Kanban

Prakash Awasthy
Kanban system (Two-card system)
Withdrawal
Kanban (C)

Outbound Inbound
Storage Storage
Station 1 Station 2

Production
Kanban (P)
Kanban system (Two-card system)
•  Number of cards/Kanbans in the facility determines the level of
inventory

• Number of Kanban, K =

• Can we compare it with some inventory policy?

Example
• A production process (process A) has a lead time of 6 hours and it is
decided that safety stock of 20% to be maintained in the system. The
firm is contemplating buying containers of size 10, 12 or 50. Which
container size should they buy and how many sets of Kanban cards
should they maintain? (The cycle time of succeeding process is such
that it requires 5 units per hour from process A )
Value stream mapping
• A tool to identify VA, NVA and NNVA

• Extension of process flowchart

• Read page 374-377 of the textbook

Recap (Scope of Quiz-II)
• Queueing- Why wait?, Variability, Configuration, M/M/1, G/G/S
• Inventory- Why?, Two questions, EOQ, Uncertainty, Safety Stock,
• Inventory- Continuous, Periodic review, Classification, Single Period
• HP- Role inventory in SC, pooling, postponement
• Beer game- Info, coordination, Bullwhip- what, why, how to avoid?
• MOS- Planning, integrated decisions, Sales & Operations Planning
• APP, MPS, MRP- Horizon, Chase, Level, updates, BOM, Product struct.
• TMM- TPS, JIT, Lean, SMED, Jidoka, Heijunka, 5S, 5 W, Andon, Kanban
• TMM- Off-line, Kaizen, implementation issues, cross-training