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Kanban
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- 2. Defining Kanban • Kanbanis Japanese for “card, ticket, sign, or signboard.” • Comes from Toyota’s Production System • Manages flow of production and materials • Used in a JIT “pull” system Kanban is a system that visually indicates when production should start and stop.
- 3. Kanban Card Example SupplierPullFrom ContainerCard 1Order Quan. Part Number Description Kanban Card Special Instructions
- 4. How does Kanbanwork? There are many flavors, but the core of Kanban means: • Visualize the workflow • Split the work into pieces, write each item on a card and put on the wall. • Use named columns to illustrate where each item is in the workflow. • Limit WIP (work in progress) – assign explicit limits to how many items may be in progress at each workflow state. • Measure the lead time (average time to complete one item, sometimes called “cycle time”), optimize the process to make lead time as small and predictable as possible. This is a direct implementation of a lean pull scheduling system.
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- 6. What are thebenefits of Kanban? Reduce Inventory • Kanban will reduce inventory, on average, by 25 to 75%. This saves any company significantly 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 for future expansions or new opportunities
- 7. Benefits of Kanban Improvework flow • The visually organized environment ensures all parts are easily found and continually stocked. • The speed of moving from one task to another is significantly reduced by the creation of clearly marked flow lanes, kanban cards, and clearly marked labels.
- 8. Benefits of Kanban PreventOverproduction • Because parts are only created at the visual signal by the kanban label (link), inventory is much less likely to be overproduced. Resulting in significant savings in the holding of stock.
- 9. Benefits of Kanban Improvesresponsiveness to changes in demand • Unlike a predictive system, kanban immediately reacts to the environment. By responding to clearly and easily read kanban cards the lag time between a shift in demand and a shift in production is almost non-existent. • Minimize risk of obsolete inventory, because inventory is only created as it is needed.
Editor's Notes
- #3 Here you are not giving the class all of the details of the Kanban system, but rather laying a foundation to build on later in the training. You can explain here that the kanban is literally a card, ticket, or sign that follows orders through production. Traditionally the idea was to manufacture as many units as you could. The more units you produced, the more you could spread out the fixed costs associated with producing them. Companies would produce huge volumes based on estimates and then adding some on top of that, just in case. The “just in case” method was the American way. W. Edwards Deming went over to Japan after WWII and started to instruct them on “lean” principles. The kanban was born as a result of his efforts. The kanban system communicates with all parts of the “chain” and produce only what is needed. An example is that you produce projectors. When someone buys a projector from a store, they are pulling on the chain. The store sends a signal to you to produce another projector. Your finished goods section pulls parts needed to complete a new projector. Other stations are now short of materials and must produce enough to get back up to the desired level. That goes on until your suppliers are notified of materials you need. They must contact their suppliers for more materials and so on. Finished goods inventory is close to zero, work-in-process goes down, and producing too many items is a thing of the past. This reduces the risk of items not selling, spoiling, or depreciating quickly. We will discuss in more detail exactly how kanban helps with this later in the training.
- #4 This is an example of a Kanban card. As you can see there is lots of detail on the card. We will go through each spot briefly. It is also important to note that, while this is a more generic kanban card, you can customize your own cards so they work best for you. Part Number: This is your internal part number for the part that needs to be pulled Description: This allows the person to know what they are pulling Order Quantity: How many parts should be made Card 1: Just saying this is Card 1. You’ll have a set number of cards so you can monitor the production process Container: This is used to say what type of container it is in. A box, a tote, a pallet Pull From: Deals with how you have your inventory set up. This tells the operator exactly where to go Supplier: Who you are getting the materials from Special Instructions: This might be needed if you have a spike in demand and need to get products out faster. This section is not extremely common but has some uses.