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Kanban : Benefits, Shapes of Inventory, Type, Operation & Sizing

Kanban
• Kanban is a simple‐to‐operate visual control signal/tool to facilitate a “pull system,” that offers the opportunity to delegate routine material transactions on the shop floor.
Kanban is used to link processes/operations that Are separated by distance
Benefits of Kanban
• Applies to parts, assemblies and information production so they can be paced to customer demand
• Minimizes raw material inventories, work inprocess and finished goods
• Maintains a balance between work centers through consumer/supplier communication
• Spotlights abnormal situations when processes are halted.
Shapes of Inventory
• Stores:
– Connect process
– Establish a location (“Store”) to pull from
– Hold a variety of different parts (e.g mix changes)
• Buffer:
– Used to absorb sudden changes in customer demands
• Safety stock:
– Used as a precaution for equipment breakdown
• Standard in process stock:
– Store used to accommodate “Standard work” e.g., repeatable work or tool change work
Types of Kanban
• Kanban Card: Cards are exchanged between the consumer and producer of products or services. Information on the cards may include an indication of how many parts are needed, part number, consumer and producer location, and containers. Kanban cards are often colored, and the colors give an indication of the area and priority of the Kanban and its contents.
• Toyota Two‐card System: This is a two‐card (two‐bin) Kanban system. Here the move cards allow the movement of a standard container of parts from one work center to another. The production cards allow the production of a standard container of parts to replace the parts removed by the previous move card.
• Verbal Control: If possible, the consumer signals that more material is needed by telling the producer. This communication may happen by phone, email, fax or simply by shouting.
• Kanban Containers: When the empty container returns to the supplying operation, this is a signal for the need to produce more items. The container must be properly marked (number or color) to show which material it needs or the priority.
Kanban Operation
• The consuming process should withdraw the needed products/units from the supplying process at the right point in time using a Kanban signal.
• Kanban cards, if used, always accompany containers from the supplier until removed from the Kanban staging area, thus ensuring visual control.
• Each container must have a Kanban card, indicating the part number and description, consumer and producer location, and quantity
• The parts should always be pulled by the succeeding process (consumer).
• No parts are produced without a Kanban signal.
• No defective parts may be sent to the consuming process.
• The producer may only produce the quantities withdrawn by the consuming process.
Kanban Sizing
• Step 1: (Designed daily production requirement * Replenishment rate ) Available time = Kanban quantities
• Step 2: Kanban quantities / Lot size = # of cards
Note: Lot size > 1 may be required due to weight, size
Kanban Operation
A Pull system for multiple processes is comprised of a series of closed loop information loops, all integrated together in a chain of “customer‐suppliers”
CONWIP – An Alternative to Kanban
• Release new work as work is completed
FIFO – First in First Out 
Option to Control WIP in high variety manufacturing
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  • Home
  • Six Sigma Wiki
    • History of Six Sigma : The Guru’s
    • Lean vs Six Sigma
    • What is Six Sigma ? Objectives Fundamental Beliefs Benefits
    • Six Sigma Project Overview >
      • Six Sigma Process Performance Metrics
      • Project Execution : Selection , Flowchart , Management , Evaluation
      • Voice of the Customer (VOC) >
        • CTX (Critical to X) Quality
        • Kano Model
        • Different type of Quality Cost
      • Risk Analysis SWOT (Strength, Weakness, Opportunity, Threat)
    • Six Sigma Team Management : Types, Roles, Size, Stages & Life cycle >
      • Six Sigma Organizational Infrastructure Team Leadership >
        • Six Sigma Roles and owners process
        • 3 levels of business management process
        • Six Sigma Training: Black vs Green Belt
        • Overview of DMAIC : Key points
      • Six Sigma Team Tool: Facilitation & Groupthink
      • Nominal Group Techniques Multivoting Force Field Analysis Brainstorming
      • Diagrams : Affinity Tree PDPC Matrix Interrelationship Prioritization matrices Activity network diagram
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Six Sigma: Define Phase : Outcomes & 6 Element >
      • Six Sigma Define: 1Define Problem & 2 Identify Customer
      • Six Sigma : Define : 3 : Identify CTQs ( VOC Kano Model )
      • Six Sigma : Define : 4 : Map Process 5 Refine Project Scope
      • Six Sigma : Define : 6 Update Project Charter ( PERT CPM Gantt Bar WBS)
    • Six Sigma: Measure Phase : Outcomes & 5 Element >
      • Six Sigma: Measure : 1 Identify Measurement and Variation
      • Six Sigma: Measure : 2 Determine Data Type
      • Six Sigma: Measure : 3 Develop Data Collection Plan
      • Six Sigma: Measure : 4 Measurement System Analysis & Data Collection
      • Six Sigma: Measure : 5 Perform Capability Analysis
    • Six Sigma: Analyze Phase : Outcomes & 4 Element >
      • Six Sigma Analyze : 1 Measuring and modeling the relationship between Variables
      • Six Sigma Analyze : 2 Hypothesis Testing
      • Six Sigma Analyze : 3 Failure mode and effects analysis (FMEA)
      • Six Sigma Analyze : 4 Analysis of Variance (ANOVA)
    • Six Sigma: Improve Phase : Overview & 6 Element >
      • Six Sigma: Improve Phase : 1 About Design of experiments (DOE)
      • Six Sigma: Improve Phase : 2 DOE Process variables & Analysis
      • Six Sigma: Improve Phase : 3 Design Selection Guideline
      • Six Sigma: Improve Phase : 4 : Lean 5S
      • Six Sigma: Improve Phase : 5 Poke Yoke
      • Six Sigma: Improve Phase : 6 Standard Work & Kaizen
    • Six Sigma: Control Phase : Overview & 3 Element >
      • Six Sigma: Control Phase : 1. Statistical Process Control
      • Six Sigma: Control Phase : 2. Control Chart
      • Six Sigma: Control Phase : 3. Other: Pre-control Technique, TPM & Visual Management
  • Lean Wiki
    • History of Lean & Guru’s >
      • Birth of Lean
    • About Lean, Value, Waste, Muda, Mura & Muri >
      • Overview Lean Tools, Techniques & House of Lean
      • Lean Excellence, Tools & Framework
      • Lean Framework 6 points, metric & Stability
    • Lean Team Setup : Structure, Meeting & Project >
      • Self Directed Work Teams (SDWT) , ACHIEVE TEAM SYNERGY , SQDCM, Teamwork Principles, Team Structure & Team Leader
      • The 4 Stages of Team Growth & Human factor: Forming, Storming, Norming, and Performing
    • Lean Process Mapping: Generic & Type >
      • SIPOC: Suppliers, Input, Process, Output & Customers
      • Lean Process Management , Excellence , Identification , Design & Mapping
      • Lean Process Mapping Symbols
      • How to Create a Simple Process Flow Diagram
      • Lean Value Stream Mapping, current, future & 3 type of work
      • Value Stream Mapping (VSM): About & 17 steps
      • Other Types of Process Maps & Pitfalls: Resources: iDef0, Document Map, Work Diagrams, Rendered Process Map
    • Lean Process Optimization , Andon System , Error Proofing ( Poka Yoke ) & Defect vs Errors >
      • Lean 5S System
      • Kanban : Benefits, Shapes of Inventory, Type, Operation & Sizing
      • Cellular Manufacturing: About, Benefits & 4 Dimensions of Cells
      • Heijunka, A 3 Thinking, Hoshin planning, Jidoka, Poka‐yoke , Kanban, Takt , Kaizen
      • Lean Kaizen (continuous improvement), Systems Thinking & Process Variability
      • Lean Visual Management & Visual Control
      • Lean Waste Detail: Eight Types of Waste
      • Line Balancing, Cycle Time, Takt Time, Assembly / Workload Balance & Man – Machine – Setup – Time
      • Single Piece Flow, Continuous Flow & Standardized Work
      • SMED Single Minute Exchange of Dies
      • Total Productive Maintenance (TPM): Preventive Maintenance Corrective Maintenance Inbuilt Maintenance
  • Blog
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