Kanban Archives - Dumontis

How Lean’s Just-in-Time Builds Financial Resilience

Meanwhile, we have all been bombarded with posts and articles that are quick to expose the Just-in-Time and Lean approach to management as one of the major causes of the lack of medical supplies, so much needed in the battle against COVID-19. Well-respected journals and university professors alike have ignorantly equated Just-in-Time and Lean with low, even too little inventory; how naive. I have also written about this misunderstanding before: Resilient Just-in-Time: An Oxymoron?. But why is it that Lean companies, and particularly Toyota, have been witnessed to withstand crises like these, as the best? And to recover as the fastest of all? And to come out of a crisis stronger than ever before? Remember that Toyota was born from a crisis, rose to stardom during the oil crisis, and has been growing stronger through the financial crisis and the earthquakes during the last decade. This is because Lean and JIT are so much more than the mere logistics that some appear to only see, as it is part and parcel of Toyota’s way to build financial resilience.
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Are You on the Way to Perfect Flow? (Part 3)

This is the third and last post in a series of three about knowing whether you are on your way to perfect flow. The better your flow, the more profitable your business will be and the more returns it will deliver. But how to know where you stand in terms of flow? And how to evaluate whether you progressed? This series of three post tries to develop two measures – flow velocity and flow smoothness – as the way to evaluate the level of and the progress towards flow. In this third post, I will focus on flow smoothness to complement the flow velocity measure discussed in the second post.
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Are You on the Way to Perfect Flow? (Part 2)

There are many approaches and methods that focus on improving flow. And for good reason, as improving flow yields improved profitability and returns. But how, in fact, can we determine our level of “flow”? In the first post, the typical ‘flow rate’ measure turned out to be unsuitable to do so. In this second post in a series of three, I therefore introduce flow velocity as a first measure to evaluate the level of and the progress towards flow.
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Are You on the Way to Perfect Flow? (Part 1)

There are many approaches and methods that focus on improving flow. Material Requirements Planning (MRP), Drum-Buffer-Rope (DBR) or Simplified-DBR (SDBR), Demand-Driven MRP (DDMRP), Quick Response Manufacturing (QRM) and of course Lean’s comprehensive Just-in-Time (JIT) approach share the same objective. In comparing these approaches, however, discussions often concentrate on their inner workings. But they often lack an operationalization of the concept of “flow” which they intend to improve. This series of three post tries to develop two measures – flow velocity and flow smoothness – as the way to evaluate the level of and the progress towards flow.
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Why Demand-Driven MRP (DDMRP) is Not Lean (Part 2)

Demand-Driven Material Requirements Planning, or DDMRP in short, promises to be the first real innovation to MRP since the invention of MRP. Furthermore, in one of its white papers, the Demand Driven Institute states that “Lean Finds a Friend in DDMRP” (2011). DDMRP is positioned as integrating Lean, the Theory of Constraints (TOC) as well as Six Sigma whilst fundamentally innovating the traditional MRP (and DRP) planning approach. What I think of it? Some parts are OK, but most of it still has nothing to do with Lean. In a series of two posts of which this is the second (the first can be found here), I’ll try to explain my views and hope this may help you and your company in making the right decision when looking at your values, your thinking, your philosophy and your strategies.
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Why Demand-Driven MRP (DDMRP) is Not Lean (Part 1)

Demand-Driven Material Requirements Planning, or DDMRP in short, promises to be the first real innovation to MRP since the invention of MRP. Furthermore, in one of its white papers, the Demand Driven Institute states that “Lean Finds a Friend in DDMRP” (2011). DDMRP is positioned as integrating Lean, the Theory of Constraints (TOC) as well as Six Sigma whilst fundamentally innovating the traditional MRP (and DRP) planning approach. What I think of it? Some parts are OK, but most of it still has nothing to do with Lean. In a series of two posts (the second one of this series you can find here), I’ll try to explain my views and hope this may help you and your company in making the right decision when looking at your values, your thinking, your philosophy and your strategies. (more…)

Quick Response Manufacturing (QRM): What’s New?

Quick Response Manufacturing (QRM) is touted as the answer to Lean for hi-mix, lo-volume environments typically encountered in SMEs like job shops or machine builders. Personally, after having read the book and some papers about QRM, I got interested in QRM for the management of make-to-order products along make-to-stock fast movers, typically managed with the more traditional, anonymous or product-specific kanban (see also an earlier post on pull upstream and downstream op the order penetration point). So when Rajan Suri, Mr. QRM himself, was in the Netherlands last week, I took the opportunity and enrolled in a two-day workshop on QRM with him. Expectations were high, but although QRM does propose some interesting tools, overall it was somewhat disappointing. A post on what to expect and what not to expect from QRM. (more…)

Creating Ownership: Six Forms of Autonomy

Tell me, does it make a difference in how you treat your car depending upon whether it is a company car or your own? And what about homes: is there a difference in maintenance between rented homes and owned ones? A 2013 study, conducted in the Netherlands by Platform31 based upon the national registration of the quality of the Dutch housing stock (the KWR), concluded that only 8% of owner-occupied properties could be said to be in a poor state of maintenance whereas this number was 21% in the case of rental properties. Ownership seems to be an important factor in how much we care and invest in our work. So how do I create ownership in my organization? And how can the concept of autonomy in Lean help? (more…)

Muri and Mura: Kingman’s Seven Lessons

More than 100 flights cancelled and delays of sometimes over 20 hours with consequences for over 76,000 travelers. That was the sad result of Vueling’s planning policies according to an article in last week’s Dutch Financial Times and (in English) in El Pais. Experts stated that Vueling scheduled more flights than they even had airplanes and staff. In between flights they apparently scheduled no safety time meaning that even the slightest hiccup leads to a snowball effect all subsequent flights. In the end, Vueling’s personnel therefore cannot take the required breaks resulting in even further delays and cancellations when the plane needs to be grounded and the personnel needs to rest. This case represents a good example of Kingman’s formula, part of queuing theory, and of how not using these insights results in poor planning, overburdening (Muri) and unevenness (Mura) and in the end disastrous results for lead times and service. (more…)

Delivering upon the Promise of Kanban

Kanban implementations are often disappointing and short lived. Companies are promised better service, lower inventories and level demand. But more often the system is abandoned after a short period as it has turned the shop floor into chaos… What went wrong? (more…)