page 1Two bin replenishment pull system - V1

2-Bin Replenishment Pull

Introduction to 2-Bin Replenishment Pull

Line-side versus Point-of-Use Stocking

2-Bin Data Needs and Calculations

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Learning Objectives

Understand the various types of bin replenishment systems

Know the benefits of a bin system

Understand when to use a bin System

Be able to size (calculate) all the parameters for a bin system

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Products

Movements to be minimized Workers concentrate on the added-value tasks

How do we replenish

materials from supplier to

workstation?

Material Providing & Handling

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Kanban: 2-Bin System

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2-Bin Replenishment Pull Introduction

A 2-Bin Replenishment Pull System is a simplified version of a standard replenishment pull system and maintains the benefits: Establishes strategically located buffers of parts within a

process Raw material Manufactured parts Purchased parts Finished goods

De-couples the supplying process from the consuming process via the buffer inventory

Part replenishment is “triggered” based on consumption

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What Is a 2-Bin Replenishment?

For many parts in a process, a 2-Bin system can be used to replenish the parts versus a synchronous supply: A bin has enough parts/supplies to cover a calculated

period of usage at the point-of-use. When the bin runs out, a 2nd bin is there to take its place

while the “1st” is being refilled/replenished.

There replenishment locations are: Warehouse, Line-Side Storage and Point of Use

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Benefits of 2-Bin Replenishment

Organized and overall cleaner appearance of stored materials

Reduced frequency of orders submitted to the stockroom/vendor

Reduced number of trips for re-supply

Better management of inventory on the shop floor

More predictable inventory costs

Improve employee productivity by: Eliminating part/supply shortages at the point-of-use Reduce time wasted by personnel/supervision retrieving

supplies/inventory from the stockroom and/or vendors Eliminate lost or misplaced material

2-Bin Replenishment can be used for office/safety supplies, production inventory, production supplies – even at home!>

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When to Use 2-Bin Replenishment Pull

Repetitive product offering/process

Relatively consistent demand/volume (low variability)

Part/supply shortages are a consistent/costly problem

Part/supply inventory costs are “out of control” due to: Lost or misplaced parts/supplies Lack of issue/dispersal discipline or control

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What Is a Bin?

Doesn’t necessarily look like a “bin” Can be a standard plastic bin (Acro-bin) Can also be the box/container the part/supply is shipped in (also

called a “standard pack” – purchasing definition)

When the box/container method is used, a “bin” can be one standard pack or several standard packs. Examples: 1 box of screws 2 boxes of screws 1 drum of oil 30 bags of connectors 1 roll of labels 4 tubes of sealant

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2-Bin Replenishment Data Parameters/Needs

Demand/Usage (DMD) Typically expressed in terms of Average Daily Usage (ADU) in units

Lead Time (LT) The time it takes from when a trigger is sent to when replenishment arrives In this case, can also be thought of as “Restocking Time”

Order Interval (OI) If orders/triggers are sent at scheduled times (i.e., not every day, such as once per week) Typical 2-Bin systems do not use an Order Interval, as replenishment can occur every day/shift

(or more)

Safety Stock (SS) Use the typical replenishment pull system equation: SS = * service level * (LT)^.7 In the absence of the ability to calculate standard deviation, use: 1/2 of the max(LT,OI)*DMD,

may be set otherwise dependent on individual conditions

Box/Container Quantity If stock/supply room or vendor does not break down shipping quantity, then the bin quantity

may be set equal to some multiple of the box/container quantity (standard pack) that the part/supply is shipped in

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P ?

Should I put every component on the workstation?

L ?

h ?

H max

Feeding period?

2-Bin Replenishment: Workstation

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Examples

Inclined smooth plane > Simple solution. iron sheet for example

2 containers per channel. Used for: Fragile components Stiff containers : carton, plastic Low weight

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Gravity roller > dynamic solution Accumulation > 2 containers Fragile components > low-pitched Stiff containers : carton, plastic High weight Improve ergonomics of loading ( length / height )

Examples: Gravity rollers

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Hopper > adaptable Component in jumble or without wrapping Non fragile components and low volume Loose container: bags, liner...

Examples: Hoppers

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Loading chute > adaptable Enable high number of components in ergonomic zone For components in jumble or without wrapping Non-fragile components, low volume and simple shape

Examples: Loading Chutes

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Kanban: 2-Bin System

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Kanban Waterspider:

Picking with Occasional Overflow

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Warehousemanpriority 1: Overflowpriority 2: Picking

Cell

Shipment

Water spider

Warehouse: Picking with reserve stock

Finished Goods

Scraps

Receiving

Dock

Kanban Waterspider:

Reserve Stock and Picking (2 Flows)

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Shipment

Receiving

Dock

Cell

Water spider

Finished Goods

Scraps

Kanban Waterspider:

Only Picking

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Shipment

Receiving

Dock

Cell

External Water spider

Internal Water spider

Finished Goods

Scraps

Kanban Waterspider:

Direct Flow to Workstation

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2-Bin Replenishment Calculations

Bin Quantity = Max(LT, OI) * DMD + SS If replenishing in standard packs, Bin Quantity is rounded up to the

nearest standard pack multiple

Example: Calculate the Bin Quantity for the following (standard pack

replenishment): Item Number: 40567 Description: Rubber Gloves Demand/Usage: 25 pairs/day Standard Deviation: 2 pairs/day Service Level: 98% Lead Time: 2 days (trigger - stock/supply room - replenishment) Order Interval: N/A Box Quantity: 50 pairs

Bin Quantity = [Max (2 days, N/A) * 25 pairs/day] + [2 pairs/day * 2 * (2 days)^.7] = 57 pairs

But we have to round up to the nearest standard pack, so: Bin Quantity = 57 pairs/50 pairs/box = 2 boxes

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2-Bin ReplenishmentBin Labeling and Information

Each Bin/Storage Location should have a barcode label or tag. Make sure not to use a permanent label applied to a rack/bin, because you will eventually

want to resize and may have to make new labels! Labels for Line Side Bins/Tags for Resupply Bins

Part Number, Description, and Location are Printed.

Bin Quantity should not be printed (requires too many label changes when resizing – trigger mechanism or system will have Bin Quantity)

Each Bin Location should be unique to avoid confusion when restocking.

Examples are in the Appendix.

LocationPart NumberDescription

2 2

LocationPart NumberDescription

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