kanban things

Kanban A New Approach

Kanban A New Approach(Tool for Information Flow)Kanban A New Approach

(Tool for Information Flow)

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

NameYears of ServiceCurrent Position

IntroductionsIntroductions

Kanban SystemKanban System

• Based on Toyota Production System

• Driven by External Customers

• Addresses Constraints & Bottlenecks

1. Understanding our Capabilities

2. Lot Size Production

OverviewOverview• Supporting Company Strategy

• Understanding Customer Needs

• Internal Kanban System

• Signaling the Supplier

The ObjectiveThe Objective

Create Information System that Supports Lean Principles

Pull of Product Based on Usage

Lower Inventory / Reduced Lead-Time

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

Supporting Company StrategySupporting Company Strategy

• Elimination of Waste• Overproduction

• Material movement

• Inventory

• Transition to Just-in-Time• Kanban system

• Kanban signals

• Production schedules will always change

• Production will never go according to schedule

• It is human nature to overproduce

Key AssumptionsKey Assumptions

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

Information FlowInformation Flow

The Kanban SignalThe Kanban Signal

The Kanban signal tells us:

When to make it! When to move it!

Kanban SystemKanban System

Supplying Process

Customer Process

product

“Production” Card

Finished Goods Store

“Withdrawal” Card

product

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

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

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

Customer Kanban SignalCustomer Kanban Signal

Supplier

Kanban Signal No.

Part No.

Storage Location

Quantity Supplier No.

Card No.

ContainerType

Description

Storage Address

Flow of Customer Kanban SignalFlow of Customer Kanban Signal

FinishedGoodsStore

ExternalCustomer

needed product

Customer Kanban Signal

Move Kanban Signal InformationMove Kanban Signal Information

• Part Number

• Supplier Name

• Storage Address (Point of Storage)

• Card Number

• Work Unit Name (Customer)

• Quantity per Container

• Line Address (Point of Use)

Move Kanban SignalMove Kanban Signal

WORK UNIT ADDRESSSTORE ADDRESS

SUPPLIER NAME Kanban Signal No. WORK UNIT NAME

PART No. QUANTITY CARD #

Flow of Move Kanban SignalFlow of Move Kanban Signal

Internal

RawMaterial

ProductionWork Unit

needed product

Move Kanban Signal

Supplier Kanban Signal InformationSupplier Kanban Signal Information• Supplier Name

• Part Number

• Part Name

• Customer

• Storage Address

• Work Unit Address

• Quantity per Container

• Card Number

Supplier Kanban SignalSupplier Kanban Signal

Kanban Signal NumberSupplier Name

Part Number Quantity Card No.

Customer

Store Address Work Unit Address

Part Name

Flow of Supplier Kanban SignalFlow of Supplier Kanban Signal

ExternalSupplier

FinishedGoodsStore

needed product

Supplier Kanban Signal

Internal

RawMaterial

ExternalSupplier

Internal

Raw Materials

Storeneeded product

Flow of Withdrawal Kanban SignalsFlow of Withdrawal Kanban Signals

Internal

ProductionWork Unitneeded

product

FinishedGoodsStoreneeded

product

ExternalCustomer

needed product

Supplier Signal Move Signal Customer Signal

Production Kanban Signal Production Kanban Signal

• Tells Us:

• When to make

• What to make

• How much to make

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

Production Card InformationProduction Card Information

• Store Address

• Work Unit Name

• Part Number

• Quantity

• Card Number

Production CardProduction Card

STORE ADDRESS

Kanban Signal No.

WORK UNIT NAME

Signal (Triangle) InformationSignal (Triangle) Information

• Work Unit Name

• Part Number

• Container Type

• Quantity

• Process Time

• Lot Size

• Order Point

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

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

Kanban Signal FlowKanban Signal Flow

Assembly

Work Unit

Finished

Assembly

Work Unit

Production Kanban Signal

Triangle

Kanban Signal

Sub Stores

Finished GoodsStore

A CB D

How Do You Handle Non-Standard Situations

Temporary Kanban Signals

• Need scheduled down time to PM equipment

• Sample parts

• Service parts

Temporary Kanban Signal CardTemporary Kanban Signal Card

STORE ADDRESS

WORK UNIT NAME

Kanban Signal No.

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

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

Kanban System SimulationKanban System Simulation

Exercise 1

(Without Leveling)

Kanban System Simulation - Exercise 1

• Objective• To gain an understanding of Kanban System card transfer,

exchange, and loop location

• 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

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

Activity Layout - Exercise 1

YCustomer

EmptyContainers

SignalPost

FinalAssembly

EmptyContainers

SignalPost

SubAssembly

EmptyContainers

SignalPost

MaterialProcessing

EmptyContainers

SignalPost

Supplier

EmptyContainers

SignalPost

E F G H I

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

Activity Layout - Exercise 1Card Types

EmptyContainers

Customer

SignalPost

FinalAssembly

EmptyContainers

SignalPost

SubAssembly

EmptyContainers

SignalPost

MaterialStorage

EmptyContainers

SignalPost

Supplier

EmptyContainers

SignalPost

Customer Card

Production Card

Move Card

Production Card

Move Card

Supplier Card Production Card

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

• 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

• 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

• 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

• 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

• 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

• 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

• Prepare order for shipment

• Raw Material Store (Parts Receiving)• Move raw material container from raw material receiving to raw

material storage area

• 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

• 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

• 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 1Customer Orders vs Capacity

3 units = 8hrs 00min

Capacity

1 unit = 2hrs 40min

Day Customer Capacity Actual ProductionOrder Production Hours

The CustomerThe Customer

(Starting Point for a Kanban System)

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

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

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

ProductionWork Unit

Customer

Producing to Customer DemandProducing to Customer Demand

Customer CardProduction Card

Customer Ordering History

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Forecast

Actual

Analyze Actual RequirementsAnalyze Actual Requirements

Anticipated Demand vs. Actual Demand

Part Anticipated Demand Actual Demand DifferenceA 18,000 19,000 1000

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!

Leveled Production(Based On 500 Units Of Buffer Stock)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Forecast

Actual

Production

Opportunities in Truck PitchOpportunities in Truck Pitch

• Even Truck Pitch• Drives constant Takt Time

• Reduces fluctuation

• Overall Benefit• Reduction in inventory

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

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)

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

ProductionWork Unit

Customer

Leveling Post

Leveling Customer DemandLeveling Customer Demand

Forecast

1st Shift

Line 100

Takt Time PostTakt 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)

Takt Time PostTakt Time Post

1st Shift

Line 100

ProductionWork Unit

Customer

Leveling Post

Leveling Customer DemandLeveling Customer DemandForecast

Takt Time Post

Separating Safety StockSeparating Safety Stock

• Distinguish between customer fluctuation and internal problems

• Safety Stock inventory amount is based on downtime history

ProductionWork Unit

Customer

Leveling Post

Utilizing Safety StockUtilizing Safety Stock

Forecast

Takt Time Post

Leveling Leveling

• Benefits:

• Neutralizes fluctuation from:• Customer’s orders

• Truck pitch

• Pulls product based on: • Customer usage

• Takt Time

Leveling SystemLeveling System

Visual Aid 1

(Neutralizing Customer Fluctuation)

ObjectiveObjective

• To establish a pull system of production that levels the demand of the customer to meet production capabilities

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

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

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

Visual Aid Layout - Day 1 (End of 2nd Shift)

Leveling Post

Takt Time Post600

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

Visual Aid Layout - Day 2 (6:00 am)

Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 2 (6:00 am - continued)

Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 2 (10:00 am)Leveling Post

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

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

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

Visual Aid Layout - Day 2 (4:00 pm)

Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 2 (4:00 pm - continued)Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 2 (9:00 pm)Leveling Post

Takt Time Post800

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

Visual Aid Layout - Day 2 (9:00 pm - continued)

Leveling Post

Takt Time Post1130

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 Post600

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

Visual Aid Layout - Day 2 (End of 2nd Shift)Leveling Post

Takt Time Post600

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

Visual Aid Layout - Day 2 (End of 2nd Shift - cont.d)

Leveling Post

Takt Time Post600

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

Visual Aid Layout - Day 3 (6:00 am)

Leveling Post

Takt Time Post600

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

Visual Aid Layout - Day 3 (6:00 am - continued)Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 3 (10:00 am)Leveling Post

Takt Time Post

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

Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 3 (10:00 am - continued)Leveling Post

Takt Time Post

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

Visual Aid Layout - Day 3 (4:00 pm)

Leveling Post

Takt Time Post

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 Post

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

Visual Aid Layout - Day 3 (9:00 pm)Leveling Post

Takt Time Post

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

Leveling Post

Takt Time Post

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

Leveling Post

Takt Time Post600

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

Visual Aid Layout - Day 3 (End of 2nd Shift)

Leveling Post

Takt Time Post600

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

Kanban System SimulationKanban System Simulation

Exercise 2

(With Leveling)

• Objective• To gain an understanding of the method and benefits of leveling

• 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

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

YCustomer

EmptyContainers

SignalPost

FinalAssembly

EmptyContainers

SignalPost

SubAssembly

EmptyContainers

SignalPost

MaterialStorage

EmptyContainers

SignalPost

11 Supplier

EmptyContainers

SignalPost

E F G H I

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

1@15Leveling

Card Types

Customer Cards

(3) Production Cards(3) Buffer Stock Cards

Move Cards

Production Cards

Move Cards

Supplier Cards Production Cards

EmptyContainers

Customer

SignalPost

FinalAssembly

EmptyContainers

SignalPost

SubAssembly

EmptyContainers

SignalPost

MaterialStorage

EmptyContainers

SignalPost

Supplier

EmptyContainers

SignalPost

LevelingPost

Kanban System Simulation - Exercise 2Roles

• Following Roles Same As Exercise 1• Customer

• Final Assembly Operator

• Sub-Assembly Operator

• Raw Material Store

• Truck Driver 2

• Supplier

• 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

• Manager• Focus on improving operations

Kanban System Simulation - Exercise 2Customer Orders vs Capacity

Day Customer Capacity Actual ProductionOrder Production Hours

Capacity

1 unit = 2hrs 40min

Internal Kanban SystemInternal Kanban System

(Operating The Internal System)

Internal Kanban SystemInternal Kanban System

• Production Instruction• Production Card

• Signal (Triangle)

• Material Movement• Move Card

• Delivery system

Kanban Signal“Tool To Trigger Production”

• Production Card

• High level of capability in the work unit

• Production of parts in any order

• 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

• 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

Flow of the Production CardFlow of the Production Card

Supplying Process

product

Kanban Signal“Tool to Trigger Production”

• Signal (Triangle)

• Long changeover times

• Production in lot size

Production by Lot SizeProduction by Lot Size

A B CC CA A B

1st 2nd

3rd 4th

Withdrawal Period

Direct Relationship between Changeover times and Inventory Levels

WORKUNIT

PART No.

CONTAINERTYPE

QUANTITY PROCESSINGTIME FOR 1 LOT

LOT SIZE ORDER POINT

Signal #

# of containers to produce

Where the signal

is placed in inventory

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

Lot Size ProductionLot Size Production

• Signal Instructs the Work Unit:

• When to produce the part

• How many to produce at one time

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

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

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

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

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” ??????”

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”

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 ?

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

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

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)

/ (13.7)

= (LOT SIZE)

= .29 Days

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

# 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

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

Pull from Top

Remove Signal Triangle when this container is pulled!!

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

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 ?

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

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

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.

# 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

Flow Of The Signal ( Triangle)

Customer

Pulling

Now Next

Roll Cut Work Unit

Signal Board

A B C D

Roll Cut Stores

A B DC

CollectionBox

Lot Box ProductionLot Box Production

An Alternative Approach for Increased Visual Management

Supplying Process

product

Lot Box Production FlowLot Box Production Flow

LotBox

The Lot BoxThe Lot Box

Order PointProduction Cards

Part 1 2 3 4 5 6 7 8 9 10

Container #

Zero Inventory

Work Unit Kanban PostWork Unit Kanban Post

Part D C/O Card Part A C/O Card

1st Shift

Line 100

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

Container No.

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

1 2 3 4 5 6 C/O TOTAL15.25 30.5 45.75 61 X X 12 73

Lot Box ProductionLot Box Production

Visual Aid 2

(An Alternative 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.

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

• 10 (Part D) Production Cards

• 17 Changeover Cards

Visual Aid LayoutVisual Aid Layout

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Visual Aid Layout Inventory StatusVisual Aid Layout Inventory Status

Part A Part B Part C Part D

1 Container 1 Container 1 Container 1 Container

1 Container 1 Container

1 Container

Part Withdrawal Timing

Part A8:10 am

10:38 am 1:36 pm5:54 pm8:22 pm

11:10 pm

Part B7:32 am9:14 am

10:46 am 12:48 pm

2:30 pm6:02 pm7:44 pm9:16 pm

11:18 pm 1:00 am

Part C7:09 am8:18 am9:37 am

10:46 am 12:25 pm 1:44 pm4:53 pm6:02 pm7:21 pm8:30 pm

10:09 pm 11:18 pm 12:37 am

Part D6:28 am7:14 am8:00 am8:56 am

9:42 am 10:28 am 11:44 am 12:30 pm

1:26 pm2:12 pm4:58 pm5:44 pm6:30 pm7:26 pm8:12 pm8:58 pm

10:14 pm 11:00 pm 11:56 am 12:42 am

Board Status - 6:00 amBoard Status - 6:00 am

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Board Status – 6:00 amBoard Status – 6:00 am

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Inventory Status - 6:00 amInventory Status - 6:00 am

1 Container

1 Container 1 Container 1 Container

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

Kanban Post

Line 100

1st Shift 754

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

Kanban Post

Line 100

1st Shift 754

1 Container 1 Container 1 Container 1 Container

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

Line 100

Kanban Post

1st Shift 954

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

Line 100

Kanban Post

1st Shift 954

Part B

1 Container

Part C

Part A

1 Container

Part D

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

Line 100

Kanban Post

1st Shift

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

Line 100

Kanban Post

1st Shift

Inventory Status – 9:54 amInventory Status – 9:54 am

Part B

1 Container

Part C

Part A

1 Container

Part D

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post1124

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post1124

Inventory Status – 10:48 amInventory Status – 10:48 am

Part B

1 Container

Part C

Part A

1 Container

Part D

1 Container

Board Status - 12:02 pmBoard Status - 12:02 pm

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Inventory Status - 12:02 pmInventory Status - 12:02 pm

Part B

1 Container

Part C

Part A

1 Container

Part D

1 Container

Board Status – 1:58 pmBoard Status – 1:58 pm

Part 1 2 3 4 5 6 7 8 9 10

Container #

1st Shift

Line 100

Lot Box

Kanban Post

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Inventory Status – 1:58 pmInventory Status – 1:58 pm

Part B

1 Container

Part C

Part A

1 Container

Part D

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

2nd Shift

Line 100

Kanban Post

Part B

1 Container

Part C

Part A

1 Container

Part D

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

2nd Shift

Line 100

Kanban Post

Part B

1 Container

Part DPart A

1 Container

Part C

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

2nd Shift

Line 100

Kanban Post

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

2nd Shift

Line 100

Kanban Post

Part B

1 Container

Part DPart A

1 Container

Part C

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

2nd Shift

Line 100

Kanban Post

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

2nd Shift

Line 100

Kanban Post

Part B

1 Container

Part DPart A

1 Container

Part C

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1024

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1024

Part B

1 Container

Part C

1 Container

Part D

1 Container

Part A

1 Container

To be filledAt 8:32.5

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1206

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1206

Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

Part 1 2 3 4 5 6 7 8 9 10

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

Board Status - 6:00 am Day 2Board Status - 6:00 am Day 2

Part 1 2 3 4 5 6 7 8 9 10

Container #Lot Box

1st Shift

Line 100

Kanban Post

Inventory Status - 6:00 am Day 2Inventory Status - 6:00 am Day 2

Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

Exercise 3

(An Alternative Approach)

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

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=

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 ”

Days In Month = 20

Part Monthly Demand Daily Demand A 10,000 B 8,000 C 9,000 D 11,000 Total

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

Part Daily Demand Cycle Time Production Time A 22” B 23” C 21” D 22”Total

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”

Part Daily Demand Changeover Time A 720” B 600” C 720” D 600”Total

Average C/O Time = Total Changeover Time = # of Parts Numbers

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

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)

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

Lot Size Per Part NumberLot Size Per Part Number

Part Daily Demand Lot Size # in Lot A B C D

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

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 =

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

Container No.

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

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.

ExampleExample

1st Shift

Line 100

ExampleExample

1st Shift

Line 100

A: I I - I - I -

B: I I - I -

C: I I - I -

D: I I - I - I -

Material MovementMaterial Movement

(Focus of On-Time Delivery)

Internal Material Movement Internal Material Movement

•Move Card

•Standard Delivery Route

Move CardMove Card

• The move card tells us:

• What to move

• Where to find and take material

• Standard material quantity

• When to move

Move CardMove Card

SUPPLIER NAME Kanban Signal No. WORK UNIT NAME

Flow of Move CardFlow of Move Card

Internal

RawMaterial

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

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.

SUPPLIER NAME

Kanban Signal # WORK UNIT NAME

PART No.Partial

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

Standard Route of DeliveryStandard Route of DeliveryPick

Line 1

Line 2

Line 3

Standard Route of DeliveryStandard Route of Delivery

Line 1

Line 2

Line 3

Tig TackTourniquet

Machine Sizer

SecureWrap

RollingMachine

MarkingMachine

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

MemberManualTime

WalkTime

TotalTime

Stops Manual Time

DailyCustomerDemand

60” 15’

Shifts 2

4440 920

08/30/99CC3330Converter Ass’y

Bottleneck

2”2”

Raw Material Store

240”

30” 30”

15” 25”

420” 480” 900”1

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

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

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

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

Kanban CycleKanban Cycle

Agreed upon delivery cycle

This is usually stated as 3 numbers

In A days

There are B trucks

Parts are returned C shipments after Cards are sent back to the supplier

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

# 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?

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

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

Supplier Card FlowSupplier Card Flow

Supplier processing

25 cards

Byusing

25 cards

Safety Stock

25 cardsTruck

25 cards

Supplier Card CalculationSupplier Card Calculation

Exercise 4

(Card Requirements)

Daily Demand = 2000 pieces

Qty/Cont. = 50 pieces / container

Delivery Cycle =A:B:C

D = .25 days

Qty/Cont. B Qty/Cont

# of Supplier =

Daily Demand = 2000 pieces

Qty/Cont. = 50 pieces / container

Delivery Cycle =A:B:C

1:6:3D = .25 days

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)

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

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

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!!!

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

Be Prepared to DeliverBe Prepared to Deliver

Get Serious !!!Get Serious !!!

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