KANBAN & KAIZEN

SUBMITTED BY:TANVI VERMA

WHAT IS KANBAN

• The word “Kan” means “visual” and the word “ban” means “card”.

So, Kanban refers to visual cards. • What is a visual card? It is a visual aid that triggers

action. • A system of continuous supply of components, parts

and supplies, such that workers have what they need, where they need it, when they need it.

• Kanban is a tool for managing the flow of materials or

information (or whatever) in a process.

• Not having the materials, whether it is a part, a

document, or customer information, at the time you

need it causes delay and waste.

• On the other hand, having too many parts on hand or too

much work in process (WIP) is also a form of waste.

• Kanban is a tool to learn and manage an optimal flow of

work within the process.

HOW DOES KANBAN WORK? Visualize the workflow Split the work into pieces, write each item on a card and

put on the wall Use named columns to illustrate where each item is in

the workflow. Limit WIP (work in progress) –Get more done by doing

less. There is a limit to the number of things you can be working on and still do them well.

Measure the lead time (average time to complete one item, sometimes called cycle time) optimize the process to make lead time as small and predictable as possible.

BENEFITS

• Bottlenecks become clearly visible in real-time. This

leads people to collaborate to optimize the whole

value chain rather than just their part.

• Useful for situations where operations and support

teams have a high rate of uncertainty and variability.

REDUCE INVENTORY

• Kanban will reduce inventory, on average, by 25 to 75%.

This saves any company significantly in terms of rent,

electricity, and storage space.

• In addition, all of the space freed by the implementation

of a kanban system can be used for future expansions or

new opportunities.

• Improves responsiveness to changes in demand

IMPROVE WORK FLOW

• The visually organized environment ensures all parts

are easily found and continually stocked.

• The speed of moving from one task to another is

significantly increased by the creation of clearly

marked flow lanes, kanban cards, and clearly marked

labels.

PREVENT OVERPRODUCTION

Because parts are only created at the visual

signal by the kanban label (link), inventory is

much less likely to be overproduced. Resulting in

significant savings in the holding of stock.

KANBAN CARD

• A physical card with information conveys message to move or make• Card is passed from customer to supplier, includes necessary

information - Part details, quantity and location.

Examples• Note in check book box, “Time To Re-Order”• Card sent to stock room to send more of part “X” to production

KANBAN METHODOLOGY

WHAT IS KAIZEN?

• Kai is an idea of change or the action to correct.

• Zen means “good”.

• Kaizen means “change for the better’’ and can be linked to

continuous improvement

• This change for the better can result in gradual improvement

of products, workplace efficiency, customer service, and

reduction of waste.

KAIZEN IS A FEEDBACK

INPUT OUTPUT

KAIZEN is a corrective action

INDUSTRYINDUSTRY

KAIZEN ACTION

BASIC PRINCIPLE OF KAIZEN People are the most important asset. Teamwork provides results

and gives everyone a feeling of accomplishment. A dozen heads are better than one.

Everyone must be open to change and improvements. Ideas from workers, management, suppliers, and customers can lead to new, better and easier ways of doing things.

Gradual changes are easier to accept than complete overhauls and employees are more likely to accept gradual change. Small changes will demonstrate how a tiny improvement can provide real results.

KAIZEN STEPS

Eliminate

• Abolition • Discontinua

nce• Exclusion• Removal

Reduce• Simplificati

on • Centralizati

on• Standardiza

tion

Change • Alteration • Exchange • Conversio

n

KAIZEN’S EVENT PURPOSE The purpose for holding a Kaizen event is basically to

identify waste in a manufacturing process and to eliminate it, thereby improving production.

A Kaizen event is Team Oriented, as it gathers the managers, operators, and owners of a process in a specific place to analyze, and map out the existing methods of the operation.

It is also a forum for developing, discussing, and allowing changes to be made to improve the process.

There are four stages that a Kaizen Team undertakes.

• Step One: Analyze and map the current processes of a specific area of the plant.

• Step Two: Identify the problems and the opportunities for improvement.

• Step Three: Implement changes to the process that allow for improved workflow.

• Step Four: Evaluate the changes made and follow up, with adjustments as required.

SEVEN TYPICAL WASTES IN PRODUCTION SYSTEMS

• Over-production Waste - occurs when products are produced at a faster rate than is required. Causes may be a lack of communication, anticipating demand, poor scheduling, and production management.

• Excessive Inventory Waste – is any inventory that is more that what the customer ordered. Inventory that sits in storage areas waiting for an order is a waste of material, money tied up, and the use of valuable factory space.

• Time Delays Waste - machine wait time or human wait time contributes to waste within a company.

• Transportation Wastes – such as unnecessary handling or movement of materials, numerous storage areas, and excessive moving equipment

• Processing Errors - are wastes that occur during the process manufacturing stage. They can be human error, machine-caused defects or quality problems.

• Corrections/Defects/Rework Waste - the time it takes to correct, inspect, scrap or rework is a major waste that must be avoided.

• Excess Motion Waste - any unnecessary human bending, reaching, walking or movement during a manufacturing process is a waste such as looking for tools and material too far from work areas.

5S KAIZEN It is a tool for organizing your

workplace in a clean, efficient, and safe manner to enhance your productivity, visual management and to ensure the introduction of standardized working.

SEIRI= SORT, CLEARING, CLASSIFY

To distinguish between necessary things and unnecessary things, and getting rid of what you do not need.

SEITON = STRAIGHTEN, SIMPLIFY, SET IN ORDER, CONFIGURE

It is the process of taking the required items that are left after the removal of clutter and arranging them in a efficient manner through the use of ergonomic principles and ensuring that every item has a place and that everything is in its place.

SEISO = SWEEP,CLEANING It is a thorough cleaning of the area,

tools, machines and other equipment to ensure that everything is returned to a newly new status.

Example: oil leak from a machine onto a bright, newly painted clean floor.

SEIKETSU = STANDARDIZE, CONFORMITY

Keeping things organized, neat, and clean, even in personal and environment aspects. Here we follow common standards and way of working.

SHITSUKE= SELF-DICIPLINE, SUSTAIN, CUSTOM

The company continues to continually improve, maintain housekeeping and conduct audits.

THE BENEFITS OF KAIZEN• Kaizen is a philosophy to promote improvement• Kaizen follows the idea that small changes in the

workplace can result in increased profits, lower employee safety risks, and better utilization of resources.

• Kaizen in all forms has been shown to improve working environments – saving companies millions of dollars while making employees healthier and happier.

• Kaizen is about enacting change clearly and concisely. It gives employees a real sense of accomplishment as a million tiny steps lead to a massive change – in safety, in structure, and in profits.

• It is a long term process, not a one time event.

SUCCESSES WITH KAIZEN• The goal of kaizen - continual improvement -

is obviously desirable. • Businesses dotting the globe have

implemented this methodology to augment profits, improve safety, increase customer satisfaction employee satisfaction.

• Sony's Kaizen Success: Sony used kaizen to increase its production efficiency by 7,000%.

• Fleetwood's Kaizen Success: Chicago-born Fleetwood has used kaizen to reduce cycle time and waste and increase profit and customer base.

THANK YOU