1. © Improvement Initiatives (used with permission of author) freeleansite.com The Lean Enterprise Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training Kanban – Types and Operating Systems

2. © Improvement Initiatives (used with permission of author) freeleansite.com Kanban What is Kanban? Card system that controls production & inventory Visual pull system vs. a “black box” push system (MRP)

3. © Improvement Initiatives (used with permission of author) freeleansite.com Categories of Kanban Instruction Withdrawal Kanban Production Kanban (non lot production) Triangle Kanban (for lot production) Interprocess Kanban Supplier Kanban

4. © Improvement Initiatives (used with permission of author) freeleansite.com Types of Kanbans & Systems

5. © Improvement Initiatives (used with permission of author) freeleansite.com What did a Milk Man do? What did a Bread Man do? Milkman vs. Breadman

6. © Improvement Initiatives (used with permission of author) freeleansite.com Real Life Kanban – Milkman Replenish What Was Consumed. Take Empties Back To Factory Replenish Empties Deliver Only What’s Needed Delivery Milk To House Constant Time

7. © Improvement Initiatives (used with permission of author) freeleansite.com Breadman Replenishment Replenishment Signals –Empty Rack Inventoried Daily –Kanban Card Attached At Reorder Point –MRP Report Replenishment Options –Constant Quantity or Constant Time –Flow through Rack Material Warehouse Withdrawal Kanban Rack At Preceding Process Outside Stores –Production Ordering Replenishment –Supplier Replenishment Point Of Use Transmitted Signal (Filled From Finished Goods)

8. © Improvement Initiatives (used with permission of author) freeleansite.com Maturity Path Stockroom –Pick List/ MRP –Kitting –Centralized Breadman –P.O.U. Two Bin Warehouse –Two Bin Line Side –Integrated Supply Inventory Turn Goals −One To Two −Once A Month −Twice A Month −Once A Week Replenishment Signals –Empty Bin –Kanban Card Attached To Bin –Visual – Lines On Floor –MRP Report Replenishment Options –Constant Quantity Or Constant Time –Material Warehouse –Stockroom –Supplier Vendor Managed Inventory Point Of Use At Line or Stockroom Transmitted Signal –EDI –Production Ordering Replenishment –Supplier Replenishment TWO-BIN System

9. © Improvement Initiatives (used with permission of author) freeleansite.com The Conveyance is the designated path or standard work that a water spider (material handler) takes to replenish the shelves. Conveyance or Milk Run Route: Pitch: Refers to the time relating to the cycle the “water spider” has to replenish the stock. Pitch is a lean concept and is calculated by multiplying cycle time by pack quantity (the number of products per container transferred to finished goods from the work cell). Definitions

10. © Improvement Initiatives (used with permission of author) freeleansite.com XX X X X X Flow of work Flow of information Simple Common Kanban Kanban Squares

11. © Improvement Initiatives (used with permission of author) freeleansite.com Rack A 1 2 3 4 ABC Part 1232 Battery Clip Location A-1-A 5 Kanban Shelving & Labeling Schemes

12. © Improvement Initiatives (used with permission of author) freeleansite.com Weld Kanban Bread Man 1 Week supply Milk Man 2 days supply Based on current Mix 1 day to paint Steps: 1.Final assy pulls from paint kanban. 2.Paint pulls from Weld kanban 3.Welder replenishes weld empties, pulls from S/M Kanban 4.Paint replenishes paint kanban daily and puts finished units back in Paint Kanban 5.Sheet metal replenishes S/M Kanban once a week Sheet Metal Kanban Weld Final Assy Sheet Metal Paint Kanban – No Cards

13. © Improvement Initiatives (used with permission of author) freeleansite.com Supplier Kanban With Cards Lean Materials Strategy Will Maximize Inventory Turns Through Supplier Managed Inventories Material Supermarket SIPLACE 80S SMT Machines Withdrawal Kanban Post Material Withdrawal Kanban Card Supplier delivers Material with Kanban cards from yesterday attached and picks up today's Kanban cards Material Handler (Water Spider) delivers material to supermarket

14. © Improvement Initiatives (used with permission of author) freeleansite.com Triangle Kanban Established for internal lot-processing or batch worksites For processes that have lengthy set-up times Production time is at a faster pace than that required in the following process This type of Kanban has a signaling device built in to prepare for change over

15. © Improvement Initiatives (used with permission of author) freeleansite.com Visual Management Kanban used for batches Mold Part Description Location Date Lot Size Trigger Point Tool # Press

16. © Improvement Initiatives (used with permission of author) freeleansite.com Part Description Part Number Location parts will be consumed (customer) Area defining lot size and time allotted for run Area defines when product needs to be rescheduled for production Defines which equipment product is dedicated to run on Date is hand written by consuming area when pulled What tool is used to produce this product Triangle Grid Definition

17. © Improvement Initiatives (used with permission of author) freeleansite.com

18. © Improvement Initiatives (used with permission of author) freeleansite.com Weld Cell #1 Assembly Cell Weld Cell #2 Triangle Kanbans at Work

19. © Improvement Initiatives (used with permission of author) freeleansite.com Took 12 years to flow down kanban within Toyota It then took: –8 years to have 60% of first tier suppliers on kanban –20 years to get 98% of first tier suppliers on kanban Only approximately 50% of Toyota suppliers are using kanban systems internally today Toyota Kanban Timeframe

20. © Improvement Initiatives (used with permission of author) freeleansite.com Keep it simple Develop strategy in phases toward P.O.U. –Utilize stockroom and warehouse on floor Then Eliminate stockroom Then Eliminate warehouse Have supplier continue to play larger role Make it very visual. Should not have to count: –Label shelves and boxes –Use water levels –Taped /sealed boxes –Color codes, Bar Codes –Egg carton approach, mistake proof system Continue to reduce quantity and increase replenishment frequency. Kanbans are inventory (evil) and need to be constantly minimized or eliminated As you move from Kanbans to Job Order (MTO) replenishment - upstream processes must adapt. (sets to job order decreases lot sizes i.e. sheet metal) Implementation keys

21. © Improvement Initiatives (used with permission of author) freeleansite.com Questions ? Discussion ?

22. © Improvement Initiatives (used with permission of author) freeleansite.com The Lean Enterprise Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training Kanban – Types and Operating Systems