kanban things

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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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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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NameYears of ServiceCurrent Position

IntroductionsIntroductions

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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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OverviewOverview• Supporting Company Strategy

• Understanding Customer Needs

• Internal Kanban System

• Signaling the Supplier

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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


• 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


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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


• Work Unit Name

• Part Number

• Quantity

• Card Number

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Production CardProduction Card

STORE ADDRESS

Kanban Signal No.

WORK UNIT NAME


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Signal (Triangle) InformationSignal (Triangle) Information

• Work Unit Name

• Part Number

• Container Type

• Quantity

• Process Time

• Lot Size

• Order Point


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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


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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• 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


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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


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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



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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



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• 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



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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


• Prepare order for shipment

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

material storage area


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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



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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



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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


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Kanban System Simulation - Exercise 1Customer Orders vs Capacity

3 units = 8hrs 00min


Capacity

1 unit = 2hrs 40min


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

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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

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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

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B/T


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

Leveling Post

Takt Time Post


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600

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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

930

2

936

942

948

954

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1006

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1024

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L/T

4

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5

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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 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

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L/T

B/T

B/T

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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

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136

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B/T

B/T

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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

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454

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B/T

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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

430

7

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448

454

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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 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

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L/T

L/T

L/T

L/T

L/T

B/T

B/T

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

Takt Time Post800

11

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L/T

L/T

L/T

L/T

B/T

B/T


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 (9:00 pm - continued)

Leveling Post

Takt Time Post1130

1136

1142

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1154

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Takt Time Post600

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

Takt Time Post600

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B/T

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

Leveling Post

Takt Time Post600

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

Leveling Post

Takt Time Post600

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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

930

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

Takt Time Post


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930

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Leveling Post

Takt Time Post


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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

430

7

436

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448

454

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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

430

7

436

442

448

454

500

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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

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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

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11

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Leveling Post

Takt Time Post


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Leveling Post

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

Leveling Post

Takt Time Post600

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Kanban System SimulationKanban System Simulation

Exercise 2

(With Leveling)

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

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• 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

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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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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

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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 System Simulation - Exercise 2Roles

• Following Roles Same As Exercise 1• Customer

• Final Assembly Operator


• Sub-Assembly Operator


• Raw Material Store

• Truck Driver 2

• Supplier

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• 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


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• Manager• Focus on improving operations

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Kanban System Simulation - Exercise 2Customer Orders vs Capacity

Day Customer Capacity Actual ProductionOrder Production Hours

12345



Capacity

1 unit = 2hrs 40min


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Internal Kanban SystemInternal Kanban System

(Operating The Internal System)

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Internal Kanban SystemInternal Kanban System

• Production Instruction• Production Card

• Signal (Triangle)

• Material Movement• Move Card

• Delivery system

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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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• 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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• 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

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Flow of the Production CardFlow of the Production Card

Supplying Process

product


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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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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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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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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

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Lot Size ProductionLot Size Production

• Signal Instructs the Work Unit:

• When to produce the part

• How many to produce at one time

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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

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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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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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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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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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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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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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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

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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 = ????? - ????? = ??? C/O’s ???

(# of Parts) (# of Available C/O’s)

(?)

/

/ (???)

= (LOT SIZE)

= ??? Days

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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

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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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# 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

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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

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Pull from Top

Remove Signal Triangle when this container is pulled!!

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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

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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 ?

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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

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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

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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.

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# 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

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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

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Lot Box ProductionLot Box Production

An Alternative Approach for Increased Visual Management

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Supplying Process

product


Lot Box Production FlowLot Box Production Flow

LotBox

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The Lot BoxThe Lot Box

Order PointProduction Cards

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Zero Inventory

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Work Unit Kanban PostWork Unit Kanban Post

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

1st Shift

Line 100

600

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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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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

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

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Lot Box ProductionLot Box Production

Visual Aid 2

(An Alternative Approach)

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ObjectiveObjective

• To visually demonstrate the flow of Cards based on lot size production using the Lot Box as a tool for instruction to produce.

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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

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Visual Aid LayoutVisual Aid Layout

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

600

724

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Kanban Post

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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

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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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

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

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

600

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Kanban Post

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

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

600

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Kanban Post

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


1 Container

1 Container

1 Container 1 Container 1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

Kanban Post

Line 100

B/T

B/T

1st Shift 754

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

Kanban Post

Line 100

B/T

B/T

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1 Container 1 Container 1 Container 1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

Line 100

Kanban Post

1st Shift 954

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

Line 100

Kanban Post

1st Shift 954

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Part B

1 Container

Part C


Part A

1 Container

Part D

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

Line 100

Kanban Post

L/T

L/T

L/T

L/T

L/T

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1000

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

Line 100

Kanban Post

L/T

L/T

L/T

1st Shift

1000

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L/T

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

Part B

1 Container

Part C


Part A

1 Container

Part D

1 Container

1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

Kanban Post1124

1136

1218

1224

1230

1236

1242

1212

1248

1118

1048

1054

1100

1106

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1142

1148

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1200

1206

L/T

L/T

L/T

L/T

L/T

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

Kanban Post1124

1136

1218

1224

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1242

1212

1248

1118

1048

1054

1100

1106

1112

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1148

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1200

1206

L/T

L/T

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L/T

L/T

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

Part B

1 Container

Part C


Part A

1 Container

Part D


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

Kanban Post

B/T

B/T

1200

1206

1212

1218

1224

1230

1236

1242

1248

1254

100

106

112

118

124

130

136

142

154

200

206

175

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

Kanban Post

B/T

B/T

1200

1206

1212

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1236

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1254

100

106

112

118

124

130

136

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154

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206

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

Part B

1 Container

Part C


Part A

1 Container

Part D

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

177

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

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

1st Shift

Line 100

Lot Box

Kanban Post

154

200

354

348

342

330

312

324

318

336

230

212

218

224

236

242

248

254

300

306

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

EOS

B/S

206

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

1st Shift

Line 100

Kanban Post

154

200

354

348

342

330

312

324

318

336

230

212

218

224

236

242

248

254

300

306

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

EOS

B/S

206

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

Part B

1 Container

Part C


Part A

1 Container

Part D

1 Container



1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

180

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

2nd Shift

Line 100

Kanban Post

624

630

618

612

606

554

536

548

542

600

454

436

442

448

430

500

506

512

518

524

530

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Part B

1 Container

Part C


Part A

1 Container

Part D

1 Container

1 Container


1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

182

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

2nd Shift

Line 100

Kanban Post

700

706

654

648

642

630

612

624

618

636

530

512

518

524

506

536

542

548

554

600

606

B/T

B/T

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Part B

1 Container

Part DPart A

1 Container

Part C


1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

2nd Shift

Line 100

Kanban Post

754

800

748

742

736

724

706

718

712

730

624

606

612

618

600

630

636

642

648

654

700

B/T

B/T

185

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

2nd Shift

Line 100

Kanban Post

754

800

748

742

736

724

706

718

712

730

624

606

612

618

600

630

636

642

648

654

700

B/T

B/T

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Part B

1 Container

Part DPart A

1 Container

Part C


1 Container

1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

187

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

2nd Shift

Line 100

Kanban Post

836

842

830

824

818

806

748

800

754

812

706

648

654

700

642

712

718

724

730

736

742

B/T

B/T

188

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

2nd Shift

Line 100

Kanban Post

836

842

830

824

818

806

748

800

754

812

706

648

654

700

642

712

718

724

730

736

742

B/T

B/T

189

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Part B

1 Container

Part DPart A

1 Container

Part C


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1024

1030

1018

1012

1006

954

936

948

942

1000

854

836

842

848

830

900

906

912

918

924

930

L/T

L/T

L/T

L/T

L/T

191

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1024

1030

1018

1012

1006

954

936

948

942

1000

854

836

842

848

830

900

906

912

918

924

930

L/T

L/T

L/T

L/T

L/T

192

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Part B

1 Container

Part C

1 Container

Part D

1 Container

Part A

1 Container

1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

To be filledAt 8:32.5

193

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1206

1212

1200

1154

1148

1136

1118

1130

1124

1142

1036

1018

1024

1030

1012

1042

1048

1100

1106

1054

1112

B/T

B/T

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post1206

1212

1200

1154

1148

1136

1118

1130

1124

1142

1036

1018

1024

1030

1012

1042

1048

1100

1106

1054

1112

B/T

B/T

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Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

1 Container

1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

100

106

1254

1248

1242

1230

1212

1224

1218

1236

1130

1112

1118

1124

1106

1136

1142

1154

1200

1148

1206

B/T

B/T

EOS

B/S

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

100

106

1254

1248

1242

1230

1212

1224

1218

1236

1130

1112

1118

1124

1106

1136

1142

1154

1200

1148

1206

B/T

B/T

EOS

B/S

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Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

1 Container

1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

148

154

142

136

130

118

100

112

106

124

1218

1200

1206

1212

1154

1224

1230

1242

1248

1236

1254

EOS

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

200

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Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #

Lot Box

2nd Shift

Line 100

Kanban Post

148

154

142

136

130

118

100

112

106

124

1218

1200

1206

1212

1154

1224

1230

1242

1248

1236

1254

EOS

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

B/S

201

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Part B

1 Container

Part A

1 Container

Part D

1 Container

Part C

1 Container

1 Container

1 Container


1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

202

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

Part 1 2 3 4 5 6 7 8 9 10

ABCD

Container #Lot Box

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

Kanban Post

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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

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

1 Container

204

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Exercise 3

(An Alternative Approach)

205

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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

206

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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=

207

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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 ”

208

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Days In Month = 20

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

209

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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

210

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

211

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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”

212

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

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

213

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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

214

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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

215

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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

216

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Lot Size Per Part NumberLot Size Per Part Number

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

217

KB001


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

218

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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 =

219

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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


ABCD

Container No.

220

KB001


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.

221

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ExampleExample

1st Shift

Line 100

600

724

706

700

718

712

748

800

618

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736

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754

A:

B:

C:

D:

222

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ExampleExample

1st Shift

Line 100

600

724

706

700

718

712

748

800

618

624

630

636

642

648

654

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612

742

736

730

754

A: I I - I - I -

B: I I - I -

C: I I - I -

D: I I - I - I -

223

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Material MovementMaterial Movement

(Focus of On-Time Delivery)

224

KB001


Internal Material Movement Internal Material Movement

•Move Card

•Standard Delivery Route

225

KB001


Move CardMove Card

• The move card tells us:

• What to move

• Where to find and take material

• Standard material quantity

• When to move

226

KB001


Move CardMove Card


SUPPLIER NAME Kanban Signal No. WORK UNIT NAME


227

KB001


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

229

KB001


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

230

KB001


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

231

KB001


Standard Route of DeliveryStandard Route of DeliveryPick

Area

Line 1

Line 2

Line 3

232

KB001


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

234

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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

235

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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

236

KB001


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

237

KB001


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

238

KB001


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

239

KB001


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

240

KB001


# 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?


241

KB001


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



242

KB001


Supplier Card FlowSupplier Card Flow

Supplier processing

25 cards

Byusing

25 cards

Safety Stock

25 cardsTruck

25 cards

Truck

25 cards

243

KB001


Supplier Card CalculationSupplier Card Calculation

Exercise 4

(Card Requirements)

244

KB001


Daily Demand = 2000 pieces

Qty/Cont. = 50 pieces / container

Delivery Cycle =A:B:C

1:6:3

D = .25 days


Qty/Cont. B Qty/Cont

# of Supplier =



245

KB001


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)



246

KB001


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

247

KB001


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

248

KB001


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!!!

249

KB001


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

250

KB001


Be Prepared to DeliverBe Prepared to Deliver

251

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Get Serious !!!Get Serious !!!

kanban things

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