ABS

AlcoaBusinessSystem

かんばん
KANBAN
CALCULATIONS

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AlcoaBusinessSystem
KANBAN

Learning Objectives:
Understand the philosophy of
Kanban and its role in JIT production
Understand the types of Kanban
and the proper use of each
Be able to properly calculate the
number of Kanban needed in a
particular application

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KANBAN

Agenda
Philosophy and Role of Kanban
Kanban System Review
Kanban Calculations
20 Questions
Classroom Exercise

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KANBAN

Tutorial Takt Time

Takt Time= availabletime
required utput
o

= 150 '
54 slides

≈ 3'per slide
ClassExercise≈ 60'

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KANBAN

The Toyota Production System

GOALS: Best Quality Lowest Cost Shortest Lead
Time
KEY IS: Thorough Elimination
JUST-IN-TIME of Waste
AUTONOMATIO
N
• Continuous Flow (Jidoka)
• Pull System Safety • “Automation with
Teamwork
• Takt Time a
Growth
Human Touch”
• Machines Stop for
KANBAN Abnormalities
• Separate Man &
Machine
Leveling • Error Proofing
StandardizedContinuous Improvement
(Heijunka) Work (Pokayoke)
(Kaizen)

STABILITY
(Equipment Reliability, Stable Processes, Quality,
Suppliers)
People
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KANBAN

Why Just-in-Time Production?

Customer can get what is needed, at the time
needed, in the amount needed.
Supplier produces the quantity just taken.
“If parts arrive anytime prior to their need – not
at the precise time needed – waste cannot be
eliminated.”
Taiichi Ohno
June 1987

D
D
Supplier C
C Customer
B
B A
AA

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KANBAN

Why Pull?
“Manufacturers and workplaces can no longer
base production on desk-top planning alone
and then distribute, or push, their products
onto the market.
It has become a matter of course for
customers, or users, each with a different
value system, to stand in the frontline of the
marketplace and, so to speak, pull the goods
they need, in the amount and at the time
they need them.”
2003
Taiichi Ohno
Alcoa Inc. 7
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KANBAN

Time and Quantity

Strategies for Pull
Discussion Point Fixed Time Fixed Quantity

Inventory Supplier must adapt to Supplier must adapt to

variable quantities variable times
Withdrawal time Fixed Varies

Quantity withdrawn Varies Fixed

Usage Disconnected processes Connected processes

Long conveyance Short conveyance
distances distances

Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful
Production System
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KANBAN

Why Kanban?
Kanban is a way to achieve just-in-time; its
purpose is just-in-time [a test of one-piece flow].
The kanban system makes clear what must be
done by workers, managers and supervisors.
The goal of eliminating waste is highlighted by
kanban.
“In the production plant, kanban is a powerful
force to reduce manpower and inventory,
eliminate defective products, and prevent the
recurrence of breakdowns.”
Taiichi Ohno
June 1987

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KANBAN
What is Kanban?
Kanban is a Signboard or Signal
It Carries Information:
Pick-up
Transfer
Production
A Tool for:
Realizing Just-in-Time
Visual Control of Production
Promoting Improvement
“The operating method of the Toyota
production system is kanban.”
Taiichi Ohno
June 1987

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KANBAN

Kanban Types
1 x 1 Production
Production Kanban
Kanban Signal
Kanban
Kanban
Process Move
Move Kanban
Kanban Supplier Move
Kanban

Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time

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KANBAN

Kanban System Lot

Making
Leveling

Supply Stamp Assemble

Stage

Supplier Production Process Production Process

Move Signal Move 1x1 Move
(Distant) (Close) (Lot Making) (Close)

Move: Where to go? What to get? How many? Where to take?

Production: What to make? How many? Storage location?

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KANBAN

Kanban System Types

Type A System:
• High volume & low variety
• Specific to a product
• Uses stores
• Shorter lead times
• Arrow comes down at end of flow
• Inventory generally higher, due to
stores

Type B System:
• Low volume & high variety
• Generic, not part specific
• Uses FIFO queues
• Longer lead times
• Arrow comes down at start of flow
• Inventory generally lower, due to
queues

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KANBAN

Supplier Move Kanban Stores A 1-1

Shelf 7-C

Supplier Move Kanban

…removed when item is withdrawn from store

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KANBAN

Process Move Kanban Assembly AJ

Pick-up AJ
Process Move Kanban
…removed when first item is withdrawn from
container
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KANBAN

Signal Kanban Assembly AJ

Store B-9

Count from
the bottom

FIFO
Signal Kanban Signals

…removed when withdrawals are made

down to the container tagged
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KANBAN

Production Kanban Stamping AJ

Store A33 - 5

Production Kanban (1 x 1)
FIFO
…removed when item is withdrawn from store Production

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KANBAN

Kanban Rules
Function Rule
Provides pick-up or transportation Consumer picks up the number of items
information indicated (by the Kanban) at the supplier

Provides production information Supplier produces items in the quantity

and sequence indicated by the Kanban
Prevents overproduction and excessive No items are made or transported
transport without a Kanban
Serves as a work order attached to goods Always attach a Kanban to the goods

Prevents propagation of defective Do not send defective products to the

products by identifying the process consumer
making the defects
Reveals existing problems and controls Reduce the number of Kanban to increase
inventory (use Kanban to discover areas sensitivity (better to reveal missing items
for improvement) and line-stopping problems)

Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time

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KANBAN

Kanban and Rules-in-Use

Rule MRP Kanban

1 Activity is variable (situational)Activity is pre-specified and tested

2 Connections are subjective Connections are binary, direct and

and indirect: tested:
Worker  Computer  Manager Worker  Worker
Worker  Computer  Manager Worker  Worker

3 Pathways are conditional: Pathways are pre-specified, simple

and tested:

4 Problems discovered after-the- Problems are discovered (by design)

fact and away from the point in the path of the work, at the point
of cause of cause
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KANBAN

Determining Number of Kanban

TYPE Use Need to determine
Production 1x1 Negligible c/o time Number of kanban
(kanban-to- (no stagnation due to
kanban) lot making)

Lot Making Moderate c/o time Number of kanban

(not possible to use Lot size/Trigger
signal kanban)
points
Signal Moderate to long Lot size
c/o time Order points
Move Process Short distances Number of kanban
(store to line-side)

Supplier Long distances

(external supplier)

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KANBAN

1x1 Production (Kanban-to-Kanban)

Need to know: Need to determine:
Daily demand Consumption rate
Scheduled daily work
time
Production lead
Machine time per piece
time
Container capacity Number of kanban
Pull quantity / sequence
variation
Key Points:
No stagnation due to lot making (negligible c/o
time)
Variation comes into play from lead time
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Alcoa Inc. pull fluctuation 21
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KANBAN
1x1 Production

Kanban-to-Kanban Example
Product Machine
Cycle
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
A B C
A 2’ 5 1560 360 60

B 0.5’ 5 2340 540 90

C 0.5’ 5 4680 1080 180

7 hr / day
Production Containers
Product

A 1 1 1 1 1
(420’) B 1 2 1 2 1 …
C 3 2 3 2 3

Pitch
(30’) Process move kanban used to
Assemble
Stage & withdraw single item from store
Ship
Production kanban removed and
3
placed in collection box
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KANBAN
1x1 Production

Numberof kanban= Productionleadtime× Consumptio

n rate + α
Containercapacity
Production lead time: total time to replenish an item
Consumption rate: (peak) rate at which parts are pulled from the
store
Container capacity: amount of product within a store container
Additional kanban needed to compensate
for: 5 5 5 5
C C
Pull sequence fluctuation B C B C

Pull quantity fluctuation A B A A B A

Production leadMonthly
time fluctuation
Product Machine Container
Cycle Capacity
Weekly
Demand
Daily
Demand Demand Level withdrawal
6 7 7 3
A 2’ 5 1560 360 60
B 0.5’ 5 2340 540 90
A C C B B
C 0.5’ 5 4680 1080 180 C
C
A A A A A

Fluctuation in sequence and

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KANBAN
1x1 Production

Alternate Representations…
n rate+ ζ 
Productionleadtime×  Consumptio
Numberof kanban=
Containercapacity
Additional kanban needed to compensate
for:
Pull sequence fluctuation
Pull quantity fluctuation
Production lead time fluctuation
Productionleadtime+ ξ  × Consumptio

 n rate
Numberof kanban= 
Containercapacity

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KANBAN
Safety Coefficient ≠ Safety
Stock Safety Stock:
M a c h in e X -0 1 P ro d u c t 'A '
Held separately from
60 store
50 Stretch Wrapper
‘Special Cause’
failure variation
40 Equipment downtime
Production Lead Time

Major quality incident

30
Assigned to a specific cause
20 Safety Coefficient:
10
Built–in to store
‘Common Cause’
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
variation
Minor delays
O b s e r va tio n N u m b e r
Minor fluctuation in pull
Tend to be random in
nature
2003 Alcoa Inc. 25
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AlcoaBusinessSystem
KANBAN
1x1 Production
Example 1 – Level withdrawal (c/o time ≈ 0)
Product Cycle Container Monthly Weekly Daily C/O Time per Total Consumption
Time Capacity Demand Demand Demand Time Container Time Rate (peak)

A 2’ 5 1560 360 60 10” 10’ 120’ 5 / 30’

B 0.5’ 5 2340 540 90 5” 2.5’ 45’ 10 / 30’
C 0.5’ 5 4680 1080 180 5” 2.5’ 90’ 15 / 30’
Production lead time (max) =
P 2’
udor B Containers ① kanban collection time
c ①
Product

t sa
na axe
A 1 1 1 1 1 1
m … +
el p B 1 2 1 2 1 2

C 3 2 3 2 3 2
② kanban stagnation time
…A
B
Pitch +
C
(30’)
③ machine (+ c/o) time +
Assemble Product Production Consumption Container No. of
④ conveyance
Lead Time Rate time
Capacity Kanban*
3 (max) (peak) (min)

② ③ ④ A 25.5’ 5 / 30’ 5 1
B 25.5’ 10 / 30’ 5 2
17.9’ 2.6’ 3’
C 25.5’ 15 / 30’ 5 3

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AlcoaBusinessSystem
Example 1 – Level withdrawal
C B
A C
C A
B C
C B
3 3
3 3
30’ pitch
25.5’ 25.5’
2003 Alcoa Inc.
KANBAN
1x1 Production
Leveled production sequence
C B C B C
A C A C A
C A C A C
B C B C B
C B C B C
3 3 3 3 3 3
3 3 3 3 3 3
Maximum production lead
time – level withdrawal, no
fluctuation*
27
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KANBAN
Example 2 – Lead Time, Sequence and Quantity Fluctuation 1x1 Production
Product Cycle Container Monthly Weekly Daily C/O Time per Total Consumption
Time Capacity Demand Demand Demand Time Container Time Rate

A 2’ 5 1560 360 60 10” 10’ ±2’ 120’ ±20’ 5 ±5 / 30’

B 0.5’ 5 2340 540 90 5” 2.5’ ±0.5’ 45’ ±9’ 10 ±5 / 30’

Estimated fluctuation in machine
W C 0.5’ 5 4680 1080 180 5” 2.5’ ±0.5’
time: up to90’
20%±18’ 15 ±10 / 30’
si t ah eht 2’ Containers
① Estimated fluctuation in
Product

p
dor ael n
A 2 1 2 2 2 2

oitcu d m
?e
it B 1 2 2 3 2 … consumption rate: up to 100%
C 3 2 2 3 5 1 Estimated increase in kanban
…?
?
needed: 1.20 x 2.00 = 2.40, or
Pitch 240% of Example 1
?
(30’)

Assemble Product Production Consumption Container No. of

Lead Time Rate Capacity Kanban*
3 (est.) (est.) (est.)

② ③ ④ A 44.3’ 10 / 30’ 5 3
B 44.3’ 15 / 30’ 5 5
? ? 3’
C 44.3’ 25 / 30’ 5 8

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AlcoaBusinessSystem
Example 2 – Lead Time, Sequence and Quantity
Fluctuation
C C
C B
C B
B A
A C
A C
3 3
3 3
30’ pitch
25.5’ →
44.3’
2003 Alcoa Inc.
C C
C C
C C
B A
B A
A C
A C
3 3 3 3
3 3
Net effect of fluctuation is to extend
production lead time – more inventory is
required
KANBAN
1x1 Production
C B
C B
C B
C A
C A
A C
A C
C C
C C
C C
…
3
2xB
1xC
3 3 3
29
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KANBAN
Example 2 – Lead Time, Sequence and Quantity 1x1 Production
Fluctuation
Product Container Present Month Daily Lot Size Kanban Master - Number
Capacity Production Production
Quantity Quantity Production Production Change
Present Previous ( + / -)

A 5 1560 60 5 3 2 1

B 5 3120 120 5 5 5 0

C 5 4680 180 5 8 10 -2

Additional inventory Containers are brought to

needed due to
fluctuation
the store as they are
produced with the
Production Kanban
attached
Each Production Kanban is
returned as the individual
item (container) is
withdrawn
Containers are produced
A B C 1x1 in the order in which
2003 Alcoa Inc. Kanban are received 30
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KANBAN

Signal Kanban
Need to know:
Daily demand Need to determine:
Scheduled daily work time
C/O times
Number of C/O
Machine time per piece possible per day
Container capacity
Lot size
Consumption rate
Production lead
time
Key Points: Order point
Choose appropriate replenishment strategy:
fixed time, fixed quantity or combination
Additional lead time due to lot making, etc.
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KANBAN
Signal

Signal Kanban Example A B C

Product Machine Container Monthly Weekly Daily
Cycle Capacity Demand Demand Demand

A 2’ 5 1560 360 60
B 1’ 5 3120 720 120
C 1’ 5 4680 1080 180

7 hr / day Production
(420’)

Process move kanban used to

Stamp Pack
withdraw single item from store
3 Signal kanban removed when
exposed and placed in collection box

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KANBAN
Signal
Productionleadtime + ξ  × Consumptio

 n rate
OrderPoint= 
Containercapacity
Production lead time: total time to replenish the first
container of the lot
Consumption rate: (peak) rate at which parts are pulled from the
store
Additional
Containerlead time needed
capacity: to compensate
amount for: a store container
of product within
Pull sequence fluctuation
Production sequence variation
Production lead time fluctuation

Lot size is determined based upon replenishment

strategy:
∑
Piecesrequiredeachday
FixedQuantity=
Numberof C/O per day

FixedTime= ∑ Specificat
ionsrequiredeachday
Numberof C/O per day
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KANBAN
Signal
Example 3 – Fixed Quantity Replenishment
Product Cycle Container Monthly Weekly Daily C/O
Time Capacity Demand Demand Demand Time
General purpose machine –
c/o time does not yet allow
A 2’ 5 1560 360 60 3’
1x1
B 1’ 5 3120 720 120 4’ Scheduled production time
C 1’ 5 4680 1080 180 5’ is 7:30 per 9 hr day,
6 days per week
Product Lot Size / Daily Lots Needed per
Determine (per day):
Demand Day
Time Available 7.5 hr x 60’ / hr =
450’ A 60 ÷ 60 = 1 1 / day
Pieces Needed 60 + 120 + 180 = B 60 ÷ 120 = 0.5 2 / day
360
Machine Time 120’ + 120’ + 180’ =
C 60 ÷ 180 = 0.33 3 / day
420’
Available C/O Time Check for
Available - Machine 450’ – 420’ = consistency
C/O Run M T W T F S
30’
Longest c/o time max {3’, 4’, 5’} = 4’ 60’ B B B B B B
5’
5’ 60’ C C C C C C
Maximum C/O’s possible
Daily C/O
Available time:c/o26’ 30’ ÷ 5’ = 6
÷ Longest 3’ 120’ A A A A A A
Lot SizeDaily run time: 420’
Pieces Needed ÷ c/o’s 360 ÷ 6 = 5’ 60’ C C C C C C
60
Plan is consistent, now determine order 4’ 60’ B B B B B B
point(s) 5’ 60’ C C C C C C
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KANBAN
Signal
Example 3 – Fixed Quantity Replenishment
Product Cycle Container Monthly Weekly Daily C/O Lot Machine
Time Capacity Demand Demand Demand Time Size Time

A 2’ 5 1560 360 60 3’ 60 120’

B 1’ 5 3120 720 120 4’ 60 60’
C 1’ 5 4680 1080 180 5’ 60 lead
Production 60’time (max) =

P
udor B B ① kanban collection time +
c
t sa
na axe
el p
m 2’ ② kanban stagnation time +
A ① time to replenish the
first container of the ③ machine (+ c/o) time +
C lot
④ conveyance time
Stamp Product Production Consumption Container Order
Lead Time Rate Capacity Point*
3 (max) (min)
(peak)

② ③ ④ A 147’ 30 / 60’ 5 15
B 202’ 60 / 60’ 5 41
188’ 9’ 3’
C 202’ 60 / 60’ 5 41

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KANBAN
Signal
Example 3 – Fixed Quantity Replenishment
Product Container Present Month Daily Lot Size Kanban Master - Number
Capacity Production Production
Quantity Quantity Triangular Triangular Change
Present Previous ( + / -)

A 5 1560 60 60 15 12 3

B 5 3120 120 60 41 48 -7

C 5 4680 180 60 41 48 -7

Containers are brought to

the store as they are
produced
The Signal Kanban is
brought along with the last
41

41

container of the lot and

15

placed on the specified

A B
container
C If fewer than the specified
number of containers are
present, the Signal Kanban
is returned immediately

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KANBAN
Signal
Example 4 – Fixed Time Replenishment
Product Cycle Container Monthly Weekly Daily C/O
Time Capacity Demand Demand Demand Time
General purpose machine –
c/o time does not yet allow
A 2’ 5 1560 360 60 3’
1x1
B 1’ 5 3120 720 120 4’ Scheduled production time
C 1’ 5 4680 1080 180 5’ is 7:30 per 9 hr day,
6 days per week
Product Lot Size / Daily Lots Needed per
Determine (per day):
Demand Day
Time Available 7.5 hr x 60’ / hr =
450’ A 0.5 x 60 = 30 2 / day
Specifications Needed B 0.5 x 120 = 60 2 / day
3
C 0.5 x 180 = 90 2 / day
Machine Time 120’ + 120’ + 180’ =
420’
Available C/O Time Check for
Available - Machine 450’ – 420’ = consistency
C/O Run M T W T F S
30’
Longest c/o time max {3’, 4’, 5’} = 3’ 60’ A A A A A A
5’
4’ 60’ B B B B B B
Maximum C/O’s possible
Daily C/O
Available time:c/o24’ 30’ ÷ 5’ = 6
÷ Longest 5’ 90’ C C C C C C
Lot SizeDaily run time: 420’ 3’ 60’ A A A A A A
Specs Needed ÷ c/o’s 3 ÷ 6 = 0.5 4’ 60’ B B B B B B
day
Plan is consistent, now determine order 5’ 90’ C C C C C C
point(s)
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KANBAN
Signal
Example 4 – Fixed Time Replenishment
Product Cycle Container Monthly Weekly Daily C/O Lot Machine
Time Capacity Demand Demand Demand Time Size Time

A 2’ 5 1560 360 60 3’ 30 60’

B 1’ 5 3120 720 120 4’ 60 60’
C 1’ 5 4680 1080 180 5’ 90 lead
Production 90’time (max) =

P
udor A A ① kanban collection time +
c
t sa
na axe
el p
m 2’ ② kanban stagnation time +
B ① time to replenish the
first container of the ③ machine (+ c/o) time +
C lot
④ conveyance time
Stamp Product Production Consumption Container Order
Lead Time Rate Capacity Point*
3 (max) (min)
(peak)

② ③ ④ A 177’ 30 / 60’ 5 18
B 172’ 60 / 60’ 5 35
159’ 13’ 3’
C 142’ 60 / 60’ 5 29

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KANBAN
Signal
Example 4 – Fixed Time Replenishment
Product Container Present Month Daily Lot Size Kanban Master - Number
Capacity Production Production
Quantity Quantity Triangular Triangular Change
Present Previous ( + / -)

A 5 1560 60 30 18 15 3

B 5 3120 120 60 35 30 5

C 5 4680 180 90 29 36 -7

Containers are brought to

the store as they are
produced
The Signal Kanban is
brought along with the last
35

29

container of the lot and

18

placed on the specified

A B
container
C If fewer than the specified
number of containers are
present, the Signal Kanban
is returned immediately

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AlcoaBusinessSystem
KANBAN

Production (Lot Making)

Need to know: Need to determine:
Daily demand Consumption rate
Scheduled daily work Production lead
time time
Machine time per piece Number of kanban
Container capacity
Lot size / Trigger
Pull quantity / point
sequence variation
Key Points:
Stagnation due to lot making
Variation comes into play from lead time
and/or pull fluctuation
2003 Alcoa Inc. 40
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AlcoaBusinessSystem
KANBAN
Production – Lot Making

Each product type or

specification has a
pre-specified trigger
which determines the
economic lot size to be
run

For some product As kanban are

forms, a signal received, they
kanban is not are placed on
practical a lot-making
board Waiting to
Production lead time is trigger As each trigger is
reached the pre-
increased (compared to signal determined number of
kanban) due to additional kanban is removed
kanban stagnation on the lot and placed in the
making board production queue

AdditionalKanbanStagnationTime = Practicallot size

Consumptio n rate
2003 Alcoa Inc. 41
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KANBAN

Show
me!

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AlcoaBusinessSystem
KANBAN

Show
me!

Casting
Pit
Example

2003 Alcoa Inc. 43

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KANBAN

Process Move Kanban

Need to know: Need to determine:
Time to make standard delivery
cycle Number of kanban
Consumption rate
Container capacity

Key Points:
Proximity of consuming process to up-stream
store

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KANBAN
Process Move

Process Move Kanban Example

Product Container Consumption Delivery
Capacity Rate Cycle

A 5 30 / 60’ 15’
B 5 60 / 60’ 15’

C 5 60 / 60’ 15’

Up-stream
store Line-side
supply
Assemble Pack

3 Process move kanban

removed as first part is used
Reasonable
proximity at line
Kanban are collected and
new containers delivered to
line from up-stream store
2003 Alcoa Inc. 45
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KANBAN
Process Move

Numberof kanban= Deliverycycle× Consumptio

n rate × 2
Containercapacity

Delivery cycle: time to complete a standard

delivery cycle
Consumption rate: (peak) rate at which parts are used
Container capacity: amount of product within a store container

Multiply by 2 in case signal for more product occurs just

after delivery person leaves – it will be two full delivery
cycles before product is brought

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KANBAN
Process Move
Example 5 –Process Move Kanban
Product Container Consumption Delivery No. of
Capacity Rate Cycle Kanban

A 5 30 / 60’ 15’ 3 Line-side inventory -- each

B 5 60 / 60’ 15’ 6 container with a Move
C 5 60 / 60’ 15’ 6 Kanban

Product A
No. kanban= 15' × (30 / 60') × 2 = 3
5
Product B A B C
No. kanban= 15' × (60 / 60') × 2 = 6
5
Product C
Pack
No. kanban= 15' × (60 / 60') × 2 = 6
5

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AlcoaBusinessSystem
KANBAN

Supplier Move Kanban

Need to know:
Daily consumption
Need to determine:
Container capacity Number of kanban
Safety inventory required to offset
supplier or conveyance fluctuation
Agreed upon delivery cycle

Key Points:
Used when distance between supplier and
customer is significant

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KANBAN
Supplier Move

Supplier Move Kanban Example

Significant conveyance
Supplier 1 time
1-2-1
Parts delivered to central
receiving / store
Supplier 2
1-1-2

Assemble
2

Part Supplier Container Consumption Delivery Cycle

Capacity Rate
Factory
A-001 1 10 100 / day 1-2-1
B-002 2 5 50 / day 1-1-2 Process move (withdrawal)
kanban used to convey
parts to line
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KANBAN
Supplier Move
  1+ Z  
Numberof kanban= Dailyconsumptio
n ×  X  ×   + Safetycoefficien
    
t
Containercapacity  
 Y  


Daily consumption: (peak) rate at which parts are used

Container capacity: amount of product within a store container
Safety coefficient: amount of product held to safeguard against
delivery fluctuation (in days’ supply)

Delivery cycle: Agreed upon delivery cycle stated as three

numbers X-Y-Z
in X days (time for 1 conveyance interval),
there are Y deliveries (number of shipments per cycle),
with parts returned Z shipments after Kanban are sent
to supplier
X  means the smallestintegernot less than" X"

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KANBAN
Supplier Move
Example 6 – Supplier Move Kanban
Part Supplier Container Consumption Delivery Cycle Safety No. of Kanban
Capacity Rate Coefficient

A-001 1 10 100 / day 1-2-1 0.5 day 15

B-002 2 5 50 / day 1-1-2 1 day 40

Part A-001 / Supplier 1

100/day   1+ 1 
No. kanban= × 1 ×   + 0.5 day
 = 15
No. kanbanat customer+ store+ safety
10  
  2  
=
50pcs/day  1 day/cycle
×

+ 1 daysafety
1 delivery/c
ycle
iner 
5pcs/conta 
Part B-002 / Supplier 2 = 10 containers
/day× 2 days
50/day   1+ 2 
No. kanban= × 1 ×   + 1 day = 40 = 20 containers(kanban)
5   1  
 
No. kanbanin transit+ at supplier
50 pcs/day  1 day/cyclex 2 deliverieslatency
= × 
 1 delivery/cycle 
5 pcs/contai
ner
Supplier 2
= 10 containers
/day x2 days Customer
1-1-2
= 20 containers(kanban)

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KANBAN

Kanban Maintenance Exampl

e
Product PFEP Monthly
Database Forecast
Plan For
Every Part
Bill of materials for each Monthly demand
finished product forecast

Planning

Material Kanban Master

Capacity Plan Kanban Audit
Requirements Plan

Daily / weekly Number of kanban Cycle time at each Kanban are

requirements of required process numbered
materials Comparison of Processing time per Numbers are
Number of containers current against lot per process collected in the
/ pallets previous period Setup time per path of work
Production Reorder points process Missing Kanban are
schedule(s) Lot sizes identified

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KANBAN

20 Questions (more or less…)

1. What does “Kanban” mean? 1. What is the role of the Safety
2. What is the origin of Kanban in TPS? Coefficient?
3. What is its role in JIT? …of Safety Stock?
4. What are the Kanban types? 1. How often should Kanban be adjusted?
Are they interchangeable? By whom?
Why? 1. What are the strategies for pull?
1. What are the types of Kanban Is one superior?
systems? Why?
Which has the shortest lead time? 1. What are the basic replenishment
Which requires the least strategies?
inventory? What are their relative
1. What are the prerequisites for using advantages and disadvantages?
Kanban? What is the ideal?
2. What are the Rules of Kanban? 1. How does Kanban align with the RIU?
3. What is the basic Kanban calculation?
4. How is Lot Size determined?

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AlcoaBusinessSystem
Class Exercise
KANBAN
CALCULATIONS
Me Then Me!
First!
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AlcoaBusinessSystem
KANBAN

Kanban Maintenance
Monthly Demand Forecast Daily Orders Detailed schedules
must be prepared in
Determine the Sequence for advance for each
Master Production Schedules
Production Variety production center
using monthly
Predetermined ProductionDispatch Actual Production planning data
Quantities and Daily Average
Quantity of Each Product Daily Daily materials must
Production To Upstream Process by Pull
be prepare din
advance to be avail
Monthly Capacity Planning
Daily Production Dispatching

Monthly Adaptation Daily Adaptation

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KANBAN

How Many Kanban? Why?

Scalp Heat Roll Cool

24 24 4h 36
h h h

Schedule

8h

Production lead time = collection time+ stagnation time + setup time + run time
+ conveyance time = 4 days
Safety coefficient = 50% (1/day)x(4
days)x(1 + 0.5)
Daily demand = 1 / day (5 / week)
No. Kanban =
Container capacity = 1 / skid =6
1/
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AlcoaBusinessSystem
KANBAN

Examples of Kanban
Storage Area
Time of Delivery
Farm Fresh
09:30 A 1 - 1 Tractors
Assembly No.2
Item No. Identification
2531 – 0471
Item Name
Radiator Cap
Used in
AJ
Engine Type
ABC Mobile

54
Equipment Box Type

A-4
SPECIAL
Store Shelf No.
75
Box

7 - Center Capacity
Parts-ordering Kanban

Supplier Move Kanban

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KANBAN

Examples of Kanban
Supplying Process

Item Number2531 – 0471 Stores

A 1-1
Item Name Radiator Cap 7-C

Box Box Type Issue No.

75
Capacity

5
SP

AJ
E
CI
A

Assembly
L

Requesting Process

Process Move Kanban

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KANBAN

Examples of Kanban
22-9
Lot Size Item No. No. of Containers

250
Radiator Plug
5

AJ B-9 50
Line No. per
Store
Container

Material
4”x4”

2
Order
Point

Production Signal Kanban

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KANBAN

Examples of Kanban
Store
Shelf No.A33-5 Item Back No. 23 Process Line

Item No. 322-47 Quantity 30 Stamping

Item Name Plug Cap
Press-4
Issue No.
Used in Type AJ
3
Box Capacity 30
Production Kanban (1 x 1)

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KANBAN

Production
Instruction
(what +
Leveling Box when)
(Heijunka) A 1 1

Product
B 1

C 1 1

D 1 1 1 1 1

Time
A

B Stage &
Stamp Assemble
C Ship
D

Raw In-Process In-Process

Material Store Store
Store

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KANBAN

Product
A 1 1

B 1 1 1

C 1 1 1 1 1

Time

Stage &
Assemble
Ship
3

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KANBAN

Schedule
Instruction
Production Pacing (when)
Instruction Box 1
● ● ●
(what)

Assembly
2 ● ●

Line
Assemble
3 ● ●
1

Time

Assemble Stage &

Stamp
2 Ship

FIFO Queue
FIFO Queue

Assemble
3

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KANBAN

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KANBAN

Conveyance and Production

Conveyance Production
Pitch = Goods per container x Takt
Takt

Conveyance route Work sequence

Goods being conveyed Standard in-process stock

Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful
Production System
2003 Alcoa Inc. 65