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KB001 Kanban A New Approach

Kanban A New Approach (Tool for Information Flow)

KB001 Kanban A New Approach

Agenda
Time 8:00 AM 8:05 AM 8:20 AM 9:05 AM 9:20 AM 10:05 AM 10:20 AM 11:15 AM 12:15 PM 1:00 PM 2:00 PM 2:45 PM 3:00 PM 4:00 PM 4:45 PM 5:00 PM 5:30 PM 5:45 PM Topic/Activity Opening Introduction Information Flow Break Kanban Simulation1 Break The Customer Leveling Exercise Lunch Kanban Simulation 2 Internal Pull System Break Lot Box Production Lot Size Calculation Break Material Movement Supplier Card Calculation Closing
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KB001 Kanban A New Approach

Introductions
Name Years of Service Current Position

KB001 Kanban A New Approach

Kanban System
Based on Toyota Production System Driven by External Customers

Addresses Constraints & Bottlenecks 1. Understanding our Capabilities 2. Lot Size Production

KB001 Kanban A New Approach

Overview
Supporting Company Strategy Understanding Customer Needs

Internal Kanban System


Signaling the Supplier

KB001 Kanban A New Approach

The Objective
Lower Inventory / Reduced Lead-Time

Pull of Product Based on Usage

Create Information System that Supports Lean Principles

KB001 Kanban A New Approach

Company Strategy
Grow our Business
Internal and external Strengthen our resources

Improve our Competitive Position


Continually strive for perfection Reduce cost Eliminate waste in operations

KB001 Kanban A New Approach

Supporting Company Strategy


Elimination of Waste
Overproduction Material movement Inventory

Transition to Just-in-Time
Kanban system Kanban signals

KB001 Kanban A New Approach

Key Assumptions
Production schedules will always change
Production will never go according to schedule It is human nature to overproduce

KB001 Kanban A New Approach

Offsetting the Assumptions


Kanban System
Withdraw only what you need Replenish what is taken

Overall Benefits
Flexibility in production Prevents overproduction Reduces inventory

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KB001 Kanban A New Approach

Information Flow

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KB001 Kanban A New Approach

The Kanban Signal


The Kanban signal tells us:

When to make it!

When to move it!

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KB001 Kanban A New Approach

Kanban System
Production Card Withdrawal Card

Supplying Process
product product

Customer Process

Finished Goods Store


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KB001 Kanban A New Approach

Withdrawal Kanban Signal


Tells us:
When to move What to move Where to move How much to move

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KB001 Kanban A New Approach

Three Types of Withdrawal Kanban Signals


Customer Kanban Signal
Transfers material from plant to customer

Move Kanban Signal


Transfers material between work units

Supplier Kanban Signal


Pulls material from supplier to plant

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KB001 Kanban A New Approach

Customer Kanban Signal Information


Supplier Quantity Supplier Number Container Type Part Number Description

Card Number
Kanban Signal Number

Storage Location
Storage Address

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KB001 Kanban A New Approach

Customer Kanban Signal


Supplier

Quantity

Supplier No.

Card No.

Kanban Signal No.

Container Type

Part No.

Description

Storage Location

Storage Address

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KB001 Kanban A New Approach

Flow of Customer Kanban Signal


Customer Kanban Signal

Plant
Finished Goods Store External Customer
needed product

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KB001 Kanban A New Approach

Move Kanban Signal Information


Part Number Supplier Name Storage Address (Point of Storage) Card Number Kanban Signal Number Work Unit Name (Customer) Quantity per Container Line Address (Point of Use)

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KB001 Kanban A New Approach

Move Kanban Signal


STORE ADDRESS WORK UNIT ADDRESS

SUPPLIER NAME

Kanban Signal No. WORK UNIT NAME

PART No.

QUANTITY

CARD #

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KB001 Kanban A New Approach

Flow of Move Kanban Signal


Move Kanban Signal

Internal
Raw Material Store Production Work Unit
needed product

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KB001 Kanban A New Approach

Supplier Kanban Signal Information


Supplier Name Part Number Part Name Customer Storage Address

Work Unit Address


Quantity per Container Card Number

Kanban Signal Number


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KB001 Kanban A New Approach

Supplier Kanban Signal


Supplier Name Kanban Signal Number

Part Number

Quantity

Card No.

Part Name Store Address Work Unit Address

Customer

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KB001 Kanban A New Approach

Flow of Supplier Kanban Signal


Supplier Kanban Signal

External Supplier
Finished Goods Store
needed product

Internal Raw Material Store

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KB001 Kanban A New Approach

Flow of Withdrawal Kanban Signals


Supplier Signal Move Signal Customer Signal

Internal External Supplier


needed product

Internal Production Work needed Unit product

Plant Finished Goods Store External Customer


needed product

Raw Materials Store

needed product

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KB001 Kanban A New Approach

Production Kanban Signal


Tells Us:
When to make What to make How much to make

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KB001 Kanban A New Approach

Two Types of Production Kanban Signals


Production Kanban Signal
Instructs us to make One Container

Signal (Triangle)
Instructs us to produce One Lot Used when a work unit does not have the changeover capability to produce one container for one production card

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KB001 Kanban A New Approach

Production Card Information


Store Address Kanban Signal Number

Work Unit Name


Part Number Quantity Card Number

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KB001 Kanban A New Approach

Production Card
STORE ADDRESS

Kanban Signal No.

WORK UNIT NAME

PART No.

QUANTITY

CARD #

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KB001 Kanban A New Approach

Signal (Triangle) Information


Work Unit Name
Part Number Container Type

Quantity
Process Time Lot Size

Order Point
Kanban Signal Number
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KB001 Kanban A New Approach

Signal (Triangle)
WORK UNIT PART No. NAME

CONTAINER QUANTITY TYPE

PROCESSING TIME FOR 1 LOT

LOT SIZE

ORDER POINT

# of containers to produce

Where the signal


Kanban Signal #

is placed in inventory

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KB001 Kanban A New Approach

Flow of Production Kanban Signals


Production Signal Move Signal Triangle Signal

Internal Sub Assembly Work Unit

needed product

Internal Sub Assembly Work Unit Store

needed product

Internal Final Assembly Work Unit

Finished Goods Store


needed product

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KB001 Kanban A New Approach

Kanban Signal Flow


Sub
Assembly Work Unit
Production Kanban Signal

Sub Stores

Finished Goods Store

Move

Triangle Kanban Signal

Finished Assembly

Work Unit
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KB001 Kanban A New Approach

How Do You Handle Non-Standard Situations


Temporary Kanban Signals Need scheduled down time to PM equipment Sample parts Service parts

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KB001 Kanban A New Approach

Temporary Kanban Signal Card


STORE ADDRESS

Kanban Signal No.

WORK UNIT NAME

PART No.

QUANTITY

CARD #

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KB001 Kanban A New Approach

Summary of Kanban Types


Withdrawal - Customer Kanban Signal - Move Kanban Signal - Supplier Kanban Signal

Production
- Production Kanban Signal

- Signal (Triangle)
- Temporary Kanban Signal

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KB001 Kanban A New Approach

Additional Benefits of Kanban


Support Visual Control
Are we behind? What do I produce first? What is my inventory situation?

Continuous Improvement
Large inventories hide problems Facilitate continuous improvement by removing Kanban Signals

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KB001 Kanban A New Approach

Kanban System Simulation

Exercise 1 (Without Leveling)

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1

Objective
To gain an understanding of Kanban System card transfer, exchange, and loop location

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1

Details
Activity will be run in time segments Each time segment consists of one day One truck from customer per day Simulation will run for 5 days

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Activity Pieces

35 Plastic bowls
73 White Lego Blocks

13 Production Cards
8 Move Cards

35 Yellow Lego Blocks


5 Customer Cards

4 Supplier Cards
5 Signal Posts

18 Place Mats

5 Order Cards

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KB001 Kanban A New Approach

Activity Layout - Exercise 1


J
Empty Signal Containers Post

1@15
Empty Signal Containers Post

2@15
Empty Signal Containers Post Empty Signal Containers Post

1@15
Empty Signal Containers Post

4 4 4 4
W
Customer

3
Final Assembly

3 3
Sub Assembly

1 1

1 1 1 1
Raw Material Processing

1 1 1 1
Supplier

4 4 4 4

4
A B

4
C

3
3 D

3
3 E

1
1 F 1= G H I

W 2= Y W Y

A - Customer B - Truck Driver-1 (Customer to Plant) C - Final Assembly Operator D - Material Handler-1 (Final Assembly to Sub-Assembly) E - Sub-Assembly Operator F - Material Handler-2 (Sub-Assembly to Raw Material Storage) G - Raw Material Processing (Parts Ordering / Parts Receiving) H - Truck Driver-2 (Plant to Supplier) I - Supplier J - Manager

3=

4=
W W

Y
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KB001 Kanban A New Approach

Activity Layout - Exercise 1 Card Types


Empty Containers
Signal Post

Empty Containers

Signal Post

Empty Containers

Signal Post

Empty Containers

Signal Post

Empty Containers

Signal Post

W
Customer

4 4 4 4 4

4 4 4 4 4
Final Assembly

3 3 3 3

3 3 3 3
Production Card
Sub Assembly

1 1 1 1

1 1 1 1
Raw Material Storage

1 1 1 1
Supplier

Production Card

Supplier Card

Production Card

Customer Card

Move Card

Move Card

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles


Customer
Receive order from facilitator Move raw materials to customer processing area Remove Customer Cards from container

Place Customer Cards in Signal post


Disassemble lego blocks and place in designated containers Move empty containers to customer empty container storage Repeat above steps for each order

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles


Truck Driver 1
Pick up Cards from Signal post Pick up empty containers from customer empty container storage Move empty containers to finished goods empty container storage

Remove Production Cards from finished goods container and replace with Customer Cards
Place Production Cards in final assembly Signal post Move finished goods to customer raw material storage Repeat above steps for each daily order

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles Final Assembly Operator


Check final assembly Signal post for production requirements Move raw material container to final assembly processing area Remove sub-assembly and place on final assembly processing area Remove Move Card and place in empty container Move empty container back to final assembly raw materials storage Pick up empty container from finished goods empty container storage and move to final assembly processing area Pick up white processing lego and assemble to sub-assembly and place in finished goods container Pick up Production Card from Signal post and place on finished goods container Move finished goods container to final assembly finished goods storage Repeat above steps for each Kanban Signal

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles

Material Handler 1 Pick up Move Cards and empty containers from final assembly raw material storage Place empty containers in sub-assembly empty container storage Remove Production Cards from sub-assembly finished goods and replace with Move Cards Place Production Cards in the sub-assembly Signal post Move finished goods containers to final assembly raw material storage Repeat above steps for each Kanban Signal

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles Sub-Assembly Operator


Check sub-assembly Signal post for production requirements Move raw material container to sub-assembly processing area Remove raw material and place on sub-assembly processing area Remove Move Card and place in empty container Move empty container back to sub-assembly raw material storage Pick up empty container from sub-assembly empty container storage and move to sub-assembly processing area Pick up yellow processing lego and assemble to raw material and place in finished goods container Pick up Production Card from Signal post and place on finished goods container Move finished goods container to sub-assembly finished goods storage Repeat above steps for each Kanban Signal

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles

Material Handler 2 Pick up Move Cards and empty containers from subassembly raw material storage Place empty containers in raw material empty container storage Remove Supplier Cards from raw material storage and replace with Move Cards Place Supplier Cards in the raw material Signal post Move raw material containers to sub-assembly raw material storage Repeat above steps for each Kanban Signal

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles


Raw Material Store (Parts Ordering)
Move empty container from raw material empty container storage to raw material processing Remove Supplier Card from supplier Signal post Place Supplier Card on empty container Repeat above steps for each Kanban Signal Prepare order for shipment

Raw Material Store (Parts Receiving) Move raw material container from raw material receiving to raw
material storage area

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles


Truck Driver 2
Pick up empty containers with Supplier Cards from raw material processing area Place empty containers in Suppliers empty container storage Remove Supplier Production Cards from suppliers raw material container and replace with Supplier Cards Place Supplier Production Cards in supplier Signal post Move raw materials from supplier to raw material receiving Repeat above steps for each daily order

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles


Supplier
Check Supplier Signal post for production requirements Move empty container from supplier empty container storage to supplier processing area Pick up white processing lego and place in raw material container Pick up Production Card from supplier Signal post and place on raw material container Move raw material container to supplier finished goods storage Repeat above steps for each Kanban Signal

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Roles

Manager
Review the daily production requirements Instruct cells to produce to customer demand or capacity Monitor the production of parts in the value stream Evaluate daily production results

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KB001 Kanban A New Approach

Kanban System Simulation - Exercise 1 Customer Orders vs Capacity


Day 1 2 3 4 5 Customer Capacity Actual Production Order Production Hours

Capacity 1 unit = 2hrs 40min 2 units = 5hrs 20min 3 units = 8hrs 00min 4 units = 10hrs 40min

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KB001 Kanban A New Approach

The Customer

(Starting Point for a Kanban System)

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KB001 Kanban A New Approach

Understanding Customer Needs


Customer Demand
Anticipated Requirements (Forecast)
Takt Time (time required to produce a single part based upon customer usage)

Actual Requirements (Daily Pull)


Leveling

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KB001 Kanban A New Approach

Anticipated Requirements
What information do we need?
Customer demand for the month Number of days in demand period

Part Monthly Demand No. of Working Days Daily Demand A 18,000 20 900
Note: 900 units / 2 shifts = 450 units per shift

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KB001 Kanban A New Approach

Takt Time
Takt Time = Available Operating Time Pieces

=
=

57,600 - 2,400 900 pcs


61.33 per piece

Sets pace of production to match customer demand


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KB001 Kanban A New Approach

Producing to Customer Demand


Production Card Customer Card

Production Work Unit

Customer

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KB001 Kanban A New Approach

Customer Ordering History


1600 1400 1200 1000
Units

1600 1400 1200 1000

800 600 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Day Forecast Actual

800 600 400 200 0

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KB001 Kanban A New Approach

Analyze Actual Requirements


Anticipated Demand vs. Actual Demand

Part Anticipated Demand A 18,000

Actual Demand 19,000

Difference 1000

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KB001 Kanban A New Approach

Opportunities in Customer Fluctuation


Buffer Stock
Used when demand is in excess of customer forecast Replenished when demand is less than customer forecast

Note: Buffers are an indicator of waste in the system!

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KB001 Kanban A New Approach

Leveled Production (Based On 500 Units Of Buffer Stock)


1600 1600

1400

1400

1200

1200

1000
Units

1000

800

800

600 Forecast Actual 200 Production

600

400

400

200

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Day

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KB001 Kanban A New Approach

Opportunities in Truck Pitch


Even Truck Pitch
Drives constant Takt Time Reduces fluctuation

Overall Benefit
Reduction in inventory

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KB001 Kanban A New Approach

Truck Pitch
Truck 2

Truck 3

Truck 4

Truck 1

6:00

10:00

14:30

16:00

21:00

24:30

= Break = Lunch = Between Shifts

1 - 6:00 2 - 10:00

Truck Times 3 16:00 4 21:00

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KB001 Kanban A New Approach

Replenishment Capability
Truck Pick-up Times
1. 6:00 2. 10:00 3. 16:00 4. 21:00

Replenishment Capability Based on Takt Time


21:00 - 24:30 = 3.5 hours = 12,600 seconds 12,600 seconds - 600 seconds (break) = 12,000 seconds 12,000 seconds / 61.33 seconds (takt time) = 195.66 pcs 195.66 pcs / 50 pcs in container = 3.91 containers Truck 1 = 3 containers (45.66 remaining for Truck 2)

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KB001 Kanban A New Approach

Leveling Post

Buffer Stock

9 10 11 12 13 14 15 16 17 18

10

500 pcs. used to buffer Customer Orders 50 pcs. per container

10 slots required in Leveling Post for Buffer


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KB001 Kanban A New Approach

Leveling Customer Demand


Forecast Leveling Post

P
Production Work Unit Customer

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KB001 Kanban A New Approach

Takt Time Post

1st Shift

6 0 0

6 0 6

6 1 2

6 1 8

6 2 4

6 3 0

6 3 6

6 4 2

6 4 8

6 5 4

7 0 0

7 0 6

7 1 2

7 1 8

7 2 4

7 3 0

7 3 6

7 4 2

7 4 8

7 5 4

8 0 0

Line 100

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KB001 Kanban A New Approach

Information Required for Takt Time Post


Takt Time = 61.33 seconds Number of pieces per container = 50
Time per container = (Takt Time * Container Quantity) / 60 = (61.33 * 50) / 60 = 51 minutes
(Must deliver a Kanban from the Takt Time Post to the Production Work Unit every 51 minutes)

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KB001 Kanban A New Approach

Takt Time Post

1st Shift

6 0 0

6 0 6

6 1 2

6 1 8

6 2 4

6 3 0

6 3 6

6 4 2

6 4 8

6 5 4

7 0 0

7 0 6

7 1 2

7 1 8

7 2 4

7 3 0

7 3 6

7 4 2

7 4 8

7 5 4

8 0 0

Line 100

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KB001 Kanban A New Approach

Leveling Customer Demand


Forecast Takt Time Post Leveling Post

P
Production Work Unit Customer

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KB001 Kanban A New Approach

Separating Safety Stock


Distinguish between customer fluctuation and internal problems
Safety Stock inventory amount is based on downtime history

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Utilizing Safety Stock


Forecast

KB001 Kanban A New Approach

Takt Time Post

Leveling Post

P
Production Work Unit Customer

S
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KB001 Kanban A New Approach

Leveling
Benefits:
Neutralizes fluctuation from:
Customers orders Truck pitch

Pulls product based on:


Customer usage Takt Time

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KB001 Kanban A New Approach

Leveling System

Visual Aid 1 (Neutralizing Customer Fluctuation)

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KB001 Kanban A New Approach

Objective

To establish a pull system of production that levels the demand of the customer to meet production capabilities

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KB001 Kanban A New Approach

Visual Aid Requirements


Leveling Post

Takt Time Post


Signal Post (20) Customer Cards

(7) Production Cards


(10) Buffer Stock Cards (5) Safety Stock Cards

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KB001 Kanban A New Approach

Card Number
To determine the number of Production Cards in the system, take the highest available Cards to be shipped on one truck and add one Card.

EXAMPLE: Truck 4 = 6 Cards 6 Cards + 1 Card = 7 Cards (7) Production Cards Required
Note: Additional Cards may be required for longer lead-times

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KB001 Kanban A New Approach

Card Placement
To determine the location of the Production Card on the takt time post, take the available Cards for the last truck and subtract the quantity for the first truck and count backwards from the last truck
EXAMPLE:

Truck 4 - Truck 1 = Cards Generated for 1st (6) - (3) = 3 Cards for 1st Shift
Note: If the number is zero or a negative number, only the last Card of the last truck is generated for 1st shift

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KB001 Kanban A New Approach

Visual Aid Layout - Day 1 (End of 2nd Shift)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (6:00 am)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (6:00 am - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

4
1 0 0 0

5
1 0 0 6

6
1 0 1 2

7
1 0 1 8

8
1 0 2 4 1 0 3 0

9 10 11 12 13 14 15 16 17 18
1 0 3 6 1 0 4 2 1 0 4 8

1
1 1 4 2 1 1 4 8

2
1 1 5 4

3
1 2 0 0

4
1 2 0 6

5
1 2 1 2 1 2 1 8

6
1 2 2 4

7
1 2 3 0

8
1 2 3 6

9
1 2 4 2

10
1 2 4 8 1 2 5 4

Takt Time Post


1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4

9 9 3 3 0 6

9 9 4 4 2 8

9 5 4

1 1 3 0

1 1 3 6

L L L L L / / / / / T T T T T

5
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (10:00 am)

Leveling Post
1 2 3 4 Buffer Stock

1 2

4
1 0 0 0

5
1 0 0 6

6
1 0 1 2

7
1 0 1 8

8
1 0 2 4 1 0 3 0

9 10 11 12 13 14 15 16 17 18
1 0 3 6 1 0 4 2 1 0 4 8

1
1 1 4 2 1 1 4 8

2
1 1 5 4

3
1 2 0 0

4
1 2 0 6

5
1 2 1 2 1 2 1 8

6
1 2 2 4

7
1 2 3 0

8
1 2 3 6

9
1 2 4 2

10
1 2 4 8 1 2 5 4

Takt Time Post


1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4

9 9 3 3 0 6

9 9 4 4 2 8

9 5 4

1 1 3 0

1 1 3 6

L L L L L / / / / / T T T T T

B B / / T T

5
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (10:00 am - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


1 1 0 0 0 6 1 1 1 1 2 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 3 0 6 3 1 2 3 1 8 3 2 4 3 3 3 3 0 6 3 4 2 3 4 8 3 5 4 4 0 0 4 0 6 4 1 2 4 1 8 4 2 4

B B / / T T

6
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (10:00 am - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


4 4 3 3 0 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 7 0 0 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4

B B / / T T

10
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (4:00 pm)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


4 4 3 3 0 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 7 0 0 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4

B B / / T T

10
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (4:00 pm - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

1
1 0 1 2 1 0 1 8

2
1 0 2 4

3
1 0 3 0

4
1 0 3 6

5
1 0 4 2 1 0 4 8

6
1 0 5 4

7
1 1 0 0

8
1 1 0 6

9
1 1 1 2

10
1 1 1 8 1 1 2 4

Takt Time Post


8 8 0 0 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4

1 0 0 0

1 0 0 6

L L L L L / / / / / T T T T T

B B / / T T

11

12

13

14
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (9:00 pm)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

1
1 0 1 2 1 0 1 8

2
1 0 2 4

3
1 0 3 0

4
1 0 3 6

5
1 0 4 2 1 0 4 8

6
1 0 5 4

7
1 1 0 0

8
1 1 0 6

9
1 1 1 2

10
1 1 1 8 1 1 2 4

Takt Time Post


8 8 0 0 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4

1 0 0 0

1 0 0 6

L L L L L / / / / / T T T T T

B B / / T T

11

12

13

14
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (9:00 pm - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2
1 1 3 0 1 1 3 6 1 1 4 2

3
1 1 4 8 1 1 5 4

4
1 2 0 0

5
1 2 0 6

6
1 2 1 2

7
1 2 1 8

8
1 2 2 4 1 2 3 0

9 10 11 12 13 14 15 16 17 18
1 2 3 6 1 2 4 2 1 2 4 8

10

Takt Time Post


1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 2 0 0 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4

B B / / T T

15
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (9:00 pm - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
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KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (End of 2nd Shift)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
92

KB001 Kanban A New Approach

Visual Aid Layout - Day 2 (End of 2nd Shift - cont.d)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
93

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (6:00 am)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
94

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (6:00 am - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

4
1 0 0 0

5
1 0 0 6

6
1 0 1 2

7
1 0 1 8

8
1 0 2 4 1 0 3 0

9 10 11 12 13 14 15 16 17 18
1 0 3 6 1 0 4 2 1 0 4 8

1
1 1 4 2 1 1 4 8

2
1 1 5 4

3
1 2 0 0

4
1 2 0 6

5
1 2 1 2 1 2 1 8

6
1 2 2 4

7
1 2 3 0

8
1 2 3 6

9
1 2 4 2

10
1 2 4 8 1 2 5 4

Takt Time Post


1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4

9 9 3 3 0 6

9 9 4 4 2 8

9 5 4

1 1 3 0

1 1 3 6

L L L L L / / / / / T T T T T

5
95

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (10:00 am)

Leveling Post
1 2 3 4 Buffer Stock

1 2

4
1 0 0 0

5
1 0 0 6

6
1 0 1 2

7
1 0 1 8

8
1 0 2 4 1 0 3 0

9 10 11 12 13 14 15 16 17 18
1 0 3 6 1 0 4 2 1 0 4 8

1
1 1 4 2 1 1 4 8

2
1 1 5 4

3
1 2 0 0

4
1 2 0 6

5
1 2 1 2 1 2 1 8

6
1 2 2 4

7
1 2 3 0

8
1 2 3 6

9
1 2 4 2

10
1 2 4 8 1 2 5 4

Takt Time Post


1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4

9 9 3 3 0 6

9 9 4 4 2 8

9 5 4

1 1 3 0

1 1 3 6

L L L L L / / / / / T T T T T

B B / / T T

5
96

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (10:00 am - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


1 1 0 0 0 6 1 1 1 1 2 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 3 0 6 3 1 2 3 1 8 3 2 4 3 3 3 3 0 6 3 4 2 3 4 8 3 5 4 4 0 0 4 0 6 4 1 2 4 1 8 4 2 4

B B / / T T

6
97

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (10:00 am - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


4 4 3 3 0 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 7 0 0 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4

B B / / T T

10
98

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (4:00 pm)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


4 4 3 3 0 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 7 0 0 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4

B B / / T T

10
99

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (4:00 pm - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

1
1 0 1 2 1 0 1 8

2
1 0 2 4

3
1 0 3 0

4
1 0 3 6

5
1 0 4 2 1 0 4 8

6
1 0 5 4

7
1 1 0 0

8
1 1 0 6

9
1 1 1 2

10
1 1 1 8 1 1 2 4

Takt Time Post


8 8 0 0 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4

1 0 0 0

1 0 0 6

L L L L L / / / / / T T T T T

B B / / T T

11

12

13

14
100

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (9:00 pm)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

1
1 0 1 2 1 0 1 8

2
1 0 2 4

3
1 0 3 0

4
1 0 3 6

5
1 0 4 2 1 0 4 8

6
1 0 5 4

7
1 1 0 0

8
1 1 0 6

9
1 1 1 2

10
1 1 1 8 1 1 2 4

Takt Time Post


8 8 0 0 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4

1 0 0 0

1 0 0 6

L L L L L / / / / / T T T T T

B B / / T T

11

12

13

14
101

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (9:00 pm - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2
1 1 3 0 1 1 3 6 1 1 4 2

3
1 1 4 8 1 1 5 4

4
1 2 0 0

5
1 2 0 6

6
1 2 1 2

7
1 2 1 8

8
1 2 2 4 1 2 3 0

9 10 11 12 13 14 15 16 17 18
1 2 3 6 1 2 4 2 1 2 4 8

10

Takt Time Post


1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 2 0 0 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4

B B / / T T

15
102

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (9:00 pm - continued)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
103

KB001 Kanban A New Approach

Visual Aid Layout - Day 3 (End of 2nd Shift)

Leveling Post
1 2 3 4 Buffer Stock

1 2

9 10 11 12 13 14 15 16 17 18

10

Takt Time Post


6 6 0 0 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 8 3 3 0 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4

B B / / T T

16

17

18

1
104

KB001 Kanban A New Approach

Kanban System Simulation

Exercise 2 (With Leveling)

105

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2

Objective
To gain an understanding of the method and benefits of leveling

106

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2

Details
Activity will be run in time segments Each time segment consists of one day One truck from customer per day Simulation will run for 5 days Leveling of production occurs at the Point of Pull

107

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2 Activity Pieces 36 Plastic bowls 75 White Lego Blocks 36 Yellow Lego Blocks 5 Customer Cards 11 Production Cards
5 Order Cards
3 Buffer Stock Cards 8 Move Cards 4 Supplier Cards

5 Signal Posts
1 Leveling Post

18 Place Mats

108

Activity Layout - Exercise 2


Leveling Post

KB001 Kanban A New Approach

1@15

2@15
Empty Signal Containers Post Empty Signal Containers Post

1@15
Empty Signal Containers Post

Empty Signal Containers Post

Empty Signal Containers Post

4 4 W
Customer

4 4 4 4 4 4 B C
Final Assembly

3 3 3 3 D

3 3 3 3 E J
Sub Assembly

1 1 1 1

1 1 1 1
Raw Material Storage

1 1 1 1
Supplier

4 4 4

Y A

F 1=

A - Customer B - Truck Driver-1 (Customer to Plant) C - Final Assembly Operator D - Material Handler-1 (Final Assembly to Sub-Assembly) E - Sub-Assembly Operator 3= F - Material Handler-2 (Sub-Assembly to Raw Material Storage) G - Raw Material Processing (Parts Ordering / Parts Receiving) H - Truck Driver-2 (Plant to Supplier) I - Supplier J - Manager

W 2= Y W 4= W W Y
109

KB001 Kanban A New Approach

Activity Layout - Exercise 2 Card Types


Leveling Post

Empty Containers

Signal Post

Empty Containers

Signal Post

Empty Containers

Signal Post

Empty Containers

Signal Post

Empty Containers

Signal Post

4 4 W
Customer

4 4 4 4 4 4
Final Assembly

3 3 3 3

3 3 3 3
Production Cards
Sub Assembly

1 1 1 1

1 1 1 1
Raw Material Storage

1 1 1 1
Supplier

4 4 4

(3) Production Cards (3) Buffer Stock Cards

Supplier Cards

Production Cards

Customer Cards

Move Cards

Move Cards

110

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2 Roles


Following Roles Same As Exercise 1
Customer Final Assembly Operator Material Handler 1

Sub-Assembly Operator
Material Handler 2 Raw Material Store Truck Driver 2 Supplier

111

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2 Roles Truck Driver 1


Pick up Customer Cards from Customer Signal post Pick up empty containers from customer empty container storage Move empty containers to finished goods empty container storage Place Customer Cards in leveling post Remove Cards from leveling post after leveling

Remove Production Cards from finished goods container and replace with Customer Cards Place Production Cards, and/or Buffer Stock Cards if required, in final assembly Signal post Move finished goods to customer raw material storage Repeat above steps for each daily order

112

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2 Roles


Manager
Focus on improving operations

113

KB001 Kanban A New Approach

Kanban System Simulation - Exercise 2 Customer Orders vs Capacity


Day 1 2 3 4 5
Capacity 1 unit = 2hrs 40min 2 units = 5hrs 20min 3 units = 8hrs 00min 4 units = 10hrs 40min

Customer Capacity Actual Production Order Production Hours

114

KB001 Kanban A New Approach

Internal Kanban System

(Operating The Internal System)

115

KB001 Kanban A New Approach

Internal Kanban System


Production Instruction
Production Card Signal (Triangle)

Material Movement
Move Card Delivery system

116

KB001 Kanban A New Approach

Kanban Signal Tool To Trigger Production


Production Card
High level of capability in the work unit

Production of parts in any order

117

KB001 Kanban A New Approach

Producing Card for Card


If a work unit can produce parts in the same order that they are pulled from stores, then they produce Card for Card The Production Card (typically a white card) is attached to the container after production When a container is pulled from the work unit store, the card is removed and sent back to the work unit to trigger production

118

KB001 Kanban A New Approach

Points to Remember
The Production Card is the signal to produce a container of a particular part number The work unit produces in the order that the Production Cards are received Changeover time must be equal to or less than the consumers changeover time

119

KB001 Kanban A New Approach

Flow of the Production Card


Production Card

Supplying Process
product

120

KB001 Kanban A New Approach

Kanban Signal Tool to Trigger Production


Signal (Triangle)
Long changeover times Production in lot size

121

KB001 Kanban A New Approach

Production by Lot Size


Withdrawal Period 2nd 3rd

1st

4th

Direct Relationship between Changeover times and Inventory Levels

122

KB001 Kanban A New Approach

Signal (Triangle)
WORK UNIT NAME PART No.

CONTAINER QUANTITY TYPE

PROCESSING TIME FOR 1 LOT

LOT SIZE

ORDER POINT

# of containers to produce

Where the signal


Signal #

is placed in inventory

123

KB001 Kanban A New Approach

Signal Triangle
When using the Signal Triangle, every part number on the work unit has its own signal

The signal instructs the work unit to produce and is dependent on how inventory is pulled from the work unit
If parts are not withdrawn from the work unit, the work unit will not receive a signal to produce

124

KB001 Kanban A New Approach

Lot Size Production


Signal Instructs the Work Unit:
When to produce the part
How many to produce at one time

125

KB001 Kanban A New Approach

Elements Required to Determine the Lot Size

Available Time

Monthly Demand for Each Part Number


Production Time for Each Part Number Average Changeover Time
126

KB001 Kanban A New Approach

Available Time
Available Time =
(Number of Hours per Shift) (Break Time)

Number of Shifts: 2 Number of Breaks per Shift: 2

Hours per Shift: 8 Minutes per Break: 10

57,600 seconds - 2,400 seconds = 55,200 seconds

127

KB001 Kanban A New Approach

Demand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period

Days in Month = 20 Part A B C D Total Monthly Demand 4000 pcs 6000 pcs 8000 pcs 12000 pcs 30000 pcs Daily Demand 200 pcs 300 pcs 400 pcs 600 pcs ???? pcs
128

KB001 Kanban A New Approach

Demand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period

Days in Month = 20 Part A B C D Total Monthly Demand 4000 pcs 6000 pcs 8000 pcs 12000 pcs 30000 pcs Daily Demand 200 pcs 300 pcs 400 pcs 600 pcs 1500 pcs
129

KB001 Kanban A New Approach

Calculating Production Time


Production Time = Cycle Time x Daily Demand

Part A B C D Total

Daily Demand 200 300 400 600 1500

Cycle Time 28.5 28.0 30.5 32.0 30.3

Production Time 5700 8400 12200 19200 ??????

130

KB001 Kanban A New Approach

Calculating Production Time


Production Time = Cycle Time x Daily Demand

Part A B C D Total

Daily Demand 200 300 400 600 1500

Cycle Time 28.5 28.0 30.5 32.0 30.3

Production Time 5700 8400 12200 19200 45500

131

KB001 Kanban A New Approach

Calculating Average Changeover Time


Part A B C D Total Daily Demand 200 300 400 600 ???? Changeover Time 900 seconds 600 seconds 720 seconds 600 seconds ???? seconds

Total Average C/O Time = Changeover Time = ???? = ??? # of Parts Numbers ?

132

KB001 Kanban A New Approach

Calculating Average Changeover Time


Part A B C D Total Daily Demand 200 300 400 600 1500 Changeover Time 900 seconds 600 seconds 720 seconds 600 seconds 2820 seconds

Total Average C/O Time = Changeover Time = 2820 = 705 # of Parts Numbers 4

133

KB001 Kanban A New Approach

Lot Size Calculation


Step 1: Determine the Number of Changeovers per Day # of C/O per Day = Available Time - Production Time Average Changeover Time # of C/O per Day = ????? - ????? ??? = ??? C/Os

(# of Parts)

/ /

(# of Available C/Os)

(?)

(???)

= =

(LOT SIZE) ??? Days


134

KB001 Kanban A New Approach

Lot Size Calculation


Step 1: Determine the Number of Changeovers per Day # of C/O per Day = Available Time - Production Time Average Changeover Time # of C/O per Day = 55,200 - 45,500 705 = 13.7 C/Os

(# of Parts)

/ /

(# of Available C/Os)

(4)

(13.7)

= =

(LOT SIZE) .29 Days


135

KB001 Kanban A New Approach

Lot Size per Part Number

Part A B C D

Daily Demand 200 300 400 600

Lot Size 0.29 days 0.29 days 0.29 days 0.29 days

# in Lot 58 pcs 87 pcs 116 pcs 174 pcs

136

KB001 Kanban A New Approach

Container Lot Size


# of Containers in a Lot = Lot Size Qty per Cont. Example: Lot Size for Part A = 58 pcs Container Size = 30 pcs Part A = 58 pcs per lot size = 1.9 containers 30 pcs per container
Round Up to Next Full Container

Part A Lot Size = 2 Containers

137

KB001 Kanban A New Approach

Order Point
The order point determines how much inventory is needed in the stores to cover customer requirements during the work units peak period of downtime For instance, the order point = 2
The signal is placed on the 2nd to the last container. When the container above the signal on is pulled, exposing the Signal Triangle, the signal goes back to the line to trigger production with the corresponding amount of Production Cards

138

KB001 Kanban A New Approach

Signal (Triangle)
Pull from Top

Remove Signal Triangle when this container is pulled!!

139

KB001 Kanban A New Approach

Order Point Calculation


(Daily Demand x Downtime Percentage) = Order Point Quantity per Container Daily Demand: 200pcs Peak Downtime Percentage: 20% Quantity per Container: 30pcs Order Point: 2 (200 x .20) = 1.33 30

Round Up to Next Full Container

140

KB001 Kanban A New Approach

Order Points
Part Daily Demand A B C D 200 300 400 600 D/T #PCS Pcs/Cont O.P. .20 .20 .20 .20 40 60 80 120 30 30 30 30 ? ? ? ?

141

KB001 Kanban A New Approach

Order Points
Part Daily Demand A B C D 200 300 400 600 D/T #PCS Pcs/Cont O.P. .20 .20 .20 .20 40 60 80 120 30 30 30 30 2 2 3 4

142

KB001 Kanban A New Approach

How are the Containers Identified?


A Production Card is placed on a container after it is produced When the container is pulled from the store the Production Card is removed and is put into a collection box, while a Move Card is put on the container in its place When the signal is sent to the work unit for production, the number of Production Cards that are needed to I.D. the containers are also taken

143

KB001 Kanban A New Approach

1.
Move Card signals that the Customer Work Unit needs parts.

Inventory Stores

2.
The container is picked and the Kanban Card is replaced with the Move Card.

Inventory Stores

3.
The Production Card is put into a collection box to be sent back to the work unit. Parts are taken to the Customer Work Unit.
144

Inventory Stores

KB001 Kanban A New Approach

# of Production Cards in the System


# of Production Cards = Lot Size + Order Point

=2+2
= 4 Tags The number of cards is the maximum amount of material that will be in the stores
145

KB001 Kanban A New Approach

Flow Of The Signal ( Triangle)


Customer Pulling

C Now Next

A D

ABCD
Signal Board B

Order
Point

Collection Box

Roll Cut Stores

Roll Cut Work Unit


146

KB001 Kanban A New Approach

Lot Box Production

An Alternative Approach for Increased Visual Management

147

KB001 Kanban A New Approach

Lot Box Production Flow


Production Card

Lot Box Supplying Process


product

148

KB001 Kanban A New Approach

The Lot Box


Container # 5 6

Part A B C D

10

Production Cards

Order Point

Zero Inventory
149

KB001 Kanban A New Approach

Work Unit Kanban Post


1st Shift

6 0 0

6 0 6

6 1 2

6 1 8

6 2 4

6 3 0

6 3 6

6 4 2

6 4 8

6 5 4

7 0 0

7 0 6

7 1 2

7 1 8

7 2 4

7 3 0

7 3 6

7 4 2

7 4 8

7 5 4

8 0 0

Line 100

Part D

C/O Card

Part A

C/O Card
150

A
Daily Dem an d

B
L ot S iz e

C
Cycle T im e

D
C/O

E
L ot T im e

F
T otal Ru n

I Calculations E=(BXC) F=(D+E) H=(GXC)/60 I=D/60

Con tain er S iz e M in . / Con tain er C.O . T im e ( m in .)

Part # 1 A B C D

Container No. 2 3 4 5

C/O

Total

KB001 Kanban A New Approach

Example for Part # C


1 15.25
6 0 0

2 30.5
6 0 6 6 1 2 6 1 8

3 45.75
6 2 4 6 3 0

4 61
6 3 6 6 4 2 6 4 8

5 X
6 5 4 7 0 0

6 X
7 0 6 7 1 2 7 1 8

C/O 12
7 2 4 7 3 0

TOTAL 73
7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

1st Shift

Line 100

A: I

I -

B: I C: I D: I

I I - I

- I - - I - I - - I -

- I

- I - 152

KB001 Kanban A New Approach

Lot Box Production

Visual Aid 2 (An Alternative Approach)

153

KB001 Kanban A New Approach

Objective

To visually demonstrate the flow of Cards based on lot size production using the Lot Box as a tool for instruction to produce.

154

KB001 Kanban A New Approach

Visual Aid Requirements


1 Lot Box 1 Kanban Post 1 Parts Withdrawal Timing Sheet 4 (Part A) Production Cards 5 (Part B) Production Cards 7 (Part C) Production Cards

10 (Part D) Production Cards


17 Changeover Cards

155

Visual Aid Layout


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

Line 100

156

KB001 Kanban A New Approach

Visual Aid Layout Inventory Status

Part A 1 Container 1 Container

Part B 1 Container 1 Container 1 Container 1 Container

Part C 1 Container 1 Container 1 Container 1 Container 1 Container

Part D 1 Container 1 Container 1 Container 1 Container 1 Container


157

Part Withdrawal Timing Part A 8:10 am 10:38 am 1:36 pm 5:54 pm 8:22 pm 11:10 pm Part B 7:32 am 9:14 am 10:46 am 12:48 pm 2:30 pm 6:02 pm 7:44 pm 9:16 pm 11:18 pm 1:00 am Part C 7:09 am 8:18 am 9:37 am 10:46 am 12:25 pm 1:44 pm 4:53 pm 6:02 pm 7:21 pm 8:30 pm 10:09 pm 11:18 pm 12:37 am Part D 6:28 am 7:14 am 8:00 am 8:56 am 9:42 am 10:28 am 11:44 am 12:30 pm 1:26 pm 2:12 pm 4:58 pm 5:44 pm 6:30 pm 7:26 pm 8:12 pm 8:58 pm 10:14 pm 11:00 pm 11:56 am 12:42 am

KB001 Kanban A New Approach

158

Board Status - 6:00 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

Line 100

159

Board Status 6:00 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

Line 100

160

KB001 Kanban A New Approach

Inventory Status - 6:00 am


Part A 1 Container 1 Container Part B 1 Container 1 Container 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container 1 Container Part D 1 Container 1 Container 1 Container 1 Container 1 Container

161

Board Status - 6:42 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 3 0 8 3 6 8 4 2

Line 100

B / T

B / T

162

Board Status - 6:42 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 3 0 8 3 6 8 4 2

Line 100

B / T

B / T

163

KB001 Kanban A New Approach

Inventory Status - 6:42 am

Part A 1 Container 1 Container 1 Container 1 Container

Part B 1 Container 1 Container 1 Container 1 Container

Part C 1 Container 1 Container 1 Container 1 Container 1 Container

Part D 1 Container 1 Container 1 Container 1 Container

164

Board Status - 8:42 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2

Line 100

165

Board Status - 8:42 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2

Line 100

166

KB001 Kanban A New Approach

Inventory Status - 8:42 am

Part A
1 Container 1 Container 1 Container

Part B
1 Container 1 Container 1 Container

Part C
1 Container 1 Container 1 Container

Part D
1 Container 1 Container 1 Container 1 Container 1 Container 1 Container

1 Container

1 Container

167

Board Status 9:54 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4

Line 100

L L / / T T

L / T

L L / / T T

168

Board Status 9:54 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4

Line 100

L L / / T T

L / T

L / T

L / T

169

Inventory Status 9:54 am


Part A 1 Container 1 Container Part B 1 Container 1 Container Part C 1 Container 1 Container

KB001 Kanban A New Approach

Part D 1 Container 1 Container

1 Container

1 Container
1 Container

1 Container
1 Container

1 Container
1 Container

1 Container
1 Container
170

Board Status 10:48 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8

1 1 5 4

1 2 0 0

1 2 0 6

1 2 1 2

1 2 1 8

1 2 2 4

1 2 3 0

1 2 3 6

1 2 4 2

1 2 4 8

Line 100

L L / / T T

L / T

L L / / T T

171

Board Status 10:48 am


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8

1 1 5 4

1 2 0 0

1 2 0 6

1 2 1 2

1 2 1 8

1 2 2 4

1 2 3 0

1 2 3 6

1 2 4 2

1 2 4 8

Line 100

L / T

L L L / / / T T T

L / T

172

KB001 Kanban A New Approach

Inventory Status 10:48 am


Part A Part B Part C Part D

1 Container
1 Container

1 Container
1 Container 1 Container 1 Container

1 Container
1 Container 1 Container 1 Container 1 Container

1 Container
1 Container 1 Container 1 Container 1 Container

173

Board Status - 12:02 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 5 4 2 0 0 2 0 6

Line 100

B / T

B / T

174

Board Status - 12:02 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 5 4 2 0 0 2 0 6

Line 100

B / T

B / T

175

KB001 Kanban A New Approach

Inventory Status - 12:02 pm


Part A Part B Part C Part D

1 Container
1 Container 1 Container 1 Container

1 Container
1 Container 1 Container 1 Container

1 Container
1 Container 1 Container 1 Container 1 Container

1 Container
1 Container 1 Container 1 Container

176

Board Status 1:58 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 3 0 6 3 1 2 3 1 8 3 2 4 3 3 0 3 3 6 3 4 2 3 4 8 3 5 4

Line 100

E O S

B / S

B B B B / / / / S S S S

B / S

B B / / S S

B B / / S S

B B B B / / / / S S S S

177

Board Status 1:58 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 3 0 6 3 1 2 3 1 8 3 2 4 3 3 0 3 3 6 3 4 2 3 4 8 3 5 4

Line 100

E O S

B / S

B B B B / / / / S S S S

B / S

B B / / S S

B B / / S S

B B B B / / / / S S S S

178

KB001 Kanban A New Approach

Inventory Status 1:58 pm


Part A 1 Container 1 Container 1 Container Part B 1 Container 1 Container 1 Container Part C 1 Container 1 Container 1 Container Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container

179

Board Status - 4:30 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 4 3 0 4 3 6 4 4 2 4 4 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4

6 0 0

6 0 6

6 1 2

6 1 8

6 2 4

6 3 0

Line 100

180

KB001 Kanban A New Approach

Inventory Status - 4:30 pm


Part A 1 Container 1 Container 1 Container Part B 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container 1 Container Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container

181

Board Status - 5:06 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0

6 3 6

6 4 2

6 4 8

6 5 4

7 0 0

7 0 6

Line 100

B / T

B / T

182

Inventory Status - 5:06 pm


Part A 1 Container 1 Container 1 Container Part B 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container

KB001 Kanban A New Approach

Part D 1 Container 1 Container 1 Container 1 Container

1 Container
1 Container

1 Container
1 Container
183

Board Status - 6:06 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4

7 3 0

7 3 6

7 4 2

7 4 8

7 5 4

8 0 0

Line 100

B / T

B / T

184

Board Status - 6:06 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4

7 3 0

7 3 6

7 4 2

7 4 8

7 5 4

8 0 0

Line 100

B / T

B / T

185

KB001 Kanban A New Approach

Inventory Status - 6:06 pm


Part A 1 Container 1 Container Part B 1 Container 1 Container 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container 1 Container Part D 1 Container 1 Container 1 Container 1 Container 1 Container

186

Board Status 6:42 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6

8 1 2

8 1 8

8 2 4

8 3 0

8 3 6

8 4 2

Line 100

B B / / T T

187

Board Status 6:42 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6

8 1 2

8 1 8

8 2 4

8 3 0

8 3 6

8 4 2

Line 100

B B / / T T

188

KB001 Kanban A New Approach

Inventory Status - 6:42 pm

Part A 1 Container 1 Container 1 Container 1 Container

Part B 1 Container 1 Container 1 Container 1 Container

Part C 1 Container 1 Container 1 Container 1 Container 1 Container

Part D 1 Container 1 Container 1 Container 1 Container

189

Board Status 8:30 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0

Line 100

L / T

L L L / / / T T T

L / T

190

Board Status 8:30 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0

Line 100

L / T

L L L / / / T T T

L / T

191

KB001 Kanban A New Approach

Inventory Status - 8:30 pm

Part A 1 Container 1 Container 1 Container

Part B 1 Container 1 Container

Part C 1 Container 1 Container 1 Container

Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container

To be filled At 8:32.5

192

Board Status 10:12 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2

Line 100

B / T

B / T

193

Board Status 10:12 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2

Line 100

B / T

B / T

194

Inventory Status - 10:12 pm


Part A 1 Container Part B 1 Container Part C 1 Container

KB001 Kanban A New Approach

Part D 1 Container

1 Container
1 Container

1 Container

1 Container
1 Container 1 Container 1 Container 1 Container

1 Container
1 Container 1 Container 1 Container 1 Container 1 Container
195

Board Status 11:06 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6

Line 100

B / T

B / T

E O S

B / S

196

Board Status 11:06 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6

Line 100

B / T

B / T

E O S

B / S

197

Inventory Status - 11:06 pm


Part A 1 Container 1 Container 1 Container Part B 1 Container 1 Container 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container

KB001 Kanban A New Approach

Part D 1 Container 1 Container 1 Container 1 Container

1 Container
1 Container

1 Container
1 Container
198

Board Status 11:56 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4

Line 100

E B O / S S

B / S

B B / / S S

B / S

B / S

B / S

B B / / S S

199

Board Status 11:56 pm


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
2nd Shift 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4

Line 100

E B O / S S

B / S

B B / / S S

B / S

B / S

B / S

B B / / S S

200

Inventory Status - 11:56 pm


Part A 1 Container 1 Container 1 Container Part B 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container

KB001 Kanban A New Approach

Part D 1 Container 1 Container 1 Container 1 Container

1 Container
1 Container

1 Container

201

Board Status - 6:00 am Day 2


Lot Box
Part A B C D 1 2 3 4 Container # 5 6 7 8

KB001 Kanban A New Approach

10

Kanban Post
1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

Line 100

202

KB001 Kanban A New Approach

Inventory Status - 6:00 am Day 2


Part A 1 Container 1 Container 1 Container 1 Container Part B 1 Container 1 Container 1 Container Part C 1 Container 1 Container 1 Container 1 Container Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container
203

KB001 Kanban A New Approach

Lot Size Calculation

Exercise 3 (An Alternative Approach)

204

KB001 Kanban A New Approach

Calculation Exercise Data Data


Part Monthly Demand Changeover Time A 10,000 720 B 8,000 600 C 9,000 720 D 11,000 600 Cycle Time 22 23 21 22 Container Size 30 30 30 30

205

KB001 Kanban A New Approach

Available Time
Available Time = Number of hours per Shift - Break Time

Number of Shifts: 2 Number of Breaks Per Shift: 2

Hours Per Shift: 8 Minutes Per Break: 10

Available Time=

206

KB001 Kanban A New Approach

Available Time

Available Time = Number of hours per Shift - Break Time

Number of Shifts: 2 Number of Breaks Per Shift: 2

Hours Per Shift: 8 Minutes Per Break: 10

Available Time = 55,200

207

KB001 Kanban A New Approach

Demand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period

Days In Month = 20

Part A B C D Total

Monthly Demand 10,000 8,000 9,000 11,000

Daily Demand

208

KB001 Kanban A New Approach

Demand Calculation
Daily Demand = Monthly Demand # of Days in Demand Period

Days In Month = 20

Part A B C D Total

Monthly Demand 10,000 8,000 9,000 11,000

Daily Demand 500 400 450 550

209

KB001 Kanban A New Approach

Calculating Production Time


Production Time = Cycle Time x Daily Demand

Part A B C D Total

Daily Demand

Cycle Time 22 23 21 22

Production Time

210

KB001 Kanban A New Approach

Calculating Production Time


Production Time = Cycle Time x Daily Demand

Part A B C D Total

Daily Demand 500 400 450 550 1,900

Cycle Time 22 23 21 22

Production Time 11,000 9,200 9,450 12,100 41,750

211

KB001 Kanban A New Approach

Calculating Average Changeover Time


Part A B C D Total Daily Demand Changeover Time 720 600 720 600

Average C/O Time = Total Changeover Time = # of Parts Numbers


212

Calculating Average Changeover Time

KB001 Kanban A New Approach

Part A B C D Total

Daily Demand 500 400 450 550 1,900

Changeover Time 720 600 720 600 2,640

Total Average C/O Time = Changeover Time = 2,640 = 660 # of Parts Numbers 4
213

KB001 Kanban A New Approach

Lot Size Calculation


Step 1: Determine The Number of Changeovers per Day # of C/O per day = Available Time - Production Time Average Changeover Time

# Of C/O Per Day =

(# of Parts)
4

/ /

(# of Available C/Os)

= =

(LOT SIZE)

214

KB001 Kanban A New Approach

Lot Size Calculation


Step 1: Determine The Number of Changeovers per Day # of C/O per day = Available Time - Production Time Average Changeover Time # Of C/O Per Day = 55,200 41,750 = 20.38 660

(# of Parts)
4

/ /

(# of Available C/Os)
20.38

= =

(LOT SIZE)
.19
215

KB001 Kanban A New Approach

Lot Size Per Part Number

Part A B C D

Daily Demand

Lot Size

# in Lot

216

KB001 Kanban A New Approach

Lot Size Per Part Number

Part A B C D

Daily Demand 500 400 450 550

Lot Size .19 .19 .19 .19

# in Lot 95 76 85.5 104.5

217

KB001 Kanban A New Approach

Container Lot Size


# of Containers in a Lot =

Lot size Qty per Cont.

Example: Lot Size for Part A = Container Size = 30


Part A =

Part A Lot Size =


218

KB001 Kanban A New Approach

Questions
A
Daily Dem an d

B
L ot S iz e

C
Cycle T im e

D
C/O

E
L ot T im e

F
T otal Ru n

I Calculations E=(BXC) F=(D+E) H=(GXC)/60 I=D/60

Con tain er S iz e M in . / Con tain er C.O . T im e ( m in .)

Part # 1 A B C D

Container No. 2 3 4 5

C/O

Total

219

KB001 Kanban A New Approach

Answers
A
Daily Dem an d

B
L ot S iz e

C
Cycle T im e

D
C/O

E
L ot T im e

F
T otal Ru n

G 30.0 30.0 30.0 30.0

I Calculations E=(BXC) F=(D+E) H=(GXC)/60 I=D/60

Con tain er S iz e M in . / Con tain erC.O . T im e ( m in .)

500 400 450 550

120 90 90 120

22 23 21 22

720 600 720 600

2640 2070 1890 2640

3360 2670 2610 3240

Part # A B C D 1 11.0 11.5 10.5 11.0

Container No. 2 3 4 5 22.0 33.0 44.0 23.0 34.5 21.0 31.5 22.0 33.0 44.0 -

6 -

C/O 12.0 10.0 12.0 10.0

Total 56.0 44.5 43.5 54.0

220

KB001 Kanban A New Approach

Example
1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

Line 100

A: B:

C: D:
221

KB001 Kanban A New Approach

Example
1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0

Line 100

A: B:

I I

I I

- I - I

- I -

C: D:

I I

I I

- I - I

- I

222

KB001 Kanban A New Approach

Material Movement

(Focus of On-Time Delivery)

223

KB001 Kanban A New Approach

Internal Material Movement

Move Card

Standard Delivery Route

224

KB001 Kanban A New Approach

Move Card
The move card tells us: What to move Where to find and take material Standard material quantity

When to move

225

KB001 Kanban A New Approach

Move Card
STORE ADDRESS WORK UNIT ADDRESS

SUPPLIER NAME

Kanban Signal No. WORK UNIT NAME

PART No.

QUANTITY

CARD #

226

KB001 Kanban A New Approach

Flow of Move Card


Move Card

Internal
Raw Material Store Production Work Unit
Needed product

227

Kanban, A new Approach

When Do I Remove the Move Card?


When the first piece is taken, the Move card is removed

Move Card

KB001 Kanban A New Approach

Partial Card
A partial card can be any color that attracts attention.

There is only one partial card for each component part on a line.
STORE ADDRESS WORK UNIT ADDRESS

SUPPLIER NAME

Kanban Signal #

WORK UNIT NAME

PART No.

Partial
229

KB001 Kanban A New Approach

Standard Route of Delivery


Why do we need a standard route of delivery? To eliminate waste To reduce inventory

To guarantee on time delivery

230

KB001 Kanban A New Approach

Standard Route of Delivery


Pick Area

Line 1

Line 3

Line 2

231

KB001 Kanban A New Approach

Standard Route of Delivery


Pick Area

Line 1

Line 3

Line 2

232

Part No. Part Name Line

CC3330 Converter Assy


# of Members 1

STANDARDIZED WORK CHART MATERIAL HANDLER


Cell Takt Time Delivery Cycle

Date Stops

08/30/99
Daily Customer Demand

Shifts

2
Bottleneck

Manual Time

4440
90

60
20

15

Standard In-Process Stock

920

Raw Material Store

30

90

Orbital Welder
Finished Goods
30

1 30 Manual Weld Bracket

240 30

Linear Weld

3
30

Marking Machine

Rolling Machine

Secure Tig Tack Wrap Tourniquet Machine 6

Press Sizer
90

90
Manual Member Time Walk Time Total Time

4
30 15

5
30 25

30

420

480

900

KB001 Kanban A New Approach

How Many Withdrawal Cards Are There?


The Number of Withdrawal Cards is Based on: Time of the standard route of material deliveries Usage rate of material by the work unit Quantity per container of material

234

KB001 Kanban A New Approach

Calculating Number of Move Cards

Delivery Cycle = Time to make standard delivery cycle in hours


Quantity per Hour = # of parts produced by the work unit in 1hour based on target cycle time # of Move Cards = Delivery Cycle x Qty per Hr x 2 Quantity per Container

One set of cards in Process One set of cards in Que

235

KB001 Kanban A New Approach

Number of Move Cards in the System


# of Move Cards = Delivery Cycle x Qty per Hr x 2 Qty per Container
# of Move Cards = 0.5 hour x 100 parts/hour x 2 25 Parts per Container # of Move Cards = 4

236

KB001 Kanban A New Approach

How Many Withdrawal Cards are in the System for an Outside Supplier ?
Need to know : Agreed upon delivery cycle Daily demand Quantity per container Safety Stock

237

KB001 Kanban A New Approach

Kanban Cycle
Agreed upon delivery cycle

This is usually stated as 3 numbers


A:B:C

In A days
There are B trucks Parts are returned C shipments after Cards are sent back to the supplier
238

KB001 Kanban A New Approach

Delivery Cycle
Delivery Cycle 1:2:3

in 1 day : there are 2 deliveries : and parts arrive 3 shipments after cards are sent to supplier
Monday
Truck 1 2 Truck 2 1 3

Tuesday

Wednesday

Thursday

Friday

SUPPLIER

239

KB001 Kanban A New Approach

How Many Withdrawal Cards are in the System for an Outside Supplier?
# of Supplier = Daily Demand x A x (C+1) + D Qty per Cont. B
x

Daily Demand Qty per Cont.

A: # of days

B: # of trucks
C: when the Cards return D: Safety Stock Safety Stock covers problems with delivery due to supplier
240

KB001 Kanban A New Approach

How Many Withdrawal Cards are in the System for an Outside Supplier?
Daily Demand = 1500pcs Qty/Cont. = 30pcs per container Delivery Cycle = 1:2:3 D = .5 Days
A: # of days B: # of trucks C: when the Cards return D: Safety Stock

# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand Qty per Cont. B Qty per Cont.
= 1500pcs

1 x (3+1) + 30pcs per Cont. 2


x

.5 x 1500

30

= 50 Containers x 2 + 25 = 125 Cards


241

KB001 Kanban A New Approach

Supplier Card Flow

Truck 25 cards

Supplier processing 25 cards

By using 25 cards
Safety Stock Truck 25 cards 25 cards

242

KB001 Kanban A New Approach

Supplier Card Calculation

Exercise 4 (Card Requirements)

243

KB001 Kanban A New Approach

How Many Withdrawal Cards are in the System for an Outside Supplier?
Daily Demand = 2000 pieces Qty/Cont. = 50 pieces / container Delivery Cycle =A:B:C 1:6:3 D = .25 days

# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand Qty/Cont. B Qty/Cont

# of Supplier =

244

KB001 Kanban A New Approach

How Many Withdrawal Cards are in the System for an Outside Supplier?
Daily Demand = 2000 pieces Qty/Cont. = 50 pieces / container Delivery Cycle =A:B:C

1:6:3
D = .25 days

# of Supplier = Daily Demand x A x (C+1) + D x Daily Demand Qty/Cont. B Qty/Cont # of Supplier = 2000 * 1 * (3+1) + .25 * 2000 50 6 50 # of Supplier = (40 containers * .67) + 10 # of Supplier = 36.8 cards = 37 cards (Round up)
245

KB001 Kanban A New Approach

Kanban System Summary


Key to Successful Information Flow
Customer Internal Supplier

Opportunities for Improvement


Inventory reduction Lead-time reduction Greater flexibility Better visual management

246

KB001 Kanban A New Approach

No Pain, No Gain
The truth about a Kanban System
Easy to use and follow Difficult to implement

Keys to success in the Kanban System


Training Trial and error Team problem solving Perseverance

247

KB001 Kanban A New Approach

Initial Start-Up
Start at the beginning of the chain and work your way downstream
Customer loop Internal pull Transition to the supplier

Anticipate problems, they will happen!!!

248

KB001 Kanban A New Approach

Think Long-Term
Learn the basics first
Understand the root cause of problems Take action after the root cause is clear

Initial inventory goes up


Plan out your strategy Communicate your plans to upper management

249

KB001 Kanban A New Approach

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KB001 Kanban A New Approach

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