Kanban A New Approach (Tool For Information Flow)

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Kanban A New Approach

(Tool for Information Flow)

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Agenda
Time Topic/Activity
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
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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Name
Years of Service
Current Position
Introductions
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Kanban System
Based on Toyota Production System

Driven by External Customers

Addresses Constraints & Bottlenecks
1. Understanding our Capabilities
2. Lot Size Production
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Overview
Supporting Company Strategy

Understanding Customer Needs

Internal Kanban System

Signaling the Supplier
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The Objective
Create Information System that Supports Lean Principles
Pull of Product Based on Usage
Lower Inventory / Reduced Lead-Time
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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
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Supporting Company Strategy
Elimination of Waste
Overproduction
Material movement
Inventory

Transition to Just-in-Time
Kanban system
Kanban signals
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Production schedules will always change

Production will never go according to schedule

It is human nature to overproduce
Key Assumptions
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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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Information Flow
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The Kanban Signal
The Kanban signal tells us:
When to make it! When to move it!
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Kanban System
Supplying
Process
Customer
Process
product
Production Card
Finished Goods
Store
Withdrawal Card
product
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Withdrawal Kanban Signal
Tells us:
When to move
What to move
Where to move
How much to move
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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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Customer Kanban Signal Information
Supplier

Quantity

Supplier Number

Card Number

Kanban Signal Number
Container Type

Part Number

Description

Storage Location

Storage Address
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Supplier
Kanban
Signal No.
Part No.
Storage Location
Quantity
Supplier
No.
Card No.
Container
Type
Description
Storage Address
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Flow of Customer Kanban Signal
Plant

Finished
Goods
Store
External
Customer
needed product
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Move Kanban Signal Information
Part Number
Supplier Name
Storage Address (Point of Storage)
Card Number
Work Unit Name (Customer)
Quantity per Container
Line Address (Point of Use)
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Move Kanban Signal
WORK UNIT ADDRESS STORE ADDRESS
SUPPLIER NAME
Kanban Signal No.
WORK UNIT NAME
PART No.
QUANTITY
CARD #
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Flow of Move Kanban Signal
Internal

Raw
Material
Store
Production
Work Unit
needed product
Move Kanban Signal
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Supplier Kanban Signal Information
Supplier Name
Part Number
Part Name
Customer
Storage Address
Work Unit Address
Card Number
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Kanban Signal Number Supplier Name
Part Number Quantity Card No.
Customer
Store Address
Work Unit
Address
Part Name
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Flow of Supplier Kanban Signal
External
Supplier

Finished
Goods
Store
needed product
Internal

Raw
Material
Store
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External
Supplier
Internal

Raw
Materials
Store
needed
product
Flow of Withdrawal Kanban Signals
Internal

Production
Work
Unit
needed
product
Plant

Finished
Goods
Store
needed
product
External
Customer
needed
product
Supplier Signal Move Signal Customer Signal
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Production Kanban Signal
Tells Us:
When to make
What to make
How much to make

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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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Production Card Information
Store Address
Work Unit Name
Part Number
Quantity
Card Number
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Production Card
STORE ADDRESS
Kanban
Signal No.
WORK UNIT NAME
PART No.
QUANTITY CARD #
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Signal (Triangle) Information
Work Unit Name
Part Number
Container Type
Quantity
Process Time
Lot Size
Order Point
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Signal (Triangle)
WORK UNIT
NAME
PART No.
CONTAINER
TYPE
QUANTITY
PROCESSING
TIME FOR 1 LOT
LOT SIZE ORDER POINT
Kanban Signal #
# of containers
to produce
Where the signal
is placed in inventory
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Flow of Production Kanban Signals
Internal
Sub
Assembly
Work
Unit
Store
Internal
Final
Assembly
Work
Unit needed
product
Finished
Goods
Store
needed
product
Internal

Sub
Assembly
Work
Unit
needed
product
Triangle Signal Production Signal Move Signal
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Kanban Signal Flow
Sub
Assembly
Work Unit
Finished
Assembly
Work Unit
Production
Kanban
Signal
Triangle
Kanban
Signal
Move
Sub Stores
Finished Goods
Store
A C B
D
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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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Temporary Kanban Signal Card
STORE
ADDRESS
WORK UNIT NAME
PART No.
QUANTITY
CARD #
Kanban
Signal No.
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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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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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Kanban System Simulation
Exercise 1
(Without Leveling)
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Kanban System Simulation - Exercise 1
Objective
To gain an understanding of Kanban System card transfer,
exchange, and loop location
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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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Kanban System Simulation - Exercise 1 Activity Pieces
35 Plastic bowls

73 White Lego Blocks

35 Yellow Lego Blocks

5 Customer Cards

18 Place Mats

13 Production Cards

8 Move Cards

4 Supplier Cards

5 Signal Posts

5 Order Cards
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Activity Layout - Exercise 1
W
Y
Customer
Empty
Containers
Signal
Post
4
Final
Assembly
3
3
3
Empty
Containers
Signal
Post
1@15
3
3
3
Sub
Assembly
1
1
1
Empty
Containers
Signal
Post
2@15
1
Raw
Material
Processing
Empty
Containers
Signal
Post
1
Supplier
Empty
Containers
Signal
Post
A B C
D
E F G H I
J
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
W
W
Y
4 =
W
Y
3 =
Y
2 =
W
1 =
1@15
4
4 4
4 4 4
4 4
4
1 1
1
1 1
1
3 3 1
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Card Types
W
Y
Empty
Containers
Customer
4
4
4
4
4
Signal
Post
4
4
4
4
4
Final
Assembly
3
3
3
Empty
Containers
Signal
Post
3
3
3
Sub
Assembly
1
1
1
Empty
Containers
Signal
Post
1
1
1
Raw
Material
Storage
Empty
Containers
Signal
Post
1
1
1
Supplier
Empty
Containers
Signal
Post
Customer Card
Production Card
Move Card
Production Card
Move Card
Supplier Card Production Card
1 1
3 3 1
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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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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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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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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
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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

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Material Handler 2
Pick up Move Cards and empty containers from sub-
assembly 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
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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
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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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

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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

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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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Customer Orders vs Capacity
3 units = 8hrs 00min
Capacity
1 unit = 2hrs 40min
Day Customer Capacity Actual Production
Order Production Hours
1
2
3
4
5
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The Customer
(Starting Point for a Kanban System)
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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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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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Takt Time
Available Operating Time
Pieces
Takt Time =
57,600 - 2,400
900 pcs
=
61.33 per piece
=
Sets pace of production to match customer
demand
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Production
Work Unit
Customer
Producing to Customer Demand
Customer Card
Production Card
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Customer Ordering History
0
200
400
600
800
1000
1200
1400
1600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Day
U
n
i
t
s
0
200
400
600
800
1000
1200
1400
1600
Forecast
Actual
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Analyze Actual Requirements
Anticipated Demand vs. Actual Demand
Part Anticipated Demand Actual Demand Difference
A 18,000 19,000 1000
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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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Leveled Production
(Based On 500 Units Of Buffer Stock)
0
200
400
600
800
1000
1200
1400
1600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Day
U
n
i
t
s
0
200
400
600
800
1000
1200
1400
1600
Forecast
Actual
Production
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Opportunities in Truck Pitch
Even Truck Pitch
Drives constant Takt Time
Reduces fluctuation

Overall Benefit
Reduction in inventory
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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
Truck Times
1 - 6:00 3 16:00
2 - 10:00 4 21:00
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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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Leveling Post
1 2 3 4 Buffer Stock
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
500 pcs. used to buffer Customer Orders
50 pcs. per container
10 slots required in Leveling Post for Buffer
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Production
Work Unit
Customer
Leveling
Post
B
P
Leveling Customer Demand
Forecast
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1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
3
6
6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
Takt Time Post
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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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Takt Time Post
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
3
6
6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
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Production
Work Unit
Customer
Leveling
Post
B
P
Leveling Customer Demand
Forecast
Takt Time
Post
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Separating Safety Stock
Distinguish between customer fluctuation and internal
problems

Safety Stock inventory amount is based on downtime
history
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Production
Work Unit
Customer
Leveling
Post
B
P
Utilizing Safety Stock
Forecast
Takt Time
Post
S
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Leveling
Benefits:

Neutralizes fluctuation from:
Customers orders
Truck pitch

Pulls product based on:
Customer usage
Takt Time

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Leveling System
Visual Aid 1
(Neutralizing Customer Fluctuation)
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Objective
To establish a pull system of production that levels the
demand of the customer to meet production capabilities
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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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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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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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Visual Aid Layout - Day 1 (End of 2nd Shift)
Leveling Post
Takt Time Post
6
0
0

16

6
0
6

6
1
2

6
1
8

6
2
4

6
3
0

6
3
6

6
4
2

6
4
8

17

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

18

7
4
8

7
5
4

8
0
0

8
0
6

8
1
2

B
/
T

8
1
8

8
2
4

8
3
0

8
3
6

8
4
2

1

8
4
8

8
5
4

9
0
0

9
0
6

9
1
2

9
1
8

9
2
4

B
/
T

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
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Visual Aid Layout - Day 2 (6:00 am)
Leveling Post
Takt Time Post
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
6
0
0

16

6
0
6

6
1
2

6
1
8

6
2
4

6
3
0

6
3
6

6
4
2

6
4
8

17

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

18

7
4
8

7
5
4

8
0
0

8
0
6

8
1
2

B
/
T

8
1
8

8
2
4

8
3
0

8
3
6

8
4
2

1

8
4
8

8
5
4

9
0
0

9
0
6

9
1
2

9
1
8

9
2
4

B
/
T

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Visual Aid Layout - Day 2 (6:00 am - continued)
Leveling Post
Takt Time Post
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
9
3
0

2

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

3

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

L
/
T

4

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

5

1
2
4
2

1
2
4
8

1
2
5
4

L
/
T

L
/
T

L
/
T

L
/
T

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Leveling Post
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
Takt Time Post
9
3
0

2

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

3

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

L
/
T

4

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

5

1
2
4
2

1
2
4
8

1
2
5
4

L
/
T

L
/
T

L
/
T

L
/
T

B
/
T

B
/
T

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Leveling Post
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
Takt Time Post
1
0
0

1
0
6

1
1
2

1
1
8

1
2
4

1
3
0

1
3
6

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
0

3
3
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
/
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Leveling Post
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Takt Time Post
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7

4
3
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4
4
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4
4
8

4
5
4

5
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5
0
6

5
1
2

5
1
8

8

5
2
4

5
3
0

5
3
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5
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5
4
8

5
5
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6
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6
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6
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9

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6
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6
4
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7
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7
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10

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1
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87
KB001

Visual Aid Layout - Day 2 (4:00 pm)
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8

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5
0
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5
1
8

8

5
2
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5
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5
3
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5
4
2

5
4
8

5
5
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6
0
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6
0
6

6
1
2

9

6
1
8

6
2
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6
3
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6
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6
4
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6
4
8

6
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7
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7
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7
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10

7
1
8

7
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88
KB001

Visual Aid Layout - Day 2 (4:00 pm - continued)
Leveling Post
Takt Time Post
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8
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11

8
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8
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8
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8
4
8

8
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12

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9
1
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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

13

1
0
1
8

1
0
2
4

1
0
3
0

1
0
3
6

1
0
4
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1
0
4
8

1
0
5
4

1
1
0
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1
1
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6

14

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89
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Leveling Post
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4
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12

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9
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9
1
8

9
2
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9
3
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9
3
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9
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9
4
8

9
5
4

1
0
0
0

1
0
0
6

1
0
1
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13

1
0
1
8

1
0
2
4

1
0
3
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1
0
3
6

1
0
4
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1
0
4
8

1
0
5
4

1
1
0
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1
1
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6

14

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90
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Leveling Post
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1
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1
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5
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1
2
0
0

1
2
0
6

15

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

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
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2
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91
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Leveling Post
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6
4
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6
4
8

17

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7
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7
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1
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7
1
8

7
2
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7
3
0

7
3
6

7
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18

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9
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92
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Leveling Post
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6
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6
4
8

17

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5
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7
0
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7
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7
1
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7
1
8

7
2
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7
3
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7
3
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7
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18

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8
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5
4

9
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93
KB001

Visual Aid Layout - Day 2 (End of 2nd Shift - cont.d)
Leveling Post
Takt Time Post
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18

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94
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Leveling Post
Takt Time Post
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6
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6
3
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6
4
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6
4
8

17

6
5
4

7
0
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7
0
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7
1
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7
1
8

7
2
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7
3
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7
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7
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18

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9
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95
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Leveling Post
Takt Time Post
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9
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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

3

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
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1
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1
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1
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1
2
1
8

1
2
2
4

1
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1
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96
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Leveling Post
Takt Time Post
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
9
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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

3

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
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1
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1
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1
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1
2
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6

1
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1
2

1
2
1
8

1
2
2
4

1
2
3
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1
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6

5

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1
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97
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Leveling Post
Takt Time Post
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1
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1
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6

1
1
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1
1
8

1
2
4

1
3
0

1
3
6

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
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2
3
6

2
4
2

2
4
8

2
5
4

3
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0

3
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3
1
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3
1
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3
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3
3
6

3
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3
4
8

3
5
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98
KB001

Leveling Post
Takt Time Post
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4
4
2

4
4
8

4
5
4

5
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5
0
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5
1
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5
1
8

8

5
2
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5
3
0

5
3
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5
4
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5
4
8

5
5
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6
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6
0
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6
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9

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6
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6
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6
4
8

6
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7
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7
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7
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10

7
1
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7
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99
KB001

Leveling Post
Takt Time Post
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4
4
2

4
4
8

4
5
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5
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0

5
0
6

5
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5
1
8

8

5
2
4

5
3
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5
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5
4
2

5
4
8

5
5
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6
0
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6
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6

6
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9

6
1
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6
2
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6
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6
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6
4
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6
4
8

6
5
4

7
0
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7
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7
1
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10

7
1
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7
2
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100
KB001

Leveling Post
Takt Time Post
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8
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8
1
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8
1
8

8
2
4

8
3
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8
3
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8
4
2

8
4
8

8
5
4

12

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

13

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

14

1
1
1
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1
1
1
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1
1
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101
KB001

Leveling Post
Takt Time Post
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8
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8
1
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8
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8
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8
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8
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8
4
8

8
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12

9
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9
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9
1
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9
1
8

9
2
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9
3
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9
3
6

9
4
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9
4
8

9
5
4

1
0
0
0

1
0
0
6

1
0
1
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13

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
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1
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6

14

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1
1
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1
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102
KB001

Leveling Post
Takt Time Post

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1
1
4
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1
1
4
8

1
1
5
4

1
2
0
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1
2
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15

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
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1
3
6

1
4
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1
4
8

1
5
4

2
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2
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2
1
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2
1
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2
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103
KB001

Leveling Post
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6
4
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17

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7
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7
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7
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7
1
8

7
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18

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104
KB001

Leveling Post
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17

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7
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7
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7
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7
1
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7
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7
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10
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Kanban System Simulation
Exercise 2
(With Leveling)
106
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Objective
To gain an understanding of the method and benefits of leveling
107
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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
108
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Activity Pieces
36 Plastic bowls

75 White Lego Blocks

36 Yellow Lego Blocks

5 Customer Cards

11 Production Cards

18 Place Mats

3 Buffer Stock Cards

8 Move Cards

4 Supplier Cards

5 Signal Posts

1 Leveling Post

5 Order Cards
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W
Y
Customer
4
4
4
4
4
Empty
Containers
Signal
Post
4
4
4 4
4
4
Final
Assembly
3
3
3
Empty
Containers
Signal
Post
1@15
3
3
3
Sub
Assembly
1
1
1
Empty
Containers
Signal
Post
2@15
1
1 1
Raw
Material
Storage
Empty
Containers
Signal
Post
1
1 1
Supplier
Empty
Containers
Signal
Post
A B C
D
E F G H I
J
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
W
W
Y
4 =
W
Y
3 =
Y
2 =
W
1 =
1@15
Leveling
Post
1 1
3 1 3
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Card Types
Customer Cards
(3) Production Cards
(3) Buffer Stock Cards
Move Cards
Production Cards
Move Cards
Supplier Cards Production Cards
W
Y
Empty
Containers
Customer
4
4
4
4
4
Signal
Post
4
4
4 4
4
4
Final
Assembly
3
3
3
Empty
Containers
Signal
Post
3
3
3
Sub
Assembly
1
1
1
Empty
Containers
Signal
Post
1
1
1
Raw
Material
Storage
Empty
Containers
Signal
Post
1
1
1
Supplier
Empty
Containers
Signal
Post
Leveling
Post
1 1
3 3 1
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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

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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
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Roles
Manager
Focus on improving operations
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Customer Orders vs Capacity
Day Customer Capacity Actual Production
Order Production Hours
1
2
3
4
5
Capacity
1 unit = 2hrs 40min
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(Operating The Internal System)
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Production Instruction
Production Card
Signal (Triangle)

Material Movement
Move Card
Delivery system
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Kanban Signal
Tool To Trigger Production
Production Card

High level of capability in the work unit

Production of parts in any order

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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

Producing
Card for Card
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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
Points to Remember
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Flow of the Production Card
Supplying
Process
product
Production Card
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Kanban Signal
Tool to Trigger Production
Signal (Triangle)

Long changeover times

Production in lot size

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Production by Lot Size
A B C C C A A B
1st 2nd
C B
3rd 4th
Withdrawal Period
A B
Direct Relationship between Changeover times and Inventory Levels
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Signal (Triangle)
WORK
UNIT
NAME
PART No.
CONTAINER
TYPE
QUANTITY
PROCESSING
TIME FOR 1 LOT
LOT SIZE ORDER POINT
Signal #
# of containers
to produce
Where the signal
is placed in inventory
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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

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Lot Size Production
Signal Instructs the Work Unit:

When to produce the part

How many to produce at one time

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Elements Required to Determine the Lot Size
Available Time

Monthly Demand for Each Part Number

Production Time for Each Part Number

Average Changeover Time
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Available Time
Available Time =

(Number of Hours per Shift) (Break Time)
57,600 seconds - 2,400 seconds = 55,200 seconds
Number of Shifts: 2 Hours per Shift: 8
Number of Breaks per Shift: 2 Minutes per Break: 10
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Demand Calculation
Daily Demand = Monthly Demand
# of Days in Demand Period

Part Monthly Demand Daily Demand
A 4000 pcs 200 pcs
B 6000 pcs 300 pcs
C 8000 pcs 400 pcs
D 12000 pcs 600 pcs
Total 30000 pcs ???? pcs

Days in Month = 20
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Demand Calculation

A 4000 pcs 200 pcs
B 6000 pcs 300 pcs
C 8000 pcs 400 pcs
D 12000 pcs 600 pcs
Total 30000 pcs 1500 pcs

Days in Month = 20
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Calculating Production Time
Production Time = Cycle Time x Daily Demand

Part Daily Demand Cycle Time Production Time
A 200 28.5 5700
B 300 28.0 8400
C 400 30.5 12200
D 600 32.0 19200
Total 1500 30.3 ??????
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A 200 28.5 5700
B 300 28.0 8400
C 400 30.5 12200
D 600 32.0 19200
Total 1500 30.3 45500
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Calculating Average Changeover Time

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

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

Total
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A 200 900 seconds
B 300 600 seconds
C 400 720 seconds
D 600 600 seconds
Total 1500 2820 seconds

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

Total
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Step 1: Determine the Number of Changeovers per Day

# of C/O per Day = Available Time - Production Time
# of C/O per Day = ????? - ????? = ??? C/Os
???
(# of Parts) (# of Available C/Os)
(?)
/
/
(???)
=
(LOT SIZE)
=
??? Days
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Step 1: Determine the Number of Changeovers per Day

# of C/O per Day = Available Time - Production Time
# of C/O per Day = 55,200 - 45,500 = 13.7 C/Os
705
(4)
/
/
(13.7)
=
(LOT SIZE)
=
.29 Days
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Lot Size per Part Number

Part Daily Demand Lot Size # in Lot
A 200 0.29 days 58 pcs
B 300 0.29 days 87 pcs
C 400 0.29 days 116 pcs
D 600 0.29 days 174 pcs

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# 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

Part A Lot Size = 2 Containers
Round Up
to Next Full
Container
Container Lot Size
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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
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Signal (Triangle)
Pull
from Top
Remove Signal Triangle
when this container is
pulled!!
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Order Point Calculation
(Daily Demand x Downtime Percentage) = Order Point

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

Order Point: 2
Round Up
to Next Full
Container
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Order Points

Part Daily Demand D/T #PCS Pcs/Cont O.P.

A 200 .20 40 30 ?

B 300 .20 60 30 ?

C 400 .20 80 30 ?

D 600 .20 120 30 ?

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Order Points

Part Daily Demand D/T #PCS Pcs/Cont O.P.

A 200 .20 40 30 2

B 300 .20 60 30 2

C 400 .20 80 30 3

D 600 .20 120 30 4

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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
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1.
Inventory Stores
3.
2.
Inventory Stores
Inventory Stores
The Production Card is put
into a collection box to be
sent back to the work unit.
Move Card signals that
the Customer Work Unit
needs parts.
The container is picked
and the Kanban Card is
replaced with the Move
Card.
Parts are taken to the
Customer Work Unit.
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# 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
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Flow Of The Signal ( Triangle)
Order
Point
Customer
Pulling
Now Next
Roll Cut Work Unit
Signal Board
A B C D
Roll Cut Stores
A
B
C
D
A B D C
Collection
Box
147
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Lot Box Production
An Alternative Approach for Increased
Visual Management
148
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Supplying
Process
product
Production Card
Lot Box Production Flow
Lot
Box
149
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The Lot Box
Order Point
Production Cards
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Zero Inventory
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Work Unit Kanban Post
Part D C/O Card Part A C/O Card
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
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4
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0
0
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4
A B C D E F G H I
Dai l y Demand Lot Si ze Cycl e T i me C/O Lot T i me T otal Run Contai ner Si ze Mi n. / Contai ner C. O. T i me ( mi n. ) Calculations
E=(BXC)
F=(D+E)
H=(GXC)/60
I=D/60
Part #
1 2 3 4 5 6 C/O Total
A
B
C
D
Container No.
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Example for Part # C
A: I - I - -
B: I - I - - I - -
C: I - I - - I - I - -
D: I - - I - - I - I - - I - I - -
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
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7
1
2
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3
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3
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5
4
1 2 3 4 5 6 C/O TOTAL
15.25 30.5 45.75 61 X X 12 73
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Lot Box Production
Visual Aid 2
(An Alternative Approach)

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

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Visual Aid Layout
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
3
6
6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
Kanban Post
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Visual Aid Layout Inventory Status
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
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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

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Board Status - 6:00 am
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
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6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
Kanban Post
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Board Status 6:00 am
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
3
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6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
Kanban Post
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Inventory Status - 6:00 am
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
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
Kanban Post
Line 100

B
/
T

B
/
T

1st Shift 7
5
4
7
3
6
7
3
0
7
4
8
7
4
2
8
1
2
8
2
4
6
4
2
6
5
4
7
0
0
7
0
6
7
1
2
7
1
8
7
2
4
8
0
6
8
0
0
8
1
8
8
3
0
8
3
6
8
4
2
6
4
8
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
Kanban Post
Line 100

B
/
T

B
/
T

1st Shift 7
5
4
7
3
6
7
3
0
7
4
8
7
4
2
8
1
2
8
2
4
6
4
2
6
5
4
7
0
0
7
0
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7
1
2
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1
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7
2
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8
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0
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1
8
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3
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6
4
8
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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
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
Line 100
Kanban Post
1st Shift 9
5
4
9
3
6
9
3
0
9
4
8
9
4
2
8
4
2
8
5
4
9
0
0
9
0
6
9
1
2
9
1
8
9
2
4
1
0
0
0
1
0
0
6
1
0
1
2
1
0
2
4
1
0
3
0
1
0
3
6
1
0
4
2
1
0
1
8
8
4
8
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
Line 100
Kanban Post
1st Shift 9
5
4
9
3
6
9
3
0
9
4
8
9
4
2
8
4
2
8
5
4
9
0
0
9
0
6
9
1
2
9
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8
9
2
4
1
0
0
0
1
0
0
6
1
0
1
2
1
0
2
4
1
0
3
0
1
0
3
6
1
0
4
2
1
0
1
8
8
4
8
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Part B
1 Container
Part C
Part A
1 Container
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
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
Line 100
Kanban Post

L
/
T

L
/
T

L
/
T

L
/
T

L
/
T

1st Shift
1
0
0
0
1
0
0
6
1
0
1
2
1
0
2
4
1
0
3
0
1
0
3
6
1
0
4
2
1
0
4
8
1
0
1
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
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9
5
4
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
Line 100
Kanban Post

L
/
T

L
/
T

L
/
T

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

L
/
T

L
/
T

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Inventory Status 9:54 am
Part B
1 Container
Part C
Part A
1 Container
Part D
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
Kanban Post
1
1
2
4
1
1
3
6
1
2
1
8
1
2
2
4
1
2
3
0
1
2
3
6
1
2
4
2
1
2
1
2
1
2
4
8
1
1
1
8
1
0
4
8
1
0
5
4
1
1
0
0
1
1
0
6
1
1
1
2
1
1
3
0
1
1
4
2
1
1
4
8
1
1
5
4
1
2
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0
1
2
0
6

L
/
T

L
/
T

L
/
T

L
/
T

L
/
T

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Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
Kanban Post
1
1
2
4
1
1
3
6
1
2
1
8
1
2
2
4
1
2
3
0
1
2
3
6
1
2
4
2
1
2
1
2
1
2
4
8
1
1
1
8
1
0
4
8
1
0
5
4
1
1
0
0
1
1
0
6
1
1
1
2
1
1
3
0
1
1
4
2
1
1
4
8
1
1
5
4
1
2
0
0
1
2
0
6

L
/
T

L
/
T

L
/
T

L
/
T

L
/
T

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KB001

Inventory Status 10:48 am
Part B
1 Container
Part C
Part A
1 Container
Part D
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
174
KB001

Board Status - 12:02 pm
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
Kanban Post

B
/
T

B
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1
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175
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Part 1 2 3 4 5 6 7 8 9 10
A
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D
Container #
Lot Box
1st Shift
Line 100
Kanban Post

B
/
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B
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176
KB001

Inventory Status - 12:02 pm
Part B
1 Container
Part C
Part A
1 Container
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
177
KB001

Board Status 1:58 pm
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
1st Shift
Line 100
Lot Box
Kanban Post
1
5
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2
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2
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178
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
Kanban Post
1
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E
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2
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179
KB001

Inventory Status 1:58 pm
Part B
1 Container
Part C
Part A
1 Container
Part D
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
180
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
6
2
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0
181
KB001

Part B
1 Container
Part C
Part A
1 Container
Part D
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
182
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
7
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B
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B
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183
KB001

Part B
1 Container
Part D Part A
1 Container
Part C
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
184
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
7
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185
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
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186
KB001

Part B
1 Container
Part D Part A
1 Container
Part C
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
187
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
8
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188
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
8
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B
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B
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189
KB001

Part B
1 Container
Part D Part A
1 Container
Part C
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
190
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
1
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2
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1
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L
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191
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
1
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2
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1
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192
KB001

Part B
1 Container
Part C
1 Container
Part D
1 Container
Part A
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
To be filled
At 8:32.5
193
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
1
2
0
6
1
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1
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1
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0
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1
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B
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194
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post
1
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B
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195
KB001

Part B
1 Container
Part A
1 Container
Part D
1 Container
Part C
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
196
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post

1
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8
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B
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E
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B
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197
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post

1
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6
1
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5
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1
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4
8
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1
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6

B
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B
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E
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B
/
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198
KB001

Part B
1 Container
Part A
1 Container
Part D
1 Container
Part C
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
199
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post

1
4
8

1
5
4

1
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2

1
3
6

1
3
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1
1
8

1
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0

1
1
2

1
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1
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1
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1
8
1
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0

1
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1
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1
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1
1
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1
2
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1
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1
2
4
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1
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E
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B
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B
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B
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B
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B
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B
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B
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B
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200
KB001

Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
2nd Shift
Line 100
Kanban Post

1
4
8

1
5
4

1
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1
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6

1
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1
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0

1
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1
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1
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1
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0
1
2
4
2
1
2
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1
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1
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E
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B
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B
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B
/
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201
KB001

Part B
1 Container
Part A
1 Container
Part D
1 Container
Part C
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
1 Container
202
KB001

Board Status - 6:00 am Day 2
Part 1 2 3 4 5 6 7 8 9 10
A
B
C
D
Container #
Lot Box
1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
3
6
6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
Kanban Post
203
KB001

Inventory Status - 6:00 am Day 2
Part B
1 Container
Part A
1 Container
Part D
1 Container
Part C
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
204
KB001

Exercise 3
(An Alternative Approach)
205
KB001

Calculation Exercise Data
Part Monthly Demand Changeover Time Cycle Time Container Size
A 10,000 720 22 30
B 8,000 600 23 30
C 9,000 720 21 30
D 11,000 600 22 30
Data
206
KB001

Available Time
Available Time = Number of hours per Shift - Break Time
Number of Shifts: 2 Hours Per Shift: 8
Number of Breaks Per Shift: 2 Minutes Per Break: 10
Available Time=
207
KB001

Available Time
Available Time = Number of hours per Shift - Break Time
Number of Shifts: 2 Hours Per Shift: 8
Number of Breaks Per Shift: 2 Minutes Per Break: 10
Available Time = 55,200
208
KB001

Demand Calculation
Days In Month = 20

A 10,000
B 8,000
C 9,000
D 11,000
Total
209
KB001

Demand Calculation
Days In Month = 20

A 10,000 500
B 8,000 400
C 9,000 450
D 11,000 550
Total
210
KB001


A 22
B 23
C 21
D 22
Total
211
KB001


A 500 22 11,000
B 400 23 9,200
C 450 21 9,450
D 550 22 12,100
Total 1,900 41,750
212
KB001


A 720
B 600
C 720
D 600
Total

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

213
KB001


A 500 720
B 400 600
C 450 720
D 550 600
Total 1,900 2,640

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

Total
214
KB001

Step 1: Determine The Number of Changeovers per Day

# of C/O per day = Available Time - Production Time
# Of C/O Per Day =
/
/
=
(LOT SIZE)
=
4
215
KB001

Step 1: Determine The Number of Changeovers per Day

# of C/O per day = Available Time - Production Time
# Of C/O Per Day = 55,200 41,750 = 20.38
660
/
/
=
(LOT SIZE)
=
4 20.38 .19
216
KB001

Lot Size Per Part Number

A
B
C
D

217
KB001

Lot Size Per Part Number

A 500 .19 95
B 400 .19 76
C 450 .19 85.5
D 550 .19 104.5

218
KB001

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 =
219
KB001

Questions
A B C D E F G H I
Dai l y Demand Lot Si ze Cycl e T i me C/O Lot T i me T otal Run Contai ner Si ze Mi n. / Contai ner C. O. T i me ( mi n. ) Calculations
E=(BXC)
F=(D+E)
H=(GXC)/60
I=D/60
Part #
1 2 3 4 5 6 C/O Total
A
B
C
D
Container No.
220
KB001

Answers
A B C D E F G H I
Dai l y Demand Lot Si ze Cycl e T i me C/O Lot T i me T otal Run Contai ner Si ze Mi n. / Contai nerC. O. T i me ( mi n. ) Calculations
500 120 22 720 2640 3360 30.0 E=(BXC)
400 90 23 600 2070 2670 30.0 F=(D+E)
450 90 21 720 1890 2610 30.0 H=(GXC)/60
550 120 22 600 2640 3240 30.0 I=D/60
Part #
1 2 3 4 5 6 C/O Total
A 11.0 22.0 33.0 44.0 - - 12.0 56.0
B 11.5 23.0 34.5 - - - 10.0 44.5
C 10.5 21.0 31.5 - - - 12.0 43.5
D 11.0 22.0 33.0 44.0 - - 10.0 54.0
Container No.
221
KB001

Example

1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
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4
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8
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6
2
4
6
3
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6
4
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4
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6
5
4
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0
6
6
1
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4
2
7
3
6
7
3
0
7
5
4
A:
B:
C:
D:
222
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Example

1st Shift
Line 100
6
0
0
7
2
4
7
0
6
7
0
0
7
1
8
7
1
2
7
4
8
8
0
0
6
1
8
6
2
4
6
3
0
6
3
6
6
4
2
6
4
8
6
5
4
6
0
6
6
1
2
7
4
2
7
3
6
7
3
0
7
5
4
A: I I - I - I -
B: I I - I -
C: I I - I -
D: I I - I - I -
223
KB001

Material Movement
(Focus of On-Time Delivery)
224
KB001

Internal Material Movement
Move Card

Standard Delivery Route
225
KB001

Move Card
The move card tells us:
What to move
Where to find and take material
Standard material quantity
When to move
226
KB001

Move Card
WORK UNIT ADDRESS STORE
ADDRESS
SUPPLIER NAME
Kanban Signal No.
WORK UNIT NAME
PART No.
QUANTITY
CARD #
227
KB001

Flow of Move Card
Internal

Raw
Material
Store
Production
Work Unit
Needed product
Move Card
When Do I Remove the Move Card?
Move Card
When the first piece
is taken, the Move
card is removed
Kanban, A new Approach
229
KB001

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.
WORK UNIT ADDRESS STORE ADDRESS
SUPPLIER
NAME
Kanban Signal #
WORK UNIT NAME
PART No.
Partial
230
KB001

Standard Route of Delivery
Why do we need a standard route of delivery?
To eliminate waste
To reduce inventory
To guarantee on time delivery

231
KB001

Pick
Area
Line 1
Line 2
Line 3
232
KB001

Pick
Area
Line 1
Line 2
Line 3

Tig Tack
Tourniquet
Machine
Sizer
Secure
Wrap
Rolling
Machine
Marking
Machine
Press
Manual
Weld
Bracket
Linear Weld
Orbital
Welder
Finished
Goods
STANDARDIZED WORK CHART
MATERIAL HANDLER
Part No.
Part Name
Line # of Members Cell Takt Time Delivery Cycle Standard
In-Process
Stock
Date
Member
Manual
Time
Walk
Time
Total
Time
Stops
Manual Time
Daily
Customer
Demand
60
15
Shifts 2
3
1
4440
920
08/30/99 CC3330
Converter Assy
Bottleneck

2
2
7
1
2
3
4 5
6
Raw Material Store
30
30
240
30
30 30
30
90
90
20
15 25
90
90
30
30
420 480 900
1
1
234
KB001

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
235
KB001

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
One set of cards in Process
One set of cards in Que
236
KB001

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

237
KB001

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
238
KB001

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
239
KB001

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 Tuesday Wednesday Thursday Friday
SUPPLIER
Truck 1
Truck 2
1
2
3
240
KB001

# of Supplier

=
Daily Demand
x
A x (C+1)
+
D
x
Daily Demand
Qty per Cont. B 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
System for an Outside Supplier?
241
KB001

Daily Demand = 1500pcs A: # of days
Qty/Cont. = 30pcs per container B: # of trucks
Delivery Cycle = 1:2:3 C: when the Cards return
D = .5 Days D: Safety Stock

# of Supplier

=

Daily Demand
x
A x (C+1)
+ D

x Daily Demand

Qty per Cont. B Qty per Cont.

=

1500pcs
x
1 x (3+1)
+ .5 x 1500

30pcs per Cont. 2 30

= 50 Containers x 2 + 25

= 125 Cards
242
KB001

Supplier Card Flow
Supplier
processing
25 cards
By
using
25 cards
Safety Stock
25 cards
Truck
25 cards
Truck
25 cards
243
KB001

Supplier Card Calculation
Exercise 4
(Card Requirements)
244
KB001

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 =

245
KB001

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)

246
KB001

Kanban System Summary
Key to Successful Information Flow
Customer
Internal
Supplier
Opportunities for Improvement
Inventory reduction
Lead-time reduction
Greater flexibility
Better visual management
247
KB001

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

248
KB001

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!!!

249
KB001

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
250
KB001

Be Prepared to Deliver
251
KB001

Get Serious !!!

Kanban A New Approach (Tool For Information Flow)

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