A.V. Sri Harsha

Amit Kumar

Introduction

Kanban is a Japanese word which literally means “sign board” or “billboard”.

It was developed by Taiichi Ohno, at Toyota, in 1953, to find a system to improve and maintain a high level of production.

It is a concept related to lean and just-in-time (JIT) production.

It is a scheduling system that tells you “what to produce”, “when to produce”, and “how much to produce”.

What Kanbans Do Controls the amount of raw material amounts and of

materials in Work In Process (WIP).

Smooth's out the entire material flow, if sized properly.

Tells when and where there is a problem in the process.

Assures there is always just enough material on hand to make what is needed.

Create Information System that Supports Lean Principles

Pull of Product Based on Usage

Lower Inventory / Reduced Lead-Time

The Objective

Types of Kanbans

Raw Material Kanban – tells suppliers when to send how much of particular item to a particular place.

WIP Kanban – determines the amount of Work In Process that can be kept between any two operations in a process.

Finished Goods Kanban – determines the amount of a product to be kept on hand at any given time. Removal of material from the Finished Goods Kanban acts as a signal for more of that product to be manufactured.

Types of Kanban Signals A calculated amount of material kept in a designated

space, such as a bin on a workbench or on the floor.

A card that is used to tell the amount of material to be made or ordered.

The markings on a bin that determines when more material needs to be ordered or made.

Any other clear visual signal that indicates it is time to get more material.

How Kanban Works

IN PROCESS

Feature to develop Tasks in queue

Tasks in progress Tasks complete

Feature complete

Flow of Kanban Signals

External

Supplier

Internal

Raw

Materials

Store needed product

Internal

Production

Work

Unit needed product

Plant

Finished

Goods

Store needed product

External

Customer

needed product

Supplier Signal Move Signal Customer Signal

Raw Materials Kanban All of the RM used to manufacture a particular

product are identified as well as the number used in each product.

The goal is to order at the point when the number of parts on hand reach the amount that will be used up during the time it takes to order and get the new needed parts delivered (Lead time).

Usually, because of variability in the lead time, the amount of reordered parts is a bit more than the amount of parts needed to cover order lead time.

Raw Material Kanban Card

Kanban Signal Number Supplier Name

Part Number Quantity Card No.

Customer

Store Address Work Unit Address

Part Name

Work In Process Kanban Materials flow demands a very well balanced manufacturing

line, meaning that each process station uses approximately the same amount of time to do the necessary work.

First, the process times at each station are calculated.

Then, when one station has to take significantly more time to do its work than previous stations, Kanbans are put in to keep material batching to a minimum.

WIP Kanban Card WORK UNIT ADDRESS STORE ADDRESS

SUPPLIER NAME Kanban Signal No. WORK UNIT NAME

PART No. QUANTITY CARD #

Finished Goods Kanban

The demand for a particular product is tracked over time.

Based on the demand, the safety stock is calculated, (e.g. a day or a week).

Based upon the demand, it is then calculated how many of the product needs to be made per day.

Kanbans are set up in the shipping area with the amount of product that has been determined as required safety stock.

Supplier

Kanban Signal No.

Part No.

Storage Location

Quantity Supplier No.

Card No.

Container Type

Description

Storage Address

Finished Goods Kanban Card

Advantages Elimination of Waste

Overproduction Material movement Inventory

Grows the Business Internal and external. Strengthens the resources.

Improves the Competitive Position Continually strives for perfection. Reduces the cost. Eliminate wastes in operations.

Additional Advantages 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

Thank You..