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  1. 1. Kanban
  2. 2. Kanban means sign board. A kanban can be avariety of things, most commonly it is a cardor a cart, while sometimes it’s just a marked ofspace. It is a scheduling system that helps determinewhat to produce, when to produce it, and howmuch to produce.
  3. 3. Types of KanbanBasic Kanban Systemsinvolves the use of a few different types of cards to signalto different sections of a production process that a parteither needs to be produced, is finished or more of aparticular part is requiredPull-Style Kanbanworks in essentially the same manner as the basic kanbansystem, except the production of new parts for entranceinto the production system depends on the level of demandfrom customers.Read more:
  4. 4. Supermarket-Style Kanban The supermarket version of kanban provides a more versatile option to manufacturers. This system requires that the manufacturer have a small stock of every kind of component necessary to their work. Each part will have a particular spatial allocation. As each component runs out, a message goes out to the supplier for more of those parts, and shipments of new components arrive regularly.•
  5. 5. Non-Card Kanban Non-card kanban systems also exist. All that is required to make a kanban system work is some sort of signal to another part of the production process that something is needed. For instance, if parts are taken off of a pallet, the simple act of returning the empty pallet can qualify as a kanban if need be.•
  6. 6. Electronic KanbanKanban systems do not necessarily usephysical cards, either. Sometimes, anelectronic system will be used to signalbetween the different parts of the productionprocess.
  7. 7. Kanban Rule Rule no. Rule Function 1 Later process goes to Provides pick up earlier process and information. pickups the number of item indicated in the kanban. 2 Earlier process Provides production produces produces in information and a quality and prevents sequence indicated overproduction. by kanban. 3 No items are made or Prevents transported without a overproduction and kanban. excessive transportation.
  8. 8. Rule no. Rule Function4 Always attached a kanban Serves as a work order to the goods5 Defective products are not Identifies defective process. send to the subsequent process.6 Reducing the number of inventory reduction kanban increase their reduces waste and sensitivity. Makes the system more sensitive.
  9. 9. Kanban CalculationRaw Material With Stable Pull:Tt = Takt TimenP = Average number of Parts shippedtS = Average time between ShipmentsK = Tt = tS /np
  10. 10. • Example: An electrical panel manufacturer uses 1200 weekly of one type of panel box. The purchasing manager as negotiated a daily shipment of panel boxes. 1200/5 = 240 days
  11. 11. Method 2:When a customer is unwilling to utilize a pull systemwith kanbans, then one can set up one’sown internal kanban system. The formula for thatwould be:K = Kanban sizeDL = Average Demand during Lead timeSS = Safety StockCS = Container Size K = DL + SS/CS
  12. 12. Example: An industrial seal manufacturer uses consistently 2500 rubber rings a week. The supplier’s lead time for manufacturing the connectors is 3 weeks. In order to assure that there will always be parts available the the seal manufacturer has asked that a 3 week safety stock be on hand. The manufacturer also wants rings shipped in reusable containers of 500. In this example: (2500 X 3) + ( 2500 x 3 )/500 = 14000/500 = 28
  13. 13. Kanban Circulation1. Transportation to, and time in, planning2. Transportation time to and time spent waiting in the queue3. Time spent in the production line4. The sum to deliver the finished goodsThe sum of this four is equivalent to thereplenishment time.
  14. 14. VAT = Value Added TimeAll the time it takes to produce a product.Value added time - The time the customer is willing to pay for.Non Value Added time - Which is waste Pure waste – Activities that can be eliminated Necessary waste – Activities that cannot be reduced immediately due to the present work rules or technology.