Kanban as a method used in Just-in-time (pull strategies) production management, which is also often used in project management. How does Kanban work? Different types of Kanban boards. What information does a Kanban card contain? Using videos to demonstrate Kanban. Use of a pizzeria to show the inventory management of Just-in-time management with Kanban WIP limit concepts

1. Faculté de Droits & Economie –
#4 Production Management
Shing Wyee Jolivel, Sino Qua Non Consulting
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2. RECAP ON LESSON #3
MRP
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VIDEO #1
If video does not play, click here => https://www.youtube.com/watch?v=HVnHyTsGZaY

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PUSH VS PULL STRATEGIES : COMPARISON
-Producer centric
-Longterm demand forecasts
-Make-to-stock
-High Inventory
-Inability to meet changing
demand
-Less Marketing cost
- Customer centric
- Improve cash flow
- Make-to-order
- Lower inventory
- Shorter lead-times
- Lead to unhappy customers
when badly implemented
- Difficult to implement
- High advertising costs
Eg. MRP Eg. Kanban, JIT

5. MRP Materials Requirement Planning –
DEFINITION BREAKDOWN
BREAKDOWN OF DEFINITION : MRP
INVENTORY
CONTROL
PRODUCTION
PLANNING &
SCHEDULING
SYSTEM
ENSURES
AVAILABILITY OF
MATERIALS
MAINTAINS
LOWEST POSSIBLE
STOCK LEVEL
PLAN &
SCHEDULE
Manufacturing,
Delivery
Purchasing
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3 OBJECTIVES OF MRP

6. LOGISTICS MANAGEMENT
INBOUND
procurement, handling, storage and
transportation
WAREHOUSING
warehousing, protective packing,
order fulfillment, stock control,
maintaining equilibrium between
demand and supply, stock
management
OUTBOUND
collection, maintenance, and
distribution or delivery to the final
consumer
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REVERSE LOGISTICS

7. LOGISTICS – AGENDA
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1. INTRODUCTION TO LOGISTICS
2. SUPPLY CHAIN MANAGEMENT
3. PRODUCTION MANAGEMENT – PUSH STRATEGY(MRP)
4. PRODUCTION MANAGEMENT – PULL STRATEGY (KANBAN)
5. INVENTORY MANAGEMENT BEST PRACTICES
6. INTRODUCTION TO INTERNATIONAL LOGISTICS
7. INCOTERMS
8. LETTER OF CREDIT - DOCUMENTARY CREDIT
9. CUSTOMS

8. VIDEO #2If video does not play, click here => https://youtu.be/R8dYLbJiTUE
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9. PULL SYSTEM : Lean , Just-in-Time, Kanban
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Lean Production:
Doing more with less by employing 'lean thinking.' Lean
manufacturing involves never ending efforts to eliminate or reduce
'muda' (Japanese for waste or any activity that consumes resources
without adding value) in design, manufacturing, distribution, and
customer service processes.
A western definition of Japan Toyota’s Kanban = JIT system

10. PULL SYSTEM : Lean , Just-in-Time, Kanban
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JIT is a form of Lean Production:
A just-in-time system of manufacturing (= producing
goods) is based on preventing waste by producing
only the amount of goods needed at a particular
time, and not paying to produce & store more goods
than are needed.

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Potential Benefits Potential Drawbacks
Lower stock holding means lower storage costs
and lower insurance costs
Little room for mistakes as minimum stock is
kept for re-working faulty products
Less working capital is tied up in the stock Production is highly reliant on suppliers and if
stock is not delivered on time, the whole
production schedule can be delayed
Less likelihood of stock perishing, becoming
obsolete or out of date
No spare finished product to meet unexpected
demand, possible loss of revenue.
Less time spent on checking and reworking
production as the emphasis is on geting the
work done right first time
A need for complex specialist stock system
Benefits vs Drawbacks of JIT

12. Definition Kanban
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Kanban 看板 (signboard or billboard in
Japanese) Toyota introduced and refined the
use of kanban in the 1950s.
Japanese manufacturing system in which the
supply of components is regulated through the
use of an instruction card sent along the
production line. Method to obtain JIT.

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Kanban Board : Eg. Planning an event
TO DO WORK-IN-PROGRESS
LIMITS = 4
DONE
INVITATIONS
FLIGHTS &
HOTELS
PRESS &
MARKETING
PERFORMERS
& LOGISTICS
work in progress (WIP) limits set
the maximum amount of work
that can exist in each status of a
workflow. Limiting the amount of
work in progress makes it easier
to identify inefficiency in a
team's workflow.

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Kanban Board : 3 Weeks later
TO DO WORK-IN-PROGRESS
LIMITS = 4
DONE
INVITATIONS
FLIGHTS &
HOTELS
PRESS &
MARKETING
PERFORMERS
& LOGISTICS
CONFIRM
ATTENDANCE
PRINTING/
DIFFUSION

15. Example #1 of Kanban Card
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Example #2 of Kanban Card

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Example #3 of Kanban Card

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Examples of Kanban Boards : POST-IT

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Examples of Kanban Boards

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Examples of Kanban Boards

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KANBAN CAN ALSO BE ON SOFTWARE
DEMO VIDEO USING TRELLO

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Example of JIT using a PIZZERIA
Pizza
Crust
WIPLIMITS
Workstation
chorizos Green peppers Mushrooms Cheese
STOREROOM
BOX
BOX
BOX
BOX
BOX

23. PIZZA JIT BONUS VIDEO
END #4
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