TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universität München

Source: TUM School of Management, Chair:

Production and Supply Chain Management,
Course: Introduction to Lean Production
Kanban – Inventory Control © Dr. Reinhard Hübner

• Standard containers which hold specific amounts.

• Only one container-full is produced or moved at a time.
• Production or movement only as authorized by the kanban.
• There can never be more inventory between two resources than what has
been authorized by the kanban.
• The upstream resource can only produce when it receives a kanban.

Holly Ott 14
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Source: TUM School of Management, Chair:

Production and Supply Chain Management,
Course: Introduction to Lean Production
Kanban – Inventory Control © Dr. Reinhard Hübner

• Standard containers which hold specific amounts.

• Only one container-full is produced or moved at a time.
• Production or movement only as authorized by the kanban.
• There can never be more inventory between two resources than what has
been authorized by the kanban cards.
• The upstream resource can only produce when it has an empty container.
• Production is stopped when that amount is produced.
• A specific number of containers and kanbans
is used: start high, reduce gradually!
• Simple to administer, stocks cannot
accumulate.

Holly Ott 15
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Source: TUM School of Management, Chair:

Production and Supply Chain Management,
Course: Introduction to Lean Production
Key Kanban Rules © Dr. Reinhard Hübner

1. Never pass defective parts on to the next workstation.

2. The receiving process withdraws from the sending process – the sending
process never delivers to the receiving process.
3. The quantity of parts produced always equals the quantity of parts
withdrawn and marked on the kanban card.
4. Parts can never be produced or moved without a kanban card.

5. The kanban cards are actually attached to the

parts or the boxes containing the parts.
6. The number of parts in a container always
matches the number on the kanban card.

Holly Ott 16
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Electronic Kanban Board in SAP

Holly Ott 17
MGMT101 Session 9 - 4
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

JIT: Relations with Suppliers

• Classical: friction with supplier, lack of cooperation and
information sharing.
• JIT supplier approach
• Depend on cooperation.
• Identify best suppliers and always order from them.
• Stable system so supplier can supplier specialize.
• Information sharing for mutual benefit.
• Suppliers also uses JIT (kanbans sent to supplier)
• JIT very demanding, supplier has multiple customers
• Find compromise!

Holly Ott 18
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Realizing Pull Scheduling

Kanban

Professor Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 19