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Lean Manufacturing in Microsoft Dynamics AX
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Lean Manufacturing For Microsoft Dynamics AX
Agenda• Introduction• About lean manufacturing• How Lean Manufacturing for
Microsoft Dynamics® AX 2009 can help• Enable and sustain lean implementation• Provide a fast return on investment
• Demonstration• Questions
Difficult Global Market Conditions• Changing business climate• Plant and company
closures• Tight capital• Global competitors with
lower labor costs
Cost reduction and superior customer satisfaction are imperative for survival
Lean Manufacturing—More Attractive Than Ever• Proven focus on:
• Value creation• Waste (“muda”) reduction• Process efficiency• Continuous improvement
• Successful implementations yield competitive advantage
Adoption of Lean Practices
*Source: Demand-Driven Manufacturing. AMR Research Report, January 2007.
Continuous improvement techniques such as Six Sigma DMAIC
Value stream analysis to identify value/ non-value-added activities—
country cross tabulation
Lean replenishment strategies with suppliers
Lean manufacturing tools, such as kanban loops, takt times, and heijunka
Not using or evaluating lean manufacturing practicesSeries1 8%
43%
52%
53%
64%
Lean Manufacturing Principles• Do more with less…• …While providing customers with
exactly what they want, when they want it, at the cost they want to pay…
• … And increase market share and profitability
Five Lean Principles
1.Understand value from the customer’s view
2. Identify the value stream—and non-value activities (waste)
3.Create flow to reduce waste4.Pull production (rather than pushing it)5.Strive for perfection
Flow ImprovementFrom this…
Work in process
CNC Lathe Area
Tool Room
Job Reporting
Assembly AreaWelding Area
Sawing Area Lathe Area Drilling Area
Shop Floor Office Area
Inbound
Outbound
Job Reporting
Flow ImprovementTo this…
CNC Lathe Area
Tool Room
Job Reporting
Assembly Area
Cell 1
Lathe Area
Shop Floor Office Area
Inbound
Outbound
Job Reporting
Sawing/Drilling AreaCell 2 Cell 3
Welding Area
Lean Manufacturing Benefits
•Throughput time slashed by 75 percent
• Inventory reduced by 90 percent•Quality rejections down to zero•Delivery performance up to 99+ percent
•Productivity up 45 percent•Cost reductions of 50 to 70 percent
Lean Manufacturing ChallengesEveryone talks about lean, but few implement:• Requires commitment from shop floor to
CEO• May include false starts• “Proof of concept” means running mixed
modes or phased implementations• Information integration, access, and
analysis is crucial• ERP and Material Requirements Planning
(MRP) systems essential but need to promote process flow thinking
How Lean Manufacturing for Microsoft Dynamics AX Can Help• Achieve demand-driven
production• Drumbeat scheduling to “takt” time
• Improve production flow and leveling
• Increase replenishment efficiency
How Lean Manufacturing for Microsoft Dynamics AX Can Help• Free people for higher-value
activities• Support kaizen (continuous
improvement)• Business intelligence and insight
• Team collaboration tools
• Flexibility for ongoing change
How Lean Manufacturing for Microsoft Dynamics AX Can Help
Lean Accounting
Value Stream as Financial Dimension
Planning/Scheduling
LOS (Lean Order
Schedules)
Heijunka Board
Sales Pull Signals (Call
Off)
Purchase Kanban
Kanban and Pull-Based Execution
SubcontractingKanban
Barcodes
Organization
Cells Kanban
Sales Schedules
Transfer Kanban
Kanban Board
Kanban Inventory Overview
Takt Meter
Cost Substitution
Item
Lean Manufacturing Functionality
Integrated Sales, Purchasing, Financial, Collaboration, and Business Intelligence
• Sales-based scheduling• Heijunka board production leveling• Robust kanban functionality and options• Enhanced business intelligence• End-to-end integration and connectivity
to other Microsoft products, servers, and technologies
Lean Manufacturing for Microsoft Dynamics AX Functionality
Summary
• Achieve demand-driven production • Increase replenishment efficiency• Accelerate continuous improvement• Understand value streams, eliminate
bottlenecks, and identify improvement opportunities
• Free people for higher-value activities
For more information: www.leancentreofexcellence.com
Q&A
© 2009 Microsoft Corporation. All rights reserved. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.01/2009