KANBAN

What is Kanban?

‘Kanban’ literally means – Visual board / Signboard / Billboard

Uses cards to signal the status of various activities/goods/WIP/processes

Highly effective tool to achieve Just-in-Time delivery

Consumption Production

THE INNOVATOR – TAIICHI OHNO

Taiichi Ohno (TOYOTA): Developed Kanban.

1940: Intrigued by the shelf replenishment system used in Supermarkets

Implemented the system in Toyota’s manufacturing plant for the first time in 1953

Signals to track replenishment cycles

More than just a JIT tool..

Scheduling method answering – what, when, how

Inventories minimized

Production after consumption

Close monitoring of Work-in-process

Encourages industrial Re-engineering

Cards, pallets, bins or boxes as signaling tools

DEMAND ‘PULL’ vs DEMAND ‘PUSH’

Differentiator Push Model Pull Model

Prime Busi. Driver Max Utilization at least cost High level of Customer service

Lead Time Long Short

Pricing Strategy Key means for balancing supply/Demand

Normally don’t impact

Mfg. Strategy Long Prod Run Short and flexible Prod Run

Inventory Typically High Typically Low

3rd Party Relationship Supplier relation tend to be Critical

Customer relation tend to be critical

Critical Tech Application Sales forecasting, Inv Mgmt, N/w Optimization

Order fulfillment, advance scheduling

SIMPLE vs INTEGRATED KANBAN PROCESS

Cards perform the task of signaling various processes.

Cycle with only one process - a simple Kanban process

Cycle with multiple processes - an integrated Kanban

process (one process providing the signal to the next

process)

Two different types of cards – Transport & Production

Transport Kanban

Contains info about the part origin & destination

Use of only one single card referred as “Simple process”

Most useful in daily schedule

Production Kanban

Multiple cards used for multiple processes

To what extent & when work is to accomplish at that station

Used along with Transport Kanban referred as “Integrated

process”

Often used between Corporation & it’s Supplier

RULES FOR EFFECTIVE APPLICATION

Never pass on defective product

Take only what is needed

Produce the exact quantity required

Level the production

Fine-tune production

Stabilize and rationalize the process

The Toyota way..

Objective: Control WIP

inventory

Produce only after

consumption

Cards as currency

controlling size of WIP

MERITS OF SYSTEM

A simple and understandable process

Provides quick and precise information

Low costs associated with the transfer of

information

Provides quick response to changes

Limit of over-capacity in processes

MERITS CONTD…

Avoids overproduction

Is minimizing waste

Control can be maintained

Delegates responsibility to line workers

Thank You..!

By-Pratik Kelkar