THE KANBAN SYSTEM

What is “Kanban”?

• Comes from Japanese Language

• Kanban is a card used to control the flow of production through a factory.

• The card is attached to a ‘storage and transport’ container which identifies

the part number and container capacity, along with other information.

Kan = “card” ban = “signal”

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How does it look?

KANBAN SHOWS- -WHAT PARTS TO MFG -WHEN TO START MFG -HOW MUCH TO MFG

At its simplest, kanban is a card with an inventory number that’s attached to

a material. As supplies of the material are used up, the kanban card is

detached and sent up to the supply chain as a request for more supplies.

This is known as “The Kanban system”.

Kanban card for product 1Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Storage area

Empty containers

Full containers

Assembly line 1

Assembly line 2

The Kanban System

Receiving post

Storage area

Empty containers

Full containers

Kanban card for product 1Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Receiving post

The Kanban System

Storage area

Empty containers

Full containers

Kanban card for product 1Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Receiving post

The Kanban System

Storage area

Empty containers

Full containers

Kanban card for product 1Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Receiving post

The Kanban System

Storage area

Empty containers

Full containers

Kanban card for product 1Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Receiving post

The Kanban System

The Kanban System

• A simplified ordering system.• Developed at the Toyota car plants in Japan during its JIT improvement campaign.•The Kanban System is an information system that harmoniously controls the production of the necessary products in the necessary quantities at the necessary time. • A Kanban is a tool to achieve JIT production.

Just In Time - JIT

• A scheduling system• Often termed “Lean Production” or “Lean Systems”• JIT philosophy means getting the right quantity of goods at the

right place and the right time• JIT eliminates waste, anything that does not add value• JIT uses the pull method of work flow.

Push and Pull method of Work Flow

Push Method: A method in which production of the item begins in advance of customer needs.

Example: A buffet where food is prepared in advance.

Pull Method: A method in which customer demand activates production of the service or item.

Example: A restaurant where food is only prepared when orders are placed.

KANBAN WORKS AUTOMATICALLY IN PULL SYSTEM (CUSTOMER DRIVEN) AS PRODUCTION OR DELIVERY OF COMPONENTS IS PULLED

THROUGH PRODUCTION LINE

Provides withdrawal or transportation information.

Provides production information.

Prevents overproduction, over ordering or excess transport.

Acts as a work order.

Functions for the Use of Kanban

Why consider kanban control?

Lower inventory investment

Better “customer” service

Reduced administrative costs

Benefits of kanban

PROVIDES QUICK AND PRECISE INFORMATIONPROVIDES QUICK RESPONSE TO CHANGESAVOIDS OVER PRODUCTIONMINIMIZES WASTEMAINTAINS FULL CONTROLDELEGATES RESPONSIBILITIES TO WORKERS

Even today, one can see Kanban cards and bins moving on the shop-floor.

Instead of using sophisticated computer scheduling techniques, this is a simple, effective and visual

system of managing and ensuring the product flow and JIT production system.

THANK YOU