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©2003 Alcoa Inc.
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かんばん
KANBAN
CALCULATIONS
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©2003 Alcoa Inc.
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KANBAN
Learning Objectives:
Understand the philosophy of
Kanban and its role in JIT production
Understand the types of Kanban
and the proper use of each
Be able to properly calculate the
number of Kanban needed in a
particular application
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KANBAN
Agenda
Philosophy and Role of Kanban
Kanban System Review
Kanban Calculations
20 Questions
Classroom Exercise
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KANBAN
Tutorial Takt Time

' 3
54
150
60' Exercise Class
per slide
slides
'

utput required o
time available
Takt Time


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©2003 Alcoa Inc.
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KANBAN
The Toyota Production System
JUST-IN-TIME
• Continuous Flow
• Pull System
• Takt Time
AUTONOMATIO
N
(Jidoka)
• “Automation with
a
Human Touch”
• Machines Stop for
Abnormalities
• Separate Man &
Machine
• Error Proofing
(Pokayoke)
GOALS: Best Quality Lowest Cost Shortest Lead
Time
KEY IS: Thorough Elimination of Waste
Leveling
(Heijunka)
Standardized
Work
Continuous Improvement
(Kaizen)
STABILITY
(Equipment Reliability, Stable Processes, Quality,
Suppliers)
People
Safety
Teamwork
Growth
KANBAN
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KANBAN
Why Just-in-Time Production?
Customer can get what is needed, at the time
needed, in the amount needed.
Supplier produces the quantity just taken.
“If parts arrive anytime prior to their need – not
at the precise time needed – waste cannot be
eliminated.”
Taiichi Ohno
June 1987
Customer
D
C
B
A
Supplier
B
C
D
A
A
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KANBAN
Why Pull?
“Manufacturers and workplaces can no longer
base production on desk-top planning alone
and then distribute, or push, their products
onto the market.
It has become a matter of course for
customers, or users, each with a different
value system, to stand in the frontline of the
marketplace and, so to speak, pull the goods
they need, in the amount and at the time
they need them.”
Taiichi Ohno
June 1987
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KANBAN
Time and Quantity
Strategies for Pull
Discussion Point Fixed Time Fixed Quantity
Inventory Supplier must adapt to
variable quantities
Supplier must adapt to
variable times
Withdrawal time Fixed Varies
Quantity withdrawn Varies Fixed
Usage Disconnected processes
Long conveyance
distances
Connected processes
Short conveyance
distances
Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful
Production System
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KANBAN
Why Kanban?
Kanban is a way to achieve just-in-time; its
purpose is just-in-time [a test of one-piece flow].
The kanban system makes clear what must be
done by workers, managers and supervisors.
The goal of eliminating waste is highlighted by
kanban.
“In the production plant, kanban is a powerful
force to reduce manpower and inventory,
eliminate defective products, and prevent the
recurrence of breakdowns.”
Taiichi Ohno
June 1987
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KANBAN
What is Kanban?
Kanban is a Signboard or Signal
It Carries Information:
Pick-up
Transfer
Production
A Tool for:
Realizing Just-in-Time
Visual Control of Production
Promoting Improvement
“The operating method of the Toyota
production system is kanban.”
Taiichi Ohno
June 1987
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KANBAN
Kanban Types
Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time
Kanban
Production
Kanban
Move
Kanban
1 x 1 Production
Kanban
Signal
Kanban
Process Move
Kanban
Supplier Move
Kanban
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KANBAN
Kanban System
Move: Where to go? What to get? How many? Where to take?
Production: What to make? How many? Storage location?
Supply Stamp Assemble
Stage
Leveling Lot
Making
Supplier
Move
(Distant)
Production
Signal
Process
Move
(Close)
Production
1 x 1
(Lot Making)
Process
Move
(Close)
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KANBAN
Kanban System Types
Type A System:
• High volume & low variety
• Specific to a product
• Uses stores
• Shorter lead times
• Arrow comes down at end of flow
• Inventory generally higher, due to
stores
Type B System:
• Low volume & high variety
• Generic, not part specific
• Uses FIFO queues
• Longer lead times
• Arrow comes down at start of flow
• Inventory generally lower, due to
queues
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KANBAN
Supplier Move Kanban
Supplier Move Kanban
…removed when item is withdrawn from store
Stores Stores A 1-1 A 1-1
Shelf Shelf 7-C 7-C
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KANBAN
Pick-up Pick-up AJ AJ
Process Move Kanban
Process Move Kanban
…removed when first item is withdrawn from
container
Assembly Assembly AJ AJ
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KANBAN
Signal Kanban
Assembly Assembly AJ AJ
Store Store B-9 B-9
Signal Kanban
…removed when withdrawals are made
down to the container tagged
FIFO
Signals
Count from
the bottom
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KANBAN
Production Kanban
Production Kanban (1 x 1)
…removed when item is withdrawn from store
Stamping Stamping AJ AJ
Store Store A33 - 5 A33 - 5
FIFO
Production
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KANBAN
Kanban Rules
Function Rule
Provides pick-up or transportation
information
Consumer picks up the number of items
indicated (by the Kanban) at the supplier
Provides production information Supplier produces items in the quantity
and sequence indicated by the Kanban
Prevents overproduction and excessive
transport
No items are made or transported
without a Kanban
Serves as a work order attached to goods Always attach a Kanban to the goods
Prevents propagation of defective
products by identifying the process
making the defects
Do not send defective products to the
consumer
Reveals existing problems and controls
inventory (use Kanban to discover areas
for improvement)
Reduce the number of Kanban to increase
sensitivity (better to reveal missing items
and line-stopping problems)
Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time
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KANBAN
Kanban and Rules-in-Use
Rule MRP Kanban
1 Activity is variable (situational)Activity is pre-specified and tested
2 Connections are subjective
and indirect:
Worker Computer  Manager
Worker Computer  Manager
Connections are binary, direct and
tested:
Worker  Worker
Worker  Worker
3 Pathways are conditional: Pathways are pre-specified, simple
and tested:
4 Problems discovered after-the-
fact and away from the point
of cause
Problems are discovered (by design)
in the path of the work, at the point
of cause
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©2003 Alcoa Inc.
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KANBAN
Determining Number of Kanban
TYPE Use Need to determine
Production
1 x 1
(kanban-to-
kanban)
Negligible c/o time
(no stagnation due to
lot making)
Number of kanban
Lot Making Moderate c/o time
(not possible to use
signal kanban)
Number of kanban
Lot size/Trigger
points
Signal Moderate to long
c/o time
Lot size
Order points
Move
Process Short distances
(store to line-side)
Number of kanban
Supplier Long distances
(external supplier)
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KANBAN
1x1 Production (Kanban-to-Kanban)
Need to know:
Daily demand
Scheduled daily work
time
Machine time per piece
Container capacity
Pull quantity / sequence
variation
Need to determine:
Consumption rate
Production lead
time
Number of kanban
Key Points:
No stagnation due to lot making (negligible c/o
time)
Variation comes into play from lead time
and/or pull fluctuation
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KANBAN
Kanban-to-Kanban Example
Product Machine
Cycle
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
A 2’ 5 1560 360 60
B 0.5’ 5 2340 540 90
C 0.5’ 5 4680 1080 180
A B C
Assemble
Stage &
Ship
3
A 1 1 1 1 1
B 1 2 1 2 1
C 3 2 3 2 3
Pitch
(30’)
P
r
o
d
u
c
t

Process move kanban used to
withdraw single item from store
Production kanban removed and
placed in collection box
7 hr / day
Production
(420’)
1x1 Production
Containers
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KANBAN
α
capacity Container
rate n Consumptio time lead Production
kanban of Number +
×
·
1x1 Production
Additional kanban needed to compensate
for:
Pull sequence fluctuation
Pull quantity fluctuation
Production lead time fluctuation
Production lead time: total time to replenish an item
Consumption rate: (peak) rate at which parts are pulled from the
store
Container capacity: amount of product within a store container
Product Machine
Cycle
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
A 2’ 5 1560 360 60
B 0.5’ 5 2340 540 90
C 0.5’ 5 4680 1080 180
A B
C
A
B C
A B
C
A
B C
Level withdrawal
5 5 5 5
A
A
C
C
A
B C
A
C B
A A
Fluctuation in sequence and
quantity
3 6 7 7
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KANBAN

capacity Container
rate n Consumptio time lead Production
kanban of Number
× +
·

,
`

.
|
ξ
1x1 Production
Additional kanban needed to compensate
for:
Pull sequence fluctuation
Pull quantity fluctuation
Production lead time fluctuation
Alternate Representations…

capacity Container
rate n Consumptio time lead Production
kanban of Number

,
`

.
|
+ ×
·
ζ
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©2003 Alcoa Inc.
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KANBAN
Safety Coefficient ≠ Safety
Stock
M a c h i n e X - 0 1 P r o d u c t 'A '
0
10
20
30
40
50
60
1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 16 1 7 1 8 1 9 2 0
O bs e r va t io n Num be r
P
r
o
d
u
c
t
i
o
n

L
e
a
d

T
i
m
e
Safety Stock:
Held separately from
store
‘Special Cause’
variation
Equipment downtime
Major quality incident
Assigned to a specific cause
Safety Coefficient:
Built–in to store
‘Common Cause’
variation
Minor delays
Minor fluctuation in pull
Tend to be random in
nature
Stretch Wrapper
failure
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KANBAN
Example 1 – Level withdrawal (c/o time ≈ 0)
1x1 Production
Product Cycle
Time
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
C / O
Time
Time per
Container
Total
Time
Consumption
Rate (peak)
A 2’ 5 1560 360 60 10” 10’ 120’ 5 / 30’
B 0.5’ 5 2340 540 90 5” 2.5’ 45’ 10 / 30’
C 0.5’ 5 4680 1080 180 5” 2.5’ 90’ 15 / 30’
Assemble
3
B
A 1 1 1 1 1 1
B 1 2 1 2 1 2
C 3 2 3 2 3 2
Pitch
(30’)
P
r
o
d
u
c
t
C
A
Production lead time (max) =
① kanban collection time
+
② kanban stagnation time
+
③ machine (+ c/o) time +
④ conveyance time

② ③ ④
2’
17.9’ 2.6’ 3’
Product Production
Lead Time
(max)
Consumption
Rate
(peak)
Container
Capacity
No. of
Kanban*
(min)
A 25.5’ 5 / 30’ 5 1
B 25.5’ 10 / 30’ 5 2
C 25.5’ 15 / 30’ 5 3
P
r
o
d
u
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B

a
s

a
n

e
x
a
m
p
l
e


Containers
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KANBAN
1x1 Production
Example 1 – Level withdrawal
3 3 3 3 3 3 3 3
3 3 3 3 3 3 3 3
30’ pitch
25.5’ 25.5’
Maximum production lead
time – level withdrawal, no
fluctuation*
Leveled production sequence
C
C
C
B
A
B
C
C
B
A
C
C
C
B
A
B
C
C
B
A
C
C
C
B
A
B
C
C
B
A
C
C
C
B
A
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KANBAN
Product Cycle
Time
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
C / O
Time
Time per
Container
Total
Time
Consumption
Rate
A 2’ 5 1560 360 60 10” 10’ ±2’ 120’ ±20’ 5 ±5 / 30’
B 0.5’ 5 2340 540 90 5” 2.5’ ±0.5’ 45’ ±9’ 10 ±5 / 30’
C 0.5’ 5 4680 1080 180 5” 2.5’ ±0.5’ 90’ ±18’ 15 ±10 / 30’
1x1 Production
Example 2 – Lead Time, Sequence and Quantity Fluctuation
Assemble
3
?
A 2 1 2 2 2 2
B 1 2 2 3 2
C 3 2 2 3 5 1
Pitch
(30’)
P
r
o
d
u
c
t
?
?

② ③ ④
2’
? ? 3’
Product Production
Lead Time
(est.)
Consumption
Rate
(est.)
Container
Capacity
No. of
Kanban*
(est.)
A 44.3’ 10 / 30’ 5 3
B 44.3’ 15 / 30’ 5 5
C 44.3’ 25 / 30’ 5 8


W
h
a
t

i
s

t
h
e

p
r
o
d
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i
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l
e
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d

t
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?
Containers
Estimated fluctuation in machine
time: up to 20%
Estimated fluctuation in
consumption rate: up to 100%
Estimated increase in kanban
needed: 1.20 x 2.00 = 2.40, or
240% of Example 1
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KANBAN
1x1 Production
Example 2 – Lead Time, Sequence and Quantity
Fluctuation
3 3 3 3 3 3 3
3 3 3 3 3 3 3
30’ pitch
A
A
B
C
C
C
C
C
C
A
B
B
C
A
A
B
B
C
C
A
A
C
C
C
C
C
C
A
C
C
C
C
A
B
B
B
A
A
C
C
C
C
C
C
C
C
2xB
1xC

25.5’ →
44.3’
Net effect of fluctuation is to extend
production lead time – more inventory is
required
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KANBAN
Example 2 – Lead Time, Sequence and Quantity
Fluctuation
1x1 Production
Product Container
Capacity
Present Month
Production
Quantity
Daily
Production
Quantity
Lot Size Kanban Master - Number
Production
Present
Production
Previous
Change
( + / -)
A 5 1560 60 5 3 2 1
B 5 3120 120 5 5 5 0
C 5 4680 180 5 8 10 -2
Containers are brought to
the store as they are
produced with the
Production Kanban
attached
Each Production Kanban is
returned as the individual
item (container) is
withdrawn
Containers are produced
1x1 in the order in which
Kanban are received
C A B
Additional inventory
needed due to
fluctuation
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KANBAN
Signal Kanban
Need to know:
Daily demand
Scheduled daily work time
C/O times
Machine time per piece
Container capacity
Key Points:
Choose appropriate replenishment strategy:
fixed time, fixed quantity or combination
Additional lead time due to lot making, etc.
Need to determine:
Number of C/O
possible per day
Lot size
Consumption rate
Production lead
time
Order point
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KANBAN
Signal Kanban Example
Product Machine
Cycle
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
A 2’ 5 1560 360 60
B 1’ 5 3120 720 120
C 1’ 5 4680 1080 180
A B C
Stamp Pack
3
Process move kanban used to
withdraw single item from store
Signal kanban removed when
exposed and placed in collection box
Signal
7 hr / day Production
(420’)
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KANBAN
capacity Container
rate n Consumptio time lead Production
Point Order
× +
·

,
`

.
|
ξ
Additional lead time needed to compensate for:
Pull sequence fluctuation
Production sequence variation
Production lead time fluctuation
Production lead time: total time to replenish the first
container of the lot
Consumption rate: (peak) rate at which parts are pulled from the
store
Container capacity: amount of product within a store container
Signal
Lot size is determined based upon replenishment
strategy:

day per C/O of Number
day each required ions Specificat
Time Fixed
day per C/O of Number
day each required Pieces
Quantity Fixed


·
·
34
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KANBAN
Example 3 – Fixed Quantity Replenishment
Product Cycle
Time
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
C / O
Time
A 2’ 5 1560 360 60 3’
B 1’ 5 3120 720 120 4’
C 1’ 5 4680 1080 180 5’
Signal
General purpose machine –
c/o time does not yet allow
1x1
Scheduled production time
is 7:30 per 9 hr day,
6 days per week
Determine (per day):
Time Available 7.5 hr x 60’ / hr =
450’
Pieces Needed 60 + 120 + 180 =
360
Machine Time 120’ + 120’ + 180’ =
420’
Available C/O Time
Available - Machine 450’ – 420’ =
30’
Longest c/o time max {3’, 4’, 5’} =
5’
Maximum C/O’s possible
Available ÷ Longest c/o 30’ ÷ 5’ = 6
Lot Size
Pieces Needed ÷ c/o’s 360 ÷ 6 =
60
Product Lot Size / Daily
Demand
Lots Needed per
Day
A 60 ÷ 60 = 1 1 / day
B 60 ÷ 120 = 0.5 2 / day
C 60 ÷ 180 = 0.33 3 / day
C/O Run
M T W T F S
4’ 60’ B B B B B B
5’ 60’ C C C C C C
3’ 120’ A A A A A A
5’ 60’ C C C C C C
4’ 60’ B B B B B B
5’ 60’ C C C C C C
Check for
consistency
Daily C/O time: 26’
Daily run time: 420’
Plan is consistent, now determine order
point(s)
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KANBAN
Stamp
3
B
Product Cycle
Time
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
C / O
Time
Lot
Size
Machine
Time
A 2’ 5 1560 360 60 3’ 60 120’
B 1’ 5 3120 720 120 4’ 60 60’
C 1’ 5 4680 1080 180 5’ 60 60’
Example 3 – Fixed Quantity Replenishment
Signal
A
C

② ③ ④
2’
3’ 188’ 9’
Production lead time (max) =
① kanban collection time +
② kanban stagnation time +
③ machine (+ c/o) time +
④ conveyance time
Product Production
Lead Time
(max)
Consumption
Rate
(peak)
Container
Capacity
Order
Point*
(min)
A 147’ 30 / 60’ 5 15
B 202’ 60 / 60’ 5 41
C 202’ 60 / 60’ 5 41
P
r
o
d
u
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B

a
s

a
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e
x
a
m
p
l
e
time to replenish the
first container of the
lot
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KANBAN
Example 3 – Fixed Quantity Replenishment
Signal
Product Container
Capacity
Present Month
Production
Quantity
Daily
Production
Quantity
Lot Size Kanban Master - Number
Triangular
Present
Triangular
Previous
Change
( + / -)
A 5 1560 60 60 15 12 3
B 5 3120 120 60 41 48 -7
C 5 4680 180 60 41 48 -7
A
1
5
B
4
1
C
4
1
Containers are brought to
the store as they are
produced
The Signal Kanban is
brought along with the last
container of the lot and
placed on the specified
container
If fewer than the specified
number of containers are
present, the Signal Kanban
is returned immediately
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KANBAN
Example 4 – Fixed Time Replenishment
Product Cycle
Time
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
C / O
Time
A 2’ 5 1560 360 60 3’
B 1’ 5 3120 720 120 4’
C 1’ 5 4680 1080 180 5’
Signal
General purpose machine –
c/o time does not yet allow
1x1
Scheduled production time
is 7:30 per 9 hr day,
6 days per week
Determine (per day):
Time Available 7.5 hr x 60’ / hr =
450’
Specifications Needed
3
Machine Time 120’ + 120’ + 180’ =
420’
Available C/O Time
Available - Machine 450’ – 420’ =
30’
Longest c/o time max {3’, 4’, 5’} =
5’
Maximum C/O’s possible
Available ÷ Longest c/o 30’ ÷ 5’ = 6
Lot Size
Specs Needed ÷ c/o’s 3 ÷ 6 = 0.5
day
Product Lot Size / Daily
Demand
Lots Needed per
Day
A 0.5 x 60 = 30 2 / day
B 0.5 x 120 = 60 2 / day
C 0.5 x 180 = 90 2 / day
C/O Run
M T W T F S
3’ 60’ A A A A A A
4’ 60’ B B B B B B
5’ 90’ C C C C C C
3’ 60’ A A A A A A
4’ 60’ B B B B B B
5’ 90’ C C C C C C
Check for
consistency
Daily C/O time: 24’
Daily run time: 420’
Plan is consistent, now determine order
point(s)
38
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KANBAN
Stamp
3
A
Product Cycle
Time
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
C / O
Time
Lot
Size
Machine
Time
A 2’ 5 1560 360 60 3’ 30 60’
B 1’ 5 3120 720 120 4’ 60 60’
C 1’ 5 4680 1080 180 5’ 90 90’
Example 4 – Fixed Time Replenishment
Signal
B
C

② ③ ④
2’
3’ 159’ 13’
Production lead time (max) =
① kanban collection time +
② kanban stagnation time +
③ machine (+ c/o) time +
④ conveyance time
Product Production
Lead Time
(max)
Consumption
Rate
(peak)
Container
Capacity
Order
Point*
(min)
A 177’ 30 / 60’ 5 18
B 172’ 60 / 60’ 5 35
C 142’ 60 / 60’ 5 29
P
r
o
d
u
c
t

A

a
s

a
n

e
x
a
m
p
l
e
time to replenish the
first container of the
lot
39
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Example 4 – Fixed Time Replenishment
Signal
Product Container
Capacity
Present Month
Production
Quantity
Daily
Production
Quantity
Lot Size Kanban Master - Number
Triangular
Present
Triangular
Previous
Change
( + / -)
A 5 1560 60 30 18 15 3
B 5 3120 120 60 35 30 5
C 5 4680 180 90 29 36 -7
A
1
8
B
3
5
Containers are brought to
the store as they are
produced
The Signal Kanban is
brought along with the last
container of the lot and
placed on the specified
container
If fewer than the specified
number of containers are
present, the Signal Kanban
is returned immediately
C
2
9
40
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Production (Lot Making)
Need to know:
Daily demand
Scheduled daily work
time
Machine time per piece
Container capacity
Pull quantity /
sequence variation
Need to determine:
Consumption rate
Production lead
time
Number of kanban
Lot size / Trigger
point
Key Points:
Stagnation due to lot making
Variation comes into play from lead time
and/or pull fluctuation
41
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Production – Lot Making
For some product
forms, a signal
kanban is not
practical
As kanban are
received, they
are placed on
a lot-making
board
Each product type or
specification has a
pre-specified trigger
which determines the
economic lot size to be
run
As each trigger is
reached the pre-
determined number of
kanban is removed
and placed in the
production queue
Waiting to
trigger Production lead time is
increased (compared to signal
kanban) due to additional
kanban stagnation on the lot
making board
rate n Consumptio
size lot Practical
Time Stagnation Kanban Additional ·
42
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Show
me!
43
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Show
me!
Casting
Pit
Example
44
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Process Move Kanban
Need to know:
Time to make standard delivery
cycle
Consumption rate
Container capacity
Need to determine:
Number of kanban
Key Points:
Proximity of consuming process to up-stream
store
45
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Process Move Kanban Example
Assemble Pack
3
Process Move
Reasonable
proximity
Line-side
supply
Up-stream
store
Process move kanban
removed as first part is used
at line
Kanban are collected and
new containers delivered to
line from up-stream store
Product Container
Capacity
Consumption
Rate
Delivery
Cycle
A 5 30 / 60’ 15’
B 5 60 / 60’ 15’
C 5 60 / 60’ 15’
46
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Process Move
2
capacity Container
rate n Consumptio cycle Delivery
kanban of Number

×
×
·
Delivery cycle: time to complete a standard
delivery cycle
Consumption rate: (peak) rate at which parts are used
Container capacity: amount of product within a store container
Multiply by 2 in case signal for more product occurs just
after delivery person leaves – it will be two full delivery
cycles before product is brought
47
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Product Container
Capacity
Consumption
Rate
Delivery
Cycle
No. of
Kanban
A 5 30 / 60’ 15’ 3
B 5 60 / 60’ 15’ 6
C 5 60 / 60’ 15’ 6
Example 5 –Process Move Kanban
Process Move
A
B C
Line-side inventory -- each
container with a Move
Kanban
Pack
Product A
Product B
Product C
3 2
5
) 60' / (30 5' 1
kanban No. · ×
×
·
6 2
5
) 60' / (60 5' 1
kanban No. · ×
×
·
6 2
5
) 60' / (60 5' 1
kanban No. · ×
×
·
48
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Supplier Move Kanban
Need to know:
Daily consumption
Container capacity
Safety inventory required to offset
supplier or conveyance fluctuation
Agreed upon delivery cycle
Need to determine:
Number of kanban
Key Points:
Used when distance between supplier and
customer is significant
49
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Supplier Move Kanban Example
Supplier 2
1-1-2
Supplier 1
1-2-1
2
Assemble
Factory
Significant conveyance
time
Parts delivered to central
receiving / store
Process move (withdrawal)
kanban used to convey
parts to line
Part Supplier Container
Capacity
Consumption
Rate
Delivery Cycle
A-001 1 10 100 / day 1-2-1
B-002 2 5 50 / day 1-1-2
Supplier Move
50
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Supplier Move
¹
¹
¹
'
¹
¹
¹
¹
'
¹

,
`

.
|
]
]
]

+
+
× × · t coefficien Safety
1
capacity Container
n consumptio Daily
kanban of Number
Y
Z
X
Daily consumption: (peak) rate at which parts are used
Container capacity: amount of product within a store container
Safety coefficient: amount of product held to safeguard against
delivery fluctuation (in days’ supply)
Delivery cycle: Agreed upon delivery cycle stated as three
numbers X-Y-Z
in X days (time for 1 conveyance interval),
there are Y deliveries (number of shipments per cycle),
with parts returned Z shipments after Kanban are sent
to supplier
]
X" " than less not integer smallest the means X
51
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Supplier Move
Part Supplier Container
Capacity
Consumption
Rate
Delivery Cycle Safety
Coefficient
No. of Kanban
A-001 1 10 100 / day 1-2-1 0.5 day 15
B-002 2 5 50 / day 1-1-2 1 day 40
Part A-001 / Supplier 1
Part B-002 / Supplier 2
]
15 day 5 . 0
2
1 1
1
10
100/day
kanban No. · +
+
× × ·
¹
¹
¹
'
¹
¹
¹
¹
'
¹

,
`

.
|
]
40 day 1
1
2 1
1
5
50/day
kanban No. · +
+
× × ·
¹
¹
¹
'
¹
¹
¹
¹
'
¹

,
`

.
|
Supplier 2
1-1-2
Customer
(kanban) containers 20
days 2 /day x containers 10
ycle delivery/c 1
latency deliveries 2 x day/cycle 1
ner pcs/contai 5
pcs/day 50

supplier at transit in kanban No.
·
·
× ·
+

,
`

.
|
(kanban) containers 20
days 2 /day containers 10
ycle delivery/c 1
day/cycle 1
iner 5pcs/conta
50pcs/day

safety store customer at kanban No.
safety day 1
·
× ·
+ × ·
+ +

,
`

.
|
Example 6 – Supplier Move Kanban
52
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Kanban Maintenance
Planning
Product
Database
Monthly
Forecast
Bill of materials for each
finished product
Monthly demand
forecast
Material
Requirements
Daily / weekly
requirements of
materials
Number of containers
/ pallets
Production
schedule(s)
Kanban Master
Plan
Number of kanban
required
Comparison of
current against
previous period
Reorder points
Lot sizes
Capacity Plan
Cycle time at each
process
Processing time per
lot per process
Setup time per
process
Exampl
e
PFEP
Plan For
Every Part
Kanban Audit
Kanban are
numbered
Numbers are
collected in the
path of work
Missing Kanban are
identified
53
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
20 Questions (more or less…)
1. What does “Kanban” mean?
2. What is the origin of Kanban in TPS?
3. What is its role in JIT?
4. What are the Kanban types?
Are they interchangeable?
Why?
1. What are the types of Kanban
systems?
Which has the shortest lead time?
Which requires the least
inventory?
1. What are the prerequisites for using
Kanban?
2. What are the Rules of Kanban?
3. What is the basic Kanban calculation?
4. How is Lot Size determined?
1. What is the role of the Safety
Coefficient?
…of Safety Stock?
1. How often should Kanban be adjusted?
By whom?
1. What are the strategies for pull?
Is one superior?
Why?
1. What are the basic replenishment
strategies?
What are their relative
advantages and disadvantages?
What is the ideal?
1. How does Kanban align with the RIU?
54
©2003 Alcoa Inc.
ABS
Alcoa BusinessSystem
ABS
Alcoa BusinessSystem
Class Exercise
KANBAN
CALCULATIONS
Me
First!
Then Me!
55
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Kanban Maintenance
Monthly Demand Forecast
Master Production Schedules
Predetermined Production
Quantities and Daily Average
Production
Determine the Sequence for
Production Variety
Dispatch Actual Production
Quantity of Each Product Daily
To Upstream Process by Pull
Daily Orders
Daily Production Dispatching Monthly Capacity Planning
Monthly Adaptation Daily Adaptation
Detailed schedules
must be prepared in
advance for each
production center
using monthly
planning data
Daily materials must
be prepare din
advance to be avail
56
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
How Many Kanban?
Scalp Heat Roll Cool
Schedule
24
h
24
h
4 h 36
h
8 h
Production lead time = collection time+ stagnation time + setup time + run time
+ conveyance time = 4 days
Safety coefficient = 50%
Daily demand = 1 / day (5 / week)
Container capacity = 1 / skid
(1/day)x(4
days)x(1 + 0.5)
No. Kanban =
= 6
1 /
container
Why?
57
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Examples of Kanban
Supplier Move Kanban
Time of Delivery
09:30
Store Shelf No.
7 - Center
ABC Mobile
Equipment
Storage Area
A 1 - 1
Item No.
2531 – 0471
Item Name
Radiator Cap
Identification
Used in
Engine Type
AJ
54
Box Type
SPECIAL
Box
Capacity
75
Parts-ordering Kanban
Farm Fresh
Tractors
Assembly No.
2
A-4
58
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Examples of Kanban
Process Move Kanban
Item Number 2531 – 0471
Item Name Radiator Cap
Box
Capacity
Box Type Issue No.
75
S
P
E
C
I
A
L
5
Supplying Process
Requesting Process
Stores
A 1-1
7-C
Assembly
AJ
59
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Examples of Kanban
Production Signal Kanban
Lot Size
Item No. No. of Containers
Line
Store
Material
Order
Point
No. per
Container
250
5
50
22-9
Radiator Plug
AJ
B-9
4”x4”
2
60
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Examples of Kanban
Production Kanban (1 x 1)
Store
Shelf No. A33-5 Item Back No. 23
Item No. 322-47 Quantity 30
Item Name Plug Cap
Used in Type AJ
Box Capacity 30
Process Line
Stamping
Press-4
Issue No.
3
61
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Stamp Assemble
Stage &
Ship
A
B
C
D
A 1 1
B 1
C 1 1
D 1 1 1 1 1
Time
P
r
o
d
u
c
t
Raw
Material
Store
In-Process
Store
In-Process
Store
Leveling Box
(Heijunka)
Production
Instruction
(what +
when)
62
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Assemble
Stage &
Ship
3
A 1 1
B 1 1 1
C 1 1 1 1 1
Time
P
r
o
d
u
c
t
63
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Stamp
Stage &
Ship
1
● ● ●
2
● ●
3
● ●
Time
A
s
s
e
m
b
l
y

L
i
n
e
Pacing
Box
Schedule
Instruction
(when)
Assemble
2
Production
Instruction
(what)
FIFO Queue
FIFO Queue
Assemble
3
Assemble
1
64
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
65
©2003 Alcoa Inc.
ABS
AlcoaBusinessSystem
ABS
AlcoaBusinessSystem
KANBAN
Conveyance and Production
Conveyance Production
Pitch = Goods per container x
Takt
Takt
Conveyance route Work sequence
Goods being conveyed Standard in-process stock
Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful
Production System

ABS

Alc aBu in s S se o s es y t m

KANBAN

Learning Objectives:
Understand the philosophy of Kanban and its role in JIT production Understand the types of Kanban and the proper use of each Be able to properly calculate the number of Kanban needed in a particular application
©2003 Alcoa Inc. 2

ABS

Alc aBu in s S se o s es y t m

KANBAN

Agenda
Philosophy and Role of Kanban Kanban System Review Kanban Calculations 20 Questions Classroom Exercise

©2003 Alcoa Inc.

3

ABS Alc aBu in s S se o s es y t m KANBAN Tutorial Takt Time Takt Time= available time required utput o 150 ' = 54 slides ≈ 3'per slide ClassExercise≈ 60' ©2003 Alcoa Inc. 4 .

5 . Suppliers) People ©2003 Alcoa Inc. Stable Processes.ABS Alc aBu in s S se o s es y t m KANBAN The Toyota Production System GOALS: Best Quality Lowest Cost Shortest Lead Time KEY IS: Thorough Elimination of Waste JUST-IN-TIME AUTONOMATIO • Continuous Flow • Pull System • Takt Time N (Jidoka) • “Automation with a Human Touch” • Machines Stop for Abnormalities • Separate Man & Machine • Error Proofing StandardizedContinuous Improvement (Pokayoke) Work (Kaizen) Safety Teamwork Growth KANBAN Leveling (Heijunka) STABILITY (Equipment Reliability. Quality.

“If parts arrive anytime prior to their need – not at the precise time needed – waste cannot be eliminated. in the amount needed. 6 . Supplier produces the quantity just taken.” Taiichi Ohno June 1987 D D Supplier C C B B AA Customer A ©2003 Alcoa Inc.ABS Alc aBu in s S se o s es y t m KANBAN Why Just-in-Time Production? Customer can get what is needed. at the time needed.

in the amount and at the time they need them. ©2003 Alcoa 7 . each with a different value system. or users. or push. to stand in the frontline of the marketplace and.ABS Alc aBu in s S se o s es y t m KANBAN Why Pull? “Manufacturers and workplaces can no longer base production on desk-top planning alone and then distribute. so to speak. It has become a matter of course for customers. their products onto the market.” Taiichi Ohno Inc. pull the goods they need.

ABS Alc aBu in s S se o s es y t m KANBAN Strategies for Pull Discussion Point Inventory Withdrawal time Quantity withdrawn Usage Time and Quantity Fixed Time Supplier must adapt to variable quantities Fixed Varies Disconnected processes Long conveyance distances Fixed Quantity Supplier must adapt to variable times Varies Fixed Connected processes Short conveyance distances Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful Production System ©2003 Alcoa Inc. 8 .

kanban is a powerful force to reduce manpower and inventory. its purpose is just-in-time [a test of one-piece flow].” Taiichi Ohno June 1987 ©2003 Alcoa Inc. The kanban system makes clear what must be done by workers. The goal of eliminating waste is highlighted by kanban.ABS Alc aBu in s S se o s es y t m KANBAN Why Kanban? Kanban is a way to achieve just-in-time. “In the production plant. 9 . eliminate defective products. and prevent the recurrence of breakdowns. managers and supervisors.

” Taiichi Ohno June 1987 ©2003 Alcoa Inc. 10 .ABS Alc aBu in s S se o s es y t m KANBAN What is Kanban? Kanban is a Signboard or Signal It Carries Information: Pick-up Transfer Production A Tool for: Realizing Just-in-Time Visual Control of Production Promoting Improvement “The operating method of the Toyota production system is kanban.

11 .ABS Alc aBu in s S se o s es y t m KANBAN Kanban Types Production Kanban Kanban Move Kanban Process Move Kanban Supplier Move Kanban 1 x 1 Production Kanban Signal Kanban Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time ©2003 Alcoa Inc.

12 .ABS Alc aBu in s S se o s es y t m KANBAN Lot Making Leveling Kanban System Supply Stamp Assemble Stage Supplier Production Move (Distant) Process Move (Close) Production 1x1 (Lot Making) Process Move (Close) Signal Move: Where to go? What to get? How many? Where to take? Production: What to make? How many? Storage location? ©2003 Alcoa Inc.

due to stores Type B System: • • • • • • Low volume & high variety Generic.ABS Alc aBu in s S se o s es y t m KANBAN Kanban System Types Type A System: • • • • • • High volume & low variety Specific to a product Uses stores Shorter lead times Arrow comes down at end of flow Inventory generally higher. not part specific Uses FIFO queues Longer lead times Arrow comes down at start of flow Inventory generally lower. 13 . due to queues ©2003 Alcoa Inc.

14 .ABS Alc aBu in s S se o s es y t m KANBAN Stores Shelf Supplier Move Kanban A 1-1 7-C Supplier Move Kanban …removed when item is withdrawn from store ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Assembly Process Move Kanban AJ Pick-up AJ Process Move Kanban …removed when first item is withdrawn from container ©2003 Alcoa Inc. 15 .

16 FIFO Signals .ABS Alc aBu in s S se o s es y t m KANBAN Assembly Store Signal Kanban AJ B-9 Count from the bottom Signal Kanban …removed when withdrawals are made down to the container tagged ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Stamping Store Production Kanban AJ A33 . FIFO Production 17 .5 Production Kanban (1 x 1) …removed when item is withdrawn from store ©2003 Alcoa Inc.

18 .ABS Alc aBu in s S se o s es y t m KANBAN Rule Consumer picks up the number of items indicated (by the Kanban) at the supplier Supplier produces items in the quantity and sequence indicated by the Kanban No items are made or transported without a Kanban Kanban Rules Function Provides pick-up or transportation information Provides production information Prevents overproduction and excessive transport Serves as a work order attached to goods Always attach a Kanban to the goods Prevents propagation of defective products by identifying the process making the defects Do not send defective products to the consumer Reveals existing problems and controls Reduce the number of Kanban to increase inventory (use Kanban to discover areas sensitivity (better to reveal missing items for improvement) and line-stopping problems) Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time ©2003 Alcoa Inc.

at the point of cause of cause 19 ©2003 Alcoa Inc.Problems are discovered (by design) fact and away from the point in the path of the work. direct and tested: Worker  Worker Worker  Worker 3 Pathways are conditional: Pathways are pre-specified.ABS Rule 1 2 Alc aBu in s S se o s es y t m KANBAN MRP Kanban Kanban and Rules-in-Use Connections are subjective and indirect: Worker  Computer  Manager Worker  Computer  Manager Activity is variable (situational)Activity is pre-specified and tested Connections are binary. simple and tested: 4 Problems discovered after-the. .

ABS Alc aBu in s S se o s es y t m KANBAN Determining Number of Kanban TYPE Production 1x1 (kanban-tokanban) Use Negligible c/o time (no stagnation due to lot making) (not possible to use signal kanban) Need to determine Number of kanban Lot Making Moderate c/o time Number of kanban Lot size/Trigger points Lot size Order points Number of kanban Signal Moderate to long c/o time Short distances (store to line-side) Move Process Supplier Long distances (external supplier) ©2003 Alcoa Inc. 20 .

ABS Alc aBu in s S se o s es y t m KANBAN 1x1 Production (Kanban-to-Kanban) Need to know: Daily demand Scheduled daily work time Machine time per piece Container capacity Pull quantity / sequence variation Need to determine: Consumption rate Production lead time Number of kanban Key Points: No stagnation due to lot making (negligible c/o time) Variation comes into play from lead time ©2003 and/or pull fluctuation Alcoa Inc. 21 .

.ABS Alc aBu in s S se o s es y t m KANBAN 1x1 Production Kanban-to-Kanban Example Product Machine Cycle Container Capacity Monthly Demand Weekly Demand Daily Demand A B C A B C 2’ 0.5’ 0.5’ 5 5 5 1560 2340 4680 360 540 1080 60 90 180 Product 7 hr / day Production (420’) Containers A B C 1 1 3 1 2 2 1 1 3 1 2 2 1 1 3 … Process move kanban used to withdraw single item from store Production kanban removed and placed in collection box 22 Pitch (30’) Assemble 3 Stage & Ship ©2003 Alcoa Inc.

5’ 0.5’ 5 5 5 1560 2340 4680 360 540 1080 60 90 180 A 7 3 A C C C C B B A A A A ©2003 Alcoa Inc. Fluctuation in sequence and quantity 23 .ABS Alc aBu in s S se o s es y t m KANBAN 1x1 Production leadtime× Consumptiorate + α n Number kanban Production of = Container capacity Production lead time: total time to replenish an item Consumption rate: (peak) rate at which parts are pulled from the store Container capacity: amount of product within a store container Additional kanban needed to compensate 5 5 5 5 for: C C Pull sequence fluctuation B C B Pull quantity fluctuation A B A A B A Production leadMonthly fluctuation time Weekly Daily Product Machine Container Cycle Capacity Demand Demand Demand C Level withdrawal 6 7 A B C 2’ 0.

ABS Alc aBu in s S se o s es y t m KANBAN 1x1 Production Alternate Representations… Production leadtime×  Consumptiorate+ ζ  n     Number kanban of = Container capacity Additional kanban needed to compensate for: Pull sequence fluctuation Pull quantity fluctuation Production lead time fluctuation    Production leadtime+ ξ  × Consumptiorate n   Number kanban of = Container capacity ©2003 Alcoa Inc. 24 .

ABS Alc aBu in s S se o s es y t m KANBAN Safety Coefficient ≠ Safety Stock Safety Stock: M a c h in e X -0 1 P ro d u c t 'A ' 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stretch Wrapper failure Held separately from store ‘Special Cause’ variation Equipment downtime Major quality incident Assigned to a specific cause Production Lead Time Safety Coefficient: Built–in to store ‘Common Cause’ variation O b s e r va tio n N u m b e r ©2003 Alcoa Inc. Minor delays Minor fluctuation in pull Tend to be random in nature 25 .

6’ ④ 3’ A B C ©2003 Alcoa Inc. 26 .9’ ③ 2.5’ 5 / 30’ 10 / 30’ 15 / 30’ 5 5 5 1 2 3 ② 17.5’ 120’ 45’ 90’ 5 / 30’ 10 / 30’ 15 / 30’ Product 2’ ① B Production lead time (max) = Containers A B C 1 1 3 1 2 2 1 1 3 1 2 2 1 1 3 1 2 2 … ① kanban collection time + ② kanban stagnation time + ③ machine (+ c/o) time + C …A Pitch (30’) Assemble 3 Product Production Consumption Container No.5’ 25. of Lead Time conveyance time Kanban* Capacity Rate ④ (max) (min) (peak) 25.5’ 0.5’ 2.5’ 5 5 5 1560 2340 4680 360 540 1080 60 90 180 10” 5” 5” 10’ 2.ABS Product Alc aBu in s S se o s es y t m KANBAN 1x1 Production Total Time Consumption Rate (peak) Container Monthly Capacity Demand Weekly Demand Daily Demand C/O Time Time per Container Example 1 – Level withdrawal (c/o time ≈ 0) Cycle Time A B C rP do cu saB t na axe m l ep 2’ 0.5’ 25.

5’ 25. no fluctuation* ©2003 Alcoa Inc.5’ Maximum production lead time – level withdrawal. 27 .ABS Alc aBu in s S se o s es y t m KANBAN 1x1 Production Example 1 – Level withdrawal Leveled production sequence B C A C C A C B B C A C C A C B B C A C C A C B C B C B C B C B C A C 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 30’ pitch 25.

20 x 2.3’ 44. or 240% of Example 1 No.5’ 90’ ±18’ 15 ±10 / 30’ time: up to 20% Estimated fluctuation in consumption rate: up to 100% Estimated increase in kanban needed: 1. of Kanban* (est.00 = 2.5’ 5 5 1560 2340 4680 360 540 60 90 10” 5” 5” 10’ ±2’ 2.40.ABS Product Alc aBu in s S se o s es y t m KANBAN 1x1 Production Total Time Consumption Rate Container Monthly Capacity Demand Weekly Demand Daily Demand C/O Time Time per Container Example 2 – Lead Time.3’ 44.3’ 10 / 30’ 15 / 30’ 25 / 30’ 5 5 5 ② ? ③ ? ④ 3’ A B C ©2003 Alcoa Inc.5’ ±0.) (est. Sequence and Quantity Fluctuation Cycle Time A B W tC tah eh i s op dr l n cu dae m it i ot ?e 2’ 0.) 3 5 8 Assemble 3 Product Production Consumption Container Lead Time Capacity Rate (est.) 44.5’ 0.5’ 120’ ±20’ 45’ ±9’ 5 ±5 / 30’ 10 ±5 / 30’ Product 2’ ① ? 5 1080 180 Containers 2 1 3 1 2 2 2 2 2 3 5 2 2 2 3 2 1 A B C … ? …? Pitch (30’) Estimated fluctuation in machine 2. 28 .5’ ±0.

Sequence and Quantity Fluctuation A A B C A A C C C C C … 3 3 3 3 3 3 3 2xB 1xC 3 3 3 3 3 3 3 30’ pitch 25.ABS Alc aBu in s S se o s es y t m KANBAN 1x1 Production C C C C A A B B B C C C C A B B C C A B B C C C C A C C C C C A A C C Example 2 – Lead Time.3’ Net effect of fluctuation is to extend production lead time – more inventory is required ©2003 Alcoa Inc.5’ → 44. 29 .

Number Capacity A B C 5 5 5 1560 3120 4680 60 120 180 Additional inventory needed due to fluctuation A ©2003 Alcoa Inc.ABS Alc aBu in s S se o s es y t m KANBAN Production Quantity Production Quantity Production Present 5 5 5 3 5 8 Production Previous 2 5 10 Change ( + / -) 1 0 -2 1x1 Production Example 2 – Lead Time. B C Containers are brought to the store as they are produced with the Production Kanban attached Each Production Kanban is returned as the individual item (container) is withdrawn Containers are produced 1x1 in the order in which Kanban are received 30 . Sequence and Quantity Fluctuation Present Month Product Container Daily Lot Size Kanban Master .

etc. ©2003 Alcoa Inc. Need to determine: Number of C/O possible per day Lot size Consumption rate Production lead time Order point 31 .ABS Alc aBu in s S se o s es y t m KANBAN Signal Kanban Need to know: Daily demand Scheduled daily work time C/O times Machine time per piece Container capacity Key Points: Choose appropriate replenishment strategy: fixed time. fixed quantity or combination Additional lead time due to lot making.

ABS Alc aBu in s S se o s es y t m KANBAN Signal Signal Kanban Example A Product Machine Cycle Container Capacity Monthly Demand Weekly Demand Daily Demand B C A B C 2’ 1’ 1’ 5 5 5 1560 3120 4680 360 720 1080 60 120 180 7 hr / day Production (420’) Stamp 3 Pack Process move kanban used to withdraw single item from store Signal kanban removed when exposed and placed in collection box 32 ©2003 Alcoa Inc. .

Number C/O per day of 33 .ABS Alc aBu in s S se o s es y t m KANBAN Signal    Production leadtime + ξ  × Consumptiorate n   OrderPoint= Container capacity Production lead time: total time to replenish the first container of the lot Consumption rate: (peak) rate at which parts are pulled from the store Additional lead time needed to compensate for: a store container Container capacity: amount of product within Pull sequence fluctuation Production sequence variation Production lead time fluctuation Lot size is determined based upon replenishment strategy: Piecesrequired eachday FixedQuantity = ∑ Number C/O per day of ions each ∑ Specificat required day FixedTime= ©2003 Alcoa Inc.

34 .ABS Product Alc aBu in s S se o s es y t m KANBAN Signal General purpose machine – c/o time does not yet allow 1x1 Scheduled production time is 7:30 per 9 hr day.Machine 450’ – 420’ = 30’ Longest c/o time max {3’. 4’. now determine order Plan is Lot Size / Daily Demand 60 ÷ 60 = 1 60 ÷ 120 = 0. 5’} = 5’ Maximum C/O’s possible Daily C/O time: 26’ 30’ ÷ 5’ = 6 Available ÷ Longest c/o Lot Size Daily run time: 420’ Pieces Needed ÷ c/o’s 360 ÷ 6 = 60 consistent.5 60 ÷ 180 = 0. 6 days per week Lots Needed per Day 1 / day 2 / day 3 / day Container Capacity Monthly Demand Weekly Demand Daily Demand C/O Time Example 3 – Fixed Quantity Replenishment Cycle Time A B C 2’ 1’ 1’ 5 5 5 1560 3120 4680 360 720 1080 60 120 180 3’ 4’ 5’ Product A B C Determine (per day): Time Available 7.5 hr x 60’ / hr = 450’ Pieces Needed 60 + 120 + 180 = 360 Machine Time 120’ + 120’ + 180’ = 420’ Available C/O Time Available .33 C/O 4’ 5’ 3’ 5’ 4’ 5’ Run 60’ 60’ 120’ 60’ 60’ 60’ Check for consistency M T W T B C A C B C B C A C B C B C A C B C B C A C B C F B C A C B C S B C A C B C point(s) ©2003 Alcoa Inc.

35 .ABS Product Alc aBu in s S se o s es y t m KANBAN Signal Machine Time Container Monthly Capacity Demand Weekly Demand Daily Demand C/O Time Lot Size Example 3 – Fixed Quantity Replenishment Cycle Time A B C rP do cu saB t na axe m l ep 2’ 1’ 1’ 5 5 5 B 1560 3120 4680 360 720 1080 60 120 180 3’ 4’ 60 60 120’ 60’ 5’ 60 60’ Production lead time (max) = ① kanban collection time + ② kanban stagnation time + time to replenish the first container of the lot Product 3 A C 2’ ① ③ machine (+ c/o) time + ④ conveyance time Production Consumption Container Lead Time Capacity Rate (max) (peak) 147’ 202’ 202’ 30 / 60’ 60 / 60’ 60 / 60’ 5 5 5 Order Point* (min) 15 41 41 Stamp ② 188’ ③ 9’ ④ 3’ A B C ©2003 Alcoa Inc.

ABS Product Alc aBu in s S se o s es y t m KANBAN Signal Present Month Production Quantity Daily Production Quantity Lot Size Kanban Master .Number Triangular Present 60 60 60 15 41 41 Triangular Previous 12 48 48 Change ( + / -) 3 -7 -7 Example 3 – Fixed Quantity Replenishment Container Capacity A B C 5 5 5 1560 3120 4680 60 120 180 A B C Containers are brought to the store as they are produced The Signal Kanban is brought along with the last container of the lot and placed on the specified container If fewer than the specified number of containers are present. 41 . the Signal Kanban is returned immediately 36 41 15 ©2003 Alcoa Inc.

now determine order Lot Size / Daily Demand 0.5 x 120 = 60 0.ABS Product Alc aBu in s S se o s es y t m KANBAN Signal General purpose machine – c/o time does not yet allow 1x1 Scheduled production time is 7:30 per 9 hr day.5 hr x 60’ / hr = 450’ Specifications Needed 3 Machine Time 120’ + 120’ + 180’ = 420’ Available C/O Time Available . 37 . 4’.5 day Plan is consistent.5 x 180 = 90 C/O 3’ 4’ 5’ 3’ 4’ 5’ Run 60’ 60’ 90’ 60’ 60’ 90’ Check for consistency M T W T A B C A B C A B C A B C A B C A B C A B C A B C F A B C A B C S A B C A B C point(s) ©2003 Alcoa Inc. 5’} = 5’ Maximum C/O’s possible Daily C/O time: 24’ 30’ ÷ 5’ = 6 Available ÷ Longest c/o Lot Size Daily run time: 420’ Specs Needed ÷ c/o’s 3 ÷ 6 = 0.5 x 60 = 30 0. 6 days per week Lots Needed per Day 2 / day 2 / day 2 / day Container Capacity Monthly Demand Weekly Demand Daily Demand C/O Time Example 4 – Fixed Time Replenishment Cycle Time A B C 2’ 1’ 1’ 5 5 5 1560 3120 4680 360 720 1080 60 120 180 3’ 4’ 5’ Product A B C Determine (per day): Time Available 7.Machine 450’ – 420’ = 30’ Longest c/o time max {3’.

ABS Product Alc aBu in s S se o s es y t m KANBAN Signal Lot Size Machine Time Container Monthly Capacity Demand Weekly Demand Daily Demand C/O Time Example 4 – Fixed Time Replenishment Cycle Time A B C rP do cu saA t na axe m l ep 2’ 1’ 1’ 5 5 5 A 1560 3120 4680 360 720 1080 60 120 180 3’ 4’ 30 60 60’ 60’ 5’ 90 90’ Production lead time (max) = ① kanban collection time + ② kanban stagnation time + time to replenish the first container of the lot Product 3 B C 2’ ① ③ machine (+ c/o) time + ④ conveyance time Production Consumption Container Lead Time Capacity Rate (max) (peak) 177’ 172’ 142’ 30 / 60’ 60 / 60’ 60 / 60’ 5 5 5 Order Point* (min) 18 35 29 Stamp ② 159’ ③ 13’ ④ 3’ A B C ©2003 Alcoa Inc. 38 .

ABS Product Alc aBu in s S se o s es y t m KANBAN Signal Kanban Master . the Signal Kanban is returned immediately 39 35 18 ©2003 Alcoa Inc.Number Triangular Present 30 60 90 18 35 29 Triangular Previous 15 30 36 Change ( + / -) 3 5 -7 Present Month Production Quantity Daily Production Quantity Lot Size Example 4 – Fixed Time Replenishment Container Capacity A B C 5 5 5 1560 3120 4680 60 120 180 A B C Containers are brought to the store as they are produced The Signal Kanban is brought along with the last container of the lot and placed on the specified container If fewer than the specified number of containers are present. 29 .

40 .ABS Alc aBu in s S se o s es y t m KANBAN Production (Lot Making) Need to know: Need to determine: Daily demand Consumption rate Scheduled daily work Production lead time time Machine time per piece Number of kanban Container capacity Lot size / Trigger Pull quantity / point sequence variation Key Points: Stagnation due to lot making Variation comes into play from lead time and/or pull fluctuation ©2003 Alcoa Inc.

a signal kanban is not practical As kanban are received. .ABS Alc aBu in s S se o s es y t m KANBAN Production – Lot Making Each product type or specification has a pre-specified trigger which determines the economic lot size to be run For some product forms. they are placed on a lot-making board Production lead time is increased (compared to signal kanban) due to additional kanban stagnation on the lot making board Waiting to trigger As each trigger is reached the predetermined number of kanban is removed and placed in the production queue Additional Kanban Stagnation Time = Practicallot size Consumptiorate n 41 ©2003 Alcoa Inc.

42 .ABS Alc aBu in s S se o s es y t m KANBAN Show me! ©2003 Alcoa Inc.

43 .ABS Alc aBu in s S se o s es y t m KANBAN Show me! Casting Pit Example ©2003 Alcoa Inc.

44 .ABS Alc aBu in s S se o s es y t m KANBAN Process Move Kanban Need to know: Time to make standard delivery cycle Consumption rate Container capacity Need to determine: Number of kanban Key Points: Proximity of consuming process to up-stream store ©2003 Alcoa Inc.

Process move kanban removed as first part is used at line Kanban are collected and new containers delivered to line from up-stream store 45 .ABS Alc aBu in s S se o s es y t m KANBAN Process Move Process Move Kanban Example Product Container Capacity Consumption Rate Delivery Cycle A B C 5 5 5 30 / 60’ 60 / 60’ 60 / 60’ 15’ 15’ 15’ Up-stream store Line-side supply Assemble 3 Reasonable proximity Pack ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Process Move cycle× Consumptiorate × 2 n Number kanban Delivery of = Container capacity Delivery cycle: time to complete a standard delivery cycle Consumption rate: (peak) rate at which parts are used Container capacity: amount of product within a store container Multiply by 2 in case signal for more product occurs just after delivery person leaves – it will be two full delivery cycles before product is brought ©2003 Alcoa Inc. 46 .

each container with a Move Kanban Product A No. 47 Product B A B Pack C Product C . kanban 15' × (60 / 60') × 2 = 6 = 5 No. of Kanban 3 6 6 Example 5 –Process Move Kanban A B C Line-side inventory -.ABS Product Alc aBu in s S se o s es y t m KANBAN Process Move Container Capacity 5 5 5 Consumption Rate 30 / 60’ 60 / 60’ 60 / 60’ Delivery Cycle 15’ 15’ 15’ No. kanban 15' × (60 / 60') × 2 = 6 = 5 ©2003 Alcoa Inc. kanban 15' × (30 / 60') × 2 = 3 = 5 No.

ABS Alc aBu in s S se o s es y t m KANBAN Supplier Move Kanban Need to know: Daily consumption Container capacity Safety inventory required to offset supplier or conveyance fluctuation Agreed upon delivery cycle Need to determine: Number of kanban Key Points: Used when distance between supplier and customer is significant ©2003 Alcoa Inc. 48 .

.ABS Alc aBu in s S se o s es y t m KANBAN Supplier Move Supplier Move Kanban Example Supplier 1 1-2-1 Significant conveyance time Parts delivered to central receiving / store Supplier 2 1-1-2 Assemble 2 Part Supplier Container Consumption Delivery Cycle Capacity Rate 10 5 100 / day 50 / day 1-2-1 1-1-2 Factory Process move (withdrawal) kanban used to convey parts to line 49 A-001 B-002 1 2 ©2003 Alcoa Inc.

ABS

Alc aBu in s S se o s es y t m

KANBAN
Supplier Move

 Dailyconsumptio ×  X  ×  1+ Z  + Safetycoefficien n    Number kanban of = t        Container capacity     Y     

Daily consumption: (peak) rate at which parts are used Container capacity: amount of product within a store container Safety coefficient: amount of product held to safeguard against delivery fluctuation (in days’ supply) Delivery cycle: Agreed upon delivery cycle stated as three numbers X-Y-Z in X days (time for 1 conveyance interval), there are Y deliveries (number of shipments per cycle), with parts returned Z shipments after Kanban are sent to supplier

X 
©2003 Alcoa Inc.

means the smallestintegernot less than" X"

50

ABS
Part

Alc aBu in s S se o s es y t m

KANBAN
Supplier Move
No. of Kanban Container Consumption Delivery Cycle Safety Capacity Rate Coefficient 10 5 100 / day 50 / day 1-2-1 1-1-2 0.5 day 1 day

Example 6 – Supplier Move Kanban
Supplier

A-001 B-002

1 2

15 40

Part A-001 / Supplier 1  100/day   1+ 1   + 0.5 day = 15 No. kanban = × 1 ×       2    10     Part B-002 / Supplier 2  50/day   1+ 2     + 1 day = 40 No. kanban = × 1 ×     1    5    
No. kanban transit+ at supplier in = x latency  1 day/cycle 2 deliveries   1 delivery/c ycle   5 pcs/contai ner × 50 pcs/day

No. kanban customer store+ safety at + =

 1 day/cycle  + 1 daysafety  ycle  1 delivery/c  5pcs/conta iner
×

50pcs/day

= 10 containers × 2 days /day = 20 containers (kanban)

= 10 containers /day x2 days = 20 containers (kanban)

Supplier 2 1-1-2

Customer

©2003 Alcoa Inc.

51

ABS

Alc aBu in s S se o s es y t m

KANBAN
Exampl e
Monthly Forecast
Monthly demand forecast

Kanban Maintenance
Product Database
Bill of materials for each finished product

PFEP
Plan For Every Part

Planning

Material Requirements
Daily / weekly requirements of materials Number of containers / pallets Production schedule(s)

Kanban Master Plan
Number of kanban required Comparison of current against previous period Reorder points Lot sizes

Capacity Plan

Kanban Audit

Cycle time at each process Processing time per lot per process Setup time per process

Kanban are numbered Numbers are collected in the path of work Missing Kanban are identified

©2003 Alcoa Inc.

52

What is the role of the Safety Coefficient? …of Safety Stock? How often should Kanban be adjusted? By whom? What are the strategies for pull? Is one superior? Why? What are the basic replenishment strategies? What are their relative advantages and disadvantages? What is the ideal? How does Kanban align with the RIU? 1.ABS Alc aBu in s S se o s es y t m KANBAN 20 Questions (more or less…) 1. 2. 1. 1. 3. 4. 1. 2. 53 . What does “Kanban” mean? What is the origin of Kanban in TPS? What is its role in JIT? What are the Kanban types? Are they interchangeable? Why? What are the types of Kanban systems? Which has the shortest lead time? Which requires the least inventory? What are the prerequisites for using Kanban? What are the Rules of Kanban? What is the basic Kanban calculation? How is Lot Size determined? 1. 1. 3. ©2003 Alcoa Inc. 1. 4.

.Alc aBu in s S se o s es y t m ABS Class Exercise KANBAN CALCULATIONS Then Me! 54 Me First! ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Kanban Maintenance Monthly Demand Forecast Daily Orders Determine the Sequence for Master Production Schedules Production Variety Predetermined ProductionDispatch Actual Production Quantities and Daily Average Quantity of Each Product Daily Production To Upstream Process by Pull Monthly Capacity Planning Daily Production Dispatching Detailed schedules must be prepared in advance for each production center using monthly planning data Daily materials must be prepare din advance to be avail Monthly Adaptation Daily Adaptation ©2003 Alcoa Inc. 55 .

5) Daily demand = 1 / day (5 / week) No.ABS Alc aBu in s S se o s es y t m KANBAN How Many Kanban? Why? Scalp 24 h 24 h Heat Roll 4h Cool 36 h Schedule 8h Production lead time = collection time+ stagnation time + setup time + run time + conveyance time = 4 days (1/day)x(4 days)x(1 + 0. container Safety coefficient = 50% 56 . Kanban = =6 Container capacity = 1 / skid 1/ ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Examples of Kanban Time of Delivery Storage Area 09:30 Item No. 2 ABC Mobile Equipment Store Shelf No. . AJ 75 7 .1 Identification Used in Engine Type Box Type Box Capacity Farm Fresh Tractors Assembly No.Center Parts-ordering Kanban 54 SPECIAL A-4 57 Supplier Move Kanban ©2003 Alcoa Inc. A 2531 – 0471 Radiator Cap Item Name 1 .

5 Process Move Kanban E SP L A CI AJ Assembly Requesting Process 58 . Box Capacity Box Type Issue No.ABS Alc aBu in s S se o s es y t m KANBAN Examples of Kanban 2531 – 0471 Item Name Radiator Cap Item Number Supplying Process Stores A 1-1 7-C 75 ©2003 Alcoa Inc.

of Containers 4”x4” Order Point 2 Production Signal Kanban ©2003 Alcoa Inc. Store No. per Container Material No.ABS Alc aBu in s S se o s es y t m KANBAN Examples of Kanban Lot Size 250 Line 22-9 5 Radiator Plug AJ B-9 50 Item No. 59 .

Production Kanban (1 x 1) 30 3 ©2003 Alcoa Inc. Used in Type Box Capacity AJ Issue No.ABS Alc aBu in s S se o s es y t m KANBAN Examples of Kanban Process Line A33-5 Item Back No. 60 . 23 Item No. 322-47 Quantity 30 Stamping Press-4 Item Name Plug Cap Store Shelf No.

ABS Alc aBu in s S se o s es y t m KANBAN Production Instruction (what + when) 1 1 1 1 1 1 1 1 1 Product Leveling Box (Heijunka) A B C D 1 Time A B C D Stamp Assemble Stage & Ship Raw Material Store In-Process Store In-Process Store ©2003 Alcoa Inc. 61 .

62 .ABS Alc aBu in s S se o s es y t m KANBAN Product A B C 1 1 1 1 1 1 1 1 1 1 Time Assemble 3 Stage & Ship ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Schedule Instruction (when) ● ● ● ● Time ● ● Assembly Line Production Instruction (what) Pacing Box 1 2 3 ● Assemble 1 Stamp FIFO Queue Assemble 2 Stage & Ship FIFO Queue Assemble 3 ©2003 Alcoa Inc. 63 .

64 .ABS Alc aBu in s S se o s es y t m KANBAN ©2003 Alcoa Inc.

ABS Alc aBu in s S se o s es y t m KANBAN Conveyance and Production Conveyance Pitch = Goods per container x Takt Conveyance route Production Takt Work sequence Goods being conveyed Standard in-process stock Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful Production System ©2003 Alcoa Inc. 65 .

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