Kanban

Instructions
.

www.ChartitNOW.com
 What is Kanban

A Kanban system is a means to achieve Just-in-time (JIT) production. The

Kanban system will keep the shop floor lean and help reduce over production.

It works on the basis that each process on a production line pulls just the right
number and type of components the customer requires, at just the right time,
such that workers have what they need, where they need it, and when they
need it. Kanbans maintains inventory levels; a signal is sent to produce and
deliver a new shipment as material is consumed. These signals are tracked
through the replenishment cycle and this brings extraordinary visibility to
suppliers and buyers.

The mechanism used to achieve this is a Kanban card. This is usually a

physical card but other devices can be used. There are primarily three kinds of
Kanban cards that are mainly used; a Withdrawal Kanban, a Production
Kanban and a Supplier Kanban.
 Withdrawal Kanban Card

A Withdrawal Kanban Card - specifies the kind and quantity of product which
a manufacturing process should withdraw from a preceding process. The
withdrawal Kanban illustrated below shows that the preceding process which
makes this part is Machining, and the person carrying this Kanban from the
subsequent process must go to location SE 215 of the machining department
to withdraw drive sockets. Each box of drive sockets contains 20 units and
the shape of the box is `B'. This Kanban is the 4th of 8 issued. The item back
number is an abbreviation of the item.

Withdrawal Kanban Card

 Production Kanban Card

A Production Kanban Card - specifies the kind and quantity of product which
the preceding process must produce. The one illustrated Below shows that the
machining process SB-8 must produce the crankshaft for the car type
SX50BC-150. The crankshaft produced should be placed at location F26-18.
The production-ordering Kanban is often called an in-process Kanban or simply
a production Kanban.

Production Kanban Card

 Supplier Kanban Card

A Supplier Kanban Card is a printed

card indicating the reorder point has
been attained and a particular
material lot needs to be ordered from
the supplier, please see example to
the right of a supplier Kanban card.

Supplier Kanban Card

 6 Rules of Kanban

Rule 1: Downstream processes (Near finished product end) withdraw

items from upstream processes (Near raw product end).

Rule 2: Upstream processes produce only what has been withdrawn.

Rule 3: Only 100 percent defective free products are sent to the next
process.

Rule 4: Level production must be established.

Rule 5: Kanbans always accompany the parts themselves.

Rule 6: The number of Kanbans is decreased gradually over time.

 Introduction of the Kanban system to your
facility
1. Select the components of Kanban that will work in your facility. Not
all parts of Kanban may be appropriate for the types of products you
produce. Kanban may be appropriate for one product, and not for
another. In some cases a simple manual Kanban will work well. In
other cases computer automation of Kanbans may be the best
option. You will need to evaluate both your in-house production and
your suppliers in order to determine which Kanban options will
benefit your facility.

2. Plan your Kanban system. Kanban involves more than just

manufacturing. Other functions such as purchasing, warehousing,
shipping/receiving, quality control, transportation, accounts payable
and engineering will be involved. Include all of those who will be
effected in your Kanban planning and design process. In planning,
keep in kind that your object to to have what is needed (supplies,
parts, manpower, information, energy, equipment, etc.), where it is
needed when it is needed.
 Introduction of the Kanban system to your
facility
3. Set goals for Kanban. Based on your plan, set a schedule with
measurable goals. What do you want Kanban to accomplish and
when should that goal be reached? Determine what will be
measured, and how it will be measured. Be sure to get baseline
measurements of your current manufacturing system and inventory
levels, before Kanban is implemented.

4. Begin implementation of Kanban. A common approach to

implementing Kanban is to start with a generous number of
Kanbans - containers, pallets, boxes, etc. Then systematically
reduce the number of containers through trial and error until the
point at which the supply of materials is just in balance with the rate
of use is reached. As containers are removed from the process, it
will eventually reach the point at which production is delayed
because the next container has not yet arrived. At this point add one
container to the system to bring it back into balance.
 Introduction of the Kanban system to your
facility
In using a trial and error approach, be sure a safety stock is available
so that production is not interrupted. You identify the point at which
there is one too few containers as the point at which material from the
safety stock is used. This trial and error approach should be spread
over a significant period of time to allow for normal fluctuations in
production. In other words, don't remove a container every thirty
minutes. Instead, remove a container once a day, or even once a week.

5. The number of Kanbans is adjusted for any takt time changes. The
fewer Kanbans you require, the smoother your processes will run.
Kanban safety margins (X factors) should be kept as small as
possible.
 Introduction of the Kanban system to your
facility
If demand forecasts increase and Takt times decrease – add the
necessary number of Kanbans into the system. DO NOT ORDER IN
LARGER QUANTITIES, add Kanbans for needed parts. If demand
forecasts decrease and Takt times increase – remove the necessary
number of Kanbans from the system.

The next slide illustrates a successful Kanban system in action.

 Kanban Layout

Example of a Kanban system, using Withdrawal Kanban Cards,

Production Kanban Cards and a Supplier Kanban Card system
 Work Cells

Kanban is directly associated with Just-In-Time (JIT) delivery and as

such Kanban also involves industrial re-engineering. This means that
production areas might be changed from locating machines by function,
to creating "cells" of equipment and employees. The cells allow related
products to be manufactured in a continuous flow.
Kanban involves employees as team members who are responsible for
specific work activities. Teams and individuals are encouraged
participate in continuously improving the Kanban processes and the
overall production process.
 Containers

It is important that containers are clearly identified. Workers should be

able to immediately identify the contents of a container just by looking
at it. Colour coding and labelling containers is an effective approach.
For example, paint pallets or containers different colours so that each
colour is associated with one component or part. Use large labels that
are easy to read from a distance, making it easy for anyone to identify
the contents of a pallet or container. In addition to colour coding your
containers, use the same colour code for your labels. Label materials
are available in a wide variety of colours, giving you flexibility in colour
coding Kanban containers.
 Line Balancing

Line balancing is the process by which work is evenly distributed to

workers to meet the takt time which is required in the Kanban system to
run smoothly.

Some processes take longer than others, which may cause one or
more operators to wait for the next part and some processes may need
more than one operator. Line balancing helps to utilise every worker
and makes sure no one is idle for too long or working too much. Please
refer to the Takt Time website page* at ChartitNOW for assistance in
balancing the process line.

* http://www.chartitnow.com/Takt_Time_(Line_Balancing).html
 Calculating the number of Kanbans at a
Process
To determine the number of Kanbans needed at a process, the total number
amount must cover lead time. The most commonly used formula is:

DD  LT  SS
No. 
CC
Where: No. = Number of Kanbans needed
DD = Daily Demand (Monthly output / Work days in Month)
LT = Lead Time (Processing time + Lead time for Kanban retrieval)
SS = Safety Stock represented such as 1.05 etc 5% safety
CC = Container Capacity (Try and keep container size small)
 Problems of Implementing Kanbans

As the number of Kanbans in the system is gradually reduced, the first

problems that surface are usually changeover bottlenecks.
Improvement methods must be used immediately to reduce
changeover times so that takt time can be re-established and a mixed,
small lot production flow can continue to be regulated by Kanbans. If
methods for reducing changeover times are not being practiced it will
be impossible for the plant to respond to customer demand, which is
the key purpose of the Kanban system.

Maintenance is another critical element to ensure a successful pull

production system. Keeping machines operating at 100% using TPM
will be necessary for Kanban to function optimally.
 Summary

The Benefits of a Kanban system are:

1. Eliminate overproduction: The number 1 waste

2. Increase flexibility to respond to customer demand
3. Coordinate production of small lots and wide product variety
4. Have a simplified procurement process
5. Integrate all processes and tie them to the customer

Kanban will help you:

1. Connect information with the part or product

2. Find simple, visual, replenishment information
3. Find simple, visual, production instructions
4. Eliminate unnecessary WIP inventory
5. Uncover hidden waste (Line balancing, changeover times, etc) in your
process