meaning of kanban

8/2/2019 Meaning of Kanban

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Presented by:-

Ratnodeep Paul(45)

Azhar Alam(40)

Sagardwip Dey(44)

Zareen Mazumder(46)

Kanban System

Submitted to :Dr. Debomalya Ghosh


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Meaning of Kanban Kanban , also spelled kambanand literally meaning

"signboard" or "billboard", is a concept related to leanand just-in-time (JIT) production. According to Taiichi

Ohno, the man credited with developing Just-in-time,kanban is one means through which JIT is achieved.

Kanban is not an inventory control system. Rather, it isa scheduling system that tells you what to produce,when to produce it, and how much to produce.


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The term kanbandescribes an embellished wooden or metal signoften representing a trademark or seal. Kanbanbecame an importantpart of the Japanese mercantile scene in the 17th century, much likethe military banners had been to the samurai. Visual puns,

calligraphy and ingenious shapes were employed to indicate a tradeand class of business or tradesman.

In the late 1940s, Toyota began studying supermarkets with a view toapplying store and shelf-stocking techniques to the factory floor,figuring, in a supermarket, customers get what they need, at theneeded time, and in the needed amount. Furthermore, thesupermarket only stocks what it believes it will sell, and customers

only take what they need because future supply is assured. This ledToyota to view a process as a customer of preceding processes, andthe preceding processes as a kind of store. The customer processgoes to this store to get needed components, and the store restocks.As in supermarkets, originally, signboards were used to guide

"shoppers" to specific restocking locations.


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"Kanban" uses the rate of demand to control therate of production, passing demand from the endcustomer up through the chain of customer-storeprocesses. In 1953, Toyota applied this logic intheir main plant machine shop


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Operation of KanbanKanban, is part of an approach of receiving the "pull" from thedemand. Therefore, the supply or production is determinedaccording to the actual demand of the customers. In contexts

where supply time is lengthy and demand is difficult to forecast,the best one can do is to respond quickly to observed demand.This is exactly what a kanban system can help with: It is usedas a demand signal that immediately propagates through thesupply chain.


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Sample Kanban


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Types of Kanban

Production kanban authorizes production of goods

Withdrawal kanban authorizes movement of goods

Kanban square a marked area designated to hold

items

Signal kanban a triangular kanban used to

signal production at the

previous workstationMaterial kanban

used to order material inadvance of a process

Supplier kanban rotates between the factory and

suppliers


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Kanban Cards & types

There are different forms of Kanban

One card kanban

Two card kanban


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What is Kanban?

Kan=Card Ban=Signal

Japanese word Kanban means car ticket, sign or sign board.

Originated in the Toyota Production System( Tough leanenterprise system) as a tool of managing the flow ofproduction and material in a JIT(just in time) productionprocess.

JIT is one of the pillars of lean.


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What Kanban does?

Kanban provide a mean of pulling into, and through , a manufacturingprocess. The material being pulled can include raw material, parts,component and subassemblies, including parts manufactured in house/purchased from outside suppliers.

The major element of a Kanban includes

What to pull

When to pull

How much to pull

Where to pull(from/ to)

Kanban work best when the future demand is predictable and unexpected toremain relatively stable


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Process: two bin

A Kanban system is the best option especially for Class C inventoryitems. A two bin Kanban system is proposed. A Kanban card will beattached to both the bins. Once the material inside one of the bins is

used, the Kanban card is used for triggering and reordering. Duringthe lead time second bin is used. The empty bin is replenished afterthe stock arrives from supplier.


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The Pull Principle

Pull means replacing stock after consumption has occurred,

i.e. what we do today is to replace what was used yesterday.

This is an old established principle in production control

Pull is usually associated with Kanban

what makes Kanban different, i.e. a key part of Just In Time

(JIT) system, is the way the factory is operated.


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Kan-ban System

The Kanban System was developed (more than 20 years ago), by Mr.Taiichi Ohno, a vicepresident of Toyota, to achieve objectives thatinclude [4]:

o reducing costs by eliminating waste/scrap

o try to create work sites that can respond to changes quickly

o design work sites according to human dignity, mutual trust andsupport, and allowing workers to reach their maximum potential.


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Kanban cards

The Kanban card is, in effect, a message that signals depletion of product,

parts or inventory that when received will trigger the replenishment of thatproduct, part or inventory.

Consumption drives demand for more. Demand for more is signaled byKanban card. Kanban cards thus, in effect, help to create a demand-drivensystem.

Kanban cards, in keeping with the principles of Kanban, should simplyconvey the need for more materials. A red card lying in an empty parts cartwould easily convey to whomever it would concern that more parts areneeded.


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Kanban Cards & types

There are different forms of Kanban

One card kanban

Two card kanban


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Single/One card Kanban The single card kanban, which often is not a card at all, but a container, is a

very effective way of scheduling a producing work centre that feeds anassembly line. The first rule is that when the producing work centre hasproduced a container of parts, it keeps them. When someone on theassembly line needs more parts, they must come and collect them, but theymust bring the empty container with them. This is the instruction to theproducing work centre that more are required. If no one collects any, then

obviously nobody needs any, therefore no more should be made. As theproducing work centre may be supplying several different parts to a numberof users, the rule that the producing work centre must follow is the FIFOsystem. The first empty container received is the part that must be made first.Again, simple and effective. It has just done away with a complex schedulingproblem and a build up of work in process.


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Two Card Kanban (Double

Kanban).

This is the original Toyota method, developed at a time when replenishmentsupplies were routed through a component or parts store. The card releasedby the user authorizes the stores to move a replenishment supply to the

user. When they do so, a second card, which is found on the pallet they areabout to supply, is removed and sent to the component supplier as authorityto produce another standard quantity.

Dual-Card Kanban Rules No parts to be made unless P-kanban authorizesproduction. Exactly one P-kanban and one C-kanban should be there foreach container Only standard containers are used, and they are always filledwith the prescribed (small) quantity.


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Three-bin system

A simple example of the kanban system implementation might be a"three-bin system" for the supplied parts (where there is no in-house

manufacturing) one bin on the factory floor (demand point), onebin in the factory store, and one bin at the suppliers' store. The binsusually have a removable card that contains the product details andother relevant information the kanban card.


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When the bin on the factory floor becomes empty, i.e., there is demand for

parts, the empty bin and kanban cards are returned to the factory store. Thefactory store then replaces the bin on the factory floor with a full bin, whichalso contains a kanban card. The factory store then contacts the suppliersstore and returns the now-empty bin with its kanban card. The supplier'sinbound product bin with its kanban card is then delivered into the factory

store completing the final step to the system. Thus the process will never runout of product and could be described as a loop, providing the exact amountrequired, with only one spare so there will never be an oversupply. This'spare' bin allows for the uncertainty in supply, use and transport that areinherent in the system. The secret to a good kanban system is to calculatehow many kanban cards are required for each product. Most factories usingkanban use the coloured board system (Heijunka Box). This consists of aboard created especially for holding the kanban cards.


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Replenish pull signal Replenish pull signal Replenish pull signal

Raw materials

from vendor

Raw material buffer WIP buffer Work cell 2 Finished goodsbuffer

Finished goods

buffer


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Kanban has been known to dothese:

Reduce Inventory

Kanban will reduce inventory, on average, by 25 to 75%. This saves any companysignificantly 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 forfuture expansions or new opportunities

Improve work flow

The visually organized environment ensures all parts are easily found and continuallystocked.

The speed of moving from one task to another is significantly reduced by the creation ofclearly 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 ismuch less likely to be overproduced. Resulting in significant savings in the holding of stock.

Improves responsiveness to changes in demand.

Unlike a predictive system, kanban immediately reacts to the environment. By responding toclearly and easily read kanban cards the lag time between a shift in demand and a shift inproduction is almost non-existent.

Minimize risk of obsolete inventory, because inventory is only created as it is needed.


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Toyotas Taichi Ohno introduced kanban as a tool in the

development of Just In Time manufacturing. Toyota

philosophy about kanban:Kanban is an organized system of inventory buffers and

as per TPS, inventory is waste, whether it is in pull systemor push system. So kanban is something you strive to getrid of.

Toyota uses kanban to force process improvements

Introduction


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Never send defective products downstream to the nextprocess

Each process only orders what it currently needs from theupstream process

Each process only produces the quantity ordered by thedownstream process

Maintain a level rate of production

Use kanban to fine-tune the rate of production

Work to reach a stable rate of production

Toyotas Six Kanban Practices


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At Toyota, empty bin (a kanban) is send upstream after a

demand instance.

It is a signal to refill it with a specific number of parts orsend back a card with detailed information about the partlocation.

One can see Kanban cards and bins moving on the shop-floor.

Instead of using sophisticated computer schedulingtechniques, this is a simple, effective and visual system ofmanaging and ensuring the product flow and JIT productionsystem.

Cont..


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ConclusionThe need to maintain a high rate of improvements led Toyotato devise the kanban system. Kanban became an effective tool

to support the running of the production system as a whole. Inaddition, it proved to be an excellent way for promotingimprovements because reducing the number of kanban incirculation highlighted problem areas.


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THANK YOU

meaning of kanban

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