decision made
for RollRoll-out
MT Club MT1
www.tocpractice.com
15
Project Team
Steering Committee
Keita Asaine
Junichi Sato
Ryoma Shiratsuchi
Core Team
PSNC
Katsuyuki Utsunomiya
Ken Sugimura
IT team
,
Operation team
PPC
Production, Casting
Prod Mgrs, Supervisors
Production, Smoothing
Production, Machining
Prod Mgrs, Supervisors
www.tocpractice.com
16
MTA Game
with a
smile
www.tocpractice.com
17
Preparing Pilot
1. Select controllable number of SKUs that
will participate in the Pilot
100 items
MTIA
MTIA
MTIA
MTIA DIOH
SKU ID
JB8
JB9
SC1
30
6.0
80.0%
3.0
63
20.0
68.3%
2.5
9
0.0
100.0%
6.6
Name
Line
Type
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
JB8
MTIA
68S4594200YY80
68S-11
68U4594200YY80
68U-9
68V4594200YY80
68V-17
68V4594400YY80
68V-19
69G4594200YY80
69G-5-3/4
69G4594400YY80
69G-7
69W4594400YY80
69W-15
69W4594600YY80
69W-13
69W4594800YY80
69W-11
10
69W4595300YY80
69W-12
11
69W4595900YY80
69W-14
12
6E54594200YY80
6E5-19
13
6E54594400YY80
6E5-21
14
6E54594601YY80
6E5-17
15
6E54594800YY80
6E5-15
16
6E54595100YY80
6E5-13
17
6E54595300YY80
6E5-23
18
6E54595500YY80
6E5-11
19
6E54595700YY80
6E5-25
20
6E54595900YY80
6E5-14
21
6G54594200YY80
6G5-15
22
6G54594401YY80
6G5-21
23
6G54594601YY80
6G5-19
24
6G54594801YY80
6G5-17
25
6G54595100YY80
6G5-23
26
6G54595300YY80
6G5-16
27
6G84594800YY80
6G8-9-1/4
28
6J84594210YY80
6J8-8-1/4
29
6K14594600YY80
6K1-19
30
6K14594800YY80
6K1-17
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
MTIA
(TL)
414
244
49
36
414
3,618
515
2,274
1,343
1,872
278
966
323
1,801
3,709
1,156
40
618
3
423
481
65
472
552
19
99
251
76
87
97
(OH)
10
8
5
2
11
50
37
613
592
48
62
86
352
181
67
28
3
21
4
19
15
6
15
13
6
11
20
7
13
14
WO
(WIP)
98%
97%
90%
94%
97%
99%
93%
73%
56%
97%
78%
91%
-9%
90%
98%
98%
93%
97%
-33%
96%
97%
91%
97%
98%
68%
89%
92%
91%
85%
86%
(on request)
(in)
(out)
428
254
111
168
434
3,618
527
1,584
848
1,831
507
647
446
1,620
3,445
1,154
66
612
35
579
487
109
541
680
60
95
264
127
96
102
-24
-18
-67
-134
-31
-50
-49
77
-97
-7
-291
233
-475
0
197
-26
-29
-15
-36
-175
-21
-50
-84
-141
-47
-7
-33
-58
-22
-19
SKU File
www.tocpractice.com
18
0
0
0
0
0
0
0
0
0
0
0
96
0
0
480
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
12
143
150
0
0
350
0
58
134
21
0
2
0
0
0
0
0
124
0
0
0
0
0
0
DIOH
17
5
3
3
3
32
5
144
114
106
18
45
3
58
114
54
0
14
0
13
6
2
9
8
0
1
4
0
2
1
0.6
1.8
1.7
0.6
3.9
1.6
7.5
4.3
5.2
0.5
3.4
1.9
136.9
3.1
0.6
0.5
10.5
1.5
0.0
1.4
2.4
3.5
1.7
1.7
63.0
7.5
5.5
21.0
7.0
12.8
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
19
Due Date
Due Date
Due Date
Due Date
Casting
Smoothing
Machining
Painting
Assembly
WO Release
WO Release
WO Release
WO Release
WO Release
Scheduler
IT system
Planning
PPC negotiate
with Production
Scheduler
Leave to
Outsourcing
PPC Negotiate
with Production
Leave to
Production
Automatic Planning
Physical Flow
20
Direction of Solution
WHAT to Change?
Stock area in front of assembly is
not Warehouse, but Yard
TO WHAT to Change?
Establishing SFWH as Regulator of
Replenishment System
major consideration
availability at SFWH
Replenish to Consumption
Produce to Assembly Schedule
Determine WO quantity with
WO quantity is influenced by
consideration of difference in
assembly schedule
capacity from assembly
Fixed Schedule
WO Work Order
www.tocpractice.com
21
MTIA Rule 1:
Establishing SFWH as Regulator of
Replenishment System
Produced stock is Pushed to downstream
Stock after machining is treated as WIP
Manage stock per process
Smoothing
Casting
Machining
Paint/
Assembly
On the Way
OnOnhand
Paint/
Assembly
SFWH
www.tocpractice.com
22
MTIA Rule 2:
Replenishment to Consumption
Current way: Local PULL
PULLEventually PUSH
PUSH
Assembly schedule is DRUM
Casting
Smoothing
Machining
Assembly
Part Production
Request
Consumption
SFWH
Assembly
Demand
23
MTIA Rule 3:
Buffer Management
SFWH
On-hand
Stock
Replenishment
WO
No.1 Priority
Recovery
Actions
WO
Getting
Orders
WO
To Assembly
Not allowed to
release WO
Performance
Measurement
BM Meeting
Daily check the progress
of Black/Red WO and
decide recovery actions
when needed
DIOH
www.tocpractice.com
24
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
25
26
After
Integrated part production for sharing plan and execution
Machining
PPC
Availability &
DBM
Any problem
DIOH on setting
target level?
Machining
WO File
Planning
Smoothing
Daily Consumption
This sequence of
WOs is suitable
for everyone
Estimated
required APS
resources
Outsourcing
Going to delay
due to Murphy
Planning
Casting
Casting
Machining
Tools
PPC
Outsourcing
PPC
www.tocpractice.com
Casting
27
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
28
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
29
Results:
Availability and DIOH
Propeller
Availability
Building enough
on-hand stock
93 SKUs
Availability 72% 82%
Availability (# of SKUs with DIOH <1d)/93 SKUs
DIOH
3.1d 4.3d
DIOH Days Inventory On-hand
30
www.tocpractice.com
26th International Conference of the TOC Practitioners Alliance - TOCPA
Results:
Availability and DIOH
Crank
Availability
Ensured
availability of RM
8 SKUs
Availability 92% 92%
Availability (# of SKUs with DIOH <2d)/8 SKUs
DIOH
6.7d 8.1d
DIOH Days Inventory
On-hand
31
www.tocpractice.com
26th International Conference of the TOC Practitioners Alliance - TOCPA
Results:
Production lead time
Propeller
Crank
20
12
1 7 .6
18
1 0 .2
10
16
14
7 .5
1 2 .7
12
1 0 .6
6 .1
6
10
9 .2
8
6 .4
4
3 .8
6
4
0
0
PLT
www.tocpractice.com
PLT
65%
Reduction
th
63% Reduction
32
After
Pre-heating Machining
Post-heating Machining
To yard
WIP
Line B
Pre-heating Machining
Line A
Line B
Line A
After
Line C
Line C
Line D
Line D
WO1 WO2 WO3
www.tocpractice.com
34
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
35
For rollout, we need to: Reflect the daily actual information on Buffer status
But, If we continue to use Excel as with the Pilot, it will cause significant difficulties on
daily updates because of the following reasons:
WO1-1 70 units
WO completed partially
70 units
WO1-2 30 units
Split WO
WO2 20 units
WO3 90 units
WO3 90 units
WO1 70 units
30 units
defective
WO3 90 units
Generate
WO
WO4 30 units
36
Design
Design
Design
Coding
Coding
Coding
FREEZE
Test
Test
Test
Disruption
Important call:
What help can I do for you?
37
Screen
Load Check
www.tocpractice.com
38
Roll-out Results:
Production lead time
18 9
8.6
www.tocpractice.com
39
Roll-out Results:
Availability
70% 90%
95
5keep
300
263
251
263 98
250
227
220
195
200
183
156
150
136
150
124
114
100
98
87
71
90
80
71
57
75
50
60
41
50
26
16
0
1
2013
www.tocpractice.com
2014
2013
10
11
12
2014
40
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
41
Smoothing
Machining
Assembly
Dock
RWH
X4
Why
Currently, Dock is NOT warehouse !
Phase 3
Phase 2
Phase 1
MTIA Make to Internal Availability
RWH
Part Production
SFWH
Assy
CWH
RWH
RWH
www.tocpractice.com
Agenda
Company Profile
Background
Starting Pilot Project
Conceptual Change from MTO to MTA
Collaboration with Subcontractors
Obstacles & Solutions
Results
For Full Rollout Develop IT System
Future Plan
Lessons Learned
www.tocpractice.com
43
Lessons Learned
With my own words
It makes no sense to read aloud the material.
Understanding the logic of solution and gaining confidence give people security.
Resistance? Welcome!
Resistance to change is the first step to achieving goal. We should investigate the
reason behind their response and prove into the identity of the fear.
My mind is sending
If I tell the objective/reason with the mind of respect, then people will accept.
Focus
The key success factor is focusing instead of trying to do too much.
TOC Full-kit
I realized the power of TOC through not only replenishment solution but also MT and
CCPM. I am excited to expand the implementation DTA for distribution and CCPM
for engineering. I believe that TOC Full-kit will guide my company to the right direction.
www.tocpractice.com
44
Make
ones Needs
more approachable
Trigger for Needs
Objective Data
makes an impact on
the people
Possible Data
Gembas Reality
tells a full story
To be Proven
Buy-in on
Solution(MTIA)
Top managements
words
Dilemma between
inventory and set-up
Pilot Execution
Stock simulation
PLT
Gembas voice
Subcontractors
CCPM
Multi-tasking
www.tocpractice.com
Completion rate
Quality(rework)
Reduced overtime
Space created
Communication
Greetings
45
Outcome
/
UDE/ Cloud
NBR
IO Map
TrT
MT Basics
U-Shape, C&E, CLR
3 TOC DNAs
Convergence WinWin Respect
www.tocpractice.com
46
Special Thanks
Dr. Goldratt, Mr. Oded Cohen, JUNTOSKeita & RyomaPSNCKatsuyuki
Top mgmt for giving Chance, Gemba for accepting Change, and PJ members for Challenge
And, my family
How Santa delivers all the right presents to the right children across the world, in one night !?
from Odeds material
www.tocpractice.com
2012.4.14
My Precious
47