KANBANSYSTEM IN FASTFOOD INDUSTRY Prepared by: Chan Maryam Said Nisreen Naisula8/15/2012
2 What is KANBAN system?•"Kanban" is an inventory scheduling system originally developed by theJapanese but now used worldwide. The main objective of kanban is to reduceinventory costs. This is achieved by moving inventory only as and whenneeded.•The system is used in many manufacturing and service companies. Kanbanplaces an increased emphasis on quality production, low variability and tightschedules.Companies following kanban have developed it to suit their own production•processes. Employees are trained to familiarize them to the specifics of thekanban process as used within their organization.
3 Function of KANBAN•"Kanban" is a system used for inventory scheduling in companiesthat follow Just-in Time (JIT) or lean production methods.•Kanban means "card" in Japanese, and the system uses a card orsome other signal to indicate the time has come to move inventoryfrom one area of the production process to another.The process of moving inventory through the plant only when it is•needed in the different areas is called the "pull" system.
4 The 2-Bin KANBAN•One of the simplest and most common Kanbans is the 2 (or 3) binsystem, normally 2 containers of parts are held within the productionarea, the production process utilizes the components within the first binuntil it is empty, they then start using the second bin and return the emptyto the stores or the previous operation for replacement.•This is the signal to (deliver the 3rd bin in a 3 bin system then) replenishthe stock in the bin, thus only those components that are being used areproduced.• When filled the container is then delivered to the production area andthey wait for the next empty bin.
5 How 2-Bin KANBAN is used in Fast Food Industry?•Application: example is that of a certain fast food / burger joint,between the server and the kitchen is what is known as the “burgerregulator.”•As the servers remove burgers from the regulator this is the signalto produce more to the kitchen behind. Batch sizes for productionare changed during the day to match expected demand for peak andslow periods•95% of customers should find their order freshly available withouthaving to wait.
6 Benefits of 2-Bin KANBAN system•Low costs associated with the transfer of information (simpletechniques involved)•Provides quick response to changes (eg: quality problems visible)•Delegates responsibility to line workers•Lead times are reduced.•Low fixed stock•Highly Stable