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1 Kanban A New Approach (Tool for Information Flow)

Kanban Book Final

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  • 1Kanban A New Approach(Tool for Information Flow)

  • 2Agenda

    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

  • 3Kanban System

    Based on Toyota Production System

    Driven by External Customers

    Addresses Constraints & Bottlenecks

    1. Understanding our Capabilities

    2. Lot Size Production

  • 4Overview

    Supporting Company Strategy

    Understanding Customer Needs

    Internal Kanban System

    Signaling the Supplier

  • 5The Objective

    Create Information System that Supports Lean Principles

    Pull of Product Based on Usage

    Lower Inventory / Reduced Lead-Time

  • 6Company Strategy

    Grow our Business

    Internal and external

    Strengthen our resources

    Improve our Competitive Position

    Continually strive for perfection

    Reduce cost

    Eliminate waste in operations

  • 7Supporting Company Strategy

    Elimination of Waste

    Overproduction

    Material movement

    Inventory

    Transition to Just-in-Time

    Kanban system

    Kanban signals

  • 8 Production schedules will always change

    Production will never go according to schedule

    It is human nature to overproduce

    Key Assumptions

  • 9Offsetting the Assumptions

    Kanban System

    Withdraw only what you need

    Replenish what is taken

    Overall Benefits

    Flexibility in production

    Prevents overproduction

    Reduces inventory

  • 10

    Information Flow

  • 11

    The Kanban Signal

    The Kanban signal tells us:

    When to make it! When to move it!

  • 12

    Kanban System

    Supplying

    Process

    Customer

    Process

    product

    Production Card

    Finished Goods

    Store

    Withdrawal Card

    product

  • 13

    Withdrawal Kanban Signal

    Tells us:

    When to move

    What to move

    Where to move

    How much to move

  • 14

    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

    Customer Kanban Signal Information

    Supplier

    Quantity

    Supplier Number

    Card Number

    Kanban Signal Number

    Container Type

    Part Number

    Description

    Storage Location

    Storage Address

  • 16

    Customer Kanban Signal

    Supplier

    Kanban

    Signal No.

    Part No.

    Storage Location

    Quantity Supplier

    No.

    Card No.

    Container

    TypeDescription

    Storage Address

  • 17

    Flow of Customer Kanban Signal

    Plant

    Finished

    Goods

    Store

    External

    Customerneeded product

    Customer Kanban Signal

  • 18

    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

    Move Kanban Signal

    WORK UNIT ADDRESSSTORE ADDRESS

    SUPPLIER NAME Kanban Signal No. WORK UNIT NAME

    PART No. QUANTITY CARD #

  • 20

    Flow of Move Kanban Signal

    Internal

    Raw

    Material

    Store

    Production

    Work Unitneeded product

    Move Kanban Signal

  • 21

    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

    Supplier Kanban Signal

    Kanban Signal NumberSupplier Name

    Part Number Quantity Card No.

    Customer

    Store Address Work Unit

    Address

    Part Name

  • 23

    Flow of Supplier Kanban Signal

    External

    Supplier

    Finished

    Goods

    Store

    needed product

    Supplier Kanban Signal

    Internal

    Raw

    Material

    Store

  • 24

    External

    Supplier

    Internal

    Raw

    Materials

    Storeneededproduct

    Flow of Withdrawal Kanban Signals

    Internal

    Production

    Work

    Unitneededproduct

    Plant

    Finished

    Goods

    Storeneededproduct

    External

    Customer

    needed

    product

    Supplier Signal Move Signal Customer Signal

  • 25

    Production Kanban Signal

    Tells Us:

    When to make

    What to make

    How much to make

  • 26

    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

    Production Card Information

    Store Address

    Kanban Signal Number

    Work Unit Name

    Part Number

    Quantity

    Card Number

  • 28

    Production Card

    STORE ADDRESS

    Kanban

    Signal No.WORK UNIT NAME

    PART No. QUANTITY CARD #

  • 29

    Signal (Triangle) Information

    Work Unit Name

    Part Number

    Container Type

    Quantity

    Process Time

    Lot Size

    Order Point

    Kanban Signal Number

  • 30

    Signal (Triangle)

    WORK UNIT

    NAME

    PART No.

    CONTAINER

    TYPE

    QUANTITY PROCESSINGTIME FOR 1 LOT

    LOT SIZE ORDER POINT

    Kanban Signal #

    # of containers to produce

    Where the signal

    is placed in inventory

  • 31

    Flow of Production Kanban Signals

    Internal

    Sub

    Assembly

    Work

    Unit

    Store

    Internal

    Final

    Assembly

    Work

    Unitneededproduct

    Finished

    Goods

    Store

    needed

    product

    Internal

    Sub

    Assembly

    Work

    Unitneeded

    product

    Triangle SignalProduction Signal Move Signal

  • 32

    Kanban Signal Flow

    Sub

    Assembly

    Work Unit

    Finished

    Assembly

    Work Unit

    Production Kanban Signal

    Triangle

    Kanban Signal

    Move

    Sub Stores

    Finished Goods

    Store

    A CB D

  • 33

    How Do You Handle Non-Standard Situations

    Temporary Kanban Signals

    Need scheduled down time to PM equipment

    Sample parts

    Service parts

  • 34

    Temporary Kanban Signal Card

    STORE

    ADDRESS

    WORK UNIT NAME

    PART No. QUANTITY CARD #

    Kanban

    Signal No.

  • 35

    Summary of Kanban Types

    Withdrawal

    - Customer Kanban Signal

    - Move Kanban Signal

    - Supplier Kanban Signal

    Production

    - Production Kanban Signal

    - Signal (Triangle)

    - Temporary Kanban Signal

  • 36

    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

    Kanban System Simulation

    Exercise 1

    (Without Leveling)

  • 38

    Kanban System Simulation - Exercise 1

    Objective

    To gain an understanding of Kanban System card transfer, exchange, and loop location

  • 39

    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

    Kanban System Simulation - Exercise 1 Activity Pieces

    35 Plastic bowls

    73 White Lego Blocks

    35 Yellow Lego Blocks

    5 Customer Cards

    18 Place Mats

    13 Production Cards

    8 Move Cards

    4 Supplier Cards

    5 Signal Posts

    5 Order Cards

  • 41

    Activity Layout - Exercise 1

    W

    YCustomer

    Empty

    Containers

    Signal

    Post

    4

    Final

    Assembly

    3

    3

    3

    Empty

    Containers

    Signal

    Post

    1@15

    3

    3

    3

    Sub

    Assembly

    1

    1

    1

    Empty

    Containers

    Signal

    Post

    2@15

    1Raw

    Material

    Processing

    Empty

    Containers

    Signal

    Post

    1

    Supplier

    Empty

    Containers

    Signal

    Post

    A B C

    D

    E F G H I

    J

    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 - ManagerW W

    Y4 =

    W

    Y3 =

    Y2 =

    W1 =

    1@15

    4

    44

    44 4

    44

    4

    11

    1

    11

    1

    3 3 1

  • 42

    Activity Layout - Exercise 1Card Types

    W

    Y

    Empty

    Containers

    Customer

    4

    4

    4

    4

    4

    Signal

    Post

    4

    4

    4

    4

    4

    Final

    Assembly

    3

    3

    3

    Empty

    Containers

    Signal

    Post

    3

    3

    3

    Sub

    Assembly

    1

    1

    1

    Empty

    Containers

    Signal

    Post

    1

    1

    1Raw

    Material

    Storage

    Empty

    Containers

    Signal

    Post

    1

    1

    1

    Supplier

    Empty

    Containers

    Signal

    Post

    Customer Card

    Production Card

    Move Card

    Production Card

    Move Card

    Supplier Card Production Card

    1 1

    3 3 1

  • 43

    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

    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

    Kanban System Simulation - Exercise 1 Roles

  • 45

    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

    Kanban System Simulation - Exercise 1 Roles

  • 46

    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

    Kanban System Simulation - Exercise 1 Roles

  • 47

    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

    Kanban System Simulation - Exercise 1 Roles

  • 48

    Material Handler 2

    Pick up Move Cards and empty containers from sub-assembly 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

    Kanban System Simulation - Exercise 1 Roles

  • 49

    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

    Kanban System Simulation - Exercise 1 Roles

  • 50

    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

    Kanban System Simulation - Exercise 1 Roles

  • 51

    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

    Kanban System Simulation - Exercise 1 Roles

  • 52

    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

    Kanban System Simulation - Exercise 1 Roles

  • 53

    Kanban System Simulation - Exercise 1Customer Orders vs Capacity

    3 units = 8hrs 00min

    4 units = 10hrs 40min

    Capacity

    1 unit = 2hrs 40min

    2 units = 5hrs 20min

    Day Customer Capacity Actual Production

    Order Production Hours

    1

    2

    3

    4

    5

  • 54

    The Customer

    (Starting Point for a Kanban System)

  • 55

    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

    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

    Takt Time

    Available Operating Time

    PiecesTakt Time =

    57,600 - 2,400

    900 pcs=

    61.33 per piece=

    Sets pace of production to match customer

    demand

  • 58

    Production

    Work UnitCustomer

    Producing to Customer Demand

    Customer CardProduction Card

  • 59

    Customer Ordering History

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

    Day

    Un

    its

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    Forecast

    Actual

  • 60

    Analyze Actual Requirements

    Anticipated Demand vs. Actual Demand

    Part Anticipated Demand Actual Demand Difference

    A 18,000 19,000 1000

  • 61

    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

    Leveled Production

    (Based On 500 Units Of Buffer Stock)

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

    Day

    Un

    its

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    Forecast

    Actual

    Production

  • 63

    Opportunities in Truck Pitch

    Even Truck Pitch

    Drives constant Takt Time

    Reduces fluctuation

    Overall Benefit

    Reduction in inventory

  • 64

    Truck Pitch

    Truck 2 Truck 3 Truck 4 Truck 1

    6:00 10:00 14:30 16:00 21:00 24:30

    = Break

    = Lunch

    = Between

    Shifts

    Truck Times

    1 - 6:00 3 16:00

    2 - 10:00 4 21:00

  • 65

    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

    Leveling Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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

    Production

    Work UnitCustomer

    Leveling

    Post

    B

    P

    Leveling Customer Demand

    Forecast

  • 68

    1st Shift

    Line 100

    6

    0

    0

    7

    2

    4

    7

    0

    6

    7

    0

    0

    7

    1

    8

    7

    1

    2

    7

    4

    8

    8

    0

    0

    6

    1

    8

    6

    2

    4

    6

    3

    0

    6

    3

    6

    6

    4

    2

    6

    4

    8

    6

    5

    4

    6

    0

    6

    6

    1

    2

    7

    4

    2

    7

    3

    6

    7

    3

    0

    7

    5

    4

    Takt Time Post

  • 69

    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

    Takt Time Post

    1st Shift

    Line 100

    6

    0

    0

    7

    2

    4

    7

    0

    6

    7

    0

    0

    7

    1

    8

    7

    1

    2

    7

    4

    8

    8

    0

    0

    6

    1

    8

    6

    2

    4

    6

    3

    0

    6

    3

    6

    6

    4

    2

    6

    4

    8

    6

    5

    4

    6

    0

    6

    6

    1

    2

    7

    4

    2

    7

    3

    6

    7

    3

    0

    7

    5

    4

  • 71

    Production

    Work UnitCustomer

    Leveling

    Post

    B

    P

    Leveling Customer Demand

    Forecast

    Takt Time

    Post

  • 72

    Separating Safety Stock

    Distinguish between customer fluctuation and internal problems

    Safety Stock inventory amount is based on downtime history

  • 73

    Production

    Work UnitCustomer

    Leveling

    Post

    B

    P

    Utilizing Safety Stock

    Forecast

    Takt Time

    Post

    S

  • 74

    Leveling

    Benefits:

    Neutralizes fluctuation from:

    Customers orders

    Truck pitch

    Pulls product based on:

    Customer usage

    Takt Time

  • 75

    Leveling System

    Visual Aid 1

    (Neutralizing Customer Fluctuation)

  • 76

    Objective

    To establish a pull system of production that levels the demand of the customer to meet production capabilities

  • 77

    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

    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

    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

    Visual Aid Layout - Day 1 (End of 2nd Shift)

    Leveling Post

    Takt Time Post

    6

    0

    0

    16

    6

    0

    6

    6

    1

    2

    6

    1

    8

    6

    2

    4

    6

    3

    0

    6

    3

    6

    6

    4

    2

    6

    4

    8

    17

    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

    18

    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

    8

    4

    2

    1

    8

    4

    8

    8

    5

    4

    9

    0

    0

    9

    0

    6

    9

    1

    2

    9

    1

    8

    9

    2

    4

    B

    /

    T

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

  • 81

    Visual Aid Layout - Day 2 (6:00 am)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    6

    0

    0

    16

    6

    0

    6

    6

    1

    2

    6

    1

    8

    6

    2

    4

    6

    3

    0

    6

    3

    6

    6

    4

    2

    6

    4

    8

    17

    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

    18

    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

    8

    4

    2

    1

    8

    4

    8

    8

    5

    4

    9

    0

    0

    9

    0

    6

    9

    1

    2

    9

    1

    8

    9

    2

    4

    B

    /

    T

  • 82

    Visual Aid Layout - Day 2 (6:00 am - continued)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    9

    3

    0

    2

    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

    3

    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

    1

    1

    3

    0

    1

    1

    3

    6

    1

    1

    4

    2

    L

    /

    T

    4

    1

    1

    4

    8

    1

    1

    5

    4

    1

    2

    0

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    Visual Aid Layout - Day 2 (10:00 am)Leveling Post

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  • 84

    Visual Aid Layout - Day 2 (10:00 am - continued)

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  • 85

    Visual Aid Layout - Day 2 (10:00 am - continued)

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  • 86

    Visual Aid Layout - Day 2 (4:00 pm)

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  • 87

    Visual Aid Layout - Day 2 (4:00 pm - continued)

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  • 88

    Visual Aid Layout - Day 2 (9:00 pm)

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  • 89

    Visual Aid Layout - Day 2 (9:00 pm - continued)

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  • 90

    Visual Aid Layout - Day 2 (9:00 pm - continued)

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  • 91

    Visual Aid Layout - Day 2 (End of 2nd Shift)

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  • 92

    Visual Aid Layout - Day 2 (End of 2nd Shift - cont.d)

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    Visual Aid Layout - Day 3 (6:00 am)

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    Visual Aid Layout - Day 3 (6:00 am - continued)

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  • 95

    Visual Aid Layout - Day 3 (10:00 am)

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  • 96

    Visual Aid Layout - Day 3 (10:00 am - continued)

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  • 97

    Visual Aid Layout - Day 3 (10:00 am - continued)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    4

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  • 98

    Visual Aid Layout - Day 3 (4:00 pm)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    4

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  • 99

    Visual Aid Layout - Day 3 (4:00 pm - continued)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    8

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  • 100

    Visual Aid Layout - Day 3 (9:00 pm)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    8

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  • 101

    Visual Aid Layout - Day 3 (9:00 pm - continued)

    Leveling Post

    Takt Time Post

    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

    1

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  • 102

    Visual Aid Layout - Day 3 (9:00 pm - continued)

    Leveling Post

    Takt Time Post6

    0

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    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

  • 103

    Visual Aid Layout - Day 3 (End of 2nd Shift)

    Leveling Post

    Takt Time Post6

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    1 2 3 4 Buffer Stock

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10

  • 104

    Kanban System Simulation

    Exercise 2

    (With Leveling)

  • 105

    Kanban System Simulation - Exercise 2

    Objective

    To gain an understanding of the method and benefits of leveling

  • 106

    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

    Kanban System Simulation - Exercise 2Activity Pieces

    36 Plastic bowls

    75 White Lego Blocks

    36 Yellow Lego Blocks

    5 Customer Cards

    11 Production Cards

    18 Place Mats

    3 Buffer Stock Cards

    8 Move Cards

    4 Supplier Cards

    5 Signal Posts

    1 Leveling Post

    5 Order Cards

  • 108

    Activity Layout - Exercise 2

    W

    YCustomer

    4

    4

    4

    4

    4

    Empty

    Containers

    Signal

    Post

    4

    4

    4 4

    4

    4

    Final

    Assembly

    3

    3

    3

    Empty

    Containers

    Signal

    Post

    1@15

    3

    3

    3

    Sub

    Assembly

    1

    1

    1

    Empty

    Containers

    Signal

    Post

    2@15

    1

    11Raw

    Material

    Storage

    Empty

    Containers

    Signal

    Post

    1

    11 Supplier

    Empty

    Containers

    Signal

    Post

    A B C

    D

    E F G H I

    J

    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 - ManagerW W

    Y4 =

    W

    Y3 =

    Y2 =

    W1 =

    1@15Leveling

    Post

    1 1

    3 13

  • 109

    Activity Layout - Exercise 2Card Types

    Customer Cards

    (3) Production Cards

    (3) Buffer Stock Cards

    Move Cards

    Production Cards

    Move Cards

    Supplier Cards Production Cards

    W

    Y

    Empty

    Containers

    Customer

    4

    4

    4

    4

    4

    Signal

    Post

    4

    4

    4 4

    4

    4

    Final

    Assembly

    3

    3

    3

    Empty

    Containers

    Signal

    Post

    3

    3

    3

    Sub

    Assembly

    1

    1

    1

    Empty

    Containers

    Signal

    Post

    1

    1

    1Raw

    Material

    Storage

    Empty

    Containers

    Signal

    Post

    1

    1

    1

    Supplier

    Empty

    Containers

    Signal

    Post

    Leveling

    Post

    1 1

    3 3 1

  • 110

    Kanban System Simulation - Exercise 2Roles

    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

    Kanban System Simulation - Exercise 2Roles

    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

    Kanban System Simulation - Exercise 2Roles

    Manager

    Focus on improving operations

  • 113

    Kanban System Simulation - Exercise 2Customer Orders vs Capacity

    Day Customer Capacity Actual Production

    Order Production Hours

    1

    2

    3

    4

    5

    3 units = 8hrs 00min

    4 units = 10hrs 40min

    Capacity

    1 unit = 2hrs 40min

    2 units = 5hrs 20min

  • 114

    Internal Kanban System

    (Operating The Internal System)

  • 115

    Internal Kanban System

    Production Instruction

    Production Card

    Signal (Triangle)

    Material Movement

    Move Card

    Delivery system

  • 116

    Kanban SignalTool To Trigger Production

    Production Card

    High level of capability in the work unit

    Production of parts in any order

  • 117

    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

    ProducingCard for Card

  • 118

    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

    Points to Remember

  • 119

    Flow of the Production Card

    Supplying

    Process

    product

    Production Card

  • 120

    Kanban SignalTool to Trigger Production

    Signal (Triangle)

    Long changeover times

    Production in lot size

  • 121

    Production by Lot Size

    A B CC CA A B

    1st 2nd

    CB

    3rd 4th

    Withdrawal Period

    A B

    Direct Relationship between Changeover times and Inventory Levels

  • 122

    Signal (Triangle)

    WORK

    UNIT

    NAME

    PART No.

    CONTAINER

    TYPE

    QUANTITY PROCESSINGTIME FOR 1 LOT

    LOT SIZE ORDER POINT

    Signal #

    # of containers to produce

    Where the signal

    is placed in inventory

  • 123

    Signal Triangle

    When using the Signal Triangle, every part number on the work unit has its 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

    Lot Size Production

    Signal Instructs the Work Unit:

    When to produce the part

    How many to produce at one time

  • 125

    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

    Available Time

    Available Time =

    (Number of Hours per Shift) (Break Time)

    57,600 seconds - 2,400 seconds = 55,200 seconds

    Number of Shifts: 2 Hours per Shift: 8

    Number of Breaks per Shift: 2 Minutes per Break: 10

  • 127

    Demand Calculation

    Daily Demand = Monthly Demand

    # of Days in Demand Period

    Part Monthly Demand Daily Demand

    A 4000 pcs 200 pcs

    B 6000 pcs 300 pcs

    C 8000 pcs 400 pcs

    D 12000 pcs 600 pcs

    Total 30000 pcs ???? pcs

    Days in Month = 20

  • 128

    Demand Calculation

    Daily Demand = Monthly Demand

    # of Days in Demand Period

    Part Monthly Demand Daily Demand

    A 4000 pcs 200 pcs

    B 6000 pcs 300 pcs

    C 8000 pcs 400 pcs

    D 12000 pcs 600 pcs

    Total 30000 pcs 1500 pcs

    Days in Month = 20

  • 129

    Calculating Production Time

    Production Time = Cycle Time x Daily Demand

    Part Daily Demand Cycle Time Production Time

    A 200 28.5 5700

    B 300 28.0 8400

    C 400 30.5 12200

    D 600 32.0 19200

    Total 1500 30.3 ??????

  • 130

    Calculating Production Time

    Production Time = Cycle Time x Daily Demand

    Part Daily Demand Cycle Time Production Time

    A 200 28.5 5700

    B 300 28.0 8400

    C 400 30.5 12200

    D 600 32.0 19200

    Total 1500 30.3 45500

  • 131

    Calculating Average Changeover Time

    Part Daily Demand Changeover Time

    A 200 900 seconds

    B 300 600 seconds

    C 400 720 seconds

    D 600 600 seconds

    Total ???? ???? seconds

    Average C/O Time = Changeover Time = ???? = ???

    # of Parts Numbers ?

    Total

  • 132

    Calculating Average Changeover Time

    Part Daily Demand Changeover Time

    A 200 900 seconds

    B 300 600 seconds

    C 400 720 seconds

    D 600 600 seconds

    Total 1500 2820 seconds

    Average C/O Time = Changeover Time = 2820 = 705

    # of Parts Numbers 4

    Total

  • 133

    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 = ????? - ????? = ??? C/Os

    ???

    (# of Parts) (# of Available C/Os)

    (?)

    /

    / (???)

    = (LOT SIZE)

    = ??? Days

  • 134

    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 = 13.7 C/Os

    705

    (# of Parts) (# of Available C/Os)

    (4)

    /

    / (13.7)

    = (LOT SIZE)

    = .29 Days

  • 135

    Lot Size per Part Number

    Part Daily Demand Lot Size # in Lot

    A 200 0.29 days 58 pcs

    B 300 0.29 days 87 pcs

    C 400 0.29 days 116 pcs

    D 600 0.29 days 174 pcs

  • 136

    # 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 ContainersRound Up

    to Next Full

    Container

    Container Lot Size

  • 137

    Order Point

    The order point determines how much inventory is needed in the stores to cover customer requirements during the

    work units 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

    Signal (Triangle)

    Pull

    from Top

    Remove Signal Triangle

    when this container is

    pulled!!

  • 139

    Order Point Calculation(Daily Demand x Downtime Percentage) = Order Point

    Quantity per Container

    Daily Demand: 200pcs (200 x .20) = 1.33

    Peak Downtime Percentage: 20% 30

    Quantity per Container: 30pcs

    Order Point: 2 Round Up

    to Next Full

    Container

  • 140

    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

    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

    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 its 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

    1.

    Inventory Stores

    3.

    2.

    Inventory Stores

    Inventory Stores

    The Production Card is put

    into a collection box to be

    sent back to the work unit.

    Move Card signals that

    the Customer Work Unit

    needs parts.

    The container is picked

    and the Kanban Card is

    replaced with the Move

    Card.

    Parts are taken to the

    Customer Work Unit.

  • 144

    # 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

    Flow Of The Signal ( Triangle)

    Order

    Point

    Customer

    Pulling

    Now Next

    Roll Cut Work Unit

    Signal Board

    A B C D

    Roll Cut Stores

    A

    B

    C

    D

    A B DC

    Collection

    Box

  • 146

    Lot Box Production

    An Alternative Approach for Increased

    Visual Management

  • 147

    Supplying

    Process

    product

    Production Card

    Lot Box Production Flow

    Lot

    Box

  • 148

    The Lot Box

    Order PointProduction Cards

    Part 1 2 3 4 5 6 7 8 9 10

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    B

    C

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    Container #

    Zero Inventory

  • 149

    Work Unit Kanban Post

    Part D C/O Card Part A C/O Card

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  • A B C D E F G H I

    Daily Demand Lot S ize Cycle T ime C/O Lot T ime T otal Run Container S ize M in. / Container C.O. T ime (min.) Calculations

    E=(BXC)

    F=(D+E)

    H=(GXC)/60

    I=D/60

    Part #

    1 2 3 4 5 6 C/O Total

    A

    B

    C

    D

    Container No.

  • 151

    Example for Part # C

    A: I - I - -

    B: I - I - - I - -

    C: I - I - - I - I - -

    D: I - - I - - I - I - - I - I - -

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    1 2 3 4 5 6 C/O TOTAL15.25 30.5 45.75 61 X X 12 73

  • 152

    Lot Box Production

    Visual Aid 2

    (An Alternative Approach)

  • 153

    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

    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

    Visual Aid Layout

    Part 1 2 3 4 5 6 7 8 9 10

    A

    B

    C

    D

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    Lot Box

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    Kanban Post

  • 156

    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

    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

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    1:26 pm

    2:12 pm

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    11:00 pm

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    12:42 am

  • 158

    Board Status - 6:00 am

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    Kanban Post

  • 159

    Board Status 6:00 am

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    Kanban Post

  • 160

    Inventory Status - 6:00 am

    Part A Part B Part C Part D

    1 Container

    1 Container

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    1 Container

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    1 Container

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    1 Container

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  • 161

    Board Status - 6:42 am

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  • 162

    Board Status - 6:42 am

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  • 163

    Inventory Status - 6:42 am

    Part A Part B Part C Part D

    1 Container 1 Container 1 Container 1 Container

    1 Container

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  • 164

    Board Status - 8:42 am

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  • 165

    Board Status - 8:42 am

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  • 166

    Inventory Status - 8:42 am

    Part B

    1 Container

    Part C

    1 Container 1 Container

    Part A

    1 Container

    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

  • 167

    Board Status 9:54 am

    Part 1 2 3 4 5 6 7 8 9 10

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  • 168

    Board Status 9:54 am

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  • 169

    Inventory Status 9:54 am

    Part B

    1 Container

    Part C

    1 Container 1 Container

    Part A

    1 Container

    Part D

    1 Container

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    1 Container 1 Container

    1 Container

    1 Container

    1 Container

    1 Container

    1 Container

    1 Container

    1 Container

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    1 Container

  • 170

    Board Status 10:48 am

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  • 171

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  • 172

    Inventory Status 10:48 am

    Part B

    1 Container

    Part C

    1 Container 1 Container

    Part A

    1 Container

    Part D

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  • 173

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  • 174

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  • 175

    Inventory Status - 12:02 pm

    Part B

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    Part A

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  • 176

    Board Status 1:58 pm

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  • 177

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  • 178

    Inventory Status 1:58 pm

    Part B

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    1 Container

    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

  • 179

    Board Status - 4:30 pm

    Part 1 2 3 4 5 6 7 8 9 10

    A

    B

    C

    D

    Container #

    Lot Box

    2nd Shift

    Line 100

    Kanban Post

    6

    2

    4

    6

    3

    0

    6

    1

    8

    6

    1

    2

    6

    0

    6

    5

    5

    4

    5

    3

    6

    5

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    8

    5

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    2

    6

    0

    0

    4

    5

    4

    4

    3

    6

    4

    4

    2

    4

    4

    8

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    3

    0

    5

    0

    0

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    1

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  • 180

    Inventory Status - 4:30 pm

    Part B

    1 Container

    Part C

    1 Container 1 Container

    Part A

    1 Container

    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

  • 181

    Board Status - 5:06 pm

    Part 1 2 3 4 5 6 7 8 9 10

    A

    B

    C

    D

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    Lot Box

    2nd Shift

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    Kanban Post

    7

    0

    0

    7

    0

    6

    6

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    4

    6

    4

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    4

    2

    6

    3

    0

    6

    1

    2

    6

    2

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    1

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    6

    5