Sansera Project Report

SYNOPSIS
The project titled “IMPLEMENTATION OF TOOL KANBAN” for Maruti connecting rods
was carried out at Sansera Engineering Pvt Ltd., Bangalore. The main aim of this project was
to analyze the high consumption tools that were being used for the production of the
connecting rods and introduce an effective system of tool inventory control.
The study began with the analysis of previous method of inventory system for the high
consumption tools used in the manufacture of the component. An effective “Kanban System”
was developed to replace the existing “maxi – min” system.
The project was carried out to confirm the benefits of Kanban System, resulting in the
following improvements: a) Reduce inventory and product obsolescence b) Storage discipline
c) Reduce waste and scrap d) Provide flexibility in production e) Reduce Total Cost f)
Maintain good customer (internal) – supplier (company) relationship.
KANBAN FOR TOOLS 1

INTRODUCTION
The word “Kan” means "visual" in Japanese and the word "ban" means "card". So Kanban
refers to "visual cards". Kanban, is a part of pull system that determines the supply, or
production, according to the actual demand of the customers (here being internal). When we
talk of “pull”, it is more of a control measure to release materials into production “only when
they are needed.”
In the late 1940s, Toyota was studying supermarkets with a view to applying some of their
management techniques to their work. This interest came about because in a supermarket the
customer can get what is needed at the time needed in the amount needed. The supermarket
only stocks what it believes it will sell and the customer only takes what they need because
future supply is assured. This led Toyota to view earlier processes, to that in focus, as a kind
of store. The process goes to this store to get its needed components and the store then
replenishes those components. It is the rate of this replenishment, which is controlled by
Kanban that gives the permission to produce. In 1953, Toyota applied this logic in their main
plant machine shop
It is used as a demand signal which immediately propagates through the supply chain. This
can be used to ensure that intermediate stocks held in the supply chain are better managed,
usually smaller. Where the supply response cannot be quick enough to meet actual demand
fluctuations, causing significant lost sales, then stock building may be deemed as appropriate
which can be achieved by issuing more kanbans.
On the other hand the “push” system is a transposition of the “pull’ production system.
“Push” is thereby releasing materials into production as customers’ orders are processed and
the materials become available. Material Requirement Planning or Manufacturing Resource
Planning (MRP) modules are typical “push” systems.
Some may say that Kanban is more of a visual scheduling system. The emphasis here is that
Kanban is not a system where everything is put on schedule, it must be made clear that
Kanban is a production control system intended to enable the process owner to easily view
production requirements and ensure that parts or supplies are ordered/procured only if
necessary.
KANBAN FOR TOOLS 2

Kanban is generally used in two instructional forms:
1. A simple production instruction (shikake) indicating what, where and when it is needed,
and where materials are coming from or going to; and
2. The other form is for parts withdrawal (hikitori) or an illustrated piece to visually
communicate materials that have been consumed and their quantities that need to be replaced
by upstream processes.
Kanban is a simple yet effective control system that can be easily introduced and adopted in
various production environments. It is considered to be the “central element” of Lean and
World Class Manufacturing. The purpose of Kanban is, therefore, to automate the inventory
controls without the need of analysis or planning.
KANBAN AS OUR PROJECT
The project was carried out at Sansera Engineering Pvt Ltd, Plant 7, located at Jigani,
Bangalore. The plant’s major activity is manufacturing connecting rods. Presently, they are
following the push system of production and max-min inventory control system. The
company has been witnessing certain drawbacks of this practice and were looking for an
alternative, with immediate effect. The proposed alternative by the company was the
introduction of Pull system in production and implementation of Kanban for tools.
STEPS INVOLVED IN THE IMPLEMENTATION OF TOOL KANBAN
1. Select Kanban-parts
2. Define Kanban controlled areas (supplier/customer)
3. Define pieces per container (SNP = standard number of parts)
4. Size supermarket volume (inventory)
5. Calculate number of Kanbans (=total inventory)
6. Implement and run CIP
KANBAN FOR TOOLS 3

CHAPTER – 2
COMPANY PROFILE
2.1 Company Background
Sansera Engineering Ltd was established in 1987 by Mr. S. Sekhar Vasan. Today it is the
second largest company in Asia to manufacture rocker arms. It is an ISO / TS 16949: 2002
RW TUV Certified and ISO 14000 (EMS) & OSHAS 18000 (Occupational Health & Safety)
Certified. The company manufactures Precision Forged & Machined Components for the
Automobiles Industries. The company also manufactures its own CNC - SPMs to be cost
effective & enhance Machining Capabilities.
Personnel Management Work
• Sansera has a motivated work force.
• Sansera is one of the most exciting companies to work for.
• This excitement and motivation permeates right down to the shop floor.
• Sansera employs over 1700 people.
• Sansera has a very low labour turnover, less than 1.12% in the current year.
• Stoppage of work on account of labour problem is less than 2 hours in the past 8 years.
• Average age of employee is less than 36 years
Quality Policy
To achieve the objectives by creating and sustaining an environment that motivates all to
attain higher level of performance through innovative techniques and team work thereby,
continually improving the effectiveness of quality management system.
KANBAN FOR TOOLS 4

2.2 Organizational Chart
Fig 2.1 Organizational Chart
KANBAN FOR TOOLS 6

2.3 Plant Location
Fig 2.2 Location of Plants
KANBAN FOR TOOLS 7

2.4 Customers
The company has a large base of customers. Its domestic customers are:
1. Maruti Udyog Limited.
2. Bajaj Auto Limited.
3. HONDA Motorcycles & Scooters India Limited.
4. TVS Motors Company Limited.
5. India Yamaha Motors Private Limited.
6. Hero Motors Limited.
7. Honda Siel Cars India Private Limited.
8. Suzuki Motor Cycle India Private Limited.
9. Piaggio Vehicles Private Limited.
The overseas customers of the company are:
1. Piaggio C & spa – Italy.
2. Yamaha – Indonesia.
3. Yamaha – Brazil.
4. Yamaha – Italy.
5. General Motors – South Korea.
6. Ducati Motor Holding spa – Italy.
7. Motori Minarelli – Italy.
8. Streparava spa – Italy.
9. Fiat Power Train – Italy
10. Moto Guzzi – Italy.
2.5 Products
KANBAN FOR TOOLS 8

The several products manufactured by the company are:
1. Gear Shift Forks
2. Crankshaft
3. Rocker Arms – roller
4. Rocker Arms – Sintered Tip
5. Rocker Arms – Chrome Plated
6. Rocker Shaft
KANBAN FOR TOOLS 9

7. Connecting Rod – Split
Fig 2.3 Connecting Rod – split type
8. Connecting Rods – Fracture
Fig 2.4 Connecting Rod – fracture type
KANBAN FOR TOOLS 10

2.6 Production Line
Figure 2.5 shows a single U-type production line for manufacturing connecting rods.
Fig 2.5 Production Line
KANBAN FOR TOOLS 11

2.7 Annual Production Capacity
Table 2.1 Annual Production Capacity
2.8 Company Growth
Sansera has an annual turn over of Rs. 3200 Million - $ 80 Million for 2008 -2009.
KANBAN FOR TOOLS 12

Graph 1 Company Growth
KANBAN FOR TOOLS 13
9 12
23
33
43
53
80
0
10
20
30
40
50
60
70
80
90
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

2.9 Infrastructure
• Forging
o Forging press
o Forging press with billet heater
• Shot Blasting Machine
• Hardening and Tempering
• Design and Development
o Unigraphics for 3d modeling and tool path generation.
o Mechanical desktop for machine design.
o AutoCAD / inventor for tool & fixture design and 2d drafting.
o NX Nastran for ‘FEM’ analysis
o ‘Q form’ for forcing process simulation & analysis
o Wrench – Collab – PDLM software for management of product
o Development, drawings ,documents and data control
• Machine Building
o CNC two spindle honing machine
o Auto transfer 8 station CNC
o Auto transfer 4 station CNC
• Metrology
o 3 co-ordinate measuring machines [Zeiss-TSK] Prismo vario.
o 3 co-ordinate measuring machine [DEA].
o Contour record 1700 DX [Zeiss-TSK].
KANBAN FOR TOOLS 14

o Surface roughness tester 480 A [Zeiss-TSK].
o Micro Hite [TESA] stereo microscope-Nikon SMZ – 800.
• Metallurgy
o Micro vickers hardness tester – HM113.
o Micro vickers hardness tester [auto type] – clemax / smt-7.
o Image analysis system – Clemax.
o Auto polishing machine – Metkon.
o Auto cut off machine – Metkon.
o Specimen mount [auto] – Metkon.
o Universal testing machine – FIE.
o Digital superficial hardness tester – Highwood.
• Die Milling
o 3D modelling of the components using unigraphics.
o Die milling on machining centres on pre-heat treated dies for forging & coining.
• Heat Treatment
o Sealed quench furnace, with hot oil quench, pre and post washing, pre heating and
tempering furnace.
o Endo gas generator with lambda probe controller
• Shop Floor
o Over 200 in-house built CNC SPMS constitute the process lines.
o Single piece flow using conveyers & cell concept adopted.
o FIFO system for WIP & material movement.
KANBAN FOR TOOLS 15

o Environment and personnel safety standards adhered to.
o Training & continuous improvement programmes.
2.10 Milestones
Sansera is the first company in India to
• Indigenise arm, valve rocker for 800 cc model, Maruti,1987
• Indigenise arm, valve rocker for 4s – Champion model, Bajaj, 1992
• Indigenise fork gear shifter for RX100, Yamaha,1996
• Indigenise fork gear shifter for Fiero all 2s models, TVS, 1998
• Export components to overseas plants – Indonesia, Yamaha, 2001
• Indigenise sintered tip rocker arm with copper brazing,Maruti,2002
• Develop roller rocker arm, Honda, 2003
• Develop rocker shaft outside Japan, Honda, 2003
• Supply of fully assembled crank shaft, Bajaj, 2007
2.11 Awards
• Award received from Autodesk for best utilization of Mechanical Desktop, Software
in Karnataka, 2001
• Award received from Yamaha Best Machining Vendor, 2001
• Award received from Yamaha – Value Engineering, 2002
• Award received for maximum number of proposals from Yamaha, 2002
• Award received from Honda Quality Award – 2003
KANBAN FOR TOOLS 16

• Award for QCDDM from Honda, 2003-04
• 2nd
prize in QCC competition from NIQR
• Alto cost reduction award from Maruti, 2003-04
• Award received from Maruti Suzuki for Vendor Performance Award
• Award received from BAL for New Product Development Support -2004-2005
• Performance Award over all Commendation Award from Maruti Suzuki India – 2005
• Superior performance in New Product Development by Bajaj Auto Limited
• Award from QCDDM for Machining Category by Honda, 2006-07
• Distinction Award for QCC by QCFI, 2006
• Best Vendor Award from Maruti Udyog Limited, 2008
KANBAN FOR TOOLS 17

CHAPTER – 3
LITERATURE SURVEY
The word Kan means "visual" in Japanese and the word "ban" means "card". So Kanban
refers to "visual cards". Kanban, is a part of pull system that determines the supply, or
production, according to the actual demand of the customers (here being internal). When we
talk of “pull”, it is more of a control measure to release materials into production “only when
they are needed.” It is used as a demand signal which immediately propagates through the
supply chain. This can be used to ensure that intermediate stocks held in the supply chain are
better managed, usually smaller. Where the supply response cannot be quick enough to meet
actual demand fluctuations, causing significant lost sales, then stock building may be deemed
as appropriate which can be achieved by issuing more Kanbans.
Some may say that Kanban is more of a visual scheduling system. The emphasis here is that
Kanban is not a system where everything is put on schedule, it must be made clear that
Kanban is a production control system intended to enable the process owner to easily view
production requirements and ensure that parts or supplies are ordered/procured only if
necessary. Kanban cards are a key component of Kanban, a signaling system common in
Lean production that utilizes cards to signal the need to move materials within a
manufacturing or production facility or move materials from an outside supplier to the
production facility. The Kanban card is, in effect, a message that signals depletion of product,
parts or inventory that when received will trigger the replenishment of that product, part or
inventory. Consumption drives demand for more. Demand for more is signaled by Kanban
card. Kanban cards thus, in effect, help to create a demand – driven system. It is widely
espoused by proponents of Lean production and manufacturing that demand-driven systems
lead to faster turnarounds in production and lower inventory levels, helping companies
implementing such systems to be more competitive.
Kanban cards, in keeping with the principles of Kanban, should simply convey the need for
more materials. A red card lying in an empty parts cart would easily convey to whomever it
would concern that more parts are needed. In the last few years, Electronic Kanban systems,
which send Kanban signals electronically, have become more widespread. While this is
leading to a reduction in the use of Kanban cards in aggregate, it is not uncommon in modern
Lean production facilities to still find widespread usage of Kanban cards.
KANBAN FOR TOOLS 18

The Kanban system is based on the use of cards called “Kanbans”. The card is put on a
rectangular vinyl slack. The following are the two kinds of cards normally used:
1. Withdrawal Kanban (WK)
2. Production Ordering Kanban (POK)
To make Kanban system work, manufacturing processes are designated as preceding process
(PP) and subsequent process (SP). The withdrawal Kanban (WK) details the quantity that the
subsequent process should withdraw, while the production ordering Kanban (POK) shows the
quantity which preceding process should produce. These cards circulate within the company
and its many cooperative companies, and within the factories of the cooperative companies.
Figure 3.1 shows how the Kanbans are used in practise. Starting from the subsequent process,
the various steps in utilizing the Kanban are as follows:
Step 1: Carrier of the subsequent process goes to the store of the preceding process with the
necessary number of WKs and the empty pallets (containers) on a forklift or jeep. He does
this when a sufficient number of detached WKs have accumulated in his Withdrawal Kanban
Post (i.e., receiving box or file).
KANBAN FOR TOOLS 19

Figure 3. 1 Steps involved in using the two Kanbans
Step 2: When the subsequent process carrier withdraws parts at store A, he detaches the
POKs which were attached to the physical units in the pallets (each pallet has one sheet of
Kanban) and places these Kanbans in the Kanban receiving post. He also leaves the empty
pallets at the place designated by the preceding process people.
Step 3: For each POK detached, he attaches in its place one of his WKs. When exchanging
the two types of Kanbans, he carefully compares the WK with the POK for consistency.
Step 4: When work begins in the subsequent process, the WK must be put in the WK post.
Step 5: In the preceding process, the POK is collected at a certain point in time from the
Kanban receiving post, and is placed in the same sequence in which it had been detached at
store A.
Step 6: Produce the parts according to the ordinal sequence of the POK in the post.
Step 7: The physical units and the Kanban must move as a pair when processed.
Step 8: When the physical units are completed in the process, they and the POK are placed in
the store A, so that the carrier from the subsequent process can withdraw them at any time.
KANBAN FOR TOOLS 20

Figure 3. 2 Chain of Kanbans and physical units
Such a chain of Kanban exists continuously in many of the preceding processes. As a result
every process receives the necessary kind of units, at the necessary time in the necessary
quantities, so that just in time is realized in every process. The chain of Kanban helps realise
line balancing for each process, so that it produces its output in accordance with the cycle
time. Figure 3.2 shows the Kanban chain.
Figures 3.3 and 3.4 show sample WK and POK. The WK specifies the kind and quantity of
product which the subsequent process (SP) should withdraw while the POK specifies the kind
and quantity of product which the preceding process (PP) must produce.
Figure 3. 3 Withdrawal Kanban
KANBAN FOR TOOLS 21

Figure 3. 4 Production Ordering Kanban
3.1 Other types of Kanbans
Although the basic types are WK and POK, several other Kanban cards are used. These are:
3.1.1. Subcontract Kanban
3.1.2. Emergency Kanban
3.1.3. Special Kanban
3.1.4. Signal Kanban
3.1.5. Material Kanban
3.1.6. Combination Kanban
3.1.7. Electric Kanban
Subcontract Kanban: A subcontract Kanban (fig 3.5) contains instructions which request the
subcontracted supplier to deliver the parts. This is a WK. figure 3.5 shows a sample of
subcontract Kanban.
KANBAN FOR TOOLS 22

Figure 3. 5 Subcontract Kanban
Emergency Kanban (fig 3.6): This is a temporarily issued Kanban for defective work, extra
insertions or for a spurt in demand. Both WK and POK exist for this type. It is issued only for
extraordinary purposes and is collected just after its usage.
Figure 3. 6 Emergency Kanban
Special Kanban (fig 3.7): this is prepared for job order production. It is issued and collected
for each job order.
KANBAN FOR TOOLS 23

Figure 3. 7 Special Kanban
Signal Kanban (fig 3.8): This is used when lot production takes place in job oriented
production. The card is tagged to a box within the lot. If the withdrawals are made down to
the tagged position of this Kanban, the production order must be set in motion. This is a kind
of POK. The Kanban is usually triangular in form. It contains descriptions like item code,
store position, line name, lot size, and reorder point. The card is tagged at the position of
reorder point at the store. When the goods at the store are withdrawn and the pallets are
picked up, the signal Kanban is moved to the reorder instructions post. When it is moved to
the operation dispatching post, operations will begin.
Figure 3. 8 Signal Kanban
KANBAN FOR TOOLS 24

Material Kanban (fig 3.9): This is used for material requirements in lot production. If the
reorder point is set higher than that of the signal Kanban, the material requirement can be
filled before the production of the department in question begins.
Figure 3. 9 Material Kanban
Combination Kanban: Sometimes, a cart performs the function of Kanban. This is called
Kanban cart. In TPS, a cart is used to withdraw unit parts such as engines or transmission.
The parts carry Kanbans, but the cart also plays the role of Kanban. Thus, when the number
of transmissions at the side of final assembly is decreased to a certain reorder point, hen
people engaged in putting transmissions into carts bring the empty cart to the preceding
process, i.e., transmission assembly process and withdraw a cart loaded with the necessary
transmissions in exchange for the empty cart. Thus, the number of carts in this case has the
same meaning as the number of Kanbans.
Electric Kanban (fig 3.10): This is used for matching quantities produced and withdrawn
among automated processes, where there are no workers. A concept of full work system is
adopted in this case. Suppose for example that the preceding machine A and the subsequent
machine B are connected to each other and the standard inventory level of working process
on machine B is 6units. Then, if machine B has only 4 units in process, machine A
automatically begins to operate and produces its output until 6 units are placed in machine B.
When machine B is full with predetermined quantity (6 units), a limit switch automatically
stops the operation of machine A. Because of the similarity between such a limit switch and a
Kanban in workplace, the full work system is called an Electric Kanban.
KANBAN FOR TOOLS 25

Figure 3. 10 Full Work System
3.2 Kanban rules
It is now possible to state the Kanban rules in full.
Rule 1: The subsequent process should withdraw the necessary products from the preceding
process in the necessary quantities at the necessary point in time.
Rule 2: The preceding process should produce its products in the quantities withdrawn by the
subsequent process.
Rule 3: Defective products should never be conveyed to the subsequent process.
Rule 4: The number of Kanbans should be minimized.
Rule 5: The Kanban system should be used to adapt to only small fluctuations in demand.
Rule 1 is accompanied by three other sub-rules which are:
I. Any withdrawal without a Kanban should be prohibited
II. Any withdrawal which is greater than the number of Kanbans should be prohibited.
III. A Kanban should always be attached to the physical product.
Rule 2 has other sub-rules which are:
I. Production greater than the number of sheets of Kanban must be prohibited.
KANBAN FOR TOOLS 26

II. When various kind of parts are to be produced in the preceding process, their
production should follow the original sequence in which each kind of Kanban has
been delivered.
Since the preceding process (PP) will often be required to make frequent set ups, each set up
must be made quickly. The number of sheets of POK’s that can be retained in the preceding
process before a Kanban is picked up for production depends upon the relation between the
reorder point and the lot size.
If lot size is equal to reorder point, production must start immediately when WK is taken to
PP. If the lot size is greater than reorder point, the following situations arise:
I. The set up time is still long and the lot size is rather big.
II. In the process of conveying goods from the subcontract company, there is a high
probability of occurrence of various unstable factors such as traffic hold ups,
accidents on roads, etc.
KANBAN FOR TOOLS 27

3.3 Adapting to Fluctuation in demand through Kanban
This is often termed as fine tuning production by kanban. There are 3 possible situations:
I. No change in daily tool production load.
II. Short term, small fluctuations in daily production load.
III. Major seasonal changes.
In the first case, the only changes are in the kinds of cars, delivery dates and their quantities.
Thus, if the schedule is revised for the final production line, schedules for all the preceding
processes are automatically revised by transferring the kanbans. To consider the second case,
let’s take an illustration. Assume that an engine manufacturing process has to produce 100
engines per day. The SP requires 5 engines per one time lot by the WK. The lots are picked
20 times per day. If there is a need to decrease all the processes by 10%, the final process
now has to withdraw engines 18 times per day. Then, since the engine process produces only
90 engines per day, the process will be suspended for the remaining hours.
If there is a need to increase production quantities by 10%, the final process must withdraw
engines 22 times per day with the kanban. Then the preceding process has to produce 110
units, and the additional 10 units would be covered by over time.
Toyota works on two shift system. The day shift is from 8a.m to 6p.m and the night shift is
from 9p.m to 6a.m. By inserting early attendance and overtime before and after these shifts,
the line has the same number of workers at any time and the TPS is able to produce as many
units as a 3 shift system.
In Toyota’s experience, 10-30% variation in demand can be handled by canging only the
frequency of Kanban transfers without revising the number of kanbans. Kanban system, in
general, has no adaptability to seasonal demand changes. Techniques to deal with this are
discussed under production smoothing.
There are two other concepts which are integral parts of Kanban system in Toyota. These are:
I. Whirligig beetle
II. Round tour system
KANBAN FOR TOOLS 28

3.4 Whirligig
A Whirligig beetle is an insect that whirls on the surface of water very swiftly. The carrier in
the Toyota factory is also called the Whirligig beetle (mizusumashi) because he travels
between PP and SP in a pattern that is repeated again and again. The whirligig is also a
transmitter of WK information. He normally drives a fork lift which pulls a container like
vessel. The carrier goes to various processes, picking up parts required for production at SP.
Such a round tour system is required because of frequent withdrawals.
Round Tour System
The round tour mixed loading system is used by the sub contractor. Suppose, for example,
that 4 sub contracted companies A, B, C and D located in the eastern area must bring their
products to Toyota 4 times a day in small lot sizes. Although, such frequent delivery can
decrease the inventory level very much, it is not feasible for any of the sub contractors
because of high distribution costs.
So, the first delivery can be made (at 9a.m) by A, also picking up on the way products from
company B, C and D in A’s truck. The second deliver (at 11a.m) could be made by B,
similarly picking up products from A, C and D on the way. The third delivery (at 2p.m) is
made by and the 4th
(at 4p.m) is made by D company. This is called “round tour mixed
loading system”.
KANBAN FOR TOOLS 29

3.5 Determining the number of Kanbans in TPS
In TPS, two kinds of withdrawal systems are used. They correspond to two different
inventory systems: (i) The constant quantity, non constant cycle withdrawal system and (ii)
the constant cycle, non constant quantity withdrawal system. The Kanban itself may be
defined as a medium of information for dispatching the right quantity of right item at the right
time.
General formula used for calculating number of Kanbans in circulation
#K Number of Kanban [-]
DR production requirement [pcs/time]
(per day, shift, hour,
Heijunka-units...)
RT Replenishment time [time]
α Safety factor [-]
NC container capacity [parts/container]
KANBAN FOR TOOLS 30
NC
DR * RT * (1 + α )
#K
K
K
=
DR: Production requirement pcs/time
RT: Replenishment time
NC: Container capacity
α : Safety factor
Time required to refill the supermarket.
Analyze customer demand (Takt Time)
Volum
e
Customer
demand
Number of parts per container (lot size)

Safety factor and inventory fluctuation:
3.5.1 Kanban number under constant quantity withdrawal system
At Toyota, the process within the Toyota Motor Corporation plant uses the constant quantity
withdrawal system, whereas the supplier Kanban exclusively uses the constant cycle
withdrawal system, due to geographic distance. Within Toyota plant, the lead time is
relatively short because of the short distance between processes and also because of the well
improved processes. But the total lead time for a supplier’s products is relatively long
KANBAN FOR TOOLS 31
Customer
Supplier
(production)
Information time tI
Waiting time tW
Production time tP
Delivery time tD
Replenishment time RT = tI
+ tW
+ tP
+ tD

because of the greater distances from the supplier resulting in a long conveyance time. The
focus is on constant reduction of lot size but there is a constraint in reducing the lot size.
There are 3 applications of Toyota’s constant withdrawal system. When the lot size is large or
the setup action is not sufficiently improved, the following formula is used:
Total number of Kanban = Economic lot size + ( Daily demand*safety co efficient)
Container capacity
Economic lot size = Monthly demand
Monthly no. of set ups
In this instance, the signal Kanban is used in die casting, punch press and forging press. The
position of the triangular Kanban, i.e., the re order point is determined by the formula:
Position of the triangular Kanban = Avg. Daily demand*lead time*(1+safety co efficient)
Container capacity
Some companies in the Toyota group use the following formula for determining the position
of triangular Kanban
Position of the triangular Kanban = [{average daily demand/container capacity}]+1
Where, [{}] means the minimum integer not less than the figure in it.
Where the set up modes are improved and the distance between the subsequent and preceding
process is short, the “constant quantity” will be equivalent to one pallet or one cart, which
corresponds to one sheet on Kanban. When the subsequent process withdraws one box on
parts, the preceding process must pick up the one empty box and immediately begin to
produce the number of parts to be contained in the box. However, each withdrawal time
cannot be known by the preceding process.
In such cases, the max necessary inventory is equal to the re order point.
The total number of Kanbans is given by
Total no. Of Kanbans = Average daily demand*lead time*(1+safety co efficient)
Container capacity
Here, Lead time = Processing time+ Waiting time+ Conveyance time+ kanban collecting
time.
Here, lead time is given pre order, i.e., pre container.
Of course, the ideal condition for JIT production if that each process can only produce only
one piece, convey it one at a time and also have one piece in stock both between the
equipment and the process- called one piece production and conveyance.
KANBAN FOR TOOLS 32

Suppose Safety coefficient= 0
Waiting time= 0
Kanban collection time=0
Container capacity=1
Then the Kanban process is a conveyor line. In the formula above, the safety coefficient is
limited not to exceed 0.1
3.5.2 Constant cycle, Non-constant quantity withdrawal system
In the case of Toyota Kanban system using the constant cycle withdrawal approach, the
following formula is used for computing the total no. of Kanbans.
Total no. Of Kanbans = Daily demand*(order cycle+ lead time+ safety period)
Container capacity
Here lead time = processing time + waiting time + conveyance time + Kanban collecting
time.
The processing time is the time interval between placing a production order and completing
its production.
The Kanban collecting time is the time interval between picking up Kanbans from post,
which were detached at the subsequent process and placing the production order to the
preceding process.
The safety inventory period corresponds to the stock kept at the store. This inventory is to
respond to the defective products and machine troubles.
Next, by using the formula, the order quantity under this system is determined.
Order quantity = (No. of Kanbans detached by the time of regular Kanban collection since the
previous collection) * container capacity.
The equation results due to the following relationships.
[No. of Kanbans Detached by the regular point in time since the previous Kanban Collection]
+ [No. of Kanbans kept in the preceding process]= [Total no. of Kanbans] + [Existing No. of
Kanbans attached to the inventory at the subsequent process store, at a regular point in time.]
The variables which determine the total no. of Kanbans in any formula are as follows:
1. Average daily demand
2. Lead Time
3. Safety Co-efficient or safety stock
KANBAN FOR TOOLS 33

4. Container Capacity
The average daily demand is determined by the smoothed amount/day, derived from a
monthly demand quantity. When the daily demand changes, the cycle time of a std. Operation
routine is reduced by changing the allocation of worker in the line. Thus if the daily demand
doubles the cycle time is cut in half and the turnover of the Kanban is doubled resulting in the
total no. of Kanban being unchanged.
3.5.3 Constant Withdrawal Cycle System for the Supplier Kanban
The total no. of each supplier Kanban is computed by using the formula
Total No. of Kanbans= Daily Demand*(Order Supply to the supplier + Production lead time
to the supplier + Safety Co-Efficient)
Container Capacity
The order cycle to the supplier is the time interval between placing one order to the supplier
and placing the next supplier. In other words, the order cycle corresponds to the no. of hours
set by the parent company to bring the supplier Kanban to the supplier.
Order Cycle to the supplier = No. of days spent for one time conveyance
No. of Times of Conveyance/day
The production lead time of the supplier is the time interval between placing the production
order by the supplier to his line a completing his production.
Production lead time of the supplier = Order cycle time to the supplier * conveyance interval
Conveyance interval is understood through the following example. Suppose there are several
Kanban conveyances/day from the parent company to the vendor. Then, how many types of
Kanban conveyances must be required by the vendor to be able to deliver the ordered
quantity to the paternal maker after the maker has placed the order at a certain point of time.
[Order cycle to the supplier] + [Production lead time of supplier] = [No. of days spent for one
time conveyance] *[(1 + Conveyance interval)/ No. of conveyance times/day]
Therefore,
The total no. of Kanbans = ([Daily Demand]/[container capacity])*
{[[No. of days spent for 1 time conveyance]]*[(1+conveyance interval)/ (No. of times of
conveyance/day)] + safety coefficient]
KANBAN FOR TOOLS 34

The safety co-efficient is dependent on the supplier’s ability to cope up with the following
disturbances:
1. Since the supplier Kanban is delivered on the constant withdrawal cycle system, the
quantity withdrawn will vary at each withdrawal time.
2. Even if daily production level is average, the actual monthly quantity based on actual daily
dispatching from Toyota through kanban may deviate from the pre determined monthly
3. Production plans sent from the customer maker
4. Machine breakdown may occur
5. Traffic accidents may occur on the road to the customer client.
3.6 Benefits of Kanban
Kanban provides a number of benefits like:
III.6.1 Reduce inventory and product obsolescence:
Since component parts are not delivered until just before they are needed, there is a reduced
need for storage space. Should a product or component design be upgraded, that upgrade can
be included in the final product as soon as possible. There is no inventory of products or
components that become obsolete. This fits well with the Kaizen system on continual
improvement. Product designs can be upgraded in small increments on a continual basis, and
those upgrades are immediately incorporated into the product with no waste from obsolete
components or parts.
III.6.2 Reduces waste and scrap:
With Kanban, products and components are only manufactured when they are needed. This
eliminates overproduction. Raw materials are not delivered until they are needed, reducing
waste and cutting storage costs.
III.6.3 Provides flexibility in production
If there is a sudden drop in demand for a product, Kanban ensures you are not stuck with
excess inventory. This gives you the flexibility to rapidly respond to a changing demand.
Kanban also provides flexibility in how your production lines are used. Production areas are
KANBAN FOR TOOLS 35

not locked in by their supply chain. They can quickly be switched to different products as
demand for various products changes. Yes, there are still limits imposed by the types of
machines and equipment, and employee skills; however the supply of raw materials and
components is eliminated as a bottleneck.
III.6.4 Increases Output
The flow of Kanban (cards, bins, pallets, etc.) will stop if there is a production problem. This
makes problems visible quickly, allowing them to be corrected as soon as possible. Kanban
reduces wait times by making supplies more accessible and breaking down administrative
barriers. This results in an increase in production using the same resources.
III.6.5 Reduces Total Cost
The Kanban system reduces your total costs by
• Preventing Over Production
• Developing Flexible Work Stations
• Reducing Waste and Scrap
• Minimizing Wait Times and Logistics Costs
• Reducing Stock Levels and Overhead Costs
• Saving Resources by Streamlining Production
• Reducing Inventory Costs
KANBAN FOR TOOLS 36

CHAPTER – 4
SYSTEM STUDY
Sansera Engineering (P) Ltd. is the second largest manufacturer in Asia for rocker arms. The
company manufactures Precision Forged & Machined Components for the Automobile
Industries. The company also manufactures its own CNC - SPMs to be cost effective &
enhance machining capabilities. Our project study was carried out at Plant – VII, for the tools
used in the manufacture of connecting rods. The complete production of connecting rods is
for Maruti Udyog Limited. The plant operates one shift everyday. It begins at 8:30 a.m. and
ends at 5:00 p.m. The shift is of 8 and half hours, which includes half an hour of lunch break
and two tea breaks of 15 minutes each.
1st
shift 8:30 a.m.- 5:00 p.m.
Tea break 10:30 a.m.-10:45 a.m.
Lunch break 1:30 p.m.- 2:00 p.m.
Tea break 3:30 p.m.- 3:45 p.m.
Weekly holiday – Sunday, Salary day – 7th
of every month
4.1 Present system
Presently the company follows Max – min inventory system. Under this method, maximum
and minimum levels of inventory are fixed. Reordering is done after a period of review and
order is placed when the quantity touches minimum. The drawbacks of this system are:
1. Stock levels are fixed at lower levels, since managers have no time to study inventory
levels of individual items.
2. Re-order points and safety stock levels once fixed are not frequently changed after
study.
3. Delay in postings makes the records useless for purposes on control, as often even a
critical item can be held up for want of posting, which otherwise would have shown
that the re-order point has been touched.
KANBAN FOR TOOLS 37

4. Continuous reviewing of the inventory level is required.
The Bin Card used at the plant for maintaining the inventory records is shown in fig 4.1
KANBAN FOR TOOLS 38

4.2 Machine details
The details of the machines being used and the number of operators required are as shown in
the table below:
Machine Workers Machine Workers
Rough grinding
1
Bolt, Stem & Cap
Assembly
1
Small End Drilling and Boring Finished Grinding
1
Cap Thickness Milling 1 Small End Oil Hole
Drilling
Orientation Milling (Stem)
Assembly Face Milling (Cap)
1 Big End, Small End
Boring & Chamfering
1
Orientation Milling (Cap)
Assembly Face Milling (Stem)
1 Width Milling
Big End Rough Boring and Chamfering 1 Small End Honing
1
Notch Milling 1 Big End Honing
Assembly Face Grinding
1
Inspection 1
Big End Oil Hole Drilling and
Chamfering
Laser Marking 1
Bolt Hole - Spot Facing (Stem & Cap),
Drilling & Chamfering, Reaming - Robot
1
Final Inspection and
Packing
1
Table 4.1 Machine details
KANBAN FOR TOOLS 41

4.3 Production Line
The production line is shown in fig
KANBAN FOR TOOLS 42

Fig 4. 1 Production Line
There are 7 different operations performed on the component:
KANBAN FOR TOOLS 43

1. Grinding: It is the operation of removing metal in the form of minute chips by feeding
the work against a rotating abrasive wheel known as the grinding wheel. Both internal
and external surfaces of a work piece may be ground by using a special attachment
mounted on the cross slide. Grinding is performed in a lathe for finishing a job,
sharpening a cutter, resizing a work piece after it has been hardened.
2. Drilling: It is the operation of producing a cylindrical hole in a work piece by the
rotating cutting edge of a cutter known as drill.
3. Boring: It is the operation of enlarging a hole produced by drilling, punching, casting
or forging. Boring can originate a hole. It is similar to external turning operation.
4. Milling: It is the operation of removing the metal by feeding the work against rotating
cutter having multiple cutting edges.
5. Chamfering: It is the process of removing the sharp extra material around the drilled
hole and providing a bend at 45 degrees. The burr formed during the drilling
operation is first removed and then the work piece is chamfered.
6. Reaming: It is the operation of finishing and sizing a hole which has been previously
drilled or bored. The tool used is called the reamer, which has multiple cutting edges.
7. Honing: It is a manufacturing process that produces a precision surface on a work
piece by scrubbing an abrasive stone against it along a controlled path. Honing is
primarily used to improve the geometric form of a surface, but may also improve
surface texture.
Further a study was carried out on the tools, and only the high consumption tools were
considered for the development of Kanban system. The study included collection of data
pertaining to tool life, machining time, replenishment time, tool dimensions and consumption
pattern of each tool.
KANBAN FOR TOOLS 44

The list of tools used in all the machines is shown in the Table 4.1
List of Tools for Maruti Con Rod - 002
Sl. No. Operation Machine Tool Name Tool Specification
1 Rough (G) Both Side DDG-215 Grinding Wheel Ø 500*75*350mm VPB F TYPE
S.P.D. Dresser 4CT M12*1.75
S.P.D. Dresser 4CT MT-1 TAPER
2 S/End Drilling SVM-206 Main Holder WSLH-25-110 HSK A63
Insert Holder Ø 18mm U Drill
Insert SOMX060304-DT IC908
Insert Clamping Screw SR 34-508/L
Allen key T07 P-3
S/End Boring Main Holder WSLH-25-110 HSK A63
Insert Holder Ø 18.5mm ST-118
Cartridge STFCR 06CA06
Insert TCMT06T104 PF5015
Insert Clamping Screw SR34-533/L
3 S/End Chamfering Drill Chuck & Key 1/2" 13J6
HSS CSK Tool Ø 25*90°
4 Orientation Milling (stem) DAM-234 Main Holder BT40/SLA32/90
Assy Face Milling (stem) Insert Holder H490 E90AX D32-3-W32-12
Assy Face Milling (cap) DAM-235 Insert H490 ANKX 120508 PN TR IC830
Orientation Milling (cap) Insert Clamping Screw SR 14-544
Allen key SW6-T + T15/M7
5 Rough Boring SRB-201 Insert Holder Ø 44/45H7
Insert SCMT 120408-PM5 WPP10
Insert Clamping Screw M4.5
Sl. No. Operation Machine Tool Name Tool Specifiation
KANBAN FOR TOOLS 45

Insert TCMT110308 WAP20
Insert Clamping Screw C02506 T08P
6 Notch Milling SVM-205 Main Holder BT40/A70/RD32
Key way milling cutter Ø 20*4.26mm
7 Oil Hole Drilling & 4STATION-21 Main Holder BT30/ER16*080
Chamfering Collet RD16 Ø 10mm
Centre Bit A4*10*60°
Collet RD16 Ø 2mm
HSS S/S Drill Ø 2mm
Collet RD16 Ø 10mm
Twist Drill Ø 10*90°
8 Assy Face Grinding (stem) DDG-216 CBN Wheel Ø 125*5*3*31.75 B181-75C-BC2
Thickness Grinding (cap) Dressing Stick 100*20*20mm
Assy Face Grinding (cap)
9 Bolt Hole Spot Facing (stem) SBM-201 Main Holder HSK A63/SL20/131 SLH
Insert Holder HM90 E90A-D25-3-C25-8
Insert APKT1003 PDR HM90 IC908
Allen key T08
Insert Holder R417.19-2524.3-07A
Insert SPMX070304-75 F40M
SPMX0703AP-75 F40M
Bolt Hole Spot Facing (cap) Main Holder WSLH/18-80/HSK-A63
Solid Carbide End mill Ø 18*30°*0.5C/R With 180° Flat
Main Holder WSLH/20-80/HSK-A63
Solid Carbide End mill Ø 20*30°*0.5C/R With 180° Flat
Bolt Hole Drilling & Chamfer SBM-202 Main Holder (Hydro Grip) 204772 Ø 8 18052305
KANBAN FOR TOOLS 46

Solid Carbide Drill Ø 7.5mm
Main Holder (Shrink Fit) 208132 Ø 10 43042305 (10*130)
Main Holder (Shrink Fit) 208122 Ø 10 14052305 (10*85)
Solid Carbide Step Drill Ø 8.5mm
Ø 8.5mm
Bolt Hole Reaming SBM-203 Main Holder (Hydro Grip) 204772 Ø 8 18052305
Solid Carbide Hole Mill Ø 8mm
Main Holder (Hydro Grip) 204052 Ø 8 44051306
Solid Carbide Reamer Ø 8.20mm
Ø 8.19mm
Solid Carbide Reamer Ø 8.22mm
10 Thickness Milling (cap) SDM-202 Main Holder ISO40/FMB22/45
Insert Holder F90LN D050-05-22-R N11
F90LN D050-05-22-L N11
11 Width Milling (Assy) SDM-201 Main Holder ISO40/FMB22/45
Insert Holder F90LN D063-06-22-R N11
F90LN D063-06-22-L N11
Insert LNMT1106 PN-N-MM IC928
Insert Clamping Screw SR-34-550
Allen key T10/S7
12 Finish Grinding Both Side (Assy) Al. oxide Segment A46 38.1*84.14/103.19*150 RAD-3A
13 Big End Boring & Chamfer SFB-203 Main Holder WSLH/32-110 HSK A63
Rough Boring Insert Holder Ø 44.4/1.5*45°
HSK A63 Ø44.4*45°
Finish Boring Ø 44.7/44.95/1.5*45°
Insert WCMT050308 PA120
KANBAN FOR TOOLS 47

Allen key T09/5
Insert TPGX090208 NX2525
Insert Clamping Screw CS 250T
S/E Boring & Chamfer Main Holder WSLH/25-110 HSK A63
Insert Holder Ø 18.90mm ST-167
Ø 18.7mm
Insert TCMT090208 PM 4225
14 S/E H/O/Drilling & Chamfer HD-206 Main Holder RD 16 Mandrel & Chuck nut
Collet RD16 Ø 10mm
Centre Bit A4*10*90°
15 S/E Rough Honing SVH-203 Carbide Mandrel Ø 18.85mm
CBN Stone 45*2*2mm B54
S/E Finish Honing Carbide Mandrel Ø 18.95mm
CBN Stone 45*2*2mm B15
B/E Rough Honing SVH-204 Carbide Mandrel Ø 44.85
CBN Stone 45*3*3.8mm B54
B/E Finish Honing Carbide Mandrel Ø 44.95mm
CBN Stone 45*3*3.8mm B30
Table 4.2 List of tools
KANBAN FOR TOOLS 48

CHAPTER – 6
PROBLEM DEFINITION & ANALYSIS
6.1 Problem Definition
Sansera currently follows max - min inventory control system for tools. The problems faced
by the company due to this system are – Overstocking, high procurement cost, inconsistent
ordering levels, stocking beyond maximum level, continuous reviewing of the inventory is
required, person driven system. This system is highly dependent on the stores manager;
hence, maintaining a constant inventory is a difficult task.
6.2 Problem Methodology
A Kanban system was selected to tackle the above problems.
The steps to introduce a Kanban controlled system are:
1. Select Kanban-parts
2. Define Kanban controlled areas (supplier/customer)
3. Define pieces per container (SNP = standard number of parts)
4. Size supermarket volume (inventory)
5. Calculate number of Kanbans (=total inventory)
6. Implement and run CIP
KANBAN FOR TOOLS 49

CHAPTER – 7
DATA COLLECTION & ANALYSIS
7.1 Step 1: Select Kanban parts
The high consumption tools are selected
Tools Under Consideration - Maruti Con Rod 002
Sl.No Tool Name Tool Specification
1 Grinding Wheel Ø 500*75*350mm VPB F TYPE
2 Insert Holder Ø 18mm U Drill
3 Insert SOMX060304-DT IC908
4 Insert TCMT 06T104-MF 1025
5 Insert H490 ANKX 120508 PN TR IC830
6 Insert SCMT 120408-PM5 WPP10
7 Insert TCMT110308 WAP20
8 Key way milling cutter Ø 20*4.26mm
9 Centre bit A4*10*60o
10 HSS S/S Drill Ø 2mm
11 Twist Drill Ø 10*90°
12 CBN Wheel Ø 125*5*3*31.75 B181-75C-BC2
13 Dressing Stick 100*20*20mm
14 Insert SPMX070304-75 F40M
15 Insert SPMX0703AP-75 F40M
16 Solid Carbide End mill Ø 18*30°*0.5C/R With 180° Flat
17 Solid Carbide End mill Ø 20*30°*0.5C/R With 180° Flat
18 Solid Carbide Drill Ø 7.5mm
19 Solid Carbide Step Drill Ø 8.5mm
20 Ø 8.5mm
21 Solid Carbide Hole Mill Ø 8mm
22 Solid Carbide Reamer Ø 8.20mm
23 Ø 8.19mm
24 Insert LNMT1106 PN-N-MM IC928
25 Insert WCMT050308 PA120
26 Insert TPGX090208 NX2525
27 Insert TCMT 06T108-PF 5015
28 CBN Stone 45*2*2mm B54
29 CBN Stone 45*2*2mm B15
30 CBN Stone 45*3*3.8mm B54
31 CBN Stone 45*3*3.8mm B30
Table 7.1 Tools under consideration
7.2 Step 2: Define Kanban controlled areas
KANBAN FOR TOOLS 50

The Kanban controlled areas of the tools considered are tool life, machining time, and
replenishment time.
7.2.1 Tool Life (table 7.1)
Tool life can be defined as the length of time that a cutting tool can function properly
before it begins to fail. The tool life has been collected based on number of component.
Sl.
No.
Tool Name Tool Specification
Tool life (no
of
components)
Daily Tool
Consumption
1 Grinding Wheel Ø 500*75*350mm VPB F TYPE 22000 0.02
2 Insert Holder Ø 18mm U Drill 20000 0.02
3 Insert SOMX060304-DT IC908 2000 0.23
4 Insert TCMT 06T104-MF 1025 7500 0.06
5 Insert H490 ANKX 120508 PN TR IC830 1000 0.45
6 Insert SCMT 120408-PM5 WPP10 1200 0.38
7 Insert TCMT110308 WAP20 3000 0.15
3000 0.15
9 HSS S/S Drill Ø 2mm 250 1.80
10 Twist Drill Ø 10*90° 15000 0.03
11 CBN Wheel Ø 125*5*3*31.75 B181-75C-BC2 13000 0.03
12 Dressing Stick 100*20*20mm 3000 0.15
13 Insert SPMX070304-75 F40M 2000 0.23
14 Insert SPMX0703AP-75 F40M 2000 0.23
15 Insert LNMT1106 PN-N-MM IC928 6400 0.07
16 Insert WCMT050308 PA120 750 0.60
17 Insert TPGX090208 NX2525 750 0.60
18 Insert TCMT 06T108-PF 5015 3000 0.15
19 CBN Stone 45*2*2mm B54 10000 0.05
20 CBN Stone 45*2*2mm B15 20000 0.02
21 CBN Stone 45*3*3.8mm B54 5000 0.09
22 CBN Stone 45*3*3.8mm B30 15000 0.03
23 Solid Carbide End mill Ø 18*30°*0.5C/R With 180° Flat 2000 0.23
24 Solid Carbide End mill Ø 20*30°*0.5C/R With 180° Flat 2000 0.23
25 Solid Carbide Drill Ø 7.5mm 650 0.69
26 Solid Carbide Step Drill Ø 8.5mm 650 0.69
27 Ø 8.5mm 650 0.69
28 Solid Carbide Hole Mill Ø 8mm 600 0.75
29 Solid Carbide Reamer Ø 8.20mm 600 0.75
30 Ø 8.19mm 600 0.75
31 Key way milling cutter Ø 20*4.26mm 1500 0.30
Table 7.1 Tool life based on number of components
Daily Tool Consumption = 450/ Tool Life
Considering 450 connecting rods are made per day with one shift
KANBAN FOR TOOLS 51

Example: HSS S/S Drill
The tool life is 250 components, hence per day with a production of 450 components
Daily tool consumption = 450/250 = 1.8
7.2.2 Machining time
Machining time can be defined as the total time taken for an operation to be carried out
on a machine. The machining time for each machine in seconds is shown in table 7.2
Sl.No. Operation
Machining
Time (sec)
1 Rough Grinding 52
2 Small end drilling & boring (2 components) 80
3 Cap Thickness Milling & Small end Chamfering 34
4 Orientation Milling (Stem) & Assembly Face Milling(Cap) 31
5 Orientation Milling (Cap) & Assembly Face Milling(Stem) 32
6 Rough Boring& Chamfering 33
7 Notch Milling 21
8 Assembly Face Grinding 27
9 Big end oil hole drilling & chamfering 19
10 Bolt & nut Assembly 55
11 Finish Grinding (3components) 80
12 Small end oil hole drilling 10
13 Fine Boring 43
14 Width Milling 25
15 Small end Honing (3 components) 36
16 Big end Honing (3 components) 36
Table 7.2 Machining time for each machine
7.2.3 Replenishment time
Replenishment time can be defined as the time from the moment it is determined that a
product should be ordered until the product is available. This includes the supplier lead
time, ordering time and transportation time. The replenishment time is shown in table 7.3
KANBAN FOR TOOLS 52

Replenishment Time
Sl. No. Tool Name Tool Specification
Lead
Time
(weeks)
Ordering
time
(days)
Transport
time
(days)
Replenishment
time (days)
1 Grinding Wheel Ø 500*75*350mm VPB F TYPE 4 6 2 36
2 Insert Holder Ø 18mm U Drill 0 6 2 8
3 Insert SOMX060304-DT IC908 4 6 2 36
4 Insert TCMT 06T104-MF 1025 4 6 2 36
5 Insert H490 ANKX 120508 PN TR IC830 4 6 2 36
6 Insert SCMT 120408-PM5 WPP10 4 6 2 36
7 Insert TCMT110308 WAP20 4 6 2 36
2 6 2 22
9 HSS S/S Drill Ø 2mm 2 6 2 22
10 Twist Drill Ø 10*90° 2 6 2 22
11 CBN Wheel Ø 125*5*3*31.75 B181-75C-BC2 4 6 2 36
12 Dressing Stick 100*20*20mm 2 6 2 22
13 Insert SPMX070304-75 F40M 2 6 2 22
14 Insert SPMX0703AP-75 F40M 2 6 2 22
15 Insert LNMT1106 PN-N-MM IC928 4 6 2 36
16 Insert WCMT050308 PA120 4 6 2 36
17 Insert TPGX090208 NX2525 4 6 2 36
18 Insert TCMT 06T108-PF 5015 4 6 2 36
19 CBN Stone 45*2*2mm B54 2 6 2 22
20 CBN Stone 45*2*2mm B15 2 6 2 22
21 CBN Stone 45*3*3.8mm B54 2 6 2 22
22 CBN Stone 45*3*3.8mm B30 2 6 2 22
23 Solid Carbide Endmill Ø 18*30°*0.5C/R With 180° Flat 2 6 2 22
24 Solid Carbide End mill Ø 20*30°*0.5C/R With 180° Flat 2 6 2 22
KANBAN FOR TOOLS 53

25 Solid Carbide Drill Ø 7.5mm 2 6 2 22
26 Solid Carbide Step Drill Ø 8.5mm 2 6 2 22
27 Ø 8.5mm 2 6 2 22
28 Solid Carbide Hole Mill Ø 8mm 2 6 2 22
29 Solid Carbide Reamer Ø 8.20mm 2 6 2 22
30 Ø 8.19mm 2 6 2 22
31 Key way milling cutter Ø 20*4.26mm 2 6 2 22
Table 7.3 Replenishment time for each tool
Replenishment time (days) = (lead time*7) + ordering time + transport time
Example: HSS S/S Drill
R.T. (Days) = (2*7) +6+2 = 22 days
KANBAN FOR TOOLS 54

7.3 Step 3: Define pieces per container (SNP = standard number of parts)
For inventory purposes the SNP is decided based on the minimum reorder quantity and
tool dimensions for each tool.
Sl.
No.
Tool
Dimension
in cm
Min
order
qty
1 Grinding Wheel Ø 500*75*350mm VPB F TYPE 40*40*6 2
2 Insert Holder Ø 18mm U Drill 5*15 1
3 Insert SOMX060304-DT IC908 10*5*1 10
4 Insert TCMT06T104 PF5015 10*5*1 10
5 Insert
H490 ANKX 120508 PN TR
IC830 10*5*1 10
6 Insert SCMT 120408-PM5 WPP10 10*5*1 10
7 Insert TCMT110308 WAP20 10*5*1 10
10.5*1.5 5
9 HSS S/S Drill Ø 2mm 10*2.5 10
10 CBN Wheel
Ø 125*5*3*31.75 B181-75C-
BC2 17*17*4.5 2
11 Dressing Stick 100*20*20mm 10*2 10
12 Insert SPMX070304-75 F40M 10*5*1 10
13 Insert SPMX0703AP-75 F40M 10*5*1 10
14 Insert LNMT1106 PN-N-MM IC928 10*5*1 10
15 Insert WCMT050308 PA120 10*5*1 10
16 Insert TPGX090208 NX2525 10*5*1 10
17 Insert TCMT 06T108-PF 5015 10*5*1 10
18 CBN Stone 45*2*2mm B54 4.5*0.2*0.2 12
19 CBN Stone 45*2*2mm B15 4.5*0.2*0.2 12
20 CBN Stone 45*3*3.8mm B54 4.5*0.3*0.38 12
21 CBN Stone 45*3*3.8mm B30 4.5*0.3*0.38 12
22 Solid Carbide End mill Ø 18*30°*0.5C/R With 180° Flat 10*2.5 5
23 Solid Carbide End mill Ø 20*30°*0.5C/R With 180° Flat 10*2.5 5
24 Solid Carbide Drill Ø 7.5mm 9*1.5 5
25 Solid Carbide Step Drill Ø 8.5mm 9*1.5 5
26 Solid Carbide Step Drill Ø 8.5mm 9*1.5 5
27 Solid Carbide Hole Mill Ø 8mm 9*1.5 10
28 Solid Carbide Reamer Ø 8.20mm 14*2 10
29 Solid Carbide Reamer Ø 8.19mm 14*2 10
30 Key way milling cutter Ø 20*4.26mm 10*25 5
31 HSS CSK Tool Ø 25*90° 5* 5
Table 7.4 Tool dimensions and minimum order quantity
KANBAN FOR TOOLS 55

7.4 Step 4: Size supermarket volume (inventory)
From the above data collected about the tool dimension and tool storage requirement a
tool rack is designed with an acrylic or transparent sheet covering for a better visibility of
the stocks. Just besides the tool rack is the Kanban Post and Scrap box which are also
made of a transparent material or acrylic sheet as shown in figure
Fig 7.1 Tool Rack with scrap and Kanban post
KANBAN FOR TOOLS 56

Fig 7.2 Lot Formation Board
KANBAN FOR TOOLS 57

7.5 Step 5: Calculate number of Kanbans
Sl.
No.
Tool
life
Daily tool
consumption
Replenishment
time (days)
Min
order
qty
No. of
Kanban
reqd.
Quantity
reqd/
kanban
Tuned
No.
Kanban
reqd.
1 Grinding Wheel Ø 500*75*350mm VPB F TYPE 22000 0.02 36 2 1 2 2
2 Insert Holder Ø 18mm U Drill 20000 0.02 8 1 1 1 2
3 Insert SOMX060304-DT IC908 2000 0.23 36 10 9 1 19
4 Insert TCMT 06T104-MF 1025 7500 0.06 36 10 3 1 13
5 Insert H490 ANKX 120508 PN TR IC830 1000 0.45 36 10 18 3 28
6 Insert SCMT 120408-PM5 WPP10 1200 0.38 36 10 15 1 25
7 Insert TCMT110308 WAP20 3000 0.15 36 10 6 1 16
8 Centre bit A4*10*60o 3000 0.15 22 5 4 1 9
9 HSS S/S Drill Ø 2mm 250 1.80 22 10 44 1 54
10 CBN Wheel Ø 125*5*3*31.75 B181-75C-BC2 13000 0.03 36 2 1 2 2
11 Dressing Stick 100*20*20mm 3000 0.15 22 10 4 1 14
12 Insert SPMX070304-75 F40M 2000 0.23 22 10 5 3 15
13 Insert SPMX0703AP-75 F40M 2000 0.23 22 10 5 1 15
14 Insert LNMT1106 PN-N-MM IC928 6400 0.07 36 10 3 12 4
15 Insert WCMT050308 PA120 750 0.60 36 10 24 2 29
16 Insert TPGX090208 NX2525 750 0.60 36 10 24 2 29
17 Insert TCMT 06T108-PF 5015 3000 0.15 36 10 6 1 16
18 CBN Stone 45*2*2mm B54 10000 0.05 22 12 1 4 4
19 CBN Stone 45*2*2mm B15 20000 0.02 22 12 1 4 4
20 CBN Stone 45*3*3.8mm B54 5000 0.09 22 12 2 6 4
21 CBN Stone 45*3*3.8mm B30 15000 0.03 22 12 1 6 3
22 Solid Carbide End Ø 18*30°*0.5C/R With 180° Flat 2000 0.23 22 5 5 1 10
KANBAN FOR TOOLS 58

Sl.
No.
Tool
life
Daily tool
consumption
Replenishment
time (days)
Min
order
qty
No. of
Kanban
reqd.
Quantity
reqd/
kanban
Tuned
No.
Kanban
reqd.
23
Solid Carbide End
mill Ø 20*30°*0.5C/R With 180° Flat 2000 0.23 22 5 5 1 10
24 Solid Carbide Drill Ø 7.5mm 650 0.69 22 5 17 2 22
25
Solid Carbide Step
Drill Ø 8.5mm 650 0.69 22 5 17 1 22
26 Ø 8.5mm 650 0.69 22 5 17 1 22
27
Solid Carbide Hole
Mill Ø 8mm 600 0.75 22 10 18 1 28
28 Solid Carbide Reamer Ø 8.20mm 600 0.75 22 10 18 1 28
29 Ø 8.19mm 600 0.75 22 10 18 1 28
30
Key way milling
cutter Ø 20*4.26mm 1500 0.30 22 5 7 1 12
31 HSS CSK Tool Ø 25*90° 2500 0.18 22 5 4 1 9
The formula used for the calculation of number of Kanbans is
#K = (Daily tool consumption) * (replenishment time) * (1+safety factor)
For example,
Taking into consideration HSS CSK Tool Ø 25*90°
Considering a safety factor of 0.1
#K = 0.18*22*(1+0.1) = 4 Nos.
Tuned num of Kanbans required = #K + min order qty = 4 + 5 = 9
KANBAN FOR TOOLS 59

7.6 Step 6: Implement and run CIP
For a better understanding of the system a physical model was prepared. This model was
used to educate the personnel about the system. A sample Kanban in use is as shown in
fig 7.3
From left AGM Mr. Lakshminarayan, GM Mr. Venkataraman, VP Preetham,
MD Mr. Sekhar Vasan, Sanjay, Sohil, Ankit, Mukesh with the model.
KANBAN FOR TOOLS 60

Line: MACR
TOOL
KANBAN
Tool Name: Insert
Tool Specification: SOMX 060304-DTIC908
Quantity: 1 Nos.
Location Signature Card No.
1 of 19
Fig 7.3 Sample Kanban approved by the company
Queries asked by the management:
Q1: Is the system worker friendly
A1: Yes, because it’s a better visualisation
KANBAN FOR TOOLS 61

PRESENT METHOD
Max
Stock
Min
Stock
Re-
order
quantity Unit Price(Rs)
Total Co
(Rs.)
inding Wheel Ø 500*75*350mm VPB F TYPE 6 2 4 3,375.00 2
ert Holder Ø 18mm U Drill 3 1 2 13,763.00 4
ert SOMX060304-DT IC908 50 20 30 432.00 2
ert TCMT 06T104-MF 1025 50 20 30 327.00 1
ert H490 ANKX 120508 PN TR IC830 50 20 30 641.00 3
ert SCMT 120408-PM5 WPP10 50 20 30 350.00 1
ert TCMT110308 WAP20 50 20 30 414.00 2
ntre bit A4*10*60o
50 20 30 249.00 1
S S/S Drill Ø 2mm 50 20 30 16.00
BN Wheel Ø 125*5*3*31.75 B181-75C-BC2 6 2 4 2,380.00 1
essing Stick 100*20*20mm 20 10 15 152.00
ert SPMX070304-75 F40M 30 10 20 511.70 1
ert SPMX0703AP-75 F40M 30 10 20 511.70 1
ert LNMT1106 PN-N-MM IC928 50 20 30 741.50 3
ert WCMT050308 PA120 50 20 30 127.00
ert TPGX090208 NX2525 50 20 30 319.20 1
ert TCMT 06T108-PF 5015 50 20 30 372.00 1
BN Stone 45*2*2mm B54 30 12 18 360.00 1
BN Stone 45*2*2mm B15 30 12 18 360.00 1
BN Stone 45*3*3.8mm B54 30 12 18 500.00 1
BN Stone 45*3*3.8mm B30 30 12 18 500.00 1
S CSK Tool Ø 25*90° 5 2 3 2050.8 1
y way milling cutter Ø 20*4.26mm 10 5 7 680.00
lid Carbide End mill Ø 18*30°*0.5C/R With 180° Flat 10 5 7 893.00
lid Carbide End mill Ø 20*30°*0.5C/R With 180° Flat 10 5 7 893.00
lid Carbide Drill Ø 7.5mm 20 10 15 815.00 1
lid Carbide Step Drill Ø 8.5mm 15 5 10 822.00 1
Ø 8.5mm 15 5 10 820.00 1
lid Carbide Hole Mill Ø 8mm 15 5 7 450.00
lid Carbide Reamer Ø 8.20mm 15 5 10 480.00
Ø 8.19mm 15 5 10 480.00
45
Table 7.4 The cost incurred in present method
KANBAN FOR TOOLS 62

Tool Name Tool Specification Unit
Price
January
January
Purchase
Value
February
Opening
Balance
Received
Quantity
Opening
Balance
Receiv
Quant
ing Wheel Ø 500*75*350mm VPB F TYPE 5730.00 0 0 0.00 6
Holder Ø 18mm U Drill
12662.0
0 11 0 0.00 1
SOMX060304-DT IC908 432.00 16 30 12960.00 36
TCMT 06T104-MF 1025 321.40 15 0 0.00 11
CSK Tool Ø 25*90° 2050.8 4 0 0.00 3
H490 ANKX 120508 PN TR 729.00 12 50 36450.00 22
SCMT 120408-PM5 WPP10 541.80 68 0 0.00 52
TCMT110308 WAP20 328.50 3 0 0.00 2
way milling cutter Ø 20*4.26mm 680.00 12 6 4080.00 15
e bit A4*10*60o 249.00 2 9 2241.00 3
S/S Drill Ø 2mm 16.00 44 50 800.00 74
Wheel Ø 125*5*3*31.75 B181-75C-BC2 2380.00 0 4 9520.00 1
ing Stick 100*20*20mm 152.00 5 5 760.00 5
SPMX070304-75 F40M 511.70 36 30 15351.00 66
SPMX0703AP-75 F40M 511.70 15 30 15351.00 26
Carbide End mill Ø 18*30°*0.5C/R With 180° Flat 893.00 2 4 3572.00 5
Carbide Drill Ø 7.5mm 815.00 0 36 29340.00 24
Carbide Step Drill Ø 8.5mm 822.00 0 13 10686.00 6
Ø 8.5mm 820.00 2 14 11480.00 8
Carbide Hole Mill Ø 8mm 450.00 8 6 2700.00 10
Carbide Reamer Ø 8.20mm 480.00 13 11 5280.00 5
Ø 8.19mm 480.00 10 9 4320.00 12
LNMT1106 PN-N-MM IC928 741.50 6 50 37075.00 34
WCMT050308 PA120 106.25 16 30 3187.50 37
TPGX090208 NX2525 319.20 11 40 12768.00 28
TCMT 06T108-PF 5015 327.00 5 25 8175.00 25
Stone 45*2*2mm B54 395.00 16 0 0.00 8
Stone 45*2*2mm B15 500.00 0 0 0.00 0
Stone 45*3*3.8mm B54 395.00 0 0 0.00 0
Stone 45*3*3.8mm B30 500.00 0 0 0.00 0
229668.50
KANBAN FOR TOOLS 63

March March
Purchase
Value
(Rs)
April
Unit
Price
Opening
Balance
Received
Quantity
Opening
Balance
Receiv
Quan
ing Wheel Ø 500*75*350mm VPB F TYPE 5730 4 0 0.00 2
Holder Ø 18mm U Drill
12662.0
0 0 2 25324.00 2
SOMX060304-DT IC908 432.00 23 0 0.00 19
TCMT 06T104-MF 1025 321.40 24 0 0.00 11
CSK Tool Ø 25*90° 2050.8 1 0 0.00 0
H490 ANKX 120508 PN TR 729.00 7 50 36450.00 18
SCMT 120408-PM5 WPP10 541.80 41 0 0.00 29
TCMT110308 WAP20 328.50 6 10 3285.00 12
way milling cutter Ø 20*4.26mm 680.00 9 6 4080.00 11
e bit A4*10*60o
249.00 6 0 0.00 3
S/S Drill Ø 2mm 16.00 50 0 0.00 38
Wheel Ø 125*5*3*31.75 B181-75C-BC2 2380.00 1 0 0.00 1
ing Stick 100*20*20mm 152.00 6 0 0.00 4
SPMX070304-75 F40M 511.70 56 0 0.00 50
SPMX0703AP-75 F40M 511.70 26 20 10234.00 34
Carbide Drill Ø 7.5mm 815.00 12 23 18745.00 4
Carbide Step Drill Ø 8.5mm 822.00 0 15 12330.00 3
Ø 8.5mm 820.00 1 15 12300.00 4
Carbide Hole Mill Ø 8mm 450.00 4 11 4950.00 2
Carbide Reamer Ø 8.20mm 480.00 5 16 7680.00 16
Ø 8.19mm 480.00 10 10 4800.00 10
LNMT1106 PN-N-MM IC928 741.50 32 20 14830.00 17
WCMT050308 PA120 106.25 19 0 0.00 4
TPGX090208 NX2525 319.20 34 30 9576.00 42
TCMT 06T108-PF 5015 327.00 24 0 0.00 24
Stone 45*2*2mm B54 395.00 4 4 1580.00 4
Stone 45*2*2mm B15 500.00 0 0 0.00 0
Stone 45*3*3.8mm B54 395.00 0 0 0.00 0
Stone 45*3*3.8mm B30 500.00 0 0 0.00 11
186703.00
KANBAN FOR TOOLS 64

Conclusion
With the right effort, knowledge of the environment, and selection of the appropriate Kanban
techniques, you will have a Kanban system that will appear to operate by itself, with a greatly
reduced inventory and operating cost. It has also benefited in reducing the scrap and waste,
providing flexibility in production, and reducing the total cost by preventing over stocking,
developing flexible work stations, minimizing waste times and logistics costs, reducing stock
levels and over head costs, saving resources by streamlining production.
By implementing this system, the company incurred a reduction of 44% in the tool inventory.
It helped to reduce the fluctuations in the inventory level of tools and a fixed level of
inventory was introduced with the required safety stock. It also helped in disciplining the
workers when it came to tool usage and also relieved the workers of travelling long distances
in order to change their tools. Also, it is a system driven process which is an apt replacement
for the current person driven method of inspection of the inventory levels. This eliminates the
continuous review of the inventory which can reduce off the load from the store manager’s
shoulder.
In conclusion, the Kanban system is a very advanced system which would help the company
to eliminate the over stocking of tools which would in turn lead in reduction of overall costs
and would also make the entire process more productive. Kanban is a simple yet effective
control system that can be easily introduced and adopted in various production environments.
It is considered to be the “central element” of Lean and World Class Manufacturing. The
purpose of Kanban is, therefore, to automate the inventory controls without the need of
analysis or planning.
KANBAN FOR TOOLS 65

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