Training for

Pull system, Kanban & HEIJUNKA, 3hrs

1. Pull system
a. Pull system vs. Lean production
b. Difference b/t Push & Pull system
c. Types of Pull signal

2. Kanban vs. Pull system

a. What and why for Kanban
b. Types of Kanban
c. How Kanban system work
d. Calculation for supermarket

3. HEIJUNKA vs. Kanban

a. What and why for HEIJUNKA
b. Correlation b/t Kanban & HEIJUNKA
1. Pull system
a. Pull system vs. Lean production

 Pull system is a part of the Lean manufacturing

principles, born in the late 1940s, a Lean pull system
aims to create a workflow where work is pulled only
if there is a demand for it.

 The purpose of implementing a pull system is to

build products based on actual demand and not on
forecasts, so, we can optimize resources and reduce
the possibility of overstocking.
1. Pull system
b. Difference b/t Push & Pull system

Compare Push system Pull system

Definition o Make all we can & push items to next o Make what items are needed and only
phase whether needed or not when customer need
o Receive production order from planning o Receive production order directly from
center next process
o Production and distribution decisions are o Production and distribution decisions are
based on long term forecasts driven fully by customer demand
Characteristics o Make to stock o Make to order
of production o Base on Forecast consumption o Base on Actual Consumption
system o Complex o Simple & visual
o Large Lots o Small Lots
o High Inventories o Low Inventories
o Poor Communication o Clear Communication
o Execute by prod. control & purchasing o Execute by work-floor worker
o Suitable for unstable demand o Suitable for stable demand
Advantages o Allow managers to plan and control o Low WIP then fast quality feedback
production system o Production flexibility (switching between
o Plan for complex product system different SKU is possible)
o Gain big benefit if forecast is correct (ex: o Establish proper balance in stock and
discount for big material order, big selling production
volume to market, etc.) o Replenishment of Sub-assembly as soon
as consumed
Disadvantages o Require high knowledge of production o Setup time need to be small
time and production flow o Delivery risk for customer if any problem
o Cause high inventory then high quality / from production system
big scrap loss o Request high discipline for every workers
o Request high cost for large database in system
Lots of WIP
or inventory
1. Pull system
b. Difference b/t Push & Pull system

(*) Advantages of Lean supermarket vs. Batch production

1. Pull system
c. Types of Pull signal

@ A pull system is established through

Pull signals to link operations together

@ Options for Pull signal

 No cards
‒ Single or two Bins system Electronic card
‒ Standard containers
‒ Painted or taped on floors
‒ Electric lights
‒ Level indicators signs
 Card systems
‒ Electronic Kanban – Fax or emails Signal Kanban
‒ Warehouse or parts racks
‒ Kanban boards – magnetic or
cards
‒ Flow through racks
‒ Supplier boxes
2. Kanban vs. Pull system
a. What and why for Kanban
Kanban, a Japanese word, stands for visual card or visual signal
@ Kanban visual board, developed in software sector since 1990s
for non-manufacturing activities, it creates transparency and makes
problems visible, helps people identify bottle-necks from whole
procedure to control WIP and lead time as less as possible then
engage everyone in continuous improvement
 All works are visualized to people
 WIP is limited as less as possible at each step
 Strong tool to reduce lead time of whole procedure
Kanban, a Japanese word, stands for visual card or visual signal
@ Kanban system, one visual Lean tool developed by Toyota since 1960s
for manufacturing activities, it’s used to synchronize the rate between
supplier and customer, in other hand, supplier delivers items only when
customer needs, this is key tool to achieve JIT production system
 Control inventory or work in progress at fixed level as less as possible
 For supplier, Kanban tell them what items to produce, when to start
production, how much to produce
 For customer, Kanban allow them to have what they need, where they
need and when they need items
2. Kanban vs. Pull system
A Kanban card
a. What and why for Kanban

@ Use Kanban if we’re facing with:

 Too much inventory of somethings
 Too long production lead time
 Production stoppage because somethings are missing

@ Benefits of Kanban system, focus on manufacturing:

 Reduce inventory (cash flow, space requirement) & lead time (high
response to demand change) due to over-production
 Prevent stock-out (avoid production stop due to material is missing,
additional expenses)
 Force stock rotation (avoid risk of obsolete, expiry, quality issues)
 Reduce administration cost (for production scheduling and stock
management)
 Delegate responsibility to worker & drive discipline into organization

A Kanban card is always attached

with items in supermarket
2. Kanban vs. Pull system
b. Types of Kanban

Two most important types of Kanban system:

@ Production (P) Kanban: when received, authorizes for sub-

assembly process to produce new items to replenish for
supermarket (sub-assembly stock). The P-Kanban is always
attached with work order / JOBCARD & container that are
associated with it

 Production Kanban: supermarket to production area

 Production Kanban qty normally is same with batch
size of sub-assembly process
 Target is to control inventory in supermarket

@ Withdraw (W) Kanban: when received, authorizes for

mainline process to withdraw items from supermarket to
replenish for mainline stock. The W-Kanban is always attached
with associated container during transportation loop

 Withdraw Kanban: mainline stock to supermarket

 Withdraw Kanban qty normally is smaller than batch
size of sub-assembly process
 Target is to control inventory of mainline stock
2. Kanban vs. Pull system
c. How Kanban system works

6 rules of Kanban system

1) Each container must have a Kanban Card & contain the same
qty of parts

2) Do Not send defective product to next customer / next process

3) Mainline always pull the material from Supermarket only

4) Container of parts must never be removed from Supermarket

without a Kanban being posted to HEIJUNKA Post (used to kick
off next production)

5) Supermarket supervisor must only create new batch (WO,

JOBCARD) based Kanban card posted at Kanban post or
HEIJUNKA board

6) Total prod qty should not exceed the total Number of

authorised Kanban in the system, this is inventory qty by
supermarket
2. Kanban vs. Pull system
c. How Kanban system works
5. Place WO
at production
area

4. Yellow
Kanban card 6. Pick up priority
3. Print new attached to WO batch to produce
2.2. Take yellow WO to start
Kanban card out of new batch for
physical parts in sub-assembly
supermarket to process
place on Kanban
2.3. Attach green Kanban board
card with physical parts then
move back to Mainline

7. New batch is
1. Bring empty completed (with PC
containers with green inspection if request)
Kanban card to with attached yellow
supermarket 8. Move new Kanban card
batch with
2.1. Take green attached yellow
Kanban card out then Kanban card back
return empty to supermarket
containers to sub-
(*) W Kanban card: green assembly process
(*) P Kanban card: yellow
2. Kanban vs. Pull system
d. Calculation for Kanban supermarket
@ Number of Kanban units in supermarket:
(*) Number of Kanban in supermarket

[N = (dL + S)/C]
 N: number of Kanban or containers
 D: average demand over some time period
 L: lead time to replenish one order (one Kanban)
 S: safety stock (normally is 10% normal stock)
 C: container size (qty in container)

(*) Lead time is counted since a Kanban unit leaves from supermarket until a
Kanban unit moves back to supermarket, take mean number ± 3 std deviation

(*) Average demand normally is calculated for 1 working shift or for 1 working
day, we can base on production capacity calculation or base on output qty for a
shift or for a day

(*) Safety stock is used to absorb demand variation & supply variation (broken
lead time, quality issue, material shortage, labor change, etc.), typically take
10% of normal stock but we also can base on std deviation of demand

(*) Trigger point or stock point which requests to have new replenishment for
supermarket can vary by different parts
3. HEIJUNKA vs. Kanban
a. What and why for HEIJUNKA

@ Three enemies of a production system that we

need to eliminate as Lean concept: Muda (waste),
Muri (overburden) and Mura (unevenness)

@ HEIJUNKA means “leveling” in Japanese

 A Lean method to arrange the production sequence over the time to
produce the right product mix as demanded by customer
 Then reduce the unevenness (MURA) in a production process and minimize
the chance of overburden
 Support to react to customer demand changes and utilize our capacity in the
best possible way of productivity, flexibility, stability
3. HEIJUNKA vs. Kanban
a. What and why for HEIJUNKA (*) Schedule leveling for a week to
run the right product mix

(*) Balance use of labor and machine

Benefit ? If follow traditional scheduling, the larger variation of

customer demand, the larger inventory we need to build for stock,
this results in risk for quality & many other problems that
companies don’t really want to face with, so, HEIJUNKA, a
production leveling tool is the right tool to solve this situation

 Flexible to demand change (small or big demand per every SKU)

 Balance the use of labor and machines

 Reduce risk for unsold goods or obsolete inventory

 Reduce lead time, changeover time, WIP then assure on-time

delivery
3. HEIJUNKA vs. Kanban
b. Correlation b/t Kanban & HEIJUNKA (*) HEIJUNKA board, if a Kanban card presents in red area, that
means we need to trigger new production for this part urgently
@ Case 1: Supermarket to HEIJUNKA

@ Case 2: Planning center to HEIJUNKA

4. Time for Q & A
 Thank you
 Questions
How Will Pull System Change Your Job?
 Comments
 Advices
Pull system provides more time for constructive activities
that will make your job and working conditions better
tomorrow because with pull you run only the parts that
are needed. Shut down time can be spent on:

 Preventative maintenance
 Quality improvements
 Team meetings
 Training
 Continuous improvement