KB001 Kanban A New Approach Kanban A New Approach (Tool for Information Flow) 1 KB001 Kanban A New Approach Agenda Time 8:00 AM 8:05 AM 8:20 AM 9:05 AM 9:20 AM 10:05 AM 10:20 AM 11:15 AM 12:15 PM 1:00 PM 2:00 PM 2:45 PM 3:00 PM 4:00 PM 4:45 PM 5:00 PM 5:30 PM 5:45 PM Topic/Activity Opening Introduction Information Flow Break Kanban Simulation1 Break The Customer Leveling Exercise Lunch Kanban Simulation 2 Internal Pull System Break Lot Box Production Lot Size Calculation Break Material Movement Supplier Card Calculation Closing 2 KB001 Kanban A New Approach Introductions Name Years of Service Current Position 3 KB001 Kanban A New Approach Kanban System • Based on Toyota Production System • Driven by External Customers • Addresses Constraints & Bottlenecks 1. Understanding our Capabilities 2. Lot Size Production 4 KB001 Kanban A New Approach Overview • Supporting Company Strategy • Understanding Customer Needs • Internal Kanban System • Signaling the Supplier 5 KB001 Kanban A New Approach The Objective Lower Inventory / Reduced Lead-Time Pull of Product Based on Usage Create Information System that Supports Lean Principles 6 KB001 Kanban A New Approach Company Strategy • Grow our Business – Internal and external – Strengthen our resources • Improve our Competitive Position – Continually strive for perfection – Reduce cost – Eliminate waste in operations 7 KB001 Kanban A New Approach Supporting Company Strategy • Elimination of Waste • Overproduction • Material movement • Inventory • Transition to Just-in-Time • Kanban system • Kanban signals 8 KB001 Kanban A New Approach Key Assumptions • Production schedules will always change • Production will never go according to schedule • It is human nature to overproduce 9 KB001 Kanban A New Approach Offsetting the Assumptions • Kanban System • Withdraw only what you need • Replenish what is taken • Overall Benefits • Flexibility in production • Prevents overproduction • Reduces inventory 10 KB001 Kanban A New Approach Information Flow 11 KB001 Kanban A New Approach The Kanban Signal The Kanban signal tells us: When to make it! When to move it! 12 KB001 Kanban A New Approach Kanban System “Production” Card “Withdrawal” Card Customer Process Supplying Process product product Finished Goods Store 13 KB001 Kanban A New Approach Withdrawal Kanban Signal • Tells us: • • • • When to move What to move Where to move How much to move 14 KB001 Kanban A New Approach Three Types of Withdrawal Kanban Signals • Customer Kanban Signal • Transfers material from plant to customer • Move Kanban Signal • Transfers material between work units • Supplier Kanban Signal • Pulls material from supplier to plant 15 KB001 Kanban A New Approach Customer Kanban Signal Information • Supplier • Container Type • Quantity • Part Number • Supplier Number • Description • Card Number • Storage Location • Kanban Signal Number • Storage Address 16 KB001 Kanban A New Approach Customer Kanban Signal Supplier Quantity Kanban Signal No. Storage Location Container Type Supplier No. Part No. Card No. Description Storage Address 17 KB001 Kanban A New Approach Flow of Customer Kanban Signal Customer Kanban Signal Plant Finished Goods Store External Customer needed product 18 KB001 Kanban A New Approach Move Kanban Signal Information • Part Number • Supplier Name • Storage Address (Point of Storage) • Card Number • Kanban Signal Number • Work Unit Name (Customer) • Quantity per Container • Line Address (Point of Use) 19 KB001 Kanban A New Approach Move Kanban Signal STORE ADDRESS SUPPLIER NAME PART No. WORK UNIT ADDRESS Kanban Signal No. WORK UNIT NAME QUANTITY CARD # 20 KB001 Kanban A New Approach Flow of Move Kanban Signal Move Kanban Signal Internal Raw Material Store Production Work Unit needed product 21 KB001 Kanban A New Approach Supplier Kanban Signal Information • Supplier Name • Part Number • Part Name • Customer • Storage Address • Work Unit Address • Quantity per Container • Card Number • Kanban Signal Number 22 KB001 Kanban A New Approach Supplier Kanban Signal Supplier Name Part Number Kanban Signal Number Quantity Card No. Part Name Store Address Customer Work Unit Address 23 KB001 Kanban A New Approach Flow of Supplier Kanban Signal Supplier Kanban Signal External Supplier Finished Goods Store Internal needed product Raw Material Store 24 KB001 Kanban A New Approach Flow of Withdrawal Kanban Signals Supplier Signal Move Signal Internal External Supplier needed product Raw Materials Store Customer Signal Internal Production Work needed Unit product Plant needed product Finished Goods Store External Customer needed product 25 KB001 Kanban A New Approach Production Kanban Signal • Tells Us: • When to make • What to make • How much to make 26 KB001 Kanban A New Approach Two Types of Production Kanban Signals • Production Kanban Signal • Instructs us to make One Container • Signal (Triangle) • Instructs us to produce One Lot • Used when a work unit does not have the changeover capability to produce one container for one production card 27 KB001 Kanban A New Approach Production Card Information • Store Address • Kanban Signal Number • Work Unit Name • Part Number • Quantity • Card Number 28 KB001 Kanban A New Approach Production Card STORE ADDRESS Kanban Signal No. WORK UNIT NAME PART No. QUANTITY CARD # 29 KB001 Kanban A New Approach Signal (Triangle) Information • Work Unit Name • Part Number • Container Type • Quantity • Process Time • Lot Size • Order Point • Kanban Signal Number 30 KB001 Kanban A New Approach Signal (Triangle) WORK UNIT PART No. NAME CONTAINER QUANTITY TYPE LOT SIZE # of containers to produce PROCESSING TIME FOR 1 LOT ORDER POINT Where the signal Kanban Signal # is placed in inventory 31 KB001 Kanban A New Approach Flow of Production Kanban Signals Production Signal Internal Sub Assembly Work Unit needed product Move Signal Internal Sub Assembly Work Unit Store needed product Triangle Signal Internal Final Assembly Work Unit Finished Goods Store needed product 32 KB001 Kanban A New Approach Kanban Signal Flow Sub Stores Sub Production Kanban Signal Assembly Work Unit Finished Goods Store Move Triangle Kanban Signal A B C D Finished Assembly Work Unit 33 KB001 Kanban A New Approach How Do You Handle Non-Standard Situations Temporary Kanban Signals • Need scheduled down time to PM equipment • Sample parts • Service parts 34 KB001 Kanban A New Approach Temporary Kanban Signal Card STORE ADDRESS Kanban Signal No. WORK UNIT NAME PART No. QUANTITY CARD # 35 KB001 Kanban A New Approach Summary of Kanban Types • Withdrawal • Production - Customer Kanban Signal - Production Kanban Signal - Move Kanban Signal - Signal (Triangle) - Supplier Kanban Signal - Temporary Kanban Signal 36 KB001 Kanban A New Approach Additional Benefits of Kanban • Support Visual Control • Are we behind? • What do I produce first? • What is my inventory situation? • Continuous Improvement • Large inventories hide problems • Facilitate continuous improvement by removing Kanban Signals 37 KB001 Kanban A New Approach Kanban System Simulation Exercise 1 (Without Leveling) 38 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 • Objective • To gain an understanding of Kanban System card transfer, exchange, and loop location 39 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 • Details • • • • Activity will be run in time segments Each time segment consists of one day One truck from customer per day Simulation will run for “5” days 40 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Activity Pieces • 35 Plastic bowls • 13 Production Cards • 73 White Lego Blocks • 8 Move Cards • 35 Yellow Lego Blocks • 4 Supplier Cards • 5 Customer Cards • 5 Signal Posts • 18 Place Mats • 5 Order Cards 41 KB001 Kanban A New Approach Activity Layout - Exercise 1 J Empty Signal Containers Post 1@15 Empty Signal Containers Post 4 4 4 4 W Customer 4 4 4 4 Y 4 A 2@15 4 B Empty Signal Containers Post 3 Final Assembly C 1@15 3 3 3 3 3 3 3 1 Sub Assembly 1 Empty Signal Containers Post Empty Signal Containers Post 1 1 1 1 1 1 Raw Material Processing 1 1 Supplier 1 E 1 F G H I D 1= A - Customer B - Truck Driver-1 (Customer to Plant) C - Final Assembly Operator D - Material Handler-1 (Final Assembly to Sub-Assembly) E - Sub-Assembly Operator F - Material Handler-2 (Sub-Assembly to Raw Material Storage) G - Raw Material Processing (Parts Ordering / Parts Receiving) H - Truck Driver-2 (Plant to Supplier) I - Supplier J - Manager W 2= Y Y 3= W Y 4= W W 42 KB001 Kanban A New Approach Activity Layout - Exercise 1 Card Types Empty Containers Signal Post 4 4 W Customer Empty Containers Signal Post 4 4 4 4 4 4 4 4 Y 3 Final Assembly Production Card Customer Card Empty Containers Signal Post 3 1 Sub Assembly 3 3 1 3 3 1 3 3 1 Production Card Move Card Empty Containers Signal Post 1 1 1 1 Empty Containers Signal Post 1 1 Raw Material Storage Supplier Card 1 1 Supplier Production Card Move Card 43 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Customer • Receive order from facilitator • Move raw materials to customer processing area • Remove Customer Cards from container • Place Customer Cards in Signal post • Disassemble lego blocks and place in designated containers • Move empty containers to customer empty container storage • Repeat above steps for each order 44 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Truck Driver 1 • Pick up Cards from Signal post • Pick up empty containers from customer empty container storage • Move empty containers to finished goods empty container storage • Remove Production Cards from finished goods container and replace with Customer Cards • Place Production Cards in final assembly Signal post • Move finished goods to customer raw material storage • Repeat above steps for each daily order 45 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Final Assembly Operator • Check final assembly Signal post for production requirements • Move raw material container to final assembly processing area • • • • Remove sub-assembly and place on final assembly processing area Remove Move Card and place in empty container Move empty container back to final assembly raw materials storage Pick up empty container from finished goods empty container storage and move to final assembly processing area • Pick up white processing lego and assemble to sub-assembly and place in finished goods container • Pick up Production Card from Signal post and place on finished goods container • Move finished goods container to final assembly finished goods storage • Repeat above steps for each Kanban Signal 46 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Material Handler 1 • Pick up Move Cards and empty containers from final assembly raw material storage • Place empty containers in sub-assembly empty container storage • Remove Production Cards from sub-assembly finished goods and replace with Move Cards • Place Production Cards in the sub-assembly Signal post • Move finished goods containers to final assembly raw material storage • Repeat above steps for each Kanban Signal 47 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Sub-Assembly Operator • Check sub-assembly Signal post for production requirements • Move raw material container to sub-assembly processing area • • • • Remove raw material and place on sub-assembly processing area Remove Move Card and place in empty container Move empty container back to sub-assembly raw material storage Pick up empty container from sub-assembly empty container storage and move to sub-assembly processing area • Pick up yellow processing lego and assemble to raw material and place in finished goods container • Pick up Production Card from Signal post and place on finished goods container • Move finished goods container to sub-assembly finished goods storage • Repeat above steps for each Kanban Signal 48 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Material Handler 2 • Pick up Move Cards and empty containers from subassembly raw material storage • Place empty containers in raw material empty container storage • Remove Supplier Cards from raw material storage and replace with Move Cards • Place Supplier Cards in the raw material Signal post • Move raw material containers to sub-assembly raw material storage • Repeat above steps for each Kanban Signal 49 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Raw Material Store (Parts Ordering) • Move empty container from raw material empty container storage to raw material processing • Remove Supplier Card from supplier Signal post • Place Supplier Card on empty container • Repeat above steps for each Kanban Signal • Prepare order for shipment • Raw Material Store (Parts Receiving) • Move raw material container from raw material receiving to raw material storage area 50 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Truck Driver 2 • Pick up empty containers with Supplier Cards from raw material processing area • Place empty containers in Suppliers empty container storage • Remove Supplier Production Cards from suppliers raw material container and replace with Supplier Cards • Place Supplier Production Cards in supplier Signal post • Move raw materials from supplier to raw material receiving • Repeat above steps for each daily order 51 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Supplier • Check Supplier Signal post for production requirements • Move empty container from supplier empty container storage to supplier processing area • Pick up white processing lego and place in raw material container • Pick up Production Card from supplier Signal post and place on raw material container • Move raw material container to supplier finished goods storage • Repeat above steps for each Kanban Signal 52 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Roles • Manager • Review the daily production requirements • Instruct cells to produce to customer demand or capacity • Monitor the production of parts in the value stream • Evaluate daily production results 53 KB001 Kanban A New Approach Kanban System Simulation - Exercise 1 Customer Orders vs Capacity Day Customer Capacity Actual Production Order Production Hours 1 2 3 4 5 Capacity 1 unit = 2hrs 40min 2 units = 5hrs 20min 3 units = 8hrs 00min 4 units = 10hrs 40min 54 KB001 Kanban A New Approach The Customer (Starting Point for a Kanban System) 55 KB001 Kanban A New Approach Understanding Customer Needs • Customer Demand • Anticipated Requirements (Forecast) • Takt Time (time required to produce a single part based upon customer usage) • Actual Requirements (Daily Pull) • Leveling 56 KB001 Kanban A New Approach Anticipated Requirements • What information do we need? • Customer demand for the month • Number of days in demand period Part Monthly Demand No. of Working Days Daily Demand A 18,000 20 900 Note: 900 units / 2 shifts = 450 units per shift 57 KB001 Kanban A New Approach Takt Time Takt Time = Available Operating Time Pieces = 57,600” - 2,400” 900 pcs = 61.33” per piece Sets pace of production to match customer demand 58 KB001 Kanban A New Approach Producing to Customer Demand Production Card Production Work Unit Customer Card Customer 59 KB001 Kanban A New Approach Units Customer Ordering History 1600 1600 1400 1400 1200 1200 1000 1000 800 800 600 600 Forecast 400 400 Actual 200 200 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Day 60 KB001 Kanban A New Approach Analyze Actual Requirements Anticipated Demand vs. Actual Demand Part Anticipated Demand A 18,000 Actual Demand 19,000 Difference 1000 61 KB001 Kanban A New Approach Opportunities in Customer Fluctuation • Buffer Stock • Used when demand is in excess of customer forecast • Replenished when demand is less than customer forecast • Note: Buffers are an indicator of waste in the system! 62 KB001 Kanban A New Approach Units Leveled Production (Based On 500 Units Of Buffer Stock) 1600 1600 1400 1400 1200 1200 1000 1000 800 800 600 600 Forecast 400 400 Actual Production 200 200 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Day 63 KB001 Kanban A New Approach Opportunities in Truck Pitch • Even Truck Pitch • Drives constant Takt Time • Reduces fluctuation • Overall Benefit • Reduction in inventory 64 KB001 Kanban A New Approach Truck Pitch Truck 2 6:00 Truck 3 10:00 Truck 4 14:30 16:00 = Break = Lunch = Between Shifts 1 - 6:00 2 - 10:00 Truck 1 21:00 24:30 Truck Times 3 – 16:00 4 – 21:00 65 KB001 Kanban A New Approach Replenishment Capability • Truck Pick-up Times 1. 6:00 2. 10:00 3. 16:00 4. 21:00 • Replenishment Capability Based on Takt Time • 21:00 - 24:30 = 3.5 hours = 12,600 seconds • 12,600 seconds - 600 seconds (break) = 12,000 seconds • 12,000 seconds / 61.33 seconds (takt time) = 195.66 pcs • 195.66 pcs / 50 pcs in container = 3.91 containers • Truck 1 = 3 containers (45.66 remaining for Truck 2) 66 KB001 Kanban A New Approach Leveling Post 1 1 2 2 3 4 5 6 3 7 8 4 9 10 11 12 13 14 15 16 17 18 Buffer Stock 1 2 3 4 5 6 7 8 9 10 500 pcs. used to buffer Customer Orders • 50 pcs. per container • 10 slots required in Leveling Post for Buffer 67 KB001 Kanban A New Approach Leveling Customer Demand Forecast Leveling Post P Production Work Unit Customer B 68 KB001 Kanban A New Approach Takt Time Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 Line 100 69 KB001 Kanban A New Approach Information Required for Takt Time Post • Takt Time = 61.33 seconds • Number of pieces per container = 50 Time per container = (Takt Time * Container Quantity) / 60 = (61.33 * 50) / 60 = 51 minutes (Must deliver a Kanban from the Takt Time Post to the Production Work Unit every 51 minutes) 70 KB001 Kanban A New Approach Takt Time Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 Line 100 71 KB001 Kanban A New Approach Leveling Customer Demand Forecast Takt Time Post Leveling Post P Production Work Unit Customer B 72 KB001 Kanban A New Approach Separating Safety Stock • Distinguish between customer fluctuation and internal problems • Safety Stock inventory amount is based on downtime history 73 Utilizing Safety Stock KB001 Kanban A New Approach Forecast Takt Time Post Leveling Post P Production Work Unit Customer B S 74 KB001 Kanban A New Approach Leveling • Benefits: • Neutralizes fluctuation from: • Customer’s orders • Truck pitch • Pulls product based on: • Customer usage • Takt Time 75 KB001 Kanban A New Approach Leveling System Visual Aid 1 (Neutralizing Customer Fluctuation) 76 KB001 Kanban A New Approach Objective • To establish a pull system of production that levels the demand of the customer to meet production capabilities 77 KB001 Kanban A New Approach Visual Aid Requirements • Leveling Post • Takt Time Post • Signal Post • (20) Customer Cards • (7) Production Cards • (10) Buffer Stock Cards • (5) Safety Stock Cards 78 KB001 Kanban A New Approach Card Number • To determine the number of Production Cards in the system, take the highest available Cards to be shipped on one truck and add one Card. • EXAMPLE: • Truck 4 = 6 Cards • 6 Cards + 1 Card = 7 Cards • (7) Production Cards Required • Note: Additional Cards may be required for longer lead-times 79 KB001 Kanban A New Approach Card Placement • To determine the location of the Production Card on the takt time post, take the available Cards for the last truck and subtract the quantity for the first truck and count backwards from the last truck • EXAMPLE: • Truck 4 - Truck 1 = Cards Generated for 1st • (6) - (3) = 3 Cards for 1st Shift • Note: If the number is zero or a negative number, only the last Card of the last truck is generated for 1st shift 80 KB001 Kanban A New Approach Visual Aid Layout - Day 1 (End of 2nd Shift) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 81 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (6:00 am) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 82 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (6:00 am - continued) Leveling Post 1 1 2 9 3 0 9 3 6 2 3 9 9 4 4 2 8 4 9 5 4 5 1 0 0 0 3 6 1 0 0 6 1 0 1 2 7 1 0 1 8 8 1 0 2 4 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 0 3 0 1 0 3 6 1 0 4 2 Takt Time Post 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 1 4 2 2 1 1 4 8 1 1 5 4 3 4 1 2 0 0 1 2 0 6 5 1 2 1 2 6 1 2 1 8 7 1 2 2 4 8 1 2 3 0 1 2 3 6 9 10 1 2 4 2 1 2 4 8 1 2 5 4 L L L L L / / / / / T T T T T 2 3 4 5 83 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (10:00 am) Leveling Post 1 1 2 9 3 0 9 3 6 2 3 9 9 4 4 2 8 4 9 5 4 5 1 0 0 0 3 6 1 0 0 6 1 0 1 2 7 1 0 1 8 8 1 0 2 4 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 0 3 0 1 0 3 6 1 0 4 2 Takt Time Post 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 1 4 2 2 1 1 4 8 1 1 5 4 3 4 1 2 0 0 1 2 0 6 5 1 2 1 2 6 1 2 1 8 7 1 2 2 4 8 1 2 3 0 1 2 3 6 L L L L L / / / / / T T T T T 2 3 9 10 1 2 4 2 1 2 4 8 1 2 5 4 B B / / T T 4 5 84 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (10:00 am - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 3 3 0 3 3 6 5 6 7 8 9 10 4 1 2 4 1 8 Takt Time Post 1 0 0 1 0 6 1 1 1 1 2 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 3 0 6 3 1 2 3 1 8 3 2 4 3 4 2 3 4 8 3 5 4 4 0 0 4 0 6 4 2 4 B B / / T T 6 85 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (10:00 am - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 7 0 0 7 0 6 5 6 7 8 9 10 7 4 2 7 4 8 Takt Time Post 4 3 0 4 3 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 5 4 B B / / T T 7 8 9 10 86 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (4:00 pm) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 7 0 0 7 0 6 5 6 7 8 9 10 7 4 2 7 4 8 Takt Time Post 4 3 0 4 3 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 5 4 B B / / T T 7 8 9 10 87 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (4:00 pm - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 Takt Time Post 8 0 0 8 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 1 0 1 2 2 1 0 1 8 1 0 2 4 3 4 1 0 3 0 1 0 3 6 5 1 0 4 2 6 1 0 4 8 7 1 0 5 4 8 1 1 0 0 1 1 0 6 L L L L L / / / / / T T T T T 11 12 9 10 1 1 1 2 1 1 1 8 1 1 2 4 B B / / T T 13 14 88 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (9:00 pm) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 Takt Time Post 8 0 0 8 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 1 0 1 2 2 1 0 1 8 1 0 2 4 3 4 1 0 3 0 1 0 3 6 5 1 0 4 2 6 1 0 4 8 7 1 0 5 4 8 1 1 0 0 1 1 0 6 L L L L L / / / / / T T T T T 11 12 9 10 1 1 1 2 1 1 1 8 1 1 2 4 B B / / T T 13 14 89 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (9:00 pm - continued) Leveling Post 1 1 2 1 1 3 0 1 1 3 6 1 1 4 2 2 3 1 1 4 8 4 1 1 5 4 5 1 2 0 0 3 6 1 2 0 6 1 2 1 2 7 1 2 1 8 8 1 2 2 4 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 0 1 2 3 6 1 2 4 2 1 2 3 4 2 0 0 2 0 6 5 6 7 8 9 10 2 4 2 2 4 8 Takt Time Post 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 5 4 B B / / T T 15 90 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (9:00 pm - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 91 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (End of 2nd Shift) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 92 KB001 Kanban A New Approach Visual Aid Layout - Day 2 (End of 2nd Shift - cont.d) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 93 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (6:00 am) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 94 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (6:00 am - continued) Leveling Post 1 1 2 9 3 0 9 3 6 2 3 9 9 4 4 2 8 4 9 5 4 5 1 0 0 0 3 6 1 0 0 6 1 0 1 2 7 1 0 1 8 8 1 0 2 4 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 0 3 0 1 0 3 6 1 0 4 2 Takt Time Post 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 1 4 2 2 1 1 4 8 1 1 5 4 3 4 1 2 0 0 1 2 0 6 5 1 2 1 2 6 1 2 1 8 7 1 2 2 4 8 1 2 3 0 1 2 3 6 9 10 1 2 4 2 1 2 4 8 1 2 5 4 L L L L L / / / / / T T T T T 2 3 4 5 95 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (10:00 am) Leveling Post 1 1 2 9 3 0 9 3 6 2 3 9 9 4 4 2 8 4 9 5 4 5 1 0 0 0 3 6 1 0 0 6 1 0 1 2 7 1 0 1 8 8 1 0 2 4 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 0 3 0 1 0 3 6 1 0 4 2 Takt Time Post 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 1 1 3 0 1 1 3 6 1 1 1 4 2 2 1 1 4 8 1 1 5 4 3 4 1 2 0 0 1 2 0 6 5 1 2 1 2 6 1 2 1 8 7 1 2 2 4 8 1 2 3 0 1 2 3 6 L L L L L / / / / / T T T T T 2 3 9 10 1 2 4 2 1 2 4 8 1 2 5 4 B B / / T T 4 5 96 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (10:00 am - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 3 3 0 3 3 6 5 6 7 8 9 10 4 1 2 4 1 8 Takt Time Post 1 0 0 1 0 6 1 1 1 1 2 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 3 0 6 3 1 2 3 1 8 3 2 4 3 4 2 3 4 8 3 5 4 4 0 0 4 0 6 4 2 4 B B / / T T 6 97 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (10:00 am - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 7 0 0 7 0 6 5 6 7 8 9 10 7 4 2 7 4 8 Takt Time Post 4 3 0 4 3 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 5 4 B B / / T T 7 8 9 10 98 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (4:00 pm) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 7 0 0 7 0 6 5 6 7 8 9 10 7 4 2 7 4 8 Takt Time Post 4 3 0 4 3 6 4 4 4 4 2 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 5 4 B B / / T T 7 8 9 10 99 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (4:00 pm - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 Takt Time Post 8 0 0 8 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 1 0 1 2 2 1 0 1 8 1 0 2 4 3 4 1 0 3 0 1 0 3 6 5 1 0 4 2 6 1 0 4 8 7 1 0 5 4 8 1 1 0 0 1 1 0 6 L L L L L / / / / / T T T T T 11 12 9 10 1 1 1 2 1 1 1 8 1 1 2 4 B B / / T T 13 14 100 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (9:00 pm) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 Takt Time Post 8 0 0 8 0 6 8 8 1 1 2 8 8 2 4 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 1 0 1 2 2 1 0 1 8 1 0 2 4 3 4 1 0 3 0 1 0 3 6 5 1 0 4 2 6 1 0 4 8 7 1 0 5 4 8 1 1 0 0 1 1 0 6 L L L L L / / / / / T T T T T 11 12 9 10 1 1 1 2 1 1 1 8 1 1 2 4 B B / / T T 13 14 101 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (9:00 pm - continued) Leveling Post 1 1 2 1 1 3 0 1 1 3 6 1 1 4 2 2 3 1 1 4 8 4 1 1 5 4 5 1 2 0 0 3 6 1 2 0 6 1 2 1 2 7 1 2 1 8 8 1 2 2 4 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 0 1 2 3 6 1 2 4 2 1 2 3 4 2 0 0 2 0 6 5 6 7 8 9 10 2 4 2 2 4 8 Takt Time Post 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 4 8 1 5 4 2 1 2 2 1 8 2 2 4 2 3 0 2 3 6 2 5 4 B B / / T T 15 102 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (9:00 pm - continued) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 103 KB001 Kanban A New Approach Visual Aid Layout - Day 3 (End of 2nd Shift) Leveling Post 1 1 2 2 3 4 5 3 6 7 8 4 Buffer Stock 9 10 11 12 13 14 15 16 17 18 1 2 3 4 8 3 0 8 3 6 5 6 7 8 9 10 9 1 2 9 1 8 Takt Time Post 6 0 0 6 0 6 6 6 1 1 2 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 2 4 B B / / T T 16 17 18 1 104 KB001 Kanban A New Approach Kanban System Simulation Exercise 2 (With Leveling) 105 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 • Objective • To gain an understanding of the method and benefits of leveling 106 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 • Details • • • • • Activity will be run in time segments Each time segment consists of one day One truck from customer per day Simulation will run for “5” days Leveling of production occurs at the Point of Pull 107 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 Activity Pieces • 36 Plastic bowls • 3 Buffer Stock Cards • 75 White Lego Blocks • 8 Move Cards • 4 Supplier Cards • 5 Signal Posts • 1 Leveling Post • 5 Order Cards • 36 Yellow Lego Blocks • 5 Customer Cards • 11 Production Cards • 18 Place Mats 108 KB001 Kanban A New Approach Activity Layout - Exercise 2 Leveling Post Empty Signal Containers Post 4 4 W 4 4 4 4 4 4 4 Y A 2@15 Empty Signal Containers Post 4 4 Customer 1@15 B Empty Signal Containers Post 3 Final Assembly C 1@15 3 3 3 3 3 3 3 D 1 Sub Assembly 1 Empty Signal Containers Post Empty Signal Containers Post 1 1 1 1 1 1 Raw Material Storage 1 1 Supplier 1 E 1 F G H I J 1= A - Customer B - Truck Driver-1 (Customer to Plant) C - Final Assembly Operator D - Material Handler-1 (Final Assembly to Sub-Assembly) E - Sub-Assembly Operator 3= F - Material Handler-2 (Sub-Assembly to Raw Material Storage) G - Raw Material Processing (Parts Ordering / Parts Receiving) H - Truck Driver-2 (Plant to Supplier) I - Supplier J - Manager W 2= Y Y W Y 4= W W 109 KB001 Kanban A New Approach Activity Layout - Exercise 2 Card Types Leveling Post Empty Containers Signal Post 4 4 Empty Containers 4 4 W Customer Signal Post 4 4 4 4 4 4 4 Y 3 Final Assembly (3) Production Cards (3) Buffer Stock Cards Customer Cards Empty Containers Signal Post 3 1 Sub Assembly 3 3 3 3 1 3 3 1 Production Cards Move Cards 1 Empty Containers Signal Post 1 1 1 1 Empty Containers Signal Post 1 1 Raw Material Storage Supplier Cards 1 1 Supplier Production Cards Move Cards 110 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 Roles • Following Roles Same As Exercise 1 • Customer • Final Assembly Operator • Material Handler 1 • Sub-Assembly Operator • Material Handler 2 • Raw Material Store • Truck Driver 2 • Supplier 111 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 Roles • Truck Driver 1 • • • • • • Pick up Customer Cards from Customer Signal post Pick up empty containers from customer empty container storage Move empty containers to finished goods empty container storage Place Customer Cards in leveling post Remove Cards from leveling post after leveling Remove Production Cards from finished goods container and replace with Customer Cards • Place Production Cards, and/or Buffer Stock Cards if required, in final assembly Signal post • Move finished goods to customer raw material storage • Repeat above steps for each daily order 112 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 Roles • Manager • Focus on improving operations 113 KB001 Kanban A New Approach Kanban System Simulation - Exercise 2 Customer Orders vs Capacity Day Customer Capacity Actual Production Order Production Hours 1 2 3 4 5 Capacity 1 unit = 2hrs 40min 2 units = 5hrs 20min 3 units = 8hrs 00min 4 units = 10hrs 40min 114 KB001 Kanban A New Approach Internal Kanban System (Operating The Internal System) 115 KB001 Kanban A New Approach Internal Kanban System • Production Instruction • Production Card • Signal (Triangle) • Material Movement • Move Card • Delivery system 116 KB001 Kanban A New Approach Kanban Signal “Tool To Trigger Production” • Production Card • High level of capability in the work unit • Production of parts in any order 117 KB001 Kanban A New Approach Producing Card for Card • If a work unit can produce parts in the same order that they are pulled from stores, then they produce Card for Card • The Production Card (typically a white card) is attached to the container after production • When a container is pulled from the work unit store, the card is removed and sent back to the work unit to trigger production 118 KB001 Kanban A New Approach Points to Remember • The Production Card is the signal to produce a container of a particular part number • The work unit produces in the order that the Production Cards are received • Changeover time must be equal to or less than the consumers changeover time 119 KB001 Kanban A New Approach Flow of the Production Card “Production” Card Supplying Process product 120 KB001 Kanban A New Approach Kanban Signal “Tool to Trigger Production” • Signal (Triangle) • Long changeover times • Production in lot size 121 KB001 Kanban A New Approach Production by Lot Size Withdrawal Period 2nd 3rd 1st A A A A B B B B 4th C C C C Direct Relationship between Changeover times and Inventory Levels 122 KB001 Kanban A New Approach Signal (Triangle) WORK UNIT NAME PART No. CONTAINER QUANTITY TYPE LOT SIZE # of containers to produce PROCESSING TIME FOR 1 LOT ORDER POINT Where the signal Signal # is placed in inventory 123 KB001 Kanban A New Approach Signal Triangle • When using the Signal Triangle, every part number on the work unit has it’s own signal • The signal instructs the work unit to produce and is dependent on how inventory is pulled from the work unit • If parts are not withdrawn from the work unit, the work unit will not receive a signal to produce 124 KB001 Kanban A New Approach Lot Size Production • Signal Instructs the Work Unit: • When to produce the part • How many to produce at one time 125 KB001 Kanban A New Approach Elements Required to Determine the Lot Size • Available Time • Monthly Demand for Each Part Number • Production Time for Each Part Number • Average Changeover Time 126 KB001 Kanban A New Approach Available Time Available Time = (Number of Hours per Shift) – (Break Time) Number of Shifts: 2 Number of Breaks per Shift: 2 Hours per Shift: 8 Minutes per Break: 10 57,600 seconds - 2,400 seconds = 55,200 seconds 127 KB001 Kanban A New Approach Demand Calculation Daily Demand = Monthly Demand # of Days in Demand Period Days in Month = 20 Part A B C D Total Monthly Demand 4000 pcs 6000 pcs 8000 pcs 12000 pcs 30000 pcs Daily Demand 200 pcs 300 pcs 400 pcs 600 pcs ???? pcs 128 KB001 Kanban A New Approach Demand Calculation Daily Demand = Monthly Demand # of Days in Demand Period Days in Month = 20 Part A B C D Total Monthly Demand 4000 pcs 6000 pcs 8000 pcs 12000 pcs 30000 pcs Daily Demand 200 pcs 300 pcs 400 pcs 600 pcs 1500 pcs 129 KB001 Kanban A New Approach Calculating Production Time Production Time = Cycle Time x Daily Demand Part A B C D Total Daily Demand 200 300 400 600 1500 Cycle Time 28.5” 28.0” 30.5” 32.0” 30.3” Production Time 5700” 8400” 12200” 19200” ??????” 130 KB001 Kanban A New Approach Calculating Production Time Production Time = Cycle Time x Daily Demand Part A B C D Total Daily Demand 200 300 400 600 1500 Cycle Time 28.5” 28.0” 30.5” 32.0” 30.3” Production Time 5700” 8400” 12200” 19200” 45500” 131 KB001 Kanban A New Approach Calculating Average Changeover Time Part A B C D Total Daily Demand 200 300 400 600 ???? Changeover Time 900 seconds 600 seconds 720 seconds 600 seconds ???? seconds Total Average C/O Time = Changeover Time = ???? = ??? # of Parts Numbers ? 132 KB001 Kanban A New Approach Calculating Average Changeover Time Part A B C D Total Daily Demand 200 300 400 600 1500 Changeover Time 900 seconds 600 seconds 720 seconds 600 seconds 2820 seconds Total Average C/O Time = Changeover Time = 2820 = 705 # of Parts Numbers 4 133 KB001 Kanban A New Approach Lot Size Calculation Step 1: Determine the Number of Changeovers per Day # of C/O per Day = Available Time - Production Time Average Changeover Time # of C/O per Day = ????? - ????? ??? (# of Parts) / (?) / (# of Available C/O’s) (???) = ??? C/O’s = = (LOT SIZE) ??? Days 134 KB001 Kanban A New Approach Lot Size Calculation Step 1: Determine the Number of Changeovers per Day # of C/O per Day = Available Time - Production Time Average Changeover Time # of C/O per Day = 55,200 - 45,500 705 (# of Parts) / (4) / (# of Available C/O’s) (13.7) = 13.7 C/O’s = = (LOT SIZE) .29 Days 135 KB001 Kanban A New Approach Lot Size per Part Number Part A B C D Daily Demand 200 300 400 600 Lot Size 0.29 days 0.29 days 0.29 days 0.29 days # in Lot 58 pcs 87 pcs 116 pcs 174 pcs 136 KB001 Kanban A New Approach Container Lot Size # of Containers in a Lot = Lot Size Qty per Cont. Example: Lot Size for Part A = 58 pcs Container Size = 30 pcs Part A = 58 pcs per lot size = 1.9 containers 30 pcs per container Part A Lot Size = 2 Containers Round Up to Next Full Container 137 KB001 Kanban A New Approach Order Point • The order point determines how much inventory is needed in the stores to cover customer requirements during the work unit’s peak period of downtime • For instance, the order point = 2 • The signal is placed on the 2nd to the last container. When the container above the signal on is pulled, exposing the Signal Triangle, the signal goes back to the line to trigger production with the corresponding amount of Production Cards 138 KB001 Kanban A New Approach Signal (Triangle) Pull from Top Remove Signal Triangle when this container is pulled!! 139 KB001 Kanban A New Approach Order Point Calculation (Daily Demand x Downtime Percentage) = Order Point Quantity per Container Daily Demand: 200pcs Peak Downtime Percentage: 20% Quantity per Container: 30pcs Order Point: 2 (200 x .20) = 1.33 30 Round Up to Next Full Container 140 KB001 Kanban A New Approach Order Points Part Daily Demand D/T #PCS Pcs/Cont O.P. A 200 .20 40 30 ? B 300 .20 60 30 ? C 400 .20 80 30 ? D 600 .20 120 30 ? 141 KB001 Kanban A New Approach Order Points Part Daily Demand D/T #PCS Pcs/Cont O.P. A 200 .20 40 30 2 B 300 .20 60 30 2 C 400 .20 80 30 3 D 600 .20 120 30 4 142 KB001 Kanban A New Approach How are the Containers Identified? • A Production Card is placed on a container after it is produced • When the container is pulled from the store the Production Card is removed and is put into a collection box, while a Move Card is put on the container in it’s place • When the signal is sent to the work unit for production, the number of Production Cards that are needed to I.D. the containers are also taken 143 KB001 Kanban A New Approach 1. Move Card signals that the Customer Work Unit needs parts. Inventory Stores 2. The container is picked and the Kanban Card is replaced with the Move Card. Inventory Stores 3. The Production Card is put into a collection box to be sent back to the work unit. Inventory Stores Parts are taken to the Customer Work Unit. 144 KB001 Kanban A New Approach # of Production Cards in the System # of Production Cards = Lot Size + Order Point =2+2 = 4 Tags The number of cards is the maximum amount of material that will be in the stores 145 KB001 Kanban A New Approach Flow Of The Signal ( Triangle) Customer Pulling A C Now Next D Order ABCD Point Signal Board B Collection Box A B C D Roll Cut Stores Roll Cut Work Unit 146 KB001 Kanban A New Approach Lot Box Production An Alternative Approach for Increased Visual Management 147 KB001 Kanban A New Approach Lot Box Production Flow “Production” Card Lot Box Supplying Process product 148 KB001 Kanban A New Approach The Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Production Cards Order Point Zero Inventory 149 KB001 Kanban A New Approach Work Unit Kanban Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 Part D C/O Card Part A C/O Card 150 8 0 0 A B C D E F Daily Dem an d L ot S iz e Cycle T im e C/O L ot T im e T otal Ru n Part # 1 A B C D Container No. 2 3 4 5 G H I Con tain er S iz e M in . / Con tain er C.O . T im e ( m in .) 6 C/O Total Calculations E=(BXC) F=(D+E) H=(GXC)/60 I=D/60 KB001 Kanban A New Approach Example for Part # C 1 15.25 2 30.5 6 0 6 6 1 2 A: I B: I - I I - C: I D: I - I - I 1st Shift 6 0 0 3 45.75 6 1 8 6 2 4 4 61 6 3 0 6 3 6 5 X 6 4 2 6 4 8 - - I - I - - I - I 6 X 6 5 4 7 0 0 7 0 6 C/O 12 7 1 2 7 1 8 7 2 4 TOTAL 73 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 - I - - I - I - 152 8 0 0 KB001 Kanban A New Approach Lot Box Production Visual Aid 2 (An Alternative Approach) 153 KB001 Kanban A New Approach Objective • To visually demonstrate the flow of Cards based on lot size production using the Lot Box as a tool for instruction to produce. 154 KB001 Kanban A New Approach Visual Aid Requirements • 1 Lot Box • 1 Kanban Post • 1 Parts Withdrawal Timing Sheet • 4 (Part A) Production Cards • 5 (Part B) Production Cards • 7 (Part C) Production Cards • 10 (Part D) Production Cards • 17 Changeover Cards 155 KB001 Kanban A New Approach Visual Aid Layout Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 156 8 0 0 KB001 Kanban A New Approach Visual Aid Layout Inventory Status Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 157 KB001 Kanban A New Approach Part Withdrawal Timing Part A 8:10 am 10:38 am 1:36 pm 5:54 pm 8:22 pm 11:10 pm Part B 7:32 am 9:14 am 10:46 am 12:48 pm 2:30 pm 6:02 pm 7:44 pm 9:16 pm 11:18 pm 1:00 am Part C 7:09 am 8:18 am 9:37 am 10:46 am 12:25 pm 1:44 pm 4:53 pm 6:02 pm 7:21 pm 8:30 pm 10:09 pm 11:18 pm 12:37 am Part D 6:28 am 7:14 am 8:00 am 8:56 am 9:42 am 10:28 am 11:44 am 12:30 pm 1:26 pm 2:12 pm 4:58 pm 5:44 pm 6:30 pm 7:26 pm 8:12 pm 8:58 pm 10:14 pm 11:00 pm 11:56 am 12:42 am 158 KB001 Kanban A New Approach Board Status - 6:00 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 159 8 0 0 KB001 Kanban A New Approach Board Status – 6:00 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 160 8 0 0 KB001 Kanban A New Approach Inventory Status - 6:00 am Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 161 KB001 Kanban A New Approach Board Status - 6:42 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 B / T 8 1 8 8 2 4 8 3 0 8 3 6 B / T 162 8 4 2 KB001 Kanban A New Approach Board Status - 6:42 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 B / T B / T 8 2 4 8 3 0 8 3 6 163 8 4 2 KB001 Kanban A New Approach Inventory Status - 6:42 am Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 164 KB001 Kanban A New Approach Board Status - 8:42 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 Line 100 165 1 0 4 2 KB001 Kanban A New Approach Board Status - 8:42 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 Line 100 166 1 0 4 2 KB001 Kanban A New Approach Inventory Status - 8:42 am Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 167 KB001 Kanban A New Approach Board Status – 9:54 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 L L / / T T 1 1 1 2 1 1 1 8 1 1 2 4 L / T L L / / T T 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 168 1 1 2 4 KB001 Kanban A New Approach Board Status – 9:54 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 9 5 4 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 L L / / T T 1 1 1 2 1 1 1 8 1 1 2 4 L / T L L / / T T 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 169 1 1 2 4 Inventory Status – 9:54 am KB001 Kanban A New Approach Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 170 KB001 Kanban A New Approach Board Status – 10:48 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 L L / / T T 1 1 1 2 1 1 1 8 1 1 2 4 L / T L L / / T T 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 171 1 2 4 8 KB001 Kanban A New Approach Board Status – 10:48 am Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 L / T L L L / / / T T T 1 1 2 4 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 L / T 172 1 2 4 8 KB001 Kanban A New Approach Inventory Status – 10:48 am Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 173 KB001 Kanban A New Approach Board Status - 12:02 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 B / T 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 5 4 2 0 0 B / T 174 2 0 6 KB001 Kanban A New Approach Board Status - 12:02 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 B / T 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 1 1 2 1 1 8 1 2 4 1 3 0 1 3 6 1 4 2 1 5 4 2 0 0 B / T 175 2 0 6 KB001 Kanban A New Approach Inventory Status - 12:02 pm Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 176 KB001 Kanban A New Approach Board Status – 1:58 pm Lot Box Part 1 2 3 Container # 5 6 4 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 E O S 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 B B B B B / / / / / S S S S S 3 0 6 B / S 3 1 2 3 1 8 B B / / S S 3 2 4 3 3 0 3 3 6 3 4 2 3 4 8 3 5 4 B B B B B B / / / / / / S S S S S S 177 KB001 Kanban A New Approach Board Status – 1:58 pm Lot Box Part 1 2 3 Container # 5 6 4 7 8 9 10 A B C D Kanban Post 1st Shift Line 100 1 5 4 2 0 0 2 0 6 2 1 2 2 1 8 2 2 4 2 3 0 E O S 2 3 6 2 4 2 2 4 8 2 5 4 3 0 0 B B B B B / / / / / S S S S S 3 0 6 B / S 3 1 2 3 1 8 B B / / S S 3 2 4 3 3 0 3 3 6 3 4 2 3 4 8 3 5 4 B B B B B B / / / / / / S S S S S S 178 KB001 Kanban A New Approach Inventory Status – 1:58 pm Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 179 KB001 Kanban A New Approach Board Status - 4:30 pm Lot Box Part 1 2 3 Container # 5 6 4 7 8 9 10 A B C D Kanban Post 2nd Shift 4 3 0 4 3 6 4 4 2 4 4 8 4 5 4 5 0 0 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 Line 100 180 6 3 0 KB001 Kanban A New Approach Inventory Status - 4:30 pm Part A Part B Part C 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container Part D 1 Container 181 KB001 Kanban A New Approach Board Status - 5:06 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 5 0 6 5 1 2 5 1 8 5 2 4 5 3 0 5 3 6 5 4 2 5 4 8 5 5 4 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 B / T B / T 7 0 0 182 7 0 6 Inventory Status - 5:06 pm KB001 Kanban A New Approach Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 183 KB001 Kanban A New Approach Board Status - 6:06 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 B / T B / T 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 184 8 0 0 KB001 Kanban A New Approach Board Status - 6:06 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 B / T B / T 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 185 8 0 0 KB001 Kanban A New Approach Inventory Status - 6:06 pm Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 186 KB001 Kanban A New Approach Board Status – 6:42 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 3 0 8 3 6 B B / / T T 187 8 4 2 KB001 Kanban A New Approach Board Status – 6:42 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 8 0 0 8 0 6 8 1 2 8 1 8 8 2 4 8 3 0 8 3 6 B B / / T T 188 8 4 2 KB001 Kanban A New Approach Inventory Status - 6:42 pm Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 189 KB001 Kanban A New Approach Board Status – 8:30 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 L / T L L L / / / T T T L / T 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 190 1 0 3 0 KB001 Kanban A New Approach Board Status – 8:30 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 8 3 0 8 3 6 8 4 2 8 4 8 8 5 4 9 0 0 9 0 6 9 1 2 9 1 8 9 2 4 9 3 0 9 3 6 9 4 2 9 4 8 9 5 4 L / T L L L / / / T T T L / T 1 0 0 0 1 0 0 6 1 0 1 2 1 0 1 8 1 0 2 4 191 1 0 3 0 KB001 Kanban A New Approach Inventory Status - 8:30 pm Part A Part B Part C 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container To be filled At 8:32.5 1 Container Part D 192 KB001 Kanban A New Approach Board Status – 10:12 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 B / T B / T 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 193 1 2 1 2 KB001 Kanban A New Approach Board Status – 10:12 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 1 0 1 2 1 0 1 8 1 0 2 4 1 0 3 0 1 0 3 6 1 0 4 2 1 0 4 8 1 0 5 4 1 1 0 0 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 B / T B / T 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 194 1 2 1 2 Inventory Status - 10:12 pm KB001 Kanban A New Approach Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 195 KB001 Kanban A New Approach Board Status – 11:06 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 B / T B / T 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 E O S B / S 196 KB001 Kanban A New Approach Board Status – 11:06 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 1 1 0 6 1 1 1 2 1 1 1 8 1 1 2 4 B / T B / T 1 1 3 0 1 1 3 6 1 1 4 2 1 1 4 8 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 E O S B / S 197 Inventory Status - 11:06 pm KB001 Kanban A New Approach Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 198 KB001 Kanban A New Approach Board Status – 11:56 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 E B O / S S 1 1 2 1 1 8 B / S B B / / S S 1 2 4 1 5 4 1 3 0 1 3 6 1 4 2 1 4 8 B / S B / S B / S B B / / S S 199 KB001 Kanban A New Approach Board Status – 11:56 pm Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 2nd Shift Line 100 1 1 5 4 1 2 0 0 1 2 0 6 1 2 1 2 1 2 1 8 1 2 2 4 1 2 3 0 1 2 3 6 1 2 4 2 1 2 4 8 1 2 5 4 1 0 0 1 0 6 E B O / S S 1 1 2 1 1 8 B / S B B / / S S 1 2 4 1 5 4 1 3 0 1 3 6 1 4 2 1 4 8 B / S B / S B / S B B / / S S 200 Inventory Status - 11:56 pm KB001 Kanban A New Approach Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 201 KB001 Kanban A New Approach Board Status - 6:00 am Day 2 Lot Box Part 1 2 3 4 Container # 5 6 7 8 9 10 A B C D Kanban Post 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 202 8 0 0 KB001 Kanban A New Approach Inventory Status - 6:00 am Day 2 Part A Part B Part C Part D 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 1 Container 203 KB001 Kanban A New Approach Lot Size Calculation Exercise 3 (An Alternative Approach) 204 KB001 Kanban A New Approach Calculation Exercise Data Data Part Monthly Demand Changeover Time A 10,000 720 B 8,000 600 C 9,000 720 D 11,000 600 Cycle Time 22 23 21 22 Container Size 30 30 30 30 205 KB001 Kanban A New Approach Available Time Available Time = Number of hours per Shift - Break Time Number of Shifts: 2 Number of Breaks Per Shift: 2 Hours Per Shift: 8 Minutes Per Break: 10 Available Time= 206 KB001 Kanban A New Approach Available Time Available Time = Number of hours per Shift - Break Time Number of Shifts: 2 Number of Breaks Per Shift: 2 Hours Per Shift: 8 Minutes Per Break: 10 Available Time = 55,200 ” 207 KB001 Kanban A New Approach Demand Calculation Daily Demand = Monthly Demand # of Days in Demand Period Days In Month = 20 Part A B C D Total Monthly Demand 10,000 8,000 9,000 11,000 Daily Demand 208 KB001 Kanban A New Approach Demand Calculation Daily Demand = Monthly Demand # of Days in Demand Period Days In Month = 20 Part A B C D Total Monthly Demand 10,000 8,000 9,000 11,000 Daily Demand 500 400 450 550 209 KB001 Kanban A New Approach Calculating Production Time Production Time = Cycle Time x Daily Demand Part A B C D Total Daily Demand Cycle Time 22” 23” 21” 22” Production Time 210 KB001 Kanban A New Approach Calculating Production Time Production Time = Cycle Time x Daily Demand Part A B C D Total Daily Demand 500 400 450 550 1,900 Cycle Time 22” 23” 21” 22” Production Time 11,000” 9,200” 9,450” 12,100” 41,750” 211 KB001 Kanban A New Approach Calculating Average Changeover Time Part A B C D Total Daily Demand Changeover Time 720” 600” 720” 600” Average C/O Time = Total Changeover Time = # of Parts Numbers 212 KB001 Kanban A New Approach Calculating Average Changeover Time Part A B C D Total Daily Demand 500 400 450 550 1,900 Changeover Time 720” 600” 720” 600” 2,640” Total Average C/O Time = Changeover Time = 2,640” = 660” # of Parts Numbers 4 213 KB001 Kanban A New Approach Lot Size Calculation Step 1: Determine The Number of Changeovers per Day # of C/O per day = Available Time - Production Time Average Changeover Time # Of C/O Per Day = (# of Parts) / 4 / (# of Available C/O’s) = = (LOT SIZE) 214 KB001 Kanban A New Approach Lot Size Calculation Step 1: Determine The Number of Changeovers per Day # of C/O per day = Available Time - Production Time Average Changeover Time # Of C/O Per Day = 55,200” – 41,750” = 20.38 660” (# of Parts) / 4 / (# of Available C/O’s) 20.38 = = (LOT SIZE) .19 215 KB001 Kanban A New Approach Lot Size Per Part Number Part A B C D Daily Demand Lot Size # in Lot 216 KB001 Kanban A New Approach Lot Size Per Part Number Part A B C D Daily Demand 500 400 450 550 Lot Size .19 .19 .19 .19 # in Lot 95 76 85.5 104.5 217 KB001 Kanban A New Approach Container Lot Size # of Containers in a Lot = Lot size Qty per Cont. Example: Lot Size for Part A = Container Size = 30 Part A = Part A Lot Size = 218 KB001 Kanban A New Approach Questions A B C D E F Daily Dem an d L ot S iz e Cycle T im e C/O L ot T im e T otal Ru n Part # 1 Container No. 2 3 4 5 G H I Con tain er S iz e M in . / Con tain er C.O . T im e ( m in .) 6 C/O Calculations E=(BXC) F=(D+E) H=(GXC)/60 I=D/60 Total A B C D 219 KB001 Kanban A New Approach Answers A B C D E F Daily Dem an d L ot S iz e Cycle T im e C/O L ot T im e T otal Ru n 500 400 450 550 120 90 90 120 22 23 21 22 720 600 720 600 2640 2070 1890 2640 3360 2670 2610 3240 Part # A B C D 1 11.0 11.5 10.5 11.0 Container No. 2 3 4 5 22.0 33.0 44.0 23.0 34.5 21.0 31.5 22.0 33.0 44.0 - G H I Con tain er S iz e M in . / Con tain erC.O . T im e ( m in .) 30.0 30.0 30.0 30.0 6 - C/O 12.0 10.0 12.0 10.0 Calculations E=(BXC) F=(D+E) H=(GXC)/60 I=D/60 Total 56.0 44.5 43.5 54.0 220 KB001 Kanban A New Approach Example 1st Shift 6 0 0 6 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 A: B: C: D: 221 8 0 0 KB001 Kanban A New Approach Example 6 0 0 6 0 6 6 1 2 A: B: C: I I I I I I D: I I 1st Shift 6 1 8 6 2 4 6 3 0 6 3 6 - I - I - I - I - - - I - I - 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 7 3 6 7 4 2 7 4 8 7 5 4 Line 100 222 8 0 0 KB001 Kanban A New Approach Material Movement (Focus of On-Time Delivery) 223 KB001 Kanban A New Approach Internal Material Movement •Move Card •Standard Delivery Route 224 KB001 Kanban A New Approach Move Card • The move card tells us: • What to move • Where to find and take material • Standard material quantity • When to move 225 KB001 Kanban A New Approach Move Card STORE ADDRESS SUPPLIER NAME PART No. WORK UNIT ADDRESS Kanban Signal No. WORK UNIT NAME QUANTITY CARD # 226 KB001 Kanban A New Approach Flow of Move Card Move Card Internal Raw Material Store Production Work Unit Needed product 227 Kanban, A new Approach When Do I Remove the Move Card? When the first piece is taken, the Move card is removed Move Card KB001 Kanban A New Approach Partial Card A partial card can be any color that attracts attention. There is only one partial card for each component part on a line. STORE ADDRESS SUPPLIER NAME PART No. WORK UNIT ADDRESS Kanban Signal # WORK UNIT NAME Partial 229 KB001 Kanban A New Approach Standard Route of Delivery Why do we need a standard route of delivery? •To eliminate waste •To reduce inventory •To guarantee on time delivery 230 KB001 Kanban A New Approach Standard Route of Delivery Pick Area Line 3 Line 1 Line 2 231 KB001 Kanban A New Approach Standard Route of Delivery Pick Area Line 3 Line 1 Line 2 232 Part No. Part Name CC3330 Converter Ass’y Line STANDARDIZED WORK CHART MATERIAL HANDLER # of Members 4440 Cell Takt Time Delivery Cycle 60” 1 Date 2 Shifts Stops Standard In-Process Stock 15’ 08/30/99 Manual Time Daily Customer Demand Bottleneck 920 Raw Material Store 20” 90” 2 Orbital Welder Finished Goods 1 30” 90” 1 30” Manual Weld Bracket 7 240” 30” Linear Weld 30” 3 30” Marking Machine 2” 2” Rolling Machine 3 Secure Tig Tack Wrap Tourniquet Machine Press Sizer 6 90” 90” Manual Member Time 1 420” Walk Time Total Time 480” 900” 4 5 30” 30” 15” 30” 25” KB001 Kanban A New Approach How Many Withdrawal Cards Are There? •The Number of Withdrawal Cards is Based on: • Time of the standard route of material deliveries • Usage rate of material by the work unit • Quantity per container of material 234 KB001 Kanban A New Approach Calculating Number of Move Cards • Delivery Cycle = Time to make standard delivery cycle in hours • Quantity per Hour = # of parts produced by the work unit in 1hour based on target cycle time • # of Move Cards = Delivery Cycle x Qty per Hr x 2 Quantity per Container •One set of cards in Process •One set of cards in Que 235 KB001 Kanban A New Approach Number of Move Cards in the System # of Move Cards = Delivery Cycle x Qty per Hr x 2 Qty per Container # of Move Cards = 0.5 hour x 100 parts/hour x 2 25 Parts per Container # of Move Cards = 4 236 KB001 Kanban A New Approach How Many Withdrawal Cards are in the System for an Outside Supplier ? Need to know : • Agreed upon delivery cycle • Daily demand • Quantity per container • Safety Stock 237 KB001 Kanban A New Approach Kanban Cycle Agreed upon delivery cycle This is usually stated as 3 numbers A:B:C In A days There are B trucks Parts are returned C shipments after Cards are sent back to the supplier 238 KB001 Kanban A New Approach Delivery Cycle Delivery Cycle 1:2:3 in 1 day : there are 2 deliveries : and parts arrive 3 shipments after cards are sent to supplier Monday Tuesday Wednesday Thursday Friday Truck 1 2 Truck 2 1 3 SUPPLIER 239 KB001 Kanban A New Approach How Many Withdrawal Cards are in the System for an Outside Supplier? # of Supplier = Daily Demand x A x (C+1) + D Qty per Cont. B x Daily Demand Qty per Cont. A: # of days B: # of trucks C: when the Cards return D: Safety Stock Safety Stock covers problems with delivery due to supplier 240 KB001 Kanban A New Approach How Many Withdrawal Cards are in the System for an Outside Supplier? Daily Demand = 1500pcs Qty/Cont. = 30pcs per container A: # of days Delivery Cycle = 1:2:3 D = .5 Days C: when the Cards return B: # of trucks D: Safety Stock # of Supplier = Daily Demand x A x (C+1) + D x Daily Demand Qty per Cont. B Qty per Cont. = 1500pcs 1 x (3+1) + 30pcs per Cont. 2 x .5 x 1500 30 = 50 Containers x 2 + 25 = 125 Cards 241 KB001 Kanban A New Approach Supplier Card Flow Truck 25 cards Supplier processing 25 cards By using 25 cards Safety Stock Truck 25 cards 25 cards 242 KB001 Kanban A New Approach Supplier Card Calculation Exercise 4 (Card Requirements) 243 KB001 Kanban A New Approach How Many Withdrawal Cards are in the System for an Outside Supplier? Daily Demand = 2000 pieces Qty/Cont. = 50 pieces / container Delivery Cycle =A:B:C 1:6:3 D = .25 days # of Supplier = Daily Demand x A x (C+1) + D x Daily Demand Qty/Cont. B Qty/Cont # of Supplier = 244 KB001 Kanban A New Approach How Many Withdrawal Cards are in the System for an Outside Supplier? Daily Demand = 2000 pieces Qty/Cont. = 50 pieces / container Delivery Cycle =A:B:C 1:6:3 D = .25 days # of Supplier = Daily Demand x A x (C+1) + D x Daily Demand Qty/Cont. B Qty/Cont # of Supplier = 2000 * 1 * (3+1) + .25 * 2000 50 6 50 # of Supplier = (40 containers * .67) + 10 # of Supplier = 36.8 cards = 37 cards (Round up) 245 KB001 Kanban A New Approach Kanban System Summary • Key to Successful Information Flow • Customer • Internal • Supplier • Opportunities for Improvement • • • • Inventory reduction Lead-time reduction Greater flexibility Better visual management 246 KB001 Kanban A New Approach No Pain, No Gain • The truth about a Kanban System • Easy to use and follow • Difficult to implement • Keys to success in the Kanban System • • • • Training Trial and error Team problem solving Perseverance 247 KB001 Kanban A New Approach Initial Start-Up • Start at the beginning of the chain and work your way downstream • Customer loop • Internal pull • Transition to the supplier • Anticipate problems, they will happen!!! 248 KB001 Kanban A New Approach Think Long-Term • Learn the basics first • Understand the root cause of problems • Take action after the root cause is clear • Initial inventory goes up • Plan out your strategy • Communicate your plans to upper management 249 KB001 Kanban A New Approach Be Prepared to Deliver 250 KB001 Kanban A New Approach Get Serious !!! 251
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