Just In Time

TITLE

Kanban - definition and application

PURPOSE

To communicate information within and between processes

PROCEDURE / EXPLANATION / STAGES or CALCULATION
4 Kanban in a Fill-up Pull System 7 Kanban in a Sequential Pull System
1 What is kanban? Sequence
Kanban means signboard in Japanese. It is a 1 When first part used, PW kanban taken off and put in kanban post 4 Parts transported to lineside storage In a sequential pull system the tablet kanban is
communication tool (not a system) used to co- 2 PW kanban collected by material handler who goes to shop stock 5 PI kanban put next on sequence board used. This carries no product information but simply
ordinate the production and movement of parts authorises parts to be made at the preceding
3 Part withdrawn from stock, PI kanban swapped for PW and PI posted 6 PI kanban authorises replenishment
between processes in a pull system. It can only process, of whichever variant is next in the FIFO
function effectively in a levelled, scheduled Two -ca rd kan ban opera tion lane.
environment. PW PI PI in a fill- up pull system PW PI PI Tablet kanban can often take the physical form of a
ball, light or empty space.
2 Objectives PW
PI PI PW PI PI
There are four objectives of kanban:
4
1) Information (what and when to produce; PW PI PI PI
PW
when and where to convey) 6 FIFO lane FIFO lane
PW 2 3
2) Inventory control (fixed total quantity of parts) 1 2 3 1 1 2 3
PI PI
PW 3 PW PW
3) Process control (visual - are kanban moving?) PI PI 2 PI
5 1
4) Improvement (gradually reduce no. of kanban)
The last objective, ‘lowering the water level’, is space = “make the next one”
PW = pa rts withdr awa l kanba n PI = pr oductio n in struction kan ban
seen as the key competitive advantage.

3 Calculations 5 Production Instruction Kanban 6 Parts Withdrawal Kanban 8 Physical Forms

The number of kanban in the system constrains the A Production Instruction (PI) kanban authorises parts to be made. A Parts Withdrawal (PW) kanban authorises parts
Although often thought of as cards, kanban can
number of parts in circulation. For in-process PI kanban It operates between a shop stock and the preceding process. to be taken from the preceding shop stock.
take many physical forms:
it is calculated using the following equation for each There are two types, dependant on stock location:
There are two main types, dependant on batch size:
stock location: In-process PI kanban
In-Process: used when changeover time is short Inter-Process: used between a lineside stock and card
Production process
Part name and no. enough to manufacture box-by-box. Instructs the the shop stock of the preceding process. Only container
No. of kanban = Max stock (batch size + safety stock*) Storage location process to make one container of that product. necessary where material handling is required due (e.g. “2-bin”)
capacity of container Container quantity
Signal kanban
to distance, size/weight or need to control quantity.
(*Safety stock should only be included if absolutely necessary. Signal: used when the changeover time is rail OK
Supplier: used when the preceding process is an light
Batch size and safety stock calculations are explained on the
Del
ay
ball
long. Instructs the process to make another Em
erge
ncy
external supplier. Eliminates the need for manual
KTS ‘Batch size and signal point’. Other calculations exist for batch. Returned to the kanban rail where build
kanban cycles). ordering and ensures parts are supplied in
sequence is determined. accordance with demand.
Kanban only at empty
The number of kanban is affected by customer demand. model A model B model C signal level
PW kanban space
Full
Fluctuations of up to 10% can be handled without
signal signal
An alternative to signal kanban is to use PW Storage location
PI signal
changing the number. The number should also be PI in-process kanban with a batch board. Part name and no.
Empty Container quantity
gradually reduced as a means of identifying the most PI PI PI The signal point is shown by a moveable Delivery point
urgent source of waste for continuous improvement. Batch Board line, increasing flexibility.
PW
electronic

PROS and CONS IMPLEMENTATION RELATED TOPICS

 simple and fast information flow; user-friendly • Before implementing a pull system using kanban the following - Types of pull system
 prevents overproduction through synchronising with customer demand pre-requisites must be in place: - Batch size and signal point calculation
 gives control back to shopfloor; increases ownership – disciplined workforce and management
- Spreadsheet model for calculating kanban variables
– levelled, mixed production
 can drive continuous improvement through highlighting abnormalities
– reliable, stable processes
 tighter links between processes can improve communication and quality
– consistent set-up times and small batch sizes
– standard material handling sequence
– losing kanban can cause system disruption or failure
• Establish standard kanban locations and routings
– many pre-requisites must be in place before a pull system using kanban
• Ensure calculations are updated when demand or process conditions Updated on 3/11/2000 by PH
can be successfully implemented (see next section)
change significantly (consider using a spreadsheet model to help)
© McKinsey & Company Inc. 2000