1 kb001 kanban a new approach kanban a new approach (tool for information flow)
TRANSCRIPT
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Kanban A New Approach
Kanban A New Approach(Tool for Information Flow)Kanban A New Approach
(Tool for Information Flow)
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Kanban A New Approach
AgendaAgenda
Time Topic/Activity
8:00 AM 8:05 AM 8:20 AM 9:05 AM 9:20 AM10:05 AM10:20 AM11:15 AM12:15 PM 1:00 PM 2:00 PM 2:45 PM 3:00 PM 4:00 PM 4:45 PM 5:00 PM 5:30 PM 5:45 PM
OpeningIntroductionInformation FlowBreakKanban Simulation1BreakThe CustomerLeveling ExerciseLunchKanban Simulation 2Internal Pull SystemBreakLot Box ProductionLot Size CalculationBreakMaterial MovementSupplier Card CalculationClosing
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Kanban A New Approach
NameYears of ServiceCurrent Position
IntroductionsIntroductions
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Kanban A New Approach
Kanban SystemKanban System
• Based on Toyota Production System
• Driven by External Customers
• Addresses Constraints & Bottlenecks
1. Understanding our Capabilities
2. Lot Size Production
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Kanban A New Approach
OverviewOverview• Supporting Company Strategy
• Understanding Customer Needs
• Internal Kanban System
• Signaling the Supplier
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Kanban A New Approach
The ObjectiveThe Objective
Create Information System that Supports Lean Principles
Pull of Product Based on Usage
Lower Inventory / Reduced Lead-Time
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Company StrategyCompany Strategy• Grow our Business
– Internal and external
– Strengthen our resources
• Improve our Competitive Position– Continually strive for perfection
– Reduce cost
– Eliminate waste in operations
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Supporting Company StrategySupporting Company Strategy
• Elimination of Waste• Overproduction
• Material movement
• Inventory
• Transition to Just-in-Time• Kanban system
• Kanban signals
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• Production schedules will always change
• Production will never go according to schedule
• It is human nature to overproduce
Key AssumptionsKey Assumptions
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Offsetting the AssumptionsOffsetting the Assumptions• Kanban System
• Withdraw only what you need
• Replenish what is taken
• Overall Benefits• Flexibility in production
• Prevents overproduction
• Reduces inventory
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Information FlowInformation Flow
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The Kanban SignalThe Kanban Signal
The Kanban signal tells us:
When to make it! When to move it!
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Kanban SystemKanban System
Supplying Process
Customer Process
product
“Production” Card
Finished Goods Store
“Withdrawal” Card
product
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Withdrawal Kanban SignalWithdrawal Kanban Signal
• Tells us:• When to move
• What to move
• Where to move
• How much to move
When to moveWhat to move
Where to move
How much
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Three Types of Withdrawal Kanban Signals
Three Types of Withdrawal Kanban Signals
• Customer Kanban Signal• Transfers material from plant to customer
• Move Kanban Signal• Transfers material between work units
• Supplier Kanban Signal• Pulls material from supplier to plant
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Customer Kanban Signal InformationCustomer Kanban Signal Information
• Supplier
• Quantity
• Supplier Number
• Card Number
• Kanban Signal Number
• Container Type
• Part Number
• Description
• Storage Location
• Storage Address
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Customer Kanban SignalCustomer Kanban Signal
Supplier
Kanban Signal No.
Part No.
Storage Location
Quantity Supplier No.
Card No.
ContainerType
Description
Storage Address
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Flow of Customer Kanban SignalFlow of Customer Kanban Signal
Plant
FinishedGoodsStore
ExternalCustomer
needed product
Customer Kanban Signal
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Move Kanban Signal InformationMove Kanban Signal Information
• Part Number
• Supplier Name
• Storage Address (Point of Storage)
• Card Number
• Kanban Signal Number
• Work Unit Name (Customer)
• Quantity per Container
• Line Address (Point of Use)
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Move Kanban SignalMove Kanban Signal
WORK UNIT ADDRESSSTORE ADDRESS
SUPPLIER NAME Kanban Signal No. WORK UNIT NAME
PART No. QUANTITY CARD #
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Flow of Move Kanban SignalFlow of Move Kanban Signal
Internal
RawMaterial
Store
ProductionWork Unit
needed product
Move Kanban Signal
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Supplier Kanban Signal InformationSupplier Kanban Signal Information• Supplier Name
• Part Number
• Part Name
• Customer
• Storage Address
• Work Unit Address
• Quantity per Container
• Card Number
• Kanban Signal Number
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Kanban A New Approach
Supplier Kanban SignalSupplier Kanban Signal
Kanban Signal NumberSupplier Name
Part Number Quantity Card No.
Customer
Store Address Work Unit Address
Part Name
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Flow of Supplier Kanban SignalFlow of Supplier Kanban Signal
ExternalSupplier
FinishedGoodsStore
needed product
Supplier Kanban Signal
Internal
RawMaterial
Store
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ExternalSupplier
Internal
Raw Materials
Storeneeded product
Flow of Withdrawal Kanban SignalsFlow of Withdrawal Kanban Signals
Internal
ProductionWork Unitneeded
product
Plant
FinishedGoodsStoreneeded
product
ExternalCustomer
needed product
Supplier Signal Move Signal Customer Signal
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Production Kanban Signal Production Kanban Signal
• Tells Us:
• When to make
• What to make
• How much to make
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Two Types of Production Kanban SignalsTwo Types of Production Kanban Signals
• Production Kanban Signal• Instructs us to make One Container
• Signal (Triangle) • Instructs us to produce One Lot
• Used when a work unit does not have the changeover capability to produce one container for one production card
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Production Card InformationProduction Card Information
• Store Address
• Kanban Signal Number
• Work Unit Name
• Part Number
• Quantity
• Card Number
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Production CardProduction Card
STORE ADDRESS
Kanban Signal No.
WORK UNIT NAME
PART No. QUANTITY CARD #
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Signal (Triangle) InformationSignal (Triangle) Information
• Work Unit Name
• Part Number
• Container Type
• Quantity
• Process Time
• Lot Size
• Order Point
• Kanban Signal Number
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Signal (Triangle) Signal (Triangle)
WORK UNIT NAME
PART No.
CONTAINERTYPE
QUANTITY PROCESSINGTIME FOR 1 LOT
LOT SIZE ORDER POINT
Kanban Signal #
# of containers to produce
Where the signal
is placed in inventory
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Flow of Production Kanban SignalsFlow of Production Kanban Signals
InternalSub
AssemblyWorkUnitStore
InternalFinal
AssemblyWorkUnitneeded
product
FinishedGoodsStore
needed product
Internal
SubAssembly
WorkUnit
needed product
Triangle SignalProduction Signal Move Signal
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Kanban Signal FlowKanban Signal Flow
Sub
Assembly
Work Unit
Finished
Assembly
Work Unit
Production Kanban Signal
Triangle
Kanban Signal
Move
Sub Stores
Finished GoodsStore
A CB D
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How Do You Handle Non-Standard Situations
How Do You Handle Non-Standard Situations
Temporary Kanban Signals
• Need scheduled down time to PM equipment
• Sample parts
• Service parts
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Temporary Kanban Signal CardTemporary Kanban Signal Card
STORE ADDRESS
WORK UNIT NAME
PART No. QUANTITY CARD #
Kanban Signal No.
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Summary of Kanban TypesSummary of Kanban Types
• Withdrawal
- Customer Kanban Signal
- Move Kanban Signal
- Supplier Kanban Signal
• Production
- Production Kanban Signal
- Signal (Triangle)
- Temporary Kanban Signal
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Additional Benefits of KanbanAdditional Benefits of Kanban
• Support Visual Control• Are we behind?
• What do I produce first?
• What is my inventory situation?
• Continuous Improvement• Large inventories hide problems
• Facilitate continuous improvement by removing Kanban Signals
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Kanban System SimulationKanban System Simulation
Exercise 1
(Without Leveling)
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Kanban System Simulation - Exercise 1
• Objective• To gain an understanding of Kanban System card transfer,
exchange, and loop location
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Kanban System Simulation - Exercise 1
• Details• Activity will be run in time segments
• Each time segment consists of one day
• One truck from customer per day
• Simulation will run for “5” days
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Kanban System Simulation - Exercise 1 Activity Pieces
• 35 Plastic bowls
• 73 White Lego Blocks
• 35 Yellow Lego Blocks
• 5 Customer Cards
• 18 Place Mats
• 13 Production Cards
• 8 Move Cards
• 4 Supplier Cards
• 5 Signal Posts
• 5 Order Cards
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Activity Layout - Exercise 1
W
YCustomer
EmptyContainers
SignalPost
4
FinalAssembly
3
3
3
EmptyContainers
SignalPost
1@15
3
3
3
SubAssembly
1
1
1
EmptyContainers
SignalPost
2@15
1Raw
MaterialProcessing
EmptyContainers
SignalPost
1
Supplier
EmptyContainers
SignalPost
A B C
D
E F G H I
J
A - CustomerB - Truck Driver-1 (Customer to Plant)C - Final Assembly OperatorD - Material Handler-1 (Final Assembly to Sub-Assembly)E - Sub-Assembly OperatorF - Material Handler-2 (Sub-Assembly to Raw Material Storage)G - Raw Material Processing (Parts Ordering / Parts Receiving)H - Truck Driver-2 (Plant to Supplier)I - SupplierJ - Manager
W W
Y4 =
WY3 =
Y2 =
W1 =
1@15
4
44
44 4
44
4
11
1
11
1
3 3 1
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Activity Layout - Exercise 1Card Types
W
Y
EmptyContainers
Customer
4
4
4
4
4
SignalPost
4
4
4
4
4
FinalAssembly
3
3
3
EmptyContainers
SignalPost
3
3
3
SubAssembly
1
1
1
EmptyContainers
SignalPost
1
1
1Raw
MaterialStorage
EmptyContainers
SignalPost
1
1
1
Supplier
EmptyContainers
SignalPost
Customer Card
Production Card
Move Card
Production Card
Move Card
Supplier Card Production Card
1 1
3 3 1
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Kanban System Simulation - Exercise 1 Roles
• Customer• Receive order from facilitator
• Move raw materials to customer processing area
• Remove Customer Cards from container
• Place Customer Cards in Signal post
• Disassemble lego blocks and place in designated containers
• Move empty containers to customer empty container storage
• Repeat above steps for each order
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• Truck Driver 1• Pick up Cards from Signal post
• Pick up empty containers from customer empty container storage
• Move empty containers to finished goods empty container storage
• Remove Production Cards from finished goods container and replace with Customer Cards
• Place Production Cards in final assembly Signal post
• Move finished goods to customer raw material storage
• Repeat above steps for each daily order
Kanban System Simulation - Exercise 1 Roles
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• Final Assembly Operator• Check final assembly Signal post for production requirements
• Move raw material container to final assembly processing area
• Remove sub-assembly and place on final assembly processing area
• Remove Move Card and place in empty container
• Move empty container back to final assembly raw materials storage
• Pick up empty container from finished goods empty container storage and move to final assembly processing area
• Pick up white processing lego and assemble to sub-assembly and place in finished goods container
• Pick up Production Card from Signal post and place on finished goods container
• Move finished goods container to final assembly finished goods storage
• Repeat above steps for each Kanban Signal
Kanban System Simulation - Exercise 1 Roles
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• Material Handler 1
• Pick up Move Cards and empty containers from final assembly raw material storage
• Place empty containers in sub-assembly empty container storage
• Remove Production Cards from sub-assembly finished goods and replace with Move Cards
• Place Production Cards in the sub-assembly Signal post
• Move finished goods containers to final assembly raw material storage
• Repeat above steps for each Kanban Signal
Kanban System Simulation - Exercise 1 Roles
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• Sub-Assembly Operator• Check sub-assembly Signal post for production requirements
• Move raw material container to sub-assembly processing area
• Remove raw material and place on sub-assembly processing area
• Remove Move Card and place in empty container
• Move empty container back to sub-assembly raw material storage
• Pick up empty container from sub-assembly empty container storage and move to sub-assembly processing area
• Pick up yellow processing lego and assemble to raw material and place in finished goods container
• Pick up Production Card from Signal post and place on finished goods container
• Move finished goods container to sub-assembly finished goods storage
• Repeat above steps for each Kanban Signal
Kanban System Simulation - Exercise 1 Roles
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• Material Handler 2
• Pick up Move Cards and empty containers from sub-assembly raw material storage
• Place empty containers in raw material empty container storage
• Remove Supplier Cards from raw material storage and replace with Move Cards
• Place Supplier Cards in the raw material Signal post
• Move raw material containers to sub-assembly raw material storage
• Repeat above steps for each Kanban Signal
Kanban System Simulation - Exercise 1 Roles
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• Raw Material Store (Parts Ordering)• Move empty container from raw material empty container storage
to raw material processing
• Remove Supplier Card from supplier Signal post
• Place Supplier Card on empty container
• Repeat above steps for each Kanban Signal
• Prepare order for shipment
• Raw Material Store (Parts Receiving)• Move raw material container from raw material receiving to raw
material storage area
Kanban System Simulation - Exercise 1 Roles
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• Truck Driver 2• Pick up empty containers with Supplier Cards from raw material
processing area
• Place empty containers in Suppliers empty container storage
• Remove Supplier Production Cards from suppliers raw material container and replace with Supplier Cards
• Place Supplier Production Cards in supplier Signal post
• Move raw materials from supplier to raw material receiving
• Repeat above steps for each daily order
Kanban System Simulation - Exercise 1 Roles
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• Supplier• Check Supplier Signal post for production requirements
• Move empty container from supplier empty container storage to supplier processing area
• Pick up white processing lego and place in raw material container
• Pick up Production Card from supplier Signal post and place on raw material container
• Move raw material container to supplier finished goods storage
• Repeat above steps for each Kanban Signal
Kanban System Simulation - Exercise 1 Roles
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• Manager• Review the daily production requirements
• Instruct cells to produce to customer demand or capacity
• Monitor the production of parts in the value stream
• Evaluate daily production results
Kanban System Simulation - Exercise 1 Roles
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Kanban System Simulation - Exercise 1Customer Orders vs Capacity
3 units = 8hrs 00min
4 units = 10hrs 40min
Capacity
1 unit = 2hrs 40min
2 units = 5hrs 20min
Day Customer Capacity Actual ProductionOrder Production Hours
12345
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The CustomerThe Customer
(Starting Point for a Kanban System)
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Understanding Customer NeedsUnderstanding Customer Needs
• Customer Demand
• Anticipated Requirements (Forecast)• Takt Time (time required to produce a single part based upon
customer usage)
• Actual Requirements (Daily Pull)• Leveling
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Anticipated RequirementsAnticipated Requirements
• What information do we need?• Customer demand for the month
• Number of days in demand period
Part Monthly Demand No. of Working Days Daily DemandA 18,000 20 900
Note: 900 units / 2 shifts = 450 units per shift
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Takt TimeTakt Time
Available Operating TimePieces
Takt Time =
57,600” - 2,400”900 pcs
=
61.33” per piece =
Sets pace of production to match customer demand
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ProductionWork Unit
Customer
Producing to Customer DemandProducing to Customer Demand
Customer CardProduction Card
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Customer Ordering History
0
200
400
600
800
1000
1200
1400
1600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Day
Un
its
0
200
400
600
800
1000
1200
1400
1600
Forecast
Actual
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Analyze Actual RequirementsAnalyze Actual Requirements
Anticipated Demand vs. Actual Demand
Part Anticipated Demand Actual Demand DifferenceA 18,000 19,000 1000
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Opportunities in Customer FluctuationOpportunities in Customer Fluctuation
• Buffer Stock• Used when demand is in excess of customer forecast
• Replenished when demand is less than customer forecast
• Note: Buffers are an indicator of waste in the system!
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Leveled Production(Based On 500 Units Of Buffer Stock)
0
200
400
600
800
1000
1200
1400
1600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Day
Un
its
0
200
400
600
800
1000
1200
1400
1600
Forecast
Actual
Production
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Opportunities in Truck PitchOpportunities in Truck Pitch
• Even Truck Pitch• Drives constant Takt Time
• Reduces fluctuation
• Overall Benefit• Reduction in inventory
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Truck PitchTruck Pitch
Truck 2 Truck 3 Truck 4 Truck 1
6:00 10:00 14:30 16:00 21:00 24:30
= Break
= Lunch= Between
Shifts
Truck Times1 - 6:00 3 – 16:00 2 - 10:00 4 – 21:00
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Replenishment CapabilityReplenishment Capability• Truck Pick-up Times
1. 6:00 2. 10:00 3. 16:00 4. 21:00
• Replenishment Capability Based on Takt Time
• 21:00 - 24:30 = 3.5 hours = 12,600 seconds
• 12,600 seconds - 600 seconds (break) = 12,000 seconds
• 12,000 seconds / 61.33 seconds (takt time) = 195.66 pcs
• 195.66 pcs / 50 pcs in container = 3.91 containers
• Truck 1 = 3 containers (45.66 remaining for Truck 2)
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Leveling PostLeveling Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
500 pcs. used to buffer Customer Orders
• 50 pcs. per container
• 10 slots required in Leveling Post for Buffer
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ProductionWork Unit
Customer
Leveling Post
B
P
Leveling Customer DemandLeveling Customer Demand
Forecast
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1st Shift
Line 100
600
724
706
700
718
712
748
800
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630
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606
612
742
736
730
754
Takt Time PostTakt Time Post
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Information Required for Takt Time Post
Information Required for Takt Time Post
• Takt Time = 61.33 seconds
• Number of pieces per container = 50
Time per container = (Takt Time * Container Quantity) / 60
= (61.33 * 50) / 60 = 51 minutes(Must deliver a Kanban from the Takt Time Post
to the Production Work Unit every 51 minutes)
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Takt Time PostTakt Time Post
1st Shift
Line 100
600
724
706
700
718
712
748
800
618
624
630
636
642
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654
606
612
742
736
730
754
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ProductionWork Unit
Customer
Leveling Post
B
P
Leveling Customer DemandLeveling Customer DemandForecast
Takt Time Post
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Separating Safety StockSeparating Safety Stock
• Distinguish between customer fluctuation and internal problems
• Safety Stock inventory amount is based on downtime history
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ProductionWork Unit
Customer
Leveling Post
B
P
Utilizing Safety StockUtilizing Safety Stock
Forecast
Takt Time Post
S
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Leveling Leveling
• Benefits:
• Neutralizes fluctuation from:• Customer’s orders
• Truck pitch
• Pulls product based on: • Customer usage
• Takt Time
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Leveling SystemLeveling System
Visual Aid 1
(Neutralizing Customer Fluctuation)
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ObjectiveObjective
• To establish a pull system of production that levels the demand of the customer to meet production capabilities
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Visual Aid RequirementsVisual Aid Requirements
• Leveling Post
• Takt Time Post
• Signal Post
• (20) Customer Cards
• (7) Production Cards
• (10) Buffer Stock Cards
• (5) Safety Stock Cards
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Card NumberCard Number
• To determine the number of Production Cards in the system, take the highest available Cards to be shipped on one truck and add one Card.
• EXAMPLE:
• Truck 4 = 6 Cards
• 6 Cards + 1 Card = 7 Cards
• (7) Production Cards Required
• Note: Additional Cards may be required for longer lead-times
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Card PlacementCard Placement
• To determine the location of the Production Card on the takt time post, take the available Cards for the last truck and subtract the quantity for the first truck and count backwards from the last truck
• EXAMPLE:
• Truck 4 - Truck 1 = Cards Generated for 1st
• (6) - (3) = 3 Cards for 1st Shift
• Note: If the number is zero or a negative number, only the last Card of the last truck is generated for 1st shift
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Visual Aid Layout - Day 1 (End of 2nd Shift)
Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
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Visual Aid Layout - Day 2 (6:00 am)
Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
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Visual Aid Layout - Day 2 (6:00 am - continued)
Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
930
2
936
942
948
954
1000
1006
1012
1018
1024
3
1030
1036
1042
1048
1054
1100
1106
1112
1118
1124
1130
1136
1142
L/T
4
1148
1154
1200
1206
1212
1218
1224
1230
1236
5
1242
1248
1254
L/T
L/T
L/T
L/T
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Visual Aid Layout - Day 2 (10:00 am)Leveling Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
Takt Time Post930
2
936
942
948
954
1000
1006
1012
1018
1024
3
1030
1036
1042
1048
1054
1100
1106
1112
1118
1124
1130
1136
1142
L/T
4
1148
1154
1200
1206
1212
1218
1224
1230
1236
5
1242
1248
1254
L/T
L/T
L/T
L/T
B/T
B/T
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Visual Aid Layout - Day 2 (10:00 am - continued)
Leveling Post1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
Takt Time Post100
106
112
118
124
130
136
6
142
148
154
200
206
212
218
224
230
236
242
248
254
300
306
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318
324
330
336
342
348
354
400
406
412
418
424
B/T
B/T
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Visual Aid Layout - Day 2 (10:00 am - continued)
Leveling Post1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
Takt Time Post430
7
436
442
448
454
500
506
512
518
8
524
530
536
542
548
554
600
606
612
9
618
624
630
636
642
648
654
700
706
712
10
718
724
730
736
742
748
754
B/T
B/T
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Visual Aid Layout - Day 2 (4:00 pm)
Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
430
7
436
442
448
454
500
506
512
518
8
524
530
536
542
548
554
600
606
612
9
618
624
630
636
642
648
654
700
706
712
10
718
724
730
736
742
748
754
B/T
B/T
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Visual Aid Layout - Day 2 (4:00 pm - continued)Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
800
11
806
812
818
824
830
836
842
848
854
12
900
906
912
918
924
930
936
942
948
954
1000
1006
1012
13
1018
1024
1030
1036
1042
1048
1054
1100
1106
14
1112
1118
1124
L/T
L/T
L/T
L/T
L/T
B/T
B/T
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KB001
Kanban A New Approach
Visual Aid Layout - Day 2 (9:00 pm)Leveling Post
Takt Time Post800
11
806
812
818
824
830
836
842
848
854
12
900
906
912
918
924
930
936
942
948
954
1000
1006
1012
13
1018
1024
1030
1036
1042
1048
1054
1100
1106
14
1112
1118
1124
L/T
L/T
L/T
L/T
L/T
B/T
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
90
KB001
Kanban A New Approach
Visual Aid Layout - Day 2 (9:00 pm - continued)
Leveling Post
Takt Time Post1130
1136
1142
1148
1154
1200
1206
15
1212
1218
1224
1230
1236
1242
1248
1254
100
106
112
118
124
130
136
142
148
154
200
206
212
218
224
230
236
242
248
254
B/T
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
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Kanban A New Approach
Visual Aid Layout - Day 2 (9:00 pm - continued)Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
92
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Kanban A New Approach
Visual Aid Layout - Day 2 (End of 2nd Shift)Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
93
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Kanban A New Approach
Visual Aid Layout - Day 2 (End of 2nd Shift - cont.d)
Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
94
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (6:00 am)
Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
95
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (6:00 am - continued)Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
930
2
936
942
948
954
1000
1006
1012
1018
1024
3
1030
1036
1042
1048
1054
1100
1106
1112
1118
1124
1130
1136
1142
L/T
4
1148
1154
1200
1206
1212
1218
1224
1230
1236
5
1242
1248
1254
L/T
L/T
L/T
L/T
96
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (10:00 am)Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
930
2
936
942
948
954
1000
1006
1012
1018
1024
3
1030
1036
1042
1048
1054
1100
1106
1112
1118
1124
1130
1136
1142
L/T
4
1148
1154
1200
1206
1212
1218
1224
1230
1236
5
1242
1248
1254
L/T
L/T
L/T
L/T
B/T
B/T
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KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (10:00 am - continued)
Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
100
106
112
118
124
130
136
6
142
148
154
200
206
212
218
224
230
236
242
248
254
300
306
312
318
324
330
336
342
348
354
400
406
412
418
424
B/T
B/T
98
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (10:00 am - continued)Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
430
7
436
442
448
454
500
506
512
518
8
524
530
536
542
548
554
600
606
612
9
618
624
630
636
642
648
654
700
706
712
10
718
724
730
736
742
748
754
B/T
B/T
99
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (4:00 pm)
Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
430
7
436
442
448
454
500
506
512
518
8
524
530
536
542
548
554
600
606
612
9
618
624
630
636
642
648
654
700
706
712
10
718
724
730
736
742
748
754
B/T
B/T
100
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (4:00 pm - continued)Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
800
11
806
812
818
824
830
836
842
848
854
12
900
906
912
918
924
930
936
942
948
954
1000
1006
1012
13
1018
1024
1030
1036
1042
1048
1054
1100
1106
14
1112
1118
1124
L/T
L/T
L/T
L/T
L/T
B/T
B/T
101
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (9:00 pm)Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
800
11
806
812
818
824
830
836
842
848
854
12
900
906
912
918
924
930
936
942
948
954
1000
1006
1012
13
1018
1024
1030
1036
1042
1048
1054
1100
1106
14
1112
1118
1124
L/T
L/T
L/T
L/T
L/T
B/T
B/T
102
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Kanban A New Approach
Visual Aid Layout - Day 3 (9:00 pm - continued)
Leveling Post
Takt Time Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
1130
1136
1142
1148
1154
1200
1206
15
1212
1218
1224
1230
1236
1242
1248
1254
100
106
112
118
124
130
136
142
148
154
200
206
212
218
224
230
236
242
248
254
B/T
B/T
103
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (9:00 pm - continued)
Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
104
KB001
Kanban A New Approach
Visual Aid Layout - Day 3 (End of 2nd Shift)
Leveling Post
Takt Time Post600
16
606
612
618
624
630
636
642
648
17
654
700
706
712
718
724
730
736
742
18
748
754
800
806
812
B/T
818
824
830
836
842
1
848
854
900
906
912
918
924
B/T
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
105
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Kanban A New Approach
Kanban System SimulationKanban System Simulation
Exercise 2
(With Leveling)
106
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Kanban A New Approach
Kanban System Simulation - Exercise 2
• Objective• To gain an understanding of the method and benefits of leveling
107
KB001
Kanban A New Approach
Kanban System Simulation - Exercise 2
• Details• Activity will be run in time segments
• Each time segment consists of one day
• One truck from customer per day
• Simulation will run for “5” days
• Leveling of production occurs at the Point of Pull
108
KB001
Kanban A New Approach
Kanban System Simulation - Exercise 2
Activity Pieces
• 36 Plastic bowls
• 75 White Lego Blocks
• 36 Yellow Lego Blocks
• 5 Customer Cards
• 11 Production Cards
• 18 Place Mats
• 3 Buffer Stock Cards
• 8 Move Cards
• 4 Supplier Cards
• 5 Signal Posts
• 1 Leveling Post
• 5 Order Cards
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Kanban A New Approach
Activity Layout - Exercise 2
W
YCustomer
4
4
4
4
4
EmptyContainers
SignalPost
4
4
4 4
4
4
FinalAssembly
3
3
3
EmptyContainers
SignalPost
1@15
3
3
3
SubAssembly
1
1
1
EmptyContainers
SignalPost
2@15
1
11Raw
MaterialStorage
EmptyContainers
SignalPost
1
11 Supplier
EmptyContainers
SignalPost
A B C
D
E F G H I
J
A - CustomerB - Truck Driver-1 (Customer to Plant)C - Final Assembly OperatorD - Material Handler-1 (Final Assembly to Sub-Assembly)E - Sub-Assembly OperatorF - Material Handler-2 (Sub-Assembly to Raw Material Storage)G - Raw Material Processing (Parts Ordering / Parts Receiving)H - Truck Driver-2 (Plant to Supplier)I - SupplierJ - Manager
W W
Y4 =
WY3 =
Y2 =
W1 =
1@15Leveling
Post
1 1
3 13
110
KB001
Kanban A New Approach
Activity Layout - Exercise 2
Card Types
Customer Cards
(3) Production Cards(3) Buffer Stock Cards
Move Cards
Production Cards
Move Cards
Supplier Cards Production Cards
W
Y
EmptyContainers
Customer
4
4
4
4
4
SignalPost
4
4
4 4
4
4
FinalAssembly
3
3
3
EmptyContainers
SignalPost
3
3
3
SubAssembly
1
1
1
EmptyContainers
SignalPost
1
1
1Raw
MaterialStorage
EmptyContainers
SignalPost
1
1
1
Supplier
EmptyContainers
SignalPost
LevelingPost
1 1
3 3 1
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Kanban A New Approach
Kanban System Simulation - Exercise 2Roles
• Following Roles Same As Exercise 1• Customer
• Final Assembly Operator
• Material Handler 1
• Sub-Assembly Operator
• Material Handler 2
• Raw Material Store
• Truck Driver 2
• Supplier
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Kanban A New Approach
Kanban System Simulation - Exercise 2Roles
• Truck Driver 1• Pick up Customer Cards from Customer Signal post
• Pick up empty containers from customer empty container storage
• Move empty containers to finished goods empty container storage
• Place Customer Cards in leveling post
• Remove Cards from leveling post after leveling
• Remove Production Cards from finished goods container and replace with Customer Cards
• Place Production Cards, and/or Buffer Stock Cards if required, in final assembly Signal post
• Move finished goods to customer raw material storage
• Repeat above steps for each daily order
113
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Kanban A New Approach
Kanban System Simulation - Exercise 2Roles
• Manager• Focus on improving operations
114
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Kanban A New Approach
Kanban System Simulation - Exercise 2Customer Orders vs Capacity
Day Customer Capacity Actual ProductionOrder Production Hours
12345
3 units = 8hrs 00min
4 units = 10hrs 40min
Capacity
1 unit = 2hrs 40min
2 units = 5hrs 20min
115
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Kanban A New Approach
Internal Kanban SystemInternal Kanban System
(Operating The Internal System)
116
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Kanban A New Approach
Internal Kanban SystemInternal Kanban System
• Production Instruction• Production Card
• Signal (Triangle)
• Material Movement• Move Card
• Delivery system
117
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Kanban A New Approach
Kanban Signal“Tool To Trigger Production”
Kanban Signal“Tool To Trigger Production”
• Production Card
• High level of capability in the work unit
• Production of parts in any order
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Kanban A New Approach
• If a work unit can produce parts in the same order that they are pulled from stores, then they produce Card for Card
• The Production Card (typically a white card) is attached to the container after production
• When a container is pulled from the work unit store, the card is removed and sent back to the work unit to trigger production
ProducingCard for Card
ProducingCard for Card
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Kanban A New Approach
• The Production Card is the signal to produce a container of a particular part number
• The work unit produces in the order that the Production Cards are received
• Changeover time must be equal to or less than the consumers changeover time
Points to RememberPoints to Remember
120
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Kanban A New Approach
Flow of the Production CardFlow of the Production Card
Supplying Process
product
“Production” Card
121
KB001
Kanban A New Approach
Kanban Signal“Tool to Trigger Production”
Kanban Signal“Tool to Trigger Production”
• Signal (Triangle)
• Long changeover times
• Production in lot size
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Kanban A New Approach
Production by Lot SizeProduction by Lot Size
A B CC CA A B
1st 2nd
CB
3rd 4th
Withdrawal Period
A B
Direct Relationship between Changeover times and Inventory Levels
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Kanban A New Approach
Signal (Triangle) Signal (Triangle)
WORKUNIT
NAME
PART No.
CONTAINERTYPE
QUANTITY PROCESSINGTIME FOR 1 LOT
LOT SIZE ORDER POINT
Signal #
# of containers to produce
Where the signal
is placed in inventory
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Kanban A New Approach
Signal TriangleSignal Triangle
• When using the Signal Triangle, every part number on the work unit has it’s own signal
• The signal instructs the work unit to produce and is dependent on how inventory is pulled from the work unit
• If parts are not withdrawn from the work unit, the work unit will not receive a signal to produce
125
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Kanban A New Approach
Lot Size ProductionLot Size Production
• Signal Instructs the Work Unit:
• When to produce the part
• How many to produce at one time
126
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Kanban A New Approach
Elements Required to Determine the Lot SizeElements Required to Determine the Lot Size
• Available Time
• Monthly Demand for Each Part Number
• Production Time for Each Part Number
• Average Changeover Time
127
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Kanban A New Approach
Available TimeAvailable Time
Available Time =
(Number of Hours per Shift) – (Break Time)
57,600 seconds - 2,400 seconds = 55,200 seconds
Number of Shifts: 2 Hours per Shift: 8Number of Breaks per Shift: 2 Minutes per Break: 10
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Kanban A New Approach
Demand CalculationDemand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period
Part Monthly Demand Daily Demand A 4000 pcs 200 pcs B 6000 pcs 300 pcs C 8000 pcs 400 pcs D 12000 pcs 600 pcsTotal 30000 pcs ???? pcs
Days in Month = 20
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Kanban A New Approach
Demand CalculationDemand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period
Part Monthly Demand Daily Demand A 4000 pcs 200 pcs B 6000 pcs 300 pcs C 8000 pcs 400 pcs D 12000 pcs 600 pcsTotal 30000 pcs 1500 pcs
Days in Month = 20
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Kanban A New Approach
Calculating Production TimeCalculating Production Time
Production Time = Cycle Time x Daily Demand
Part Daily Demand Cycle Time Production Time A 200 28.5” 5700” B 300 28.0” 8400” C 400 30.5” 12200” D 600 32.0” 19200”Total 1500 30.3” ??????”
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Kanban A New Approach
Calculating Production TimeCalculating Production Time
Production Time = Cycle Time x Daily Demand
Part Daily Demand Cycle Time Production Time A 200 28.5” 5700” B 300 28.0” 8400” C 400 30.5” 12200” D 600 32.0” 19200”Total 1500 30.3” 45500”
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Kanban A New Approach
Calculating Average Changeover TimeCalculating Average Changeover Time
Part Daily Demand Changeover Time A 200 900 seconds B 300 600 seconds C 400 720 seconds D 600 600 secondsTotal ???? ???? seconds
Average C/O Time = Changeover Time = ???? = ??? # of Parts Numbers ?
Total
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Kanban A New Approach
Calculating Average Changeover TimeCalculating Average Changeover Time
Part Daily Demand Changeover Time A 200 900 seconds B 300 600 seconds C 400 720 seconds D 600 600 secondsTotal 1500 2820 seconds
Average C/O Time = Changeover Time = 2820 = 705 # of Parts Numbers 4
Total
134
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Kanban A New Approach
Lot Size CalculationLot Size Calculation
Step 1: Determine the Number of Changeovers per Day
# of C/O per Day = Available Time - Production Time Average Changeover Time
# of C/O per Day = ????? - ????? = ??? C/O’s ???
(# of Parts) (# of Available C/O’s)
(?)
/
/ (???)
= (LOT SIZE)
= ??? Days
135
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Kanban A New Approach
Lot Size CalculationLot Size Calculation
Step 1: Determine the Number of Changeovers per Day
# of C/O per Day = Available Time - Production Time Average Changeover Time
# of C/O per Day = 55,200 - 45,500 = 13.7 C/O’s 705
(# of Parts) (# of Available C/O’s)
(4)
/
/ (13.7)
= (LOT SIZE)
= .29 Days
136
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Kanban A New Approach
Lot Size per Part NumberLot Size per Part Number
Part Daily Demand Lot Size # in Lot A 200 0.29 days 58 pcs B 300 0.29 days 87 pcs C 400 0.29 days 116 pcs D 600 0.29 days 174 pcs
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Kanban A New Approach
# of Containers in a Lot = Lot Size
Qty per Cont.
Example:
Lot Size for Part A = 58 pcs
Container Size = 30 pcs
Part A = 58 pcs per lot size = 1.9 containers
30 pcs per container
Part A Lot Size = 2 Containers
Round Up to Next Full Container
Container Lot SizeContainer Lot Size
138
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Kanban A New Approach
Order PointOrder Point
• The order point determines how much inventory is needed in the stores to cover customer requirements during the work unit’s peak period of downtime
• For instance, the order point = 2 • The signal is placed on the 2nd to the last container. When
the container above the signal on is pulled, exposing the Signal Triangle, the signal goes back to the line to trigger production with the corresponding amount of Production Cards
139
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Kanban A New Approach
Signal (Triangle) Signal (Triangle)
Pull from Top
Remove Signal Triangle when this container is pulled!!
140
KB001
Kanban A New Approach
Order Point CalculationOrder Point Calculation(Daily Demand x Downtime Percentage) = Order Point
Quantity per Container
Daily Demand: 200pcs (200 x .20) = 1.33
Peak Downtime Percentage: 20% 30
Quantity per Container: 30pcs
Order Point: 2 Round Up to Next Full Container
141
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Kanban A New Approach
Order PointsOrder Points
Part Daily Demand D/T #PCS Pcs/Cont O.P. A 200 .20 40 30 ? B 300 .20 60 30 ?
C 400 .20 80 30 ?
D 600 .20 120 30 ?
142
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Kanban A New Approach
Order PointsOrder Points
Part Daily Demand D/T #PCS Pcs/Cont O.P. A 200 .20 40 30 2 B 300 .20 60 30 2
C 400 .20 80 30 3
D 600 .20 120 30 4
143
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Kanban A New Approach
How are the Containers Identified?How are the Containers Identified?
• A Production Card is placed on a container after it is produced
• When the container is pulled from the store the Production Card is removed and is put into a collection box, while a Move Card is put on the container in it’s place
• When the signal is sent to the work unit for production, the number of Production Cards that are needed to I.D. the containers are also taken
144
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Kanban A New Approach
1.
Inventory Stores
3.
2.
Inventory Stores
Inventory Stores
The Production Card is putinto a collection box to besent back to the work unit.
Move Card signals thatthe Customer Work Unit needs parts.
The container is pickedand the Kanban Card isreplaced with the MoveCard.
Parts are taken to the Customer Work Unit.
145
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Kanban A New Approach
# of Production Cards in the System
# of Production Cards = Lot Size + Order Point
= 2 + 2
= 4 Tags
The number of cards is the maximum amount of material that will be in the stores
146
KB001
Kanban A New Approach
Flow Of The Signal ( Triangle)
Order
Point
Customer
Pulling
Now Next
Roll Cut Work Unit
Signal Board
A B C D
Roll Cut Stores
A
B
C
D
A B DC
CollectionBox
147
KB001
Kanban A New Approach
Lot Box ProductionLot Box Production
An Alternative Approach for Increased Visual Management
148
KB001
Kanban A New Approach
Supplying Process
product
“Production” Card
Lot Box Production FlowLot Box Production Flow
LotBox
149
KB001
Kanban A New Approach
The Lot BoxThe Lot Box
Order PointProduction Cards
Part 1 2 3 4 5 6 7 8 9 10
ABCD
Container #
Zero Inventory
150
KB001
Kanban A New Approach
Work Unit Kanban PostWork Unit Kanban Post
Part D C/O Card Part A C/O Card
1st Shift
Line 100
600
724
706
700
718
712
748
800
618
624
630
636
642
648
654
606
612
742
736
730
754
A B C D E F G H IDaily Demand Lot Size Cycle Time C/O Lot Time Total Run Container SizeMin. / Container C.O. Time (min.) Calculations
E=(BXC)F=(D+E)
H=(GXC)/60I=D/60
Part #1 2 3 4 5 6 C/O Total
ABCD
Container No.
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Kanban A New Approach
Example for Part # C
A: I - I - -
B: I - I - - I - -
C: I - I - - I - I - -
D: I - - I - - I - I - - I - I - -
1st Shift
Line 100
600
724
706
700
718
712
748
800
618
624
630
636
642
648
654
606
612
742
736
730
754
1 2 3 4 5 6 C/O TOTAL15.25 30.5 45.75 61 X X 12 73
153
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Kanban A New Approach
Lot Box ProductionLot Box Production
Visual Aid 2
(An Alternative Approach)
154
KB001
Kanban A New Approach
ObjectiveObjective
• To visually demonstrate the flow of Cards based on lot size production using the Lot Box as a tool for instruction to produce.
155
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Kanban A New Approach
Visual Aid RequirementsVisual Aid Requirements
• 1 Lot Box
• 1 Kanban Post
• 1 Parts Withdrawal Timing Sheet
• 4 (Part A) Production Cards
• 5 (Part B) Production Cards
• 7 (Part C) Production Cards
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Part Withdrawal Timing
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Lot Size CalculationLot Size Calculation
Exercise 3
(An Alternative Approach)
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Calculation Exercise DataCalculation Exercise Data
Part Monthly Demand Changeover Time Cycle Time Container Size
A 10,000 720 22 30B 8,000 600 23 30C 9,000 720 21 30D 11,000 600 22 30
Data
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Available TimeAvailable Time
Available Time = Number of hours per Shift - Break Time
Number of Shifts: 2 Hours Per Shift: 8Number of Breaks Per Shift: 2 Minutes Per Break: 10
Available Time=
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Available TimeAvailable Time
Available Time = Number of hours per Shift - Break Time
Number of Shifts: 2 Hours Per Shift: 8Number of Breaks Per Shift: 2 Minutes Per Break: 10
Available Time = 55,200 ”
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Demand CalculationDemand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period
Days In Month = 20
Part Monthly Demand Daily Demand A 10,000 B 8,000 C 9,000 D 11,000 Total
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Demand CalculationDemand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period
Days In Month = 20
Part Monthly Demand Daily Demand A 10,000 500 B 8,000 400 C 9,000 450 D 11,000 550 Total
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Calculating Production TimeCalculating Production Time
Production Time = Cycle Time x Daily Demand
Part Daily Demand Cycle Time Production Time A 22” B 23” C 21” D 22”Total
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Calculating Production TimeCalculating Production Time
Production Time = Cycle Time x Daily Demand
Part Daily Demand Cycle Time Production Time A 500 22” 11,000” B 400 23” 9,200” C 450 21” 9,450” D 550 22” 12,100”Total 1,900 41,750”
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Calculating Average Changeover TimeCalculating Average Changeover Time
Part Daily Demand Changeover Time A 720” B 600” C 720” D 600”Total
Average C/O Time = Total Changeover Time = # of Parts Numbers
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Calculating Average Changeover TimeCalculating Average Changeover Time
Part Daily Demand Changeover Time A 500 720” B 400 600” C 450 720” D 550 600”Total 1,900 2,640”
Average C/O Time = Changeover Time = 2,640” = 660” # of Parts Numbers 4
Total
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Lot Size CalculationLot Size Calculation
Step 1: Determine The Number of Changeovers per Day
# of C/O per day = Available Time - Production Time Average Changeover Time
# Of C/O Per Day =
(# of Parts) (# of Available C/O’s)/
/
= (LOT SIZE)
=4
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Lot Size CalculationLot Size Calculation
Step 1: Determine The Number of Changeovers per Day
# of C/O per day = Available Time - Production Time Average Changeover Time
# Of C/O Per Day = 55,200” – 41,750” = 20.38 660”
(# of Parts) (# of Available C/O’s)/
/
= (LOT SIZE)
=4 20.38 .19
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Lot Size Per Part NumberLot Size Per Part Number
Part Daily Demand Lot Size # in Lot A B C D
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Lot Size Per Part NumberLot Size Per Part Number
Part Daily Demand Lot Size # in Lot A 500 .19 95 B 400 .19 76 C 450 .19 85.5 D 550 .19 104.5
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Container Lot SizeContainer Lot Size
# of Containers in a Lot = Lot size
Qty per Cont.
Example:
Lot Size for Part A =
Container Size = 30
Part A =
Part A Lot Size =
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Questions
A B C D E F G H IDaily Demand Lot Size Cycle Time C/O Lot Time Total Run Container SizeMin. / Container C.O. Time (min.) Calculations
E=(BXC)F=(D+E)
H=(GXC)/60I=D/60
Part #1 2 3 4 5 6 C/O Total
ABCD
Container No.
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Kanban A New Approach
Answers
A B C D E F G H IDaily Demand Lot Size Cycle Time C/O Lot Time Total Run Container SizeMin. / ContainerC.O. Time (min.) Calculations
500 120 22 720 2640 3360 30.0 E=(BXC)400 90 23 600 2070 2670 30.0 F=(D+E)450 90 21 720 1890 2610 30.0 H=(GXC)/60550 120 22 600 2640 3240 30.0 I=D/60
Part #1 2 3 4 5 6 C/O Total
A 11.0 22.0 33.0 44.0 - - 12.0 56.0B 11.5 23.0 34.5 - - - 10.0 44.5C 10.5 21.0 31.5 - - - 12.0 43.5D 11.0 22.0 33.0 44.0 - - 10.0 54.0
Container No.
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ExampleExample
1st Shift
Line 100
600
724
706
700
718
712
748
800
618
624
630
636
642
648
654
606
612
742
736
730
754
A:
B:
C:
D:
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ExampleExample
1st Shift
Line 100
600
724
706
700
718
712
748
800
618
624
630
636
642
648
654
606
612
742
736
730
754
A: I I - I - I -
B: I I - I -
C: I I - I -
D: I I - I - I -
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Material MovementMaterial Movement
(Focus of On-Time Delivery)
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Internal Material Movement Internal Material Movement
•Move Card
•Standard Delivery Route
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Move CardMove Card
• The move card tells us:
• What to move
• Where to find and take material
• Standard material quantity
• When to move
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Move CardMove Card
WORK UNIT ADDRESSSTORE ADDRESS
SUPPLIER NAME Kanban Signal No. WORK UNIT NAME
PART No. QUANTITY CARD #
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Flow of Move CardFlow of Move Card
Internal
RawMaterial
Store
ProductionWork Unit
Needed product
Move Card
When Do I Remove the Move Card?When Do I Remove the Move Card?
Move Card
When the first pieceis taken, the Movecard is removed
Kanban, A new Approach
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Partial CardPartial CardA partial card can be any color that attracts attention.
There is only one partial card for each component part on a line.
WORK UNIT ADDRESSSTORE ADDRESS
SUPPLIER NAME
Kanban Signal # WORK UNIT NAME
PART No.Partial
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Standard Route of DeliveryStandard Route of Delivery
Why do we need a standard route of delivery?
•To eliminate waste
•To reduce inventory
•To guarantee on time delivery
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Standard Route of DeliveryStandard Route of DeliveryPick
Area
Line 1
Line 2
Line 3
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Standard Route of DeliveryStandard Route of Delivery
Pick
Area
Line 1
Line 2
Line 3
Tig TackTourniquet
Machine Sizer
SecureWrap
RollingMachine
MarkingMachine
Press
ManualWeld
Bracket
Linear Weld Cone Weld
OrbitalWelder
FinishedGoods
STANDARDIZED WORK CHART MATERIAL HANDLER
Part No.
Part Name
Line # of Members Cell Takt Time Delivery Cycle StandardIn-ProcessStock
Date
MemberManualTime
WalkTime
TotalTime
Stops Manual Time
DailyCustomerDemand
60” 15’
Shifts 2
3
1
4440 920
08/30/99CC3330Converter Ass’y
Bottleneck
2”2”
71
2
3
4 5
6
Raw Material Store
30”
30”
240”
30”
30” 30”
30”
90”
90”
20”
15” 25”
90”
90”
30”
30”
420” 480” 900”1
1
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How Many Withdrawal Cards Are There?How Many Withdrawal Cards Are There?
•The Number of Withdrawal Cards is Based on:
• Time of the standard route of material deliveries
• Usage rate of material by the work unit
• Quantity per container of material
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Calculating Number of Move CardsCalculating Number of Move Cards
• Delivery Cycle = Time to make standard delivery cycle in hours
• Quantity per Hour = # of parts produced by the work unit in 1hour based on target cycle time
• # of Move Cards = Delivery Cycle x Qty per Hr x 2
Quantity per Container
•One set of cards in Process•One set of cards in Que
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Number of Move Cards in the SystemNumber of Move Cards in the System
# of Move Cards = Delivery Cycle x Qty per Hr x 2 Qty per Container
# of Move Cards = 0.5 hour x 100 parts/hour x 2
25 Parts per Container
# of Move Cards = 4
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How Many Withdrawal Cards are in the System for an Outside Supplier ?
How Many Withdrawal Cards are in the System for an Outside Supplier ?
Need to know :
• Agreed upon delivery cycle
• Daily demand
• Quantity per container
• Safety Stock
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Kanban CycleKanban Cycle
Agreed upon delivery cycle
This is usually stated as 3 numbers
A:B:C
In A days
There are B trucks
Parts are returned C shipments after Cards are sent back to the supplier
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Delivery CycleDelivery CycleDelivery Cycle 1:2:3
in 1 day : there are 2 deliveries : and parts arrive 3 shipments after cards are sent to supplier
Monday Tuesday Wednesday Thursday Friday
SUPPLIER
Truck 1
Truck 2
1
2
3
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# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand
Qty per Cont. B Qty per Cont.
A: # of days
B: # of trucks
C: when the Cards return
D: Safety Stock
Safety Stock covers problems with delivery due to supplier
How Many Withdrawal Cards are in the System for an Outside Supplier?
How Many Withdrawal Cards are in the System for an Outside Supplier?
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Daily Demand = 1500pcs A: # of days
Qty/Cont. = 30pcs per container B: # of trucks
Delivery Cycle = 1:2:3 C: when the Cards return
D = .5 Days D: Safety Stock
# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand
Qty per Cont. B Qty per Cont.
= 1500pcs x 1 x (3+1) + .5 x 1500
30pcs per Cont. 2 30
= 50 Containers x 2 + 25
= 125 Cards
How Many Withdrawal Cards are in the System for an Outside Supplier?
How Many Withdrawal Cards are in the System for an Outside Supplier?
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Supplier Card FlowSupplier Card Flow
Supplier processing
25 cards
Byusing
25 cards
Safety Stock
25 cardsTruck
25 cards
Truck
25 cards
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Supplier Card CalculationSupplier Card Calculation
Exercise 4
(Card Requirements)
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Daily Demand = 2000 pieces
Qty/Cont. = 50 pieces / container
Delivery Cycle =A:B:C
1:6:3
D = .25 days
# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand
Qty/Cont. B Qty/Cont
# of Supplier =
How Many Withdrawal Cards are in the System for an Outside Supplier?
How Many Withdrawal Cards are in the System for an Outside Supplier?
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Daily Demand = 2000 pieces
Qty/Cont. = 50 pieces / container
Delivery Cycle =A:B:C
1:6:3D = .25 days
# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand
Qty/Cont. B Qty/Cont
# of Supplier = 2000 * 1 * (3+1) + .25 * 2000
50 6 50
# of Supplier = (40 containers * .67) + 10
# of Supplier = 36.8 cards = 37 cards (Round up)
How Many Withdrawal Cards are in the System for an Outside Supplier?
How Many Withdrawal Cards are in the System for an Outside Supplier?
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Kanban System Summary Kanban System Summary • Key to Successful Information Flow
• Customer
• Internal
• Supplier
• Opportunities for Improvement• Inventory reduction
• Lead-time reduction
• Greater flexibility
• Better visual management
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No Pain, No GainNo Pain, No Gain
• The truth about a Kanban System• Easy to use and follow
• Difficult to implement
• Keys to success in the Kanban System• Training
• Trial and error
• Team problem solving
• Perseverance
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Initial Start-UpInitial Start-Up
• Start at the beginning of the chain and work your way downstream• Customer loop
• Internal pull
• Transition to the supplier
• Anticipate problems, they will happen!!!
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Think Long-TermThink Long-Term
• Learn the basics first• Understand the root cause of problems
• Take action after the root cause is clear
• Initial inventory goes up• Plan out your strategy
• Communicate your plans to upper management
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Be Prepared to DeliverBe Prepared to Deliver
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Get Serious !!!Get Serious !!!