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12003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business Systemかんばん
KANBANCALCULATIONS
22003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Learning Objectives:
Understand the philosophy of Kanban and its role in JIT productionUnderstand the types of Kanban and the proper use of eachBe able to properly calculate the number of Kanban needed in a particular application
32003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Agenda
Philosophy and Role of KanbanKanban System Review Kanban Calculations20 QuestionsClassroom Exercise
42003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Tutorial Takt Time
'3
54150
60' Exercise Class
per slide
slides'
utputrequired otimeavailable Takt Time
52003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
The Toyota Production System
JUST-IN-TIME
• Continuous Flow• Pull System• Takt Time
AUTONOMATION
(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)
StandardizedWork
Continuous Improvement(Kaizen)
STABILITY(Equipment Reliability, Stable Processes, Quality,
Suppliers)People
SafetyTeamwork
Growth
KANBAN
62003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
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
DCBA
SupplierBCD
A A
72003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
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
82003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Time and QuantityStrategies for PullDiscussion Point Fixed Time Fixed Quantity
InventorySupplier must adapt to
variable quantitiesSupplier must adapt to
variable times
Withdrawal time Fixed Varies
Quantity withdrawn Varies Fixed
UsageDisconnected processes
Long conveyance distances
Connected processesShort conveyance
distances
Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful Production System
92003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
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
102003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
What is Kanban?Kanban is a Signboard or SignalIt Carries Information:
Pick-upTransferProduction
A Tool for:Realizing Just-in-TimeVisual Control of ProductionPromoting Improvement
“The operating method of the Toyota production system is kanban.”
Taiichi OhnoJune 1987
112003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Kanban Types
Adapted From: TOYOTA PRODUCTION SYSTEM An Integrated Approach to Just-In-Time
Kanban
Production Kanban
MoveKanban
1 x 1 ProductionKanban
SignalKanban
Process MoveKanban
Supplier MoveKanban
122003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
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
LevelingLot Making
Supplier
Move
(Distant)
Production
Signal
Process
Move
(Close)
Production
1 x 1
(Lot Making)
Process
Move
(Close)
132003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Kanban System TypesType 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
142003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Supplier Move Kanban
Supplier Move Kanban…removed when item is withdrawn from store
StoresStores A 1-1 A 1-1
ShelfShelf 7-C 7-C
152003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Pick-up Pick-up AJAJ
Process Move Kanban
Process Move Kanban…removed when first item is withdrawn from
container
AssemblyAssembly AJ AJ
162003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Signal Kanban AssemblyAssembly AJ AJ
StoreStore B-9 B-9
Signal Kanban…removed when withdrawals are made
down to the container tagged
FIFOSignals
Count from the bottom
172003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Production Kanban
Production Kanban (1 x 1)…removed when item is withdrawn from store
StampingStamping AJ AJ
StoreStore A33 - 5 A33 - 5
FIFOProduction
182003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Kanban RulesFunction 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
192003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Kanban and Rules-in-UseRule MRP Kanban
1 Activity is variable (situational)
Activity is pre-specified and tested
2 Connections are subjective and indirect:
Worker Computer ManagerWorker Computer Manager
Connections are binary, direct and tested:
Worker WorkerWorker 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
202003 Alcoa Inc.
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KANBAN
Determining Number of KanbanTYPE 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
SignalModerate to long
c/o time Lot size Order points
MoveProcess 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 demandScheduled daily work timeMachine time per pieceContainer capacityPull quantity / sequence variation
Need to determine:
Consumption rateProduction lead timeNumber 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
222003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Kanban-to-Kanban ExampleProduct
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
AssembleStage &
Ship
3
A 1 1 1 1 1
B 1 2 1 2 1
C 3 2 3 2 3
Pitch(30’)
Pro
du
ct
…
Process move kanban used to withdraw single item from storeProduction kanban removed and placed in collection box
7 hr / day Production
(420’)
1x1 Production
Containers
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KANBAN
capacityContainer
rate nConsumptio time lead Production kanban ofNumber
1x1 Production
Additional kanban needed to compensate for:Pull sequence fluctuationPull quantity fluctuationProduction lead time fluctuation
Production lead time: total time to replenish an itemConsumption rate: (peak) rate at which parts are pulled from the storeContainer capacity: amount of product within a store container
ProductMachine
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
CC
A
BC
A
C B
A A
Fluctuation in sequence and quantity
36 7 7
242003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
capacityContainer
rate nConsumptio time lead Production kanban ofNumber
1x1 Production
Additional kanban needed to compensate for:Pull sequence fluctuationPull quantity fluctuationProduction lead time fluctuation
Alternate Representations…
capacityContainer
rate nConsumptio time lead Production kanban ofNumber
252003 Alcoa Inc.
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KANBAN
Safety Coefficient ≠ Safety Stock
Machine X-01 Product 'A'
0
10
20
30
40
50
60
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Observation Number
Prod
uctio
n Le
ad T
ime
Safety Stock:
Held separately from store‘Special Cause’ variationEquipment downtimeMajor quality incidentAssigned to a specific cause
Safety Coefficient:
Built–in to store‘Common Cause’ variation
Minor delaysMinor fluctuation in pullTend to be random in
nature
Stretch Wrapper failure
262003 Alcoa Inc.
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ABSAlcoa Business System
KANBANExample 1 – Level withdrawal (c/o time ≈ 0) 1x1 Production
Product
CycleTime
Container
Capacity
Monthly Deman
d
Weekly Demand
Daily Deman
d
C / OTime
Time per
Container
TotalTime
ConsumptionRate (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’)
Pro
du
ct
CA
Production lead time (max) =
① kanban collection time +
② kanban stagnation time +
③ machine (+ c/o) time +
④ conveyance time
①
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
Prod
uct
B as a
n
exam
pl
e
……
Containers
272003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN1x1 ProductionExample 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
CB
AB
C
CB
A
C
C
CB
AB
C
CB
A
C
C
CB
AB
C
CB
A
C
C
CB
A
282003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Product
CycleTime
Container
Capacity
Monthly Deman
d
Weekly Demand
Daily Deman
d
C / OTime
Time per
Container
TotalTime
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 ProductionExample 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’)
Pro
du
ct
??
①
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
…
…
What
is
the
product
i
on le
ad
time?
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
292003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN1x1 ProductionExample 2 – Lead Time, Sequence and Quantity
Fluctuation
3 3 3 3 3 3 3
3 3 3 3 3 3 3
30’ pitch
AA
B
CC
C
C
CC
AB
BC
AA
BB
CC A
AC
C
CC
C
C
A
CC
CC
AB
BB
AA
CC
CC
C
CC
C
2xB
1xC
…
25.5’ 44.3’
Net effect of fluctuation is to extend production lead time – more inventory is required
302003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBANExample 2 – Lead Time, Sequence and Quantity Fluctuation
1x1 Production
ProductContaine
r Capacity
Present Month ProductionQuantity
Daily Production Quantity
Lot Size
Kanban Master - Number
ProductionPresent
ProductionPrevious
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 attachedEach Production Kanban is returned as the individual item (container) is withdrawnContainers are produced 1x1 in the order in which Kanban are received
CA B
Additional inventory needed due to fluctuation
312003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Signal KanbanNeed to know:
Daily demandScheduled daily work timeC/O timesMachine time per pieceContainer capacity
Key Points:Choose appropriate replenishment strategy:fixed time, fixed quantity or combinationAdditional 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
322003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Signal Kanban ExampleProduct
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 storeSignal kanban removed when exposed and placed in collection box
Signal
7 hr / day Production(420’)
332003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
capacityContainer
rate nConsumptio time lead Production Point Order
Additional lead time needed to compensate for:Pull sequence fluctuationProduction sequence variationProduction lead time fluctuation
Production lead time: total time to replenish the first container of the lotConsumption rate: (peak) rate at which parts are pulled from the storeContainer capacity: amount of product within a store container
Signal
Lot size is determined based upon replenishment strategy:
dayper C/O ofNumber
day each required ionsSpecificat Time Fixed
dayper C/O ofNumber
day each required Pieces Quantity Fixed
342003 Alcoa Inc.
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ABSAlcoa Business System
KANBANExample 3 – Fixed Quantity Replenishment
ProductCycleTime
Container Capacity
Monthly Demand
Weekly Demand
Daily Demand
C / OTime
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 1x1Scheduled 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 = 360Machine 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 possibleAvailable ÷ Longest c/o 30’ ÷ 5’ = 6
Lot Size
Pieces Needed ÷ c/o’s 360 ÷ 6 = 60
ProductLot Size / Daily
DemandLots Needed
per Day
A 60 ÷ 60 = 1 1 / day
B60 ÷ 120 =
0.5 2 / day
C60 ÷ 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)
352003 Alcoa Inc.
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KANBAN
Stamp
3
B
Product
CycleTime
Container
Capacity
Monthly Deman
d
Weekly Demand
Daily Deman
d
C / OTime
Lot Size
MachineTime
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
①
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
Prod
uct
B as a
n
exam
pl
e
time to replenish the first container of the lot
362003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBANExample 3 – Fixed Quantity Replenishment Signal
ProductContaine
r Capacity
Present Month ProductionQuantity
Daily Production Quantity
Lot Size
Kanban Master - Number
TriangularPresent
TriangularPrevious
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
15
B
41
C
41
Containers are brought to the store as they are producedThe Signal Kanban is brought along with the last container of the lot and placed on the specified containerIf fewer than the specified number of containers are present, the Signal Kanban is returned immediately
372003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBANExample 4 – Fixed Time Replenishment
ProductCycleTime
Container Capacity
Monthly Demand
Weekly Demand
Daily Demand
C / OTime
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 1x1Scheduled 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
3Machine 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 possibleAvailable ÷ Longest c/o 30’ ÷ 5’ = 6
Lot Size
Specs Needed ÷ c/o’s 3 ÷ 6 = 0.5 day
ProductLot Size / Daily
DemandLots Needed
per Day
A 0.5 x 60 = 30 2 / day
B 0.5 x 120 = 60 2 / day
C0.5 x 180 =
902 / 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)
382003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Stamp
3
A
Product
CycleTime
Container
Capacity
Monthly Deman
d
Weekly Demand
Daily Deman
d
C / OTime
Lot Size
MachineTime
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
①
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
Prod
uct
A as a
n
exam
pl
e
time to replenish the first container of the lot
392003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBANExample 4 – Fixed Time Replenishment Signal
ProductContaine
r Capacity
Present Month ProductionQuantity
Daily Production Quantity
Lot Size
Kanban Master - Number
TriangularPresent
TriangularPrevious
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
18
B
35
Containers are brought to the store as they are producedThe Signal Kanban is brought along with the last container of the lot and placed on the specified containerIf fewer than the specified number of containers are present, the Signal Kanban is returned immediately
C
29
402003 Alcoa Inc.
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KANBAN
Production (Lot Making)Need to know:
Daily demandScheduled daily work timeMachine time per pieceContainer capacityPull quantity / sequence variation
Need to determine:
Consumption rateProduction lead timeNumber of kanbanLot size / Trigger point
Key Points:
Stagnation due to lot making Variation comes into play from lead time and/or pull fluctuation
412003 Alcoa Inc.
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ABSAlcoa Business System
KANBANProduction – 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 triggerProduction lead time is increased (compared to signal kanban) due to additional kanban stagnation on the lot making board
rate nConsumptio sizelot Practical Time Stagnation Kanban Additional
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KANBAN
Show me!
432003 Alcoa Inc.
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KANBAN
Show me!
Casting Pit
Example
442003 Alcoa Inc.
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KANBAN
Process Move KanbanNeed to know:
Time to make standard delivery cycleConsumption rateContainer capacity
Need to determine:Number of kanban
Key Points:
Proximity of consuming process to up-stream store
452003 Alcoa Inc.
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ABSAlcoa Business System
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 lineKanban are collected and new containers delivered to line from up-stream store
ProductContainer Capacity
Consumption Rate
Delivery Cycle
A 5 30 / 60’ 15’
B 5 60 / 60’ 15’
C 5 60 / 60’ 15’
462003 Alcoa Inc.
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ABSAlcoa Business System
KANBANProcess Move
2capacityContainer
rate nConsumptio cycleDelivery kanban ofNumber
Delivery cycle: time to complete a standard delivery cycleConsumption rate: (peak) rate at which parts are usedContainer 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
472003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
ProductContain
er 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 25
)60' / (30 5'1 kanban No.
6 25
)60' / (60 5'1 kanban No.
6 25
)60' / (60 5'1 kanban No.
482003 Alcoa Inc.
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ABSAlcoa Business System
KANBAN
Supplier Move KanbanNeed to know:
Daily consumptionContainer capacitySafety inventory required to offset supplier or conveyance fluctuationAgreed upon delivery cycle
Need to determine:Number of kanban
Key Points:
Used when distance between supplier and customer is significant
492003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Supplier Move Kanban Example
Supplier 21-1-2
Supplier 11-2-1
2
Assemble
Factory
Significant conveyance timeParts delivered to central receiving / store
Process move (withdrawal) kanban used to convey parts to line
PartSupplie
r
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
502003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBANSupplier Move
tcoefficienSafety 1
capacity Container nconsumptioDaily kanban ofNumber
YZX
Daily consumption: (peak) rate at which parts are usedContainer capacity: amount of product within a store containerSafety 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 lessnot integer smallest the means X
512003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBANSupplier Move
PartSupplie
r
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
15day 5.02111
10100/day kanban No.
40day 1 1
2115
50/day kanban No.
Supplier 21-1-2
Customer
(kanban) containers 20
days 2/day x containers 10
ycledelivery/c 1
latency deliveries 2 x day/cycle 1
nerpcs/contai 5
pcs/day 50
supplierat transit in kanban No.
(kanban) containers 20
days 2 /day containers 10
ycledelivery/c 1 day/cycle 1
iner5pcs/conta
50pcs/day
safety store customer at kanban No.
safetyday 1
Example 6 – Supplier Move Kanban
522003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
KANBAN
Kanban Maintenance
Planning
Product Database
Monthly Forecast
Bill of materials for each finished product
Monthly demand forecast
MaterialRequirements
Daily / weekly requirements of materialsNumber of containers / palletsProduction schedule(s)
Kanban MasterPlan
Number of kanban requiredComparison of current against previous periodReorder pointsLot sizes
Capacity Plan
Cycle time at each processProcessing time per lot per processSetup time per process
Example
PFEPPlan For
Every Part
Kanban Audit
Kanban are numberedNumbers are collected in the path of workMissing Kanban are identified
532003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System
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?
5. What are the types of Kanban systems?
Which has the shortest lead time?Which requires the least inventory?
6. What are the prerequisites for using Kanban?
7. What are the Rules of Kanban?8. What is the basic Kanban calculation?9. How is Lot Size determined?
1. What is the role of the Safety Coefficient?
…of Safety Stock?2. How often should Kanban be adjusted?
By whom?3. What are the strategies for pull?
Is one superior?Why?
4. What are the basic replenishment strategies?
What are their relative advantages and disadvantages?What is the ideal?
5. How does Kanban align with the RIU?
542003 Alcoa Inc.
ABSAlcoa Business System
ABSAlcoa Business System Class Exercise
KANBANCALCULATIONS
Me First!
Then Me!