1. The Kan Ban Game

2. 2 © The Delos Partnership 2003 To understand how Kanbans Aid the transition from a Push to a Pull System Facilitate Continuous Improvement To understand how Kanbans Aid the transition from a Push to a Pull System Facilitate Continuous Improvement The Kanban Game Aim of the game

3. 3 © The Delos Partnership 2003 To Maximise Customer Service To Minimise Inventory (Finished Goods/WIP/Raw Mats) To Maximise Customer Service To Minimise Inventory (Finished Goods/WIP/Raw Mats) Objectives of the Game The Kanban Game

4. 4 © The Delos Partnership 2003 Supply two products (Red,Blue) The Task Raw Mat Make SquareTape Edges StapleHole Punch Sticker Finished Goods Dispense GarnulateCompress CoatQC Pack Finished Goods The Kanban Game

5. 5 © The Delos Partnership 2003 Objectives: Customer Service Minimise Inventory Objectives: Customer Service Minimise Inventory Measures: # Stock Outs # Papers Measures: # Stock Outs # Papers KPIs The Kanban Game

6. 6 © The Delos Partnership 2003 The Kanban Game Exercise One Run for ten Minutes Review performance Exercise One Run for ten Minutes Review performance Make Changes Exercise Two Run for ten MinutesRun for ten Minutes Review performanceReview performance Exercise Two Run for ten MinutesRun for ten Minutes Review performanceReview performance Make Changes Exercise Three Run for ten MinutesRun for ten Minutes Review performanceReview performance Exercise Three Run for ten MinutesRun for ten Minutes Review performanceReview performance

7. 7 © The Delos Partnership 2003 Exercise One Push System The Kanban Game Dispensary Campaign size =6 Granulation Campaign size = 6 Stores Compression Campaign size = 6 Coating Campaign size = 6 Packing Campaign size = 6 Despatch Safety Stock = 6 Suppliers Customers

8. 8 © The Delos Partnership 2003 The Kanban Game How did you perform? Customer Service? Inventory? How did you perform? Customer Service? Inventory?

9. 9 © The Delos Partnership 2003 The Kanban Game What changes would you make ?

10. 10 © The Delos Partnership 2003 The Kanban Game Kanban ~ Signal There are three main types Two Card Kanban Move Card and Production Card One Card Kanban Production Card Kanban Square Marked out space on production floor

11. 11 © The Delos Partnership 2003 The Kanban Game Two Card Kanban Often used when operations are some distance apart Process 1 Process 2 Move Kanban Process 1 needs more material so sends a Kanban move card to process 2

12. 12 © The Delos Partnership 2003 The Kanban Game Two Card Kanban Often used when operations are some distance apart Process 1 Process 2 Move Kanban The move card instructs process 2 to send so many of part x to process 1

13. 13 © The Delos Partnership 2003 The Kanban Game Two Card Kanban Often used when operations are some distance apart Process 1 Process 2 Move Kanban The move card is exchanged with a production card to authorise process 2 to produce to replenish stock. The move card returns to process 1 with the material Production Kanban

14. 14 © The Delos Partnership 2003 The Kanban Game Two Card Kanban Often used when operations are some distance apart Process 1 Process 2 Move Kanban Process 2 produces stock in line with the production card and then stops (until another move card is received)

15. 15 © The Delos Partnership 2003 The Kanban Game One Card Kanban Often used when operations are close together Process 1 Process 2 Process 1 needs more material Production Kanban

16. 16 © The Delos Partnership 2003 The Kanban Game One Card Kanban Often used when operations are close together Process 1 Process 2 Production Kanban So it takes some stock and sends a Kanban production card to process 2 authorising production

17. 17 © The Delos Partnership 2003 The Kanban Game One Card Kanban Often used when operations are close together Process 1 Process 2 Production Kanban Process 2 replenishes its stock, returns the Kanban card and stops

18. 18 © The Delos Partnership 2003 The Kanban Game Kanban Square Often used when operations are close together Process 1 Process 2 Process 1 needs more material

19. 19 © The Delos Partnership 2003 The Kanban Game Kanban Square Often used when operations are close together Process 1 Process 2 Process 1 takes material The empty square is authorisation for process 2 to make more product to replenish the square

20. 20 © The Delos Partnership 2003 The Kanban Game Kanban Square Often used when operations are close together Process 1 Process 2 Process 2 stops and waits for the square to empty again

21. 21 © The Delos Partnership 2003 The Kanban Game Kanban Guidelines The Kanban should describe where to get product from and how much to get Only produce product as per the Kanban The Kanban should be attached to the parts Only fill the Kanban with 100% defect free product Make the Kanban quantity as small as possible so that frequent communication of production activity is maintained between operations Balance Kanban sizes to maintain flow Sales and Production should agree the monthly production plan so that a level schedule can be created The number of Kanbans should be gradually reduced in order to link processes better and reduce inventory and expose waste for improvement Suzaki & Ohno 1987

22. 22 © The Delos Partnership 2003 The Kanban Game Exercise One Run for ten Minutes Review performance Make Changes Exercise Two Run for ten MinutesRun for ten Minutes Review performanceReview performance Exercise Two Run for ten MinutesRun for ten Minutes Review performanceReview performance Make Changes Exercise Three Run for ten Minutes Review performance

23. 23 © The Delos Partnership 2003 The Kanban Game Dispensary Campaign size = 3 Granulation Campaign size = 3 Stores Compression Campaign size =3 Coating Campaign size = 3 Packing Campaign size = 1 Despatch Safety Stock = 3 Suppliers Customers KB Exercise Two Pull System v1

24. 24 © The Delos Partnership 2003 The Kanban Game How did you perform? Customer Service? Inventory? How did you perform? Customer Service? Inventory?

25. 25 © The Delos Partnership 2003 The Kanban Game What changes would you make ?

26. 26 © The Delos Partnership 2003 The Kanban Game Exercise One Run for ten Minutes Review performance Make Changes Exercise Two Run for ten Minutes Review performance Make Changes Exercise Three Run for ten MinutesRun for ten Minutes Review performanceReview performance Exercise Three Run for ten MinutesRun for ten Minutes Review performanceReview performance

27. 27 © The Delos Partnership 2003 The Kanban Game Dispensary Campaign size = 1 Granulation Campaign size = 1 Stores Compression Campaign size =1 Coating Campaign size = 1 Packing Campaign size = 1 Despatch Safety Stock = ? Suppliers Customers KB Exercise Two Pull System v2

28. 28 © The Delos Partnership 2003 The Kanban Game How did you perform? Customer Service? Inventory? How did you perform? Customer Service? Inventory?

29. 29 © The Delos Partnership 2003 The Kanban Game Lessons learned?