KANBAN SYSTEM

HARI HARAN.K
M.E(C.I.M)
2009206028

Kanban Production Control

System
Kanban:
Card or other device that communicates
demand for work or materials from the preceding
station
Kanban is the Japanese word meaning signal
or visible record card
Paperless production control system
Authority to pull, or produce from a downstream
process

Kanban is not for everybody

The conditions necessary for Kanban to work well are:
Smooth production involving a stable product mix
Short setups
Proper machine layout
Standardization of jobs
Improvement activities
Autonomation (autonomous defect control)

Kanban Control System

Kanban card indicates standard quantity of production
Derived from two-bin inventory system
Kanban maintains discipline of pull production
a. Two-bin inventory system
Bin 1
Reorder
Card

Bin 2

Q-R
R
Q = order quantity
R = reorder point
= demand during lead time

b. Kanban Inventory System

Kanban

Kanban
Each kanban includes info on
Part type
Number of units authorized
Possible additional info
Often used together with transport container
Possibly color-coded to match
Empty container pulls parts / triggers production
Kanban card is work order
Transfer lot size = container size

Kanban Systems
The first Kanban system was applied by Taiichi Ohno in
Toyota around 1953 to:
Reduce inventory and production cycle time
Improve productivity
Kanban and Kaizen
Kanban a card (Japanese term), visual record
Kaizen continuous improvement
A concept different than Kanban
Problem solving by teams

Kanban Production Control System

Kanban card indicates standard quantity of production
Derived from two-bin inventory system
Kanban maintains discipline of pull production
Production kanban authorizes production

Withdrawal kanban authorizes movement of goods

Important properties of Kanban System

Production is carried out in multiples of a minimum
quantity or batch.
The number of cards (or containers) in the system is
fixed, hence the total quantity of on-hand and on-order
inventory in the facility is also fixed (fixed-volume pull
system).
Production is only initiated when finished inventory is
removed from the cell, thereby releasing a card (or
container).

A Sample Kanban

Types of Kanban System

Single Card Kanban System:

The production activity within the cell is controlled by the
Production Kanban cards, but transportation activity from the
cell is not controlled by the Withdrawal (transportation)
Kanban cards.

Types of Kanban System

Dual Card Kanban System:

The only difference from the above is that there is an upper
bound on the back orders, which is limited by the number of
transport Kanbans, since they are controlled by the
withdrawal Kanban cards.

Two-stage Kanban System:

Consists of two cells in series.
Simplest version of a multistage Kanban controlled process.
Interactions can be determined in order to get insights.

Types of Kanbans
Kanban Square
Marked area designed to hold items

Signal Kanban
Triangular kanban used to signal production at the
previous workstation

Material Kanban
Used to order material in advance of a process

Supplier Kanbans
Rotate between the factory and suppliers

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Single Card Kanban System

Receiving post
Kanban card for
product 1
Kanban card for
product 2

Storage
area

Empty containers
Assembly line 1
O2

Fabrication
cell
O3

O1

Assembly line 2
Full containers

O2

Dual Kanbans

Dual Kanban system

P

X
X
X

Process
A

Process
X

Container with withdrawal kanban

Flow of work

Container with production kanban

Flow of kanban

Types of Kanbans

Types of Kanbans

Determining Number of Kanbans

No. of Kanbans =

average demand during lead time + safety stock

container size
dL + S
N =
C

where
N
d
L
S
C

= number of kanbans or containers

= average demand over some time period
= lead time to replenish an order
= safety stock
= container size

Determining the Number of

Kanbans
d
L
S
C

= 150 bottles per hour

= 30 minutes = 0.5 hours
= 0.10(150 x 0.5) = 7.5
= 25 bottles

Solution

dL S
C
(150 0.5) 7.5

25
75 7.5

25
3.3 Kanbans or Containers
N

Round up to 4 (to allow some slack) or down to 3 (to force improvement)

Kanban
Step N manufacturer

Step N supplier

Kanban card (and empty container) = request to

supplier to make a container of Z and deliver ASAP
Send request when remaining material = lead time
for replenishment

Kanban Example
One-card kanban
Low mix/high volume environment
Products X and Z
Each has 3 steps performed at same 3
stations A,B,C
One worker per station (aka Point Of Use,
POU)
Storage after each station
Process A

Process A+B

Process A+B+C

Kanban Card For Example

Card located with product throughout the system

X
Model number
Replenishment
quantity
X product:

Z product:

Scheduling Kanban systems

Each stage has its own schedule of Kanbans
This schedule is determined at the Kanban
system design stage
Production is indirectly scheduled by Kanban

Kanban Control System

Once implemented, a Kanban system acts a
control system rather than a scheduling
system
It implements a repetitive schedule embedded
in the system
This schedule can be generated by a
scheduling algorithm
Simulation can be used to determine the
number of Kanbans, queue size, etc.

Kanban Control Systems

Roles of Kanban
To indicate what is needed at which production stage
To allow various stages to efficiently communicate with
each other
The information can be obtained from the Kanbans
Product name
Code
Volume
Preceding stage and subsequent stage (From .. To ..)
Process
Companys production plan is given only to the final line
Every stage automatically knows how much and when to
produce the parts required

Strategic Implications of JIT

Important for firms focusing on time-based
competition
Cutting cycle times
Improving inventory turnover
Increasing labor productivity
Low cost
Consistent quality
Plant organized around product flows
Not used for make-to-order or highly customized
products

Operational Benefits of JIT

Reduced space requirements

Reduced inventory investment
Reduced manufacturing lead times
Increased productivity
Increased equipment utilization
Reduced paperwork
Simplified planning systems
Better production scheduling
Work force participation
Increased product quality

Implementation Issues
Human costs stress, loss of autonomy
Mitigate by allowing some slack in system
implementing work teams
Job rotations
Cooperation and trust between work force and
management
Realignment of reward structures
Layout changes
Stable master production schedules
Short setups
Reliable supplies of materials

OVERVIEW

Kanban is:

a) Device authorizing work from preceding station

b) Kanban is the Japanese word meaning
produce
c) Paperless procurement control system
d) Authority to push to a downstream process

OVERVIEW(2)

Typical Kanban includes information on:

a)

Kanban number, description, and number of units

authorized
Part number, description, and number of units
authorized
Kanban number, part number, description, and number
of units authorized
Part number, work center, and number of units
authorized

b)
c)

d)

THANK YOU FOR YOUR KIND

ATTENTION
&
LOOKING FORWARD FOR QUERIES