Operations Special Interest Group (SIG)

Operations Special Interest Group (SIG) Purpose:

The purpose of the SIG is to provide the opportunity for attendees to discuss their experience with the topic area of the month. The SIG meeting format is not intended to be a seminar or workshop but rather an information sharing opportunity where people can discuss their successes, struggles, and/or questions with one another in a facilitated environment.

BEC

Strategic Partnershipsand Members

Benchmarking& Coaching

KnowledgeNetwork

PlacementServices

World-ClassTraining

Special InterestGroups / Tours / Workshops

EconomicDevelopment

On-LineServices

www.bec.msoe.edu(800) 321-6763

What are Kanbans Anyway?

Kanban Japanese for signal or signboard

1. Kanbans are signals developed to automateinventory replenishment cycles for items inyour business processes.

2. Kanbans tie related processes together in pullsystem that authorizes activity only upon

signal demand as if they were connected by an invisible conveyor.

Kanbans are:

Communication devices from the point of use to the previous operation (customer to supplier)

Purchase orders for your suppliers Work orders for your manufacturing area Visual communication tools Paperwork eliminators

How Many Days in a Constant Cycle Kanban Loop?

Number of days in transit from supplier Suppliers replenishment lead time Supplier may make more than one daily

delivery

How Many Units in a Constant Quantity Kanban Loop?

Determined by changeover cycle-time and sales rate.

One-piece flow becomes more feasible as changeover cycle-time and transit time approaches zero.

How Many Cards in a Kanban Loop

Determined by quantity in each container. Number of containers determined by lead time. Containers may be a bin, box, cart, tub, rack, or

skid.

How Many Units in a Production Lot?

Goal is enough for X # shifts. Daily demand to suppliers based on monthly MPS. Calculation includes allowances for all delays and

producing defects. Changeover cycle-time and supplier lead-time allowances

are delays. Lead-time is the sum of run-time, queue-time, transit-time,

and kanban collection-time.

Kanban System Improvements

Reduce Changeover Cycle-Time Reduce Production Lot Size Reduce Quality Defect Rate Increase Equipment Reliability Rate Increase Number of Parts and

Operations in Kanban Control

Typical Kanban Card Information

Part Number

Description Container Quantity

KANBAN BOOMCARD PLANT

USER AREA VENDOR Container 1 of 2

Replenishment Location:

7080832

Support Chain Sheave

Intermediate Set-Up TRAK

Burn Table

14

Example: KanBan Card for TRAK Item

Internal Kanban

Data fields may be bar coded as an alternative and include part revision data.RFID technology may also be used.

External Kanban

14

Part Number

Description Container Quantity

KANBANCARD

USER AREA VENDOR Container 1 of 3

Replenishment Location:

6618003Weldment Outer Sheave Support

Outer Boom Atlas Set-Up

BOOM PLANT

Dave's Job Shop

Dave's Job Shop

Example: KanBan Card for Vendor Item

Data fields may be bar coded as an alternative and include part revision data.RFID technology may also be used.

In House KanbanTwo Bin System

Container 1 of 2

Kanban R

ep len is hme nt St ag in g

Ref ill C

o n tai ne r

ReplenishmentLoop

Container 2 of 2

Vendor KanbanThree Bin System

Container 1 of 3

Container 2 of 3

Container 3 of 3

Kanban R

ep len is hme nt St ag in g

Ref ill C

o n tai ne ra t V

en d or or Ven do r Fi lls at L

oc at ion

ReplenishmentLoop

Container 3 isSitting at supply Point filled

Flow Manufacturing:In Process Kanbans

Dedicated Low Volume Line:Ideal process is one piece at a time.

Kanban Square IPK

Unit Unit Unit Unit UnitOp 10 Op 20 Op 30 Op 40 Op 50

Flow of Process

Operators

IPKIPK IPK IPK IPK

KanbanContainer

Pull System

Full---Dont build more

Drill

Drill

Empty --- Build more

Examples of Containers and Kanban Signals

Examples: Containers and Kanban Signals

Examples of Spot on the Floor Kanban Signals

Kanban Calculations

A few things to consider:

Keep safety in mind at all times when working with Kanbans: Consider material handling

weight of container operator lifting concerns ease of access to contents - operator ergonomics size & weight of part in relation to container stack-ability of the container package quantities content protection from damage, i.e.; painted or fragile components containers that can be used throughout the entire process etc. what type of assist will be needed, fork truck, hoist etc. use standardized containers whenever possible is the container designed to support automated processes?

Kanban Calculations

Kanban Quantity = A X B X C X D

For each operation:

A = Weekly Part UsageB = Supplier Lead time in weeksC = 2 locationsD = Smoothing factor(Smoothing Factor) = PN has an average weekly usageof 300 but a seasonal demand of 400 per week.400/300 = 1.333 the smoothing factor

Use when variation extends 4 or more weeks and when variationrepresents more than a 25% increase over the average. If this condition does not exist, use a smoothing factor of 1.

Kanban Calculations

Calculate the number of containers:

# of containers = Kanban Qty# of pieces held per container

Host Company to present what they have done with value stream mapping.

Group discuss questions & AnswersHand out tour guide sheets

Conduct Tour

After Tour get feedback from participants on the tour. Include recommendations that tour participants might have for the host.

Tour Evaluation sheets will be emailed in a day or two please fill them outwe depend on your feed back to make improvements.

Close meeting

Mission

To provide the opportunity for organizations striving for world-class performance to work together supported by cost-effective, professional coaching, world-class training, special interest groups and a facilitated knowledge network.

For More Information Contact us at:

www.bec.msoe.edu

800-321-6763

Kanbans are:How Many Days in a Constant Cycle Kanban Loop?How Many Units in a Constant Quantity Kanban Loop?How Many Cards in a Kanban LoopHow Many Units in a Production Lot?Kanban System ImprovementsTypical Kanban Card InformationExamples of Containers and Kanban SignalsExamples: Containers and Kanban SignalsExamples of Spot on the Floor Kanban Signals