JIT KANBAN supermarket

Material Source: Toyota Training Handouts@ Ram Mohan Ino-Tech Engineers.&Consultants
1
Concept of JIT, Super Market & KanBan

2
Just-in-Time
Established by Kiichiro Toyoda, the founder of the Company.
“Just-in-Time” means, simply enough, supplying the right
parts, at exactly the right time and in exactly the right amount.
Part Needed
At Time Needed
In Amounts Needed

3
Where a customer can get-
(1) what is needed
(2) at the time needed
(3) in the amount needed
Therefore the supermarket is a place where we can buy according to need
What is a Super-Market

4
Supermarkets
Supermarket
• A controlled level of inventory with a specific location for each
item to give what is required, when it is required and how much
is required.
Application
• Is used to buffer one process from the other process where
continuous flow (one piece flow) is not feasible.

5
1st Step The Later Process (Customer) goes to the earlier
Process (Super-market)
2nd Step Acquire the required items (Commodities) at the time
and in the required quantities needed
3rd Step The earlier process immediately produces the quantity
just taken ( restocking the shelves)
How does the Super-Market
function?

6
Analogy between the Super-Market
function and Manufacturing
Manufacturing
Latter process goes to acquire
required parts at the time and
quantity needed
Earlier process immediately
produces the quantity just
taken
Super market
Customer goes to supermarket
Picks up commodities as per
his need
Supermarket restocks the
shelves

Supermarket & KanBan Concept
SUPER MARKET
SUPER MARKET WAREHOUSE
FACTORY & WAREHOUSE

8
Translating Super market
concept to product
How to operate super-market in production environment?
Applying Concept of Kanban

9
concept to product
What is a Kanban ?
- A simple Visual Tool which communicates the needs
- Carries information

10
concept to product
What information ?
(1) Pick up information
(2) Transfer information
(3) Production information

11
Functions of kanban
1. Provides pick-up or transport information.
2. Provides production information.

12
Functions of kanban (Contd.)
3. Prevents overproduction and excessive
transport.
4. Serves as a work order attached to goods.

13
Functions of kanban (Contd.)
5. Prevents defective products by identifying the
process making the defectives.
6. Reveals existing problems and maintains
inventory control.

14
concept to manufacturing
How does it work ?

15
FLOWCHART…
PARTS
STORAGE
&
DISPATCH
C
U
S
T
O
M
E
R
Sub-
Assembly
Assembly
Machining
MATERIAL
STORAGE
SHIPPING
KANBAN
POST
PRODN
KANBAN
POSTS

Customer
Warehouse
Assembly Line
Finished Goods
Storage
Assembly parts storage Purchased parts
storage
Subassembly Line
Finished parts storage
Subassembly
parts storage
Parts Storage
Parts Storage
Raw material & purchased
parts storage
Suppliers
KANBAN ROUTES IN A FACTORY
M
M
M
M
M
M
M
P
P
M
M M
M
M
P
P
P
Sub-
Assembly
Line Parts
Fabricatio
n line
P : Production Card
M : Movement Card
Parts
Fabrication
Line

17
Rules
1. Later process picks up the number of items
indicated by the kanban at the earlier process.
2. Earlier process produces items in the quantity
and sequence indicated by the kanban.

18
3. No items are made or transported without a
kanban.
4. Always attach a kanban to the goods.
Rules (Contd.)

19
5. Defective products are not sent on to the
subsequent process. The result is 100% defect-
free goods.
6. Reducing the number of kanban increases their
sensitivity.
Rules (Contd.)

20
To increase his productivity,
the first principle a Toyota
employee remembers is to
maintain a bright, efficient
work environment - a
pleasant place for him to do
his job - by clearing and
arranging his own worksite
himself.
Tools to Implement Kanban - The “Four S’s”
Seiri = clearing
Seiton = arrangement
Seiso = sweeping and
washing
Seiketsu = cleanliness

21
Seiri = clearing Seiton = arrangement Seiso = sweeping and
washing
Seiketsu = cleanliness
(Contd.)

22
*Seiri means to decide what things you need and what you do
not need, and then get rid of the things you don’t need.
*Seiton means to arrange the things which you need so that
they can be easily used.
*Seiso means to sweep and wash everything cleanly.
*Seiketsu is the overall neatness that results when the
previous three S’s are followed consistently.
(Contd.)

23
4S’s also play role in discovering muda
The 4S’s aid in the
elimination of muda (waste).
With “a place for everything
and everything in its place,”
unnecessary parts,
equipment and other
materials are easy to identify.

24
A dirty workplace is dangerous
They are also important to safety.

25
Safety always comes first
There is one basic rule that
always comes first - the
safety of each person’s work
environment must always be
preserved. At Toyota, safety
always comes before every
other consideration.

26
KANBAN
Production Ordering
Kanban
(In-Process Kanban)
Withdrawal Kanban
Types of Kanbans

27
Production
Ordering
Kanban
Ordinary Production
Kanban
For production other than lot
production
For lot production
Triangular Kanban
Types of Kanbans

28
Withdrawal
Kanban
Interprocess
withdrawal
Kanban
Types of Kanbans
Supplier Kanban

29
Withdrawal Kanban

30

31

32

33
Parts Supply Management
By
Ram Mohan
IN-O-Tech Engineers & Consultants
Delhi

34
System for Parts Procurement
•Rolling Material requirement plan is issued monthly
for next 3 months to suppliers based on market
demand

35
System for Parts Procurement
•No of Kanbans required for next month is informed to
the suppliers

36
Material requirement program
deploying Kanban
Production
Program
Bill of
Material
Calculation of
material
required
List of Material
requirement
Program
No of
Kanbans in
use
Kanban
Information

37
Relationship -shorter lead time and Just -in -Time Production
Production day
order parts Long Lead time
Production day
order parts Short Lead time
Time
More parts
Less
parts

38
Control of Parts Supply
Daily part supply is controlled by
Kanban
Lead time -Most of the cases within
one day

39
Control of Parts Supply through Kanban

40
Transportation Methodology
Forms and Methods
1. Short Distance -Inter plant Transportation
( less than 100 Kms - Basically transported
by Toyota)
2. Long distance Inter Plant Transportation
( Independent Transporters)

41
Transportation Methodology
Forms and Methods
3. Purchase Parts Transportation
a. by Toyota
b. Supplier Truck
c. Independent Transporters

42
Basic Concept in
Transportation
Transportation plays the role of a conveyor
Transfers
What is needed
at a time when needed
as much as needed

43
Achieving Transportation by
Succeeding shop- Fundamental Principle
Elimination of Muda
Transferring what is needed ,at a time
when needed and as much as need
Result - Just in time Supply
End objective elimination of anti productive
factors like excessive inventory

44
Know-How to lower Transportation Cost
and Inventory
1. Utilisation of Returning Truck
Pallet standardisation
relay- Truck system
Toyota Supplier A
sell raw material and parts
purchase parts and sub-
assembly

45
Know-How to lower Transportation Cost
and Inventory

46
Elimination of Muda, Mura and Muri
Supply 1/day
Supply 4t/day
Excess inventory
Leveled production

47
Side Loading- different
bins/suppliers and easy to load
Part Supply truck

48

49
Parts Supply FIFO

50
Parts Supply FIFO

51
Parts Supply Schematic
Flow
Buffer Area
Receiving area/line side
direct supply
No Separate Stores
Supplier
Customer

JIT KANBAN supermarket

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