Professional Documents
Culture Documents
Final Year Project 1
Final Year Project 1
Submitted in partial fulfillment of the requirements for the degree of Production Engineering
of Semester-I of Savitribai Phule Pune University
Submitted by
Baig Mohammed Kaif
Nashik-422003
(2022 – 2023)
i
CERTIFICATE
Nashik-422003
The project phase-1 report entitled “Study Of Kanban In Supply Chain Management”
submitted by,
Examiner
1.______________
2.______________
ii
ACKNOWLEDGEMENT
Apart from effort taken by us, the success of this report depends largely on the
guidance and encouragement of many others. We take this opportunity to
express us gratitude to the faculties of Production Engineering who have been
instrumental in the successful completion of this report.
We deem it’s our duty to place our sincere admiration and heart-felt gratitude to
our guide Principal Dr. K. N. Nandurakar, for having effectively guided
and supervised throughout this project by imparting his erudite knowledge and
personalized guidance blended with his exemplary patience and encouragement.
iii
ABSTRACT
iv
TABLE OF CONTENTS
Cover page i
Certificate ii
Acknowledgement iii
Abstract iv
CHAPTER 1 INTRODUCTION 1
v
4.2.3 Limitation of Traditional Kanban 16
CHAPTER 5 RESULT 20
Spaghetti Chart 23
Barcode Generation 25
5.1 Efficiency 27
PROJECT PLANNING 29
Conclusion 30
Reference 31
vi
LIST OF FIGURES
vii
LIST OF TABLE
Comparison of Kanban
Table 6.1 27
And E-Kanban
viii
CHAPTER 1
INTRODUCTION
Inventory management is where all the elements of the supply chain converge.
Too little inventory when and where it's needed can create unhappy customers.
But a large inventory has its own liabilities — the cost to store and insure it, and
the risk of spoilage, theft and damage. Companies with complex supply chains
and manufacturing processes must find the right balance between having too
much inventory on hand or not enough.
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movement supporting the idea of using Kanban in electronic way has emerged.
[2]
A Kanban system ideally controls the entire value chain from the supplier to the
end consumer. In this way, it helps avoid supply disruption and overstocking of
goods at various stages of the manufacturing process. Kanban requires
continuous monitoring of the process. Particular attention needs to be given to
avoid bottlenecks that could slow down the production process. The aim is to
achieve higher throughput with lower delivery lead times. Over time, Kanban
has become an efficient way in variety of production systems [5].
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waste.A kanban board is an Agile project management tool that uses visual
components and specific delivery points to help you plan your work, track
progress and maximize efficiency.we can create a physical kanban board by
dividing a whiteboard or blackboard into vertical columns. Label what stage of
the project each column represents and then have team members use color-
coded sticky notes to represent different tasks to be accomplished. These notes
are visual signals that make up your workflow and allow you to track progress.
Using a physical kanban board can work well for smaller teams or for personal
use. Kanban boards use Card, Column, Swimlanes, and WIP Limits to enable
teams to visualize and manage their workflows effectively. Let us introduce
you to the main components more closely [7]
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CHAPTER 2
LITERATURE REVIEW
In the literature there are several articles that study the traditional Kanban
system in all its aspects, and as far as the electronic Kanban system is
concerned, there are few articles that deal with it, especially those studying the
results of its implementation, gains and limits generated for the enterprise itself
and for its various stakeholders: customers and suppliers. Reason why we
thought to review the literature of different articles that deal with the
implementation of E-Kanban system in their enterprises, and be interested to
its various stakeholders, which has been grouped in the following table:
From the literature examined, it is evident that the e-Kanban offers a better
solution to the movement of material and information within the organization
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than the manual Kanban system. The system offers solutions that improve line
production and makes the process of production more efficient and accurate. It
contrasts the new e-Kanban system from the older manual system. However, it
does not satisfactorily address the impacts of implementing the e-Kanban
system. The next section of this paper discusses the methodology used to gain
the perspective of the e-kanban as part of the information system and supply
chain integration in the focal company.[9]
2.1 Summary
From the previous research paper The first study was carried out for a parts
supplier in the automotive industry which produces a cockpit module for a
Japanese automaker (Suprasith et al., 2011). The work processes were
examined before and after the implementation of E-Kanban system (Suprasith
et al., 2011). After the implementation of E-Kanban, the enterprise was able to
eliminate steps of the traditional Kanban process and reduce the
implementation time, which generated a significant gain in storage costs. The
second study was carried out within Fork Truck at the level of assembly lines,
the installation of E-Kanban system made it possible to automatically update
the Kanban information, optimization of the space of the assembly line,
reduction of stocks of materials in process in the factory, resolution of quality
problems, and cost savings
Electronic Kanban has many advantages over the traditional Kanban system,
which has been demonstrated in several studies, hence the choice of two case
studies already realized to see the impact of its installation at the level of the
enterprise.
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CHAPTER 3
COMPANY BACKGROUND
Epiroc’s history began in 1873 when the company – then called Atlas – was
founded in Stockholm, Sweden. Epiroc and Atlas Copco share their history until
June 18, 2018, when Epiroc was distributed to Atlas Copco's shareholders and
became a stand-alone listed company [10]
BUSSINESS
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and electrification. Epiroc is based in Stockholm, Sweden, had revenues of SEK
40 billion in 2021, and has more than 15 500 passionate employees supporting
and collaborating with customers in more than 150 countries. [11]
3.2 Inventory of Company
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CHAPTER 4
METHODOLOGY
The main aim of the dissertation is to study the role of e Kanban in Production
system. The problem faced by a manufacturing company (Oral-B) and how
they overcame it by implementing e-Kanban. The company had most problems
occurring at the packaging section and lost control over the inventory. In such a
situation the management implemented e Kanban and how they got out of the
problem is stated in the following lines. Within the automotive company
(CVG) measures are taken to minimize the logistics and operational issues for
the parts supplier. Implementation of the system has shown the successful
results. And finally, the e-Kanban efforts on a multi stage in order to improve
planning and production and role of e-Kanban size in Just in Time
Manufacturing. In the present business competitive world, many companies
and management institutions rely on the research methodology. It is system of
data collection which is used for very dissertation. The collected may include
theoretical or practical ideas along with operational planning methods which
are conceptualised strategically. Research data and validity should be included
in the research methodology. The finishing of the dissertation is measured by
ethics and reliability.
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4.2 Explanation On Kanban Methodology
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4.2.1 The Kanban Methodology depends on various principles, such as:
• Visualize Work
• Process improvement
• Working Together
Visualize Work
In this process we can’t use multiple task or user story at time in progress
mode, so the whole team work on an user story should be complete before
choose another one. It enhances to product quality, smoothing work flow and
deliver frequently.
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Pulling New Work
As the Kanban method is a transparent process, so all the task or user story is
placed in one place is called Backlog. After completion of one user story, we
choose or pull a new task from the Backlog. Once it is in completed or done
status that means we choose for new task.
In this methodology the Kanban board is used to manage the total workflow.
Here as a whole team involves on analysis of the task, so it improves the flow
of work and the task will complete before schedule time. It provides actual
status of the application.
Process Improvement
In this methodology the team will work together to improve the process and
product level. It emphasizes on small changes and accepts it gradually to
improve process. Also it directs to learn and apply the different technology in
application to produce a best quality product.
Working Together
In this methodology, the business people and developers are must work together
daily throughout the projects. The best architects, requirements, designers and
developers emerge from self organize team.
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Deliver With New Ideas
The main idea behind the Kanban approach is to improve the team quality and
process as it supports the new ideas from the teams in each phase of the
workflow.
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• It limits the work in progress, so enhance the output.
• It provides the status of project in Kanban Board, its open for all.
development.[13]
• The movement of kanban cards always has some irregularities, since they
are not moved at the exact time that the consumption of materials
• Human error
• Cards misplace
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The processes followed for card management and orders are executed daily
by employees who work in a production facility. When errors occur, they
can have ramifications for the entire production process for that order.
Automation’s chief advantage is its ability to remove the human error that
can occur and speed up the time it takes to cycle through each process.
Barcode scanning is a feature common to all eKanban tools. It is faster than
typing at a terminal and eliminates the possibility of mistyping part numbers
or quantities.
Orders
Many e-Kanban tools have the ability to generate orders or releases when a
card is scanned with quantities, suppliers, and lead times dynamically
determined based on the most current data parameters. This allows planners
to adjust the order that a card generates without changing the physical card
itself. This helps facilities resize quantities based on demand by using
generic cards with no printed quantities on them. Rather, the quantity can be
stored in a record tied to that card’s barcode.
Confirmations:
Receipts:
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Automating receipts for orders completed can also be accomplished
electronically via barcode scanning, such as when shipments are received on
the loading dock. A single scan can record the date and quantity received.
This can save time for a facility’s shipping and records departments.
The Open Mind Tech Electronic Kanban allows you to digitize all the material
supply flows in the production lines and in the line supermarkets. Digitizing the
process allows you to:
• monitor the lead times of requests from the lines until the kanban
• monitor consumptions,
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• guide operators in the assembly stages, because they allow you to identify
• monitor and guide the operators in the replacement phases of the kanbans
• guide the operators in charge of the picking and refill of line Supermarkets
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Fig 4.4.1 Kardex Remster
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CHAPTER 5
RESULT
In company Kanban is a part of inventory management and inventory
management is the part of Supply Chain Management. To improve the Kanban
process we have studied the process first.
Some parts in kanban which is common for two or more than two
division which has been separated. And labelled as green card. And the sourcing
First Kanban quantity is set in the system software named M3. Then
barcode is created for each kanban parts. Then material picking is done as per
picking list for assembly. Then First In First Out is maintain for the self life of
the materials. All these process is system input process. System output process
is Re-ordered kanban card scanning in PO widget. If the parts are less than
quantity mentioned in system then automail is triggered to the kanban buyer.
The next step is the kanban parts are received by N/U transactions. After check
the quality and quantity of material if quality is not match to company standard
and quantity received less or more than ordered placed then report that issue to
the kanban buyer. The last step is kanban material binning to the their respective
location with kanban buyer and quantity.
Kanban Qty set In Standard barcode label for all Material picking as
systemm kanban parts per picklist
Kanban item received by N/U If any items is received less of greater than Kanban Qty
transaction then report to Kanban buyer
m m
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Critical Success Factor
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Inventory Assembly
Fig 5.4 Material picking process
DL( 1+ α )
K≥
C
Where,
K = number of kanbans
D = demand per unit
L = lead time
α = safety factor
C = container capacity
Spaghetti Chart
Spaghetti chart is used to track the movement of the worker. For improvement
in process movement of worker is important. We track the movement of worker
to improve the route of worker to assembly line. We also calculated the time
required for picking parts for each item and time spent in each rack also
observed. A spaghetti diagram is defined as a visual representation using a
continuous flow line tracing the path of an item or activity through a process.
As a process analysis tool, the continuous flow line enables process teams to
identify redundancies in the work flow and opportunities to expedite process
flow. A diagram of the path taken by a product as it travels through the steps
along a value stream. So called because in a mass production organization the
product’s route often looks like a plate of spaghetti.
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Material Picking
Item
Locatio Add Rema
Order no numb Dec Location A/C
n r rk
er
PROTEC
6AA00 100039971 32223 TION 6AA005B02/6AD0010101
5050 10:42 10:43
5B02 2 05615 HOSE /03/6AD0010JO
SPLIT
PROTEC 6AB010A01/B01/A02/
100039971 51121
: TION 5050 B02/A03/B03/J01/ 10:43 10:46
2 57800
COIL 6AB007J02
G-AS
6AC009 100039971 32179
CARTRI 5050 6AC009G03 11:04 11:06
G03 2 31619
DG-E
G-AS
6AC009 100039971 32179
CARTRI 5050 6AC009H02 10:47 10:50
H02 2 31643
DG-E
BOX
6AE003 100039971 55800
MANNU 5050 6AE003E03 11:08 11:10
E03 2 04958
AL
6AE009E01/E02/
6AE009 100039971 55900 SILENCE
5050 E03/6AE/6AD RACK 09:35 09:39
E01 2 19398 R KIT
BACK SIDE
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6AF002 100039971 31760 HEAD
5050 6AF002B01
B01 2 03688 LIGHT
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G02 2 0001 PUMP
6AA007 100039971 55900 EXHAUST 5050 6AG004B01/02/03/6AG00 09:20 09:22
101 2 22207 SYSTEM 5B01/02/03/6
AG006B01/02
6AG004 100039971 55800 HOSE 5050 6AG004D03 01:03 01:04
003 2 03664
6AGÖ0 100039971 55900 VALVE 5050 6AG005E03/6AC&6AD 01:04 01:05
5E03 2 07427 SET RACK
6AG006 100039971 55900 GENERAT 5050 6AG006C02/C03 09:19 09:20
C02 2 00737 OR
6AG006 100039971 55408 RAIN 5050 6AG006D01 01:06 01:07
D01 72000 PROT.
CAP
6AG007 100039971 55800 CONDENS 5050 6AG007A01 09:14 09:19
A01 2 03887 ER
6AG007 100039971 91060 CLAMP 5050 6AG007E01 01:11 01:12
E01 01749
6AG007 100039971 55800 RUBBERM 5050 6AG007G02 09:17 09:19
G02 00501 OULDING
6AG008 100039971 55900 COOLER 5050 6AG008A03
A03 2 01163
6AG008 10003997 55418 FILTER 5050 6AG008E01 01:20 01:22
E01 30700
6AG008 100039971 32221 CLAMP 5050 6AG008101/6AH006G02 01:23 01:25
H01 2 25800
6AH003 10003997 55900 HOSE 5050 6AH003H02 01:42 01:43
H02 00659
6AH003 100039971 55410 DRYER 5050 6AH003H03 01:28 01:29
H03 87600
6AH003 100039971 35900 HOSE 5050 6AH003H03 01:26 01:28
H03 00660
6AH004 100039971 91069 ELECTRO 5050 6AH004H01 01:30 01:32
H01 74577 NIC UNIT
6AH004 100039971 55900 VALVE 5050 6AH004102 01:50 01:51
102 19736 SET
6AH005 100039971 60600 FUEL 5050 6AH005E03/F03 01:44 01:45
E03 2 08047 FILTER
6AH005 100039971 55900 PIPE 5050 6AH005G02 01:51 01:52
G02 2 01746
6AH005 100039971 55900 ATTACHM 5050 6AH005101 01:46 01:47
101 2 20386 ENT
6AH005 100039971 55900 PIPE 5050 6AH005102 01:53 01:55
102 2 01747
6AH006 100039971 31760 LEVEL 5050 6AH006E02
EO2 2 06311 SENSOR
6AH006 100039971 55900 HOSE 5050 6AH006G01 01:47 01:49
G01 2 01748
6AH006 100039971 55900 PULLEY 5050 6AH006G03 02:31 02:32
G03 2 00606
6AH006 100039971 55900 PIPE 5050 6AH006H02 02:32 02:33
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H02 2 00740
6AH006 100039971 31760 GROUND 5050 6AH006H03 02:34 02:35
H03 2 07232 BRAID
6AH006 100039971 31760 GROUND 5050 6AH006H03 03:02 03:04
HO3 2 07232 BRAID
6AH006 100039971 55900 RUBBER 5050 6AH006f02 03:04 03:06
102 2 08238 ELBOW
6AH008 100039971 55900 PIPE 5050 6AH008D02
D02 2 10137
6AH008 100039971 55736 PLATE 5050 6AH008F02
F02 2 54200
6AH008 100039971 55900 GEAR 5050 6AH008F03
F03 2 16523 PUMP
6AH009 100039971 55900 SIDE 5050 6AH009E02,6AE/ 6AD
E02 2 0629 MIRROR
6AH009 100039971 55900 BRACKET 5050 6AH009F02
F02 2 2101 PLATE
6AH009 100039971 55900 GEAR
5050 ЗАНОО9бО1 02:36 02:37
G01 2 17593 PUMP
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TANK
6A1008A01/6A1010A03/
6АЮIО 100039971 55900
FAN 5050 l03/6AE&6AF 04:45 04:47
АОЗ 2 25094
RACk
6AK008F01/F02/
6АКОО8 100039971 31763 F03/6AL004A01/6AL003
STRAP 5050 04:57 04:58
FО1 2 68100 COI/6AL004E02/6AM007
102/6AK008F01 /F02/F03
CABLE TIE
6At004 100039971 43501
(2.5XIOO 5050 6AL004A02
A02 2 65700
BlA
CABLE TIE
6AL004 100039971 51040 (2.5XIOO 6AL004A02/6AL004B02/6
5050 04:59 05:00
A02 2 88700 BLACK) AL003B01
(Medium)
100039971 88001
6AM001 0 5050 6AM001B01
2 764
B01
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6АМОО 100039971 88000 PRODUCT
5050 6AM002B01 10:16 10:24
2ВО1 2 8234 GRAPHICS
PLAST.ST.
6АМО0 100039971 43100 CABLE,DI
5050 6AM007B01 10:34 10:38
7В01 2 46400 A 4M M,
1.5MT
PLAST.ST.
CABLE,DI
6AM007 100039971 43100
A 5050 6AM007B01
B01 2 46400
4MM,1.5
MT
PLAST.ST.
CABLE,DI
6АМОО 100039971 43100
A 5050 6AM007B01 10:38 10:42
7ВО1 2 46400
4MM,1.5
MT
HEX.
6АМОО 100039971 14432
HEAD 5050 6AM008A03 10:42 10:45
8АОЗ 2 4118
SCREW
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6AM008 100039971 14440 HEXAGON
5050 6AM008C01 10:46 10:48
C01 2 0132 SCREW
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C03 2 70800
PIPE
6AN003 100039971 55005
CONNECT 5050 6AN003J06 12:10 12:11
J06 2 11100
ION
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5ΒΟ6 2 81400
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6A0006 100039971 26841 HEXAGON
F02 2 3810 NUT 5050 6A0006F02
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ЕО1 2 81448 HOLDER
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Barcode Generation
We generated barcode in excel using font and formula.
Formula:
="("&B2&")"
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Chapter 6
PERFORMANCE PARAMETERS
• The speed of the changes that can be made at the level of the E-Kanban
system there is better applicability. The same
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integral parts of your workflow. To further investigate milestones and
weaknesses, Kanban uses the flow efficiency metric. A simple yet very
effective ratio between the time an individual or a machine is actively
working towards completing a given task (value-added time), and the
overall time a task spends in your workflow (lead time) – from order to
delivery.
5.1 Efficiency
• A traditional kanban system with cards has some limitations, due to the
unproductive work caused by the manipulation of cards, but correctable
with a computerized system
• The movement of kanban cards always has some irregularities, since they
are not moved at the exact time that the consumption of materials
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Human error
• Cards misplaced.[6]
Kanban system in this study were a reduction in the overall steps in the work
process, lead times, Kanban circulation, amount of materials, storage area, and
inventory costs.With the cost savings in inventory alone, the company was able
to break even with the e-Kanban investment and operations,within 18 months.
To further improve the process, the company is seeking to the implement radio
frequency identification (RFID) technology instead of utilizing the current bar
code process. The company has to balance the trade off between the benefits
gained from using RFID and the cost to implement RFID.[7]
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CHAPTER 7
PROJECT PLANNING
Methodology
Finding
information about
company
inventory
Understand
Company’s
Kanban Process
Working on
Traditional
Kanban
Guideline
suggestion
Implementation
Follow up
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CONCLUSION
All manufacturing industries over the world are facing global
competitiveness. Such competitiveness has led manufacturers to be hard
pressed on the way to minimize product cycle times which directly help to
reduce the costs and meet deliveries on time. Manufacturing industries face
high competitiveness while at the same time the manufacturer wants to
improve productivity and sustainability. Hence, the fundamental factor in
achieving this is the decrease in the “production cycle time (PCT)”. The
achievement through reduction of the PCT can ultimately improve quick
response to the customer demands. Also, reduction of cycle time bring
about the momentous profits from the decrease in associated costs and
“yield improvement” regardless of the type of nufacturing industry.
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REFERENCES.
[2]. Mariam Houti, Laila El Abbadi ,-Kanban the new generation of traditional
Kanban system, and the impact of its implementation in the enterprise
[3]. Adam, M., Keckeis, J. : How ERP Systems and Lean Management Fit
[8]. Rong, H., Fei, G., and Cheng Electronic Kanban System Optimization for
Industry and Production
[9] . Surendra, M., Gupta, Y.A.Y., Ronald F.P., Flexible Kanban system
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