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Kanban System
Kanban System
Kanban System
Define
Learning Objectives
At the end of the course delegates will be able to:
Remember the key Principles of Lean and some of the key
terms used
Understand the concept of Flow in a lean system, its
importance and how a Pull system facilitates flow
Understand the concept of Kanban and how it can be
applied to a process
Understand the advantages a Kanban gives and how a
simple Kanban system can be initiated
Agenda
The Lean Principles
Maintaining Flow and the Use of Pull Systems
The Concept of a Kanban System
Implementation and using Kanban
Other Kanban related techniques
Review of Definitions
Value & The Value Stream value is quite simply the worth placed
on something by the customer, usually in terms of money, ie would they
pay if they knew we were doing this?..., whilst the value stream is the
sequence of steps (process) required to produce the product or service (or
in other words value) being provided
Waste anything that does not add value in the process when viewed
from the customers perspective (typically broken in to 7 categories;
transport, inventory, motion, waiting, overproduction, overprocessing and
defects)
Maintaining Flow
When you turn on a tap at home what do you expect?
A clean consistent flow of water that is safe to drink, is not limited in quantity
and is available when needed
Thats Flow!
In Lean the idea of flow is applied to everything we do, including the design,
production and delivery of discrete products and services
Ideally from customer request to product or service delivery the item moves
continually through a series of value added steps unhindered and uninterrupted
Answer:
Is the above possible in its entirety? Maybe not, but the closer we get the leaner we
are
Demand Signal
Pull Units
Operation 1
PUSH
Uneven
pockets of
inventory
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Order 2
13
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15
16
Re-order
Quantity
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20
10
21
Load
side
Empty
Full
Pick side
Empty
Full
Empty
Load
side
Full
Pick side
Load side
Full
Full
lllll
lllll
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Pick side
Load side
lllll
Pick side
lllll
Load side
Big Parts Ltd.
lllll
lllll
Load side
lllll
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START
START
Identify
Identifyas
as product
product
unit/
unit/ service
service type
type
numbers
numbers
A.
A. Identify
Identify the
the
supplier
supplier or
or location
location
for
for each
each unit
unit
number
number // service
service
step
step
B.
B. Carry
Carry out
out the
the
RRS/usage
RRS/usage profile
profile
analysis
analysis and
and select
select
the
the key
keyunit
unit //
service
step
service step
numbers
numbers for
for the
the
Kanban
Kanban pilot
pilot
C.
C. Ascertain
Ascertain the
the
delivery
delivery lead
lead time
time
and
the
suppliers
and the suppliers //
providers
providers and
and EOQ
EOQ
/EPQ
/EPQ for
for each
each
selected
selected unit
unit //
service
service type
type number
number
G.
G. Implement
Implement and
and
monitor
monitor
performance
performance
F.
F. Train
Train internal
internal
personnel
personnel and
and
consult/train
consult/train the
the
relevant
suppliers
relevant suppliers
E.
E. Develop
Develop the
the future
future
process
process and
and
procedure,
layout
procedure, layout
and
and flow
flow and
and carry
carry
out
out risk
risk analysis
analysis
D.
D. Determine
Determine the
the
ROP
ROP and
and ROQ
ROQ for
for
each
unit
number
each unit number //
service
step
and
service step and
weeks
weeks // days
days of
of
cover
cover
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Kanban Rule 1
:a
Part ox
1b
Part: a
1 box
The downstream
process pulls the
required units
from the upstream
Process in the
agreed quantities
at the appropriate
point in time.
:a
Part ox
1b
:a
Part ox
1b
receiving
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25
Kanban Rule 2
receiving
:a
Part ox
1b
:a
Part ox
1b
The upstream
process produces
or delivers items
only in the
quantities
withdrawn by the
downstream
process. This
is indicated by the
number of Kanban
cards in their
receiving tray).
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Kanban Rule 3
There are no more cards, so I
need to stop producing.
receiving
:a
Part ox
1b
:a
Part ox
1b
Nothing is transported or
produced without a Kanban
demand signal. This helps
in preventing
overproduction and
excessive stocks and / or
movement of goods. Note
Kanban can be used to
regulate delivery & flow or
whether an actual VA
operation takes place.
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Kanban Rule 4
This is the correct
box of parts according
to the information on
the withdraw Kanban
card
:a
Part ox
1b
Part: a
1 box
:a
Part ox
1b
:a
Part ox
1b
receiving
Kanban cards
always
accompany the
items
themselves as
they also serve
as an
identification
tag authorising
the need for the
items.
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Kanban Rule 5
This units defective.
It needs to be fixed
before
it moves on.
t: A
Par o x
1b
:a
Part ox
1b
:a
Part ox
1b
Defectives are
never passed on
to the
downstream
process and
every item must
be of an
acceptable
quality.
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Kanban Rule 6
Reduced Kanban size
means less inventory
and quicker throughput times!
:a
Part ox
1b
t: a
Par ox
1b
t: a
Par ox
1b
t: a
Par ox
1b
Part: a
1 box
t: a
Par ox
1b
t: a
P ar ox
1b
The Kanban
batch size and
number of
Kanbans should
be minimised
where possible,
thereby reducing
total throughput
time and the cost
of inventory.
receiving
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Note: You will never get Kanban sizing exactly right.Its a balancing act between keeping your
stocks low and never letting your customers down. But you can tackle and refine it gradually - Peter
Varnsverry
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Note the demand can be given as hourly, daily, weekly or monthly depending on needs
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Use of a Supermarket to
Control Inventory
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Summary
One piece flow is demand driven (pull system), and uses batch
sizes of one versus a forecast and plan oriented production system
(push system) that uses larger batch sizes
From a Lean viewpoint one-piece flow is optimal as inventory is
reduced as is cycle time
One piece flow is not always possible, in which case a Kanban
system should be considered
Differing types of Kanbans exist, for example some trigger an
operation (production) and others trigger the movement of stock
(flow)
In Lean the goal is always to reduce inventory by reducing number
of Kanbans
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