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KanBan

KanBan

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Published by atharpimt

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Published by: atharpimt on Apr 17, 2010
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10/01/2010

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KanBanOrigins
The term
kamban
describes an embellished wooden or metalsign often representing atrademark or seal.
 Kamban
became animportant part of the Japanese mercantile scene in the17thcentury, much like the military banners had been to the samurai.
 
Visual puns,calligraphyand ingenious shapes were employed to
 
indicate a trade and class of business or tradesman.In the late 1940s, Toyota began studying supermarkets with aview to applying store and shelf-stocking techniques to thefactory floor, figuring, in a supermarket, customers get whatthey need, at the needed time, and in the needed amount.Furthermore, the supermarket only stocks what it believes it willsell, and customers only take what they need because futuresupply is assured. This led Toyota to view a process as acustomer of preceding processes, and the preceding processes asa kind of store. The customer process goes to this store to getneeded components, and the store restocks. As in supermarkets,originally, signboards were used to guide "shoppers" to specificrestocking locations."Kanban" uses the rate of demand to control the rate of  production, passing demand from the end customer up throughthe chain of customer-store processes. In 1953, Toyota appliedthis logic in their main plant machine shop.
[3]
 
 
[ed
it] Op
e
ration
An important determinant of the success of productionscheduling based on "pushing" the demand is the quality of thedemand forecast that can receive such "push."Kanban, by contrast, is part of an approach of receiving the"pull"from the demand. Therefore, the supply or production is
 
determined according to the actual demand of the customers. Incontexts where supply time is lengthy and demand is difficult toforecast, the best one can do is to respond quickly to observeddemand. This is exactly what a kanban system can help: It isused as a demand signal that immediately propagates throughthe supply chain. This can be used to ensure that intermediatestocks held in the supply chain are better managed, usuallysmaller. Where the supply response cannot be quick enough tomeet actual demand fluctuations, causing significant lost sales,then stock building may be deemed as appropriate which can beachieved by issuing more kanban. Taiichi Ohno states that to beeffective kanban must follow strict rules of use
[4]
(Toyota, for 
 
example, has six simple rules, below) and that close monitoringof these rules is a never-ending task to ensure that the kanbandoes what is required.
[ed
it] Toyota's six rul
e
s
y
 
D
o not send defective products to the subsequent process
y
 
The subsequent process comes to withdraw only what isneeded
y
 
P
roduce only the exact quantity withdrawn by thesubsequent process
y
 
E
qualize production
 
y
 
Kanban is a means to fine tuning
y
 
S
tabilize and rationalize the process
[ed
it] Thr
ee-b
in syst
em
 
A simple example of the kanban system implementation might be a "three-bin system" for the supplied parts (where there is noin-house manufacturing) ² one bin on the factory floor (demand point), one bin in the factory store, and one bin at thesuppliers' store. The bins usually have a removable card thatcontains the product details and other relevant information ² the kanban card.When the bin on the factory floor becomes empty, i.e, there isdemand for parts, the empty bin and kanban cards are returnedto the factory store. The factory store then replaces the bin onthe factory floor with a full bin, which also contains a kanbancard. The factory store then contacts the supplier¶s store andreturns the now-empty bin with its kanban card. The supplier'sinbound product bin with its kanban card is then delivered intothe factory store completing the final step to the system. Thusthe process will never run out of product and could be describedas a loop, providing the exact amount required, with only onespare so there will never be an oversupply. This 'spare' binallows for the uncertainty in supply, use and transport that areinherent in the system. The secret to a good kanban system is tocalculate how many kanban cards are required for each product.Most factories using kanban use the coloured board system(Heijunka Box). This consists of a board created especially for 
 
holding the kanban cards.
[ed
it] E
-k 
an
b
an syst
em
s

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