Chapter 9 Inventory Kanbans Automating the Replenishment Cycle

IT-465 Lean Manufacturing2 Kanban A Japanese word that means signboard or signal. Are signals developed to automate the inventory replenishment cycle for items used repetitively in a facility Communicate the need for additional material to be pulled from the supplier Integral in a “pull” manufacturing system.

IT-465 Lean Manufacturing3 Typical Kanban Signal An empty container designed to hold a standard quantity of material or parts. The container is sent back to the supplier from the customer when empty. If returnable containers are not used, a kanban can be as simple as a laminated card.

IT-465 Lean Manufacturing4 Kanbans Are: –Communication devices from the point of use to the previous operation. –Purchase orders for your suppliers. –Work orders for your manufacturing area. –Visual communication tools. –Paperwork eliminators.

IT-465 Lean Manufacturing5 Kanbans Are not appropriate for: –Single piece or lot production –Safety stock –Systems which push inventory carrying requirements and the associated carrying costs back to the supplier. –Long range planning tools.

IT-465 Lean Manufacturing6 Kanbans Reduce Waste Eliminate –Over-production –The need for a stockroom –The need to reissue purchase orders Reduce: –The data management task for prod plng, work orders –Inventory –Parts expediting –Parts shortages –Material handling

IT-465 Lean Manufacturing7 Types of Kanbans (Pull Signals) Cards attached to portable containers such as tote pans Supplier replaceable cards on cardboard boxes designed to hold a standard quantity A painted spot or border on the floor around the standardized container Color coded striped golf balls s Bar code labels Variations of above

IT-465 Lean Manufacturing8 Summary Kanbans tie related processes together as if they were connected by an invisible conveyor. Kanbans: –Improve communication –Improve customer satisfaction –Reduce inventories –Reduce waste

IT-465 Lean Manufacturing9 Pull Systems Outcomes Define Pull system Define supermarket Define kanban

IT-465 Lean Manufacturing10 Production Scheduling Constantly change Production never produces to a schedule Utilize MRP (Material Resource Planning)

IT-465 Lean Manufacturing11 Supermarket Pull

IT-465 Lean Manufacturing12 Scheduling

IT-465 Lean Manufacturing13 Small-Lot Production + Leveling

IT-465 Lean Manufacturing14 Leveling Work Volume

IT-465 Lean Manufacturing15 Leveling Work Volume

IT-465 Lean Manufacturing16 Flow

IT-465 Lean Manufacturing17 The Problem with Inventory

IT-465 Lean Manufacturing18 Kanban Types Production Kanban “One-per-customer” kanban Supplying process can produce as little as one container Signal (Triangle) kanban “One-per-batch” kanban Signals when a reorder point is reached and another batch needs to be produced Used in supplying process where changeovers are required Withdrawal kanban “Shopping list” kanban Instructs the material handler to get and transfer parts

IT-465 Lean Manufacturing19 The Six Steps of Kanban 1.Consumption process withdraws only what is needed 2.Produce to replenish only what is withdrawn by the next process 3.Do not send defective products to the next process 4.Parts must not produced and conveyed when there is no kanban 5.Kanban must be attached to the actual parts or container 6.The actual number of parts in the container must match the number on the kanban

IT-465 Lean Manufacturing20 One Piece Flow Goal Represents a special case of kanban Lot size/quantity is one Benefits Minimizes waste in the process Defects affect only one component thus creating highest possible quality Minimizes inventory and space requirements Keeps pace with customer demand Efficiently utilizes labor in a balanced process Best possible throughput in a balanced process

IT-465 Lean Manufacturing21 Signal Kanban System

IT-465 Lean Manufacturing22 Summary Pull Systems –Single scheduling point –Produce to replenish use –Customer demand creates production Level loading Kanban