PRODUCTION PLANING CONTROL Mohammad Ikmal B Mohamed B050810223 KANBAN PRODUCTION PLANING CONTROL Group 10 Mohamad Izzudin B Abdul Hamid B050810048 Mohd Khuzaimi B Mohd Salleh B050810002 Mohammad Ikmal B Mohamed B050810223

Introduction of Kanban Kanban is a Japanese word for card that means “singboard” or “signal”. The card is an authorization for the next container of material to be produced. It is a scheduling system that helps to determine what to produce, when to produce it, and how much to produce. Many different sorts of signals are used, but the system is still called kanban.

More Kanban When the producer and supplier are not in visual contact, a card can be used. When in visual contact, a light or flag or empty spot on the floor may be adequate. Kanban is a simple, effective and visual system of managing and ensuring the product flow. Maintain discipline of pull production.

Concept of Kanban System Kanban scheduling systems operate like supermarket. A small stock of every items sits in a dedicated, location with a fixed space allocation.

Kanban System The factory principle is applied to a machining and assembly operation.

A more realistic example would probably involve at least two pallets. Producer 100 stem-bolts on a pallet. Bolts used and pallet is empty. Then, a person will takes a card that was attached to the pallet and sends it to the stem-bolt manufacturing area Manufacturing area Receive card (new pallet of stem-bolts is not made until a card is received). Pallet of stem-bolts is then manufactured. Pallet refilled and sent back to the widget assembler. A more realistic example would probably involve at least two pallets. The widget assembler would start working from the second pallet while new stem-bolts were being made to refill the first pallet.

Kanban’s Number

Example A production manager is working in a cellular manufacturing system for an automobile parts. He has to process an average of 250 parts per hour in the cell. The capacity of each container is 30 parts and one kanban is attached to all the containers. The time to receive new parts from the previous workstation is 25 minutes. Factory maintains a safety stock factor of 15%. Determine the kanban needed for the plant.

Solution D = 250 parts per hour L = 25 minutes = 25/60 = 0.4167 hour SS = (0.15)(250)(0.4167) = 15.6 C = 30 parts No. of Kanban, N = DL + SS C = (250 x 0.4167) + 15.6 30 = 3.993 ≈ 4

7 Step To Implementing Kanban Conduct Data Collection Calculate The Kanban Size Design The Kanban Train Everyone Start The Kanban Audit and Maintain The Kanban Improve The Kanban

Step 1: Conduct Data Collection Collect the data necessary to characterize the production process. This data will allow you to calculate the kanban quantity. Data collect: The number of parts produced Changeover times Downtime Scrap Levels

Step 2: Calculate The Kanban Size Calculate the kanban container size based on current conditions, not based on future plans or desire. The initial calculations will utilize the data collections to calculate a replenishment interval. Replenishment interval = establish the order quantities

Step 3: Design The Kanban Develop a design to support production requirements based on current conditions. To create design of kanban: Select the signaling mechanism for the kanban Develop the rules for operation of the kanban Create a visual management plan for the kanban Finish the design step, pick a start date, build a plan to support this date and monitor the plan for progress toward hitting this date.

The Kanban Rules Each container must have a card. Assembly always withdraws from fabrication (pull system). Containers cannot be moved without a Kanban card. Containers should contain the same number of parts. Only good parts are passed along. Production should not exceed authorization.

Step 4: Train Everyone Before starting kanban, train everyone on how the system will work and on their role in the process. Develop a simple presentation to explain the process and the visual signals. Keep the training focused on operating the kanban.

Step 5: Start The Kanban Before implement kanban, make sure all visual management piece in place. Having the signals set up, control points marked, and the rules completed and coordinated before start. During the deployment stage, develop a scheduling transition plan and determine the exact point for the change and the amount of inventory required to make the change.

Step 6: Audit and Maintain The Kanban Auditing is the step that usually gets overlooked in most failed start-ups(identify who will audit). The auditor will be watching how the scheduling signals are handled. Taking action prevents the kanban from being pronounced a failure by the operators. The auditor will also look at future requirements to make sure the kanban quantities meet expected demand.

Step 7: Improve The Kanban Improve the kanban to reduce inventory quantities. Reduce the quantities based on improvements made to the production process.

Withdrawal (Conveyance) Kanban Types of Kanban Type of kanbans Withdrawal (Conveyance) Kanban Production Kanban

Withdrawal (Conveyance) Kanban Specifies the kind and quantity of product which a manufacturing process should withdraw from a preceding process.  Function Pass the authorization for the movement of parts from one stage to another. Once it gets the parts from the preceding process and moves them to the next process, remaining with the parts until the last part has been consumed by the next process. The withdrawal Kanban then travels back to the preceding process to get parts thus creating the cycle.

A withdrawal Kanban usually carries part number part name lot size routing process name of the next process location of the next process name of the preceding process location of the preceding process container capacity number of container released

Example of Withdrawal Kanban

Production Kanban Specifies the kind and quantity of the product which the preceding process must produce. Function- release an order to the preceding stage to build the lot size indicated on the card.

A production Kanban usually carries information Part number Container capacity Preceding work center number Raw materials other part types used in manufacturing at the work center

Example of Production Kanban

Kanban Benefits Prevent Overproduction Reduces Inventory Improves Flow 1 Reduces Inventory 2 Improves Flow 3 Prevent Overproduction 4 Improves Responsiveness to Change in Demand 5 Reduce Waste and Scrap 6 Provide Flexibility in Production 7 Increases Output

Reduce Inventory Kanban will reduce inventory, by 25 to 75%. Saves in terms of rent, electricity, and storage space. All of the space freed by the implementation of a kanban system can be used for future expansions or new opportunities.

Improves Flow 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 Moving material provide the guidance needed to improve the flow. No queue product. Eliminate waiting time.

Prevent Overproduction 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 Overproduction is mother of waste(space, cost, expired product, labor cost & etc.)

Improves Responsiveness to Changes in Demand Unlike a predictive system, kanban immediately reacts to the environment. The signal stops production when demand decreases, and when orders begin to increase, the inventory levels will signal the production to begin again.

Reduces Waste and Scrap Products and components are only manufactured when they are needed. Kanban eliminates overproduction. Raw materials are not delivered until they are needed, reducing waste and cutting storage costs.

Provides Flexibility in Production If sudden drop in demand of product occurs, Kanban ensures production not stuck with excess inventory. This gives the flexibility to rapidly respond to a changing demand.

Increases Output 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.

COnclusion Kanban is faster, more efficient, and saves significant money over most other production models. A kanban system is also far more directly responsive to customer demand. Kanban is a system that visually indicates when production should start and stop.

Kanban End