College of Business Universiti Utara Malaysia

Group Assignment:

Kanban Flow Management Systems
By Loganathan Muniandy– 806666 Chuah Siong Lim – 806663 Koh Ling Ling – 807814 Khor Wang Khin – 807910 Jayney Moey Yoke Lan – 809397 Tan Ai Ling – 807820

MBA in Supply Chain Management

BJMP 5023 Operations & Technology Management

The type of product. lot size. The rewards for properly designing and implementing a kanban system are enormous. quantity and stock point need to be identified. shortages. The downstream processes take what’s needed from upstream processes. Kanban required for short set up with proper machine lay out. Lean is operational excellence strategy that enables to change for better. Kanban is just a tool in lean manufacturing and JIT. and total overall costs. . Analysis needed on downstream order pattern to design a proper kanban system. in appropriate quantities while significantly lowering inventory. when needed. container size. It implements a repetitive schedule embedded in the system. when we need it. With a proper kanban design and implementation the system will at a minimum match any competitor and in application appear to perpetuate itself without effort. The card used to give signal and communicate on reorder information. The card is authorization to produce more inventories and deliver components to workstation when needed. Standardization of jobs required with stable repetitive production. Once implemented the kanban system acts a control system rather than a scheduling system. Kanban means signal from card in Japanese word. Finally fine tune needed while operating the Kanban system. It’s developed to manage production line and material flow. A properly designed kanban system will be tailored to fit the needs of the environment and will encounter minimal issues on a day-to-day basis. non-value added activities. It’s called as pull system. Kanban plays important role in lean manufacturing and JIT. JIT only make what we need.Introduction to Kanban Kanban introduced by Taiichi Ohno from Toyota in 1953. Then up-stream scheduling algorithm need to develop followed by analysis of product volume for up-stream work center. Every stage automatically knows how much and when to produce the parts required. Kanban used in both concepts to minimize wastages and maximize profits. Customer on-time deliveries are dramatically improved while the overall quality of life for the organization is enhanced immensely permitting concentration on strategic matters versus continuously compensating for an ineffective replenishment system. A well designed kanban system can provide what is needed.

Poor quality which leads to scrap and rework will affect functioning. Die preparation 2. Fin removal 4. TPS was developed by Toyota Motor Company during the 1950s. Die casting 3. Just-in time production can supply the necessary parts in the necessary volume at necessary time. Testing 10. On the other hand “Jidoka” means that making them stop by themselves as soon as machining defects happen in order to take necessary actions. Figure A in Appendix page shows a real example of production. Storage 5. It’s get complex when upstream workstation makes several parts. Goods store . Washing 7. Toyota Production System has two major features.Kanban have some challenges on implementation. each with separate signaling card. Toyota uses a manufacturing principle called as JIT (Just-In Time) as a tool for process improvement. Kanban less suited to industries where mix volumes fluctuated. Stock store 8. Machining 6. Occurrence of abnormality can be easily identified by buzzer or lamp. The production process consists of the following steps:1. Although Kanban is originated in assembly type operations but the principles can be extended also in supply chain and to all operations. Hourly production at every process is leveled with respect to volume and specifications of products. Attention is paid to prevent over production. Assembly line 9. “Just-In Time Production” and “Jidoka (Automatic line stopping when something goes)”. Kanban at Toyota Toyota is regarded as an industrial leader and has developed one of the premier manufacturing system called as Toyota Production System (TPS). They are the first company who employed Kanban System in full scale into their production system. process and uses of Kanban at Toyota supplying carburetors.

So. technically if Toyota sent all its transaction to a specific supplier electronically then the supplier can save 2000-3000 hours per month. name. The conventional Kanban cards take 7-8 hours for the card to reach production point. . In order for Kanban to work effectively. there must be one card attached to a container at any one time. suppliers receive ordering instruction on line. These cards are very simple. The production card then authorizes the producing department to make another full container of parts. Production Kanban is release an order to the proceeding stage to build the lot size indicated in the card. With the advanced IT technology. The system involves the use of cards that are attached to containers which hold a standard quantity of a single part number. When a worker starts to use a container of parts the withdrawal card. Internet-based Kanban is a just-in time management tool that you can use to drive costs. There are 2 types of Kanban shows in Figure B Withdrawal Kanban and Production Kanban. Web based Kanban provides tool for total customer satisfaction and increased efficiency through the elimination of lead times. Withdrawal Kanban functions is to authorize for movement from the production/work center to the using department. a storage location and the container capacity. Toyota has computerized its Kanban System and provides online to suppliers. showing only the part number. The data recording technology enables the system to incorporate 100 times more data. Under the new system. integrate disparate ERP systems and communicate throughout the supply chain. first-out basis. These cards are circulated respectively within or between work centers or between suppliers and the assembly plant. The using work center (using department) must initiate the movement of parts from the proceeding center (production department) and Kanban cards must be handled on the a first-in.Toyota implemented dual cards in Kanban System. The replacement container has a production card attached to it which is replaced by the withdrawal card before it is sent. Never move or produce other than the quantity indicated in the card. This is the signal for the production department to send another container of parts to replace the one being used. (FIFO). which is attached to it is removed and is sent to the proceeding work center. print them out and attach them to ordered part during delivery to Toyota. the work centers involved.

he or she knows it's time to refill. safety and patient satisfaction. said most of the cost of medical care involves clogs in the flow of information. no waiting. Hospital industries get so focus on the seriousness and specialness of health care. They have reduced appointment and telephone delays by having medical assistants handle incoming calls. and each nurse or physician who comes in the room does not have to waste time searching charts or asking questions. phone messages. In today business is all about total flow. which signals the need to restock. Medical director at Virginia Mason Kirkland. when a nurse or physician sees the card. In another example is the development of a flip chart showing the level of mobility in physical therapy patients. Also. they now write comments and recommendations immediately after seeing the patient before going to see the next one. Virginia Mason Hospitals has tailored Toyota Production system to fit health care. For example. The chart shows the appropriate picture of what the patient can do. Supplies will never run out or over ordered. instead of doctors waiting until the end of the day to go through a stack of patient records. lab results. The alert system allows nurses and physicians to signal a problem when it happens and fix it immediately. The time saved increases the time a physician can spend with a patient. For instance.having more materials and information than is necessary. instead of medically untrained operators. inventory waste -. Most of Virgina Mason Hospitals in the Seattle area implemented a Kanban system. Working the backlog down costs more than if let things pile up in the first place.Kanban in Servicing Industry Hospitals has also began looking for a better way to improve quality. . often leading to irritated patients. Patient records. They take up space and wasted cost by printing them and are not needed. Another adaptation from the Toyota model is a patient safety alert system. For example. no waste and it's all about the patient. without realizing that they are way behind in information specialists and making waste out of their our process. stockpiling brochures and pamphlets kept in storage closets.

its just a tool to communicate and control between stages. realizing JIT concept. The basic necessity need to be followed to implement Kanban successfully. just move directly from the garage to an examination room. which offers the opportunity to delegate routine material transactions on the shop floor. and lowering inventory costs by $1 million.000 in one year and increased productivity by 93 percent. No more waiting rooms. . Kanban is a simple-to-operate control system. The hospital reduced overtime and temporary labor expenses by $500.The overall benefits include an 85 percent reduction in how long patients wait to get lab results back. Summary Kanban system is pull system. A succesfull Kanban system will minimize the wastages and maximize the profit. They even have their patients start their appointment in the parking garage with a smart card that triggers their entire appointment process. They have also redesigned facilities to make patient and staff work flow more productive. Kanban system is not a solution for all industrial problems.

Appendix Figure A : An example of Kanban System supplying carburetors (Pull System) Figure B : Kanban card flow .

Stock & M. 1997. Cambridge.Lambert. Alex. MA : Productivity Press Rasturi & Evans. Taylor III. 1989. Fourth Edition. 4. How Toyota Defies Gravity. December 8. A study of the Toyota Production System from an Industrial Engineering Viewpoint. 2005.Bibliography: 1. 1997.Shingo. page 100-108 S. Thomson South-Western R. 3. James. Principles Of Operation Management. Strategic Logistics Management. . McGraw Hill International Edition 2. Fortune.

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