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Y Kanban is a Japanese word that means
º It can be a billboard, card, label, or
sign.
Y It is one means through which JIT is achieved
Y It is a scheduling system that tells you what to
produce, when to produce it, and how much to
produce
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Y The premise of Kanban is to create Visual
Indicator¶s to allow the operators to be the ones
who determine how much of a product to run and
when to stop or change over.
Y Operators produce based on actual usage, rather
than forecasted usage.
Y Uses the rate of demand to control the rate of
production, passing demand from the end
customer up through the chain of customer-store
processes(pull system).
Y Kanban scheduling is looked at as an execution
tool rather than a planning tool.
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Y ptriving for simplicity
Y Reducing manufacturing throughput times by
effectively replacing traditional batch production by
continuous processing
Y Improving supplier performance to stop material
problems interfering with the ability to satisfy
customers¶ requirements.
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Y Improving quality because short lead times and
lower stocks mean lesser protection against things
going wrong
Y Improving labor flexibility through cross training
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Y Reduces Inventory by nearly 50%
Y Improve Flow - Create One PC Flow
Y Prevents Overproduction which is the mother of all
wastes
Y Places control at the operations level
Y Improves responsiveness to changes in demand
(reduces Throughput Time)
Y Minimizes risk of having obsolete inventory
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The seven steps to implementing kanban:
Y Collect data
Y Calculate the kanban size
Y Design the kanban
Y Train everyone
Y ptart the kanban (implementation)
Y Audit the kanban
Y Improve the kanban
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Y Uses floor markings or signs that tell you at a
glance when to replenish an item
Y Containers go directly to the customer when they
are full, and the empty containers come back to
you from the customer, then you can tell by the
number of empty containers when it is time to
produce
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Y |oard simply uses magnet, plastic chips, colored
washers, etc. attached to the board as a signal
Y Works like the kanban cards, but instead of
chasing cards around a building, you are moving
objects around a board.
Y '&
( : Mix of kanban board and
kanban racks
Y )
Used to be done by Fax, but now more
often its email
Y *+
åigh-tech version of the
faxban
Y
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Racks provide a neat, space
friendly storage area, and the tracking system
provider¶s easy visual management of that storage
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Y A military component supplier client of ours
replaced a sophisticated MRP system and greatly
simplified both planning and shop floor control by
installing a simple multiple slide rack. Each slide
was color coded and labeled as to the model of
subassembly that it held. Lines on the slides
indicated both the replenishment trigger and the
maximum quantity allowed. The upstream
operations were instructed to keep the number of
units on each slide within this min-max range.
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Y Another client, a dog-food bag producer, painted
kanban ³squares´ on the shop floor. These kanban
spaces were sized large enough to hold only a
specific number of pallets of product. Once the
kanban field was filled, the upstream operation would
either:
1. switch to a product that went to another downstream
kanban that still had space,
2. slowed down to match the usage rate of their customer (the
next operation)
3. shut down
Note: The space limit determined WåEN the upstream operation could
produce a product. The line-up (schedule) determined WåICå item was to
be made.
Y phelf space was used as a kanban control system
in several electronic client sites. Once again, the
space, designated on the shelf, provided the
necessary replenishment information
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Y Another example of a kanban system for a Vendor
Managed Inventory item utilized simple painted lines
on the sides of the item¶s pallet rack location. The
lines represented the kanban level, or lowest level of
inventory, that would trigger replenishment. For
example, when stock of a specific cardboard box fell
below the line, the supplier would see the signal
during her daily delivery, and drop off the needed
boxes the next day.
 

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1. åourly production at every process is levelled
with respect to volumes and specifications of
products.
2. Attention is paid to prevent over production
3. Occurrence of abnormality can be easily
identified by some means of indication (buzzer or
lamp)
Y Toyota Production pystem employ ³Kanban´ or a
form of order card as working device. This is the
reason why the production system is called
³Kanban pystem´
Y This system connects a supplier as a production
process with each of Toyota¶s plans and realizes to
minimize the work in process inventories, which
every process in a shop used to keep in
considerable volume formally.
The production process consist of the following
steps:
1. Die Preparation
2. Die Casting
3. Fin Removal
4. Machining
5. Washing
6. ptock ptore
7. Assembly Line
8. Goods store
Y The washing process brings a order cards to the preceding
machining process when washed products stock reaches
below the prescribed level by the demand from the
subsequent assembling process
Y The machining process starts processing as soon as it
receives the order card. ³Kanban´ or order cards are
circulated not only in a company but also between different
companies.
Y Dispatch of carburettors of the company A is begun by the
order card from the engine assembly division of Toyota Motor
Co.
Y Then an order is given to the assembly process for the types
of carburettors that were removed from stock shelf and
dispatched.
In this way orders are given to the preceding processes like
Y As one may have already noticed, following
requirements must be met by production processes
in order to apply this ³Kanban pystem´ efficiently.
Y A production line must realize much shorter setup
time than commonly can respond to production order
given every four hours or every hour for different
kinds or specifications of products.
Y (Example) phortening of die setup time
M It used to take fifty minutes to change a die of a resin moulding
machine.
M |y improvement on twenty four points it now takes three
minutes.
Y Formerly it had taken 90 minutes, 60 minutes and 26
minutes respectively to set up 50 die casting
machines, 250 small stamping machines and 5 resin
moulding machines.
Y At present it take less than one minute each.
Y As the products change in kinds and specifications
each hour, a superintendent must clearly show the
operation standards on each product to the workers,
and must check whether operations are being
performed as ordered.
Y As one may have been aware, Toyota guides the
suppliers in applying ³Kanban pystem´ not for
spreading the usage of ³Kanban´ itself but for
leveling up their production control, quality control or
workers¶ capabilities, and strengthening the
management system.
    

Y Toyota has promoted mutual prosperity with 200 component
suppliers under the basic principle of long term and stable
transaction.
Y AND TOYOTA continues to maintain and improve the
relationship with the component suppliers following this basic
spirit.
Y For this reason Toyota will go with assisting the component
suppliers in management as well as quality control. And
TOYOTA expects the suppliers to strengthen the management
system of their own and to supply the products of excellent
technology and quality without presuming upon or being too
much dependent on the principle of long term and stable
transaction.
Y And Toyota would like to carry on business with overseas