83
Global Production System Product/Patient Quantity Analysis Kaizen Kaikuku Just-in-Time Measures Standard Operations Heijunka (Leveling) Continuous Flow Total Productive Maintenance Poka-yoke (mistake proofing) Kanban Setup Reduction Changeover Multi-process Operations Jidoka (human automation) GPS MUDA MUDA Visual Control Andon TAKT TIME ONE PIECE FLOW PULL PRODUCTION R e d e p l o y m e n t Committed Leaders Profit = Price - Cost TAKT Time Map Capacity Tables Cost Reduction By Eliminating Waste GPS Depth Study NVA/VA- Functions/Mgrs Quality Cost Delivery Morale Safety Value Stream Mapping 5S Sorting Simplifying Sweeping Standardizing Self Discipline 3P Prod Prep 7 Flows Medicine 7 Wastes RPIW 7 Flows Factory 4 Nos © 1996-2013, John Black and Associates LLC (modified from Hiroyuki Hirano, Productivity Press). Global Kanban System Module 09-B

Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

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Page 1: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Global Production System

Product/Patient Quantity Analysis

Kaizen Kaikuku

Just-in-Time

Measures

Standard

Operations

Heijunka

(Leveling)

Continuous

Flow

Total

Productive

Maintenance

Poka-yoke (mistake

proofing)

Kanban

Setup Reduction

Changeover

Multi-process

Operations

Jidoka (human

automation)

GPS

MUDA MUDA

Visual

Control

Andon

TAKT TIME ONE PIECE FLOW PULL PRODUCTION

R

e

d

e

p

l

o

y

m

e

n

t

Committed Leaders

Profit =

Price - Cost

TAKT Time Map

Capacity Tables

Cost Reduction By Eliminating Waste

GPS Depth Study

NVA/VA-

Functions/Mgrs

Quality Cost Delivery

Morale Safety

Value Stream Mapping

5S • Sorting

• Simplifying

• Sweeping

• Standardizing

• Self Discipline

3P Prod Prep

7 Flows Medicine

7

Wastes

RPIW

7 Flows

Factory

4 No’s

© 1996-2013, John Black and Associates LLC

(modified from Hiroyuki Hirano, Productivity Press).

Global

Kanban

System

Module 09-B

Page 2: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

I. SGC Production System

II. What is Global Kanban System?

III. The Origin of Kanban System

IV. Common Production System V. Pull Production System VI. Operation of Kanban System VII. Concepts of Transportation

VIII. Heijunka Production and Kanban System IX. Case Study & Simulation

Global Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 2

Page 3: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Basics

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Page 4: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

I. SGC Production System

The pillars of the SGC production system are Just in Time and Autonomation .

Heijunka is a prerequisite to support the two pillars of the SGC-PS

Autonomation

(Jidoka)

Stops by itself if

an irregularity

occurs

Just In Time

Heijunka Production

Make or transport

what is needed,

when needed,

in the amounts

needed

SGC

Production System Production System SGC

Cost reduction based on waste elimination

Manpower

Materials

Machinery

Standard

Work

Standard

WIP/Kanban

Andon

Operational

availability

Takt Time

1 piece flow

Supermarket

Pull System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 4

Page 5: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Heijunka Production (Prerequisites)

Autonomation a. Build quality into processes

a. Manpower reduction

Equipment stops at irregularities, Use of Andons, problems are notified

Operational availability

PM (Preventive Maintenance)

Operator work vs. machine work

a. Continuous flow processing

(Flow production)

b. Takt time production

c. Pull system

Process sequence layout, 1-piece flow,

synching, connection, cross-functional

operator development

Kanban and supermarket,

small lot production

SGC-PS

Two Pillars

Fundamental

principles

Tangible

tools/tactics

Just In Time Standard work, Flexible staffing

I. SGC Production System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 5

Page 6: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

I. SGC Production System

Taiichi Ono(1912-1990) The Two Pillars of TPS

“Jidoka” by Sakichi Toyoda

“Just In Time” by Kiichiro Toyoda

Establishment of TPS

(The Essence of TPS)

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 6

“Cost reduction by thorough

elimination of waste”

Basic philosophy of TPS

How to manufacture cheaply what is needed(sold),

when it is needed(sold), in the amount needed(sold)”.

Page 7: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

II. What is Global Kanban System?

Just-In-Time

One of two pillars to support SGC-PS

“Manufacturing and transportation (purchase) of only what is

needed, when it is needed, in the amount needed”.

Major Premise : Heijunka

Three Basic Principles ① Flow Production

② Takt Time Production(decide Takt by required numbers)

③ Pull Production System

“Kanban System” is a tool to realize “Pull Production System” and “Replenishment Production System”.

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 7

Page 8: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

II. What is Global Kanban System?

The Elements of Kanban

①Tool to realize Just-In-Time

Production Order, Transportation Order, Purchasing Order

②Prevention of Muda of “over-production”

Production control by proper number of Kanban

③Quality Improvement

100 % Good Products are formed in production system.

④Tool of Kaizen

The problems become evident.

⑤Visual control is enhanced

Production status and production urgency (priority) become visible.

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 8

Page 9: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

III. The Origin of Kanban System

• At the supermarket, customers take only “what they need, when they need it, in the amount needed”.

• The supermarket must stock all kinds of goods so customers may buy whatever / whenever / in quantity.

• The Kanban System introduces a supermarket model to the production line. (1954 This idea came from the US supermarket.)

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 9

Page 10: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Structure of Supermarket and Kanban System

Supermarket

Warehouse Transportation Goods Cashier

Kanban System

Preceding process Transportation Line-side parts store

Kanban post

Kanban

Line

III. The Origin of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 10

Page 11: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Push Production

Preceding Process(Supplier)

Following Process(Hospital)

Process 1 Process 2 Process 3

Production

Planning

Warehouse

Customer

Warehouse

IV. Common Production System

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“Make as many as possible of whatever is possible”

Page 12: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Preceding Process Following Process

Hospital

Storage Sickroom

Exam. Room

C

A

B

Exam. Room

Storage

Warehouse

Sickroom

A following production process “pulls” only what is needed, when

needed, in the amount needed” from the preceding process.

The preceding process buys(transports) only in the amount “used”.

V. Pull Production System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 12

Page 13: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Process

1

Process

2

Process

3

Process

1 Process

2

Process

3

One-piece at–a-time flow

Customer

Customer

V. Pull Production System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 13

Page 14: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

A. Prerequisites for Implementation

1. Continuous production

Not suitable for non-continuously production (one-time or occasionally-produced items)

2. Smaller lot-sized and Heijunka implemented production

3. Reduction of production lead time

Production lead time = processing time + holdup time (queue)

(inventory, transportation and inspection)

Investigate equipment and operator

Cost reduction

Heijunka production

Lot production Quantity

Time ( days)

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 14

Page 15: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

4. Seiryu-ka (streamline) of processes

5. Employment of Kanbans in all processes

Streamlined flow Confused flow

Branch Confluence

Flow of information

Process

Flow of materials

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 15

Page 16: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Process

1 Process

2

Process

3

Process

1

Process

2

Process

3

Process

1

Process

2

Process

3

1. Do not let Kanban rotate among multiple processes

B. Important Considerations for the Implementation

Delivery

Delivery

Delivery Finish

Finish

Finish

• A few kinds

• Short lead time Many kinds

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 16

Page 17: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

2. Stabilization of processes

100 % Good Product

Send only good product to following process

Producing rejects ;

① materials, equipment, labor and energy are used in vain

② Because Kanban System don’t work well, more than

necessary inventory occur

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 17

Page 18: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Roles Rules of Practice

1

“Pull information” or “transport

instructions information”

Following process pulls only the products

which Kanban shows were removed

2 “Production instructions information” Produce only the amount indicated in a

removed Kanban, according to its

sequence in the preceding process

3 Prevention of “over-production” and

“over-transportation”

Don’t produce and don’t transport when

there is no Kanban

4 Necessary work as “sheet of actual

materials”

Kanban must be attached to actual

materials

5 Immediate recognition and remedy for

any defective product / process

100 % good product

6 Tools for “revealing problems” and

“Controlling inventory”; tools for Kaizen

Reduce the number of Kanbans gradually

C. The Elements of Kanban and Rules of Practice

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 18

Page 19: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Kanban

1. Pull Kanban

a. Intra-Process Kanban

(instructions within process)

b. Signal Kanban

(batch process instructions)

a. Inter-process Kanban

(transport instructions)

b. Supplier Kanban

(parts delivery instructions)

2. Production Kanban

D. Types of Kanban

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 19

Page 20: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Information contained on Kanban:

Part number and part name

Storage location

Quantity per container

Line name and preceding / following process name

Total number of Kanbans and Kanban serial number

Delivery time (only for Supplier Kanban)

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 20

Page 21: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

1. Pull Kanban

a. Inter-process Kanban (transport instructions)

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 21

Page 22: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

b. Supplier Kanban (parts delivery instructions)

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 22

Page 23: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

2. Production Kanban

a. Intra-process Kanban (instructions within process)

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 23

Page 24: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

b. Signal Kanban (batch process instructions)

Line name Part number

Part name Material storage

Type of container

Following process

Reorder point

Lot size

(quantity)

Finished products storage

Quantity

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 24

Page 25: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

1. Circulate of Pull Kanban and Production Kanban

Flow with parts store Remove

Production

Kanban

Pick up parts with Kanban 1

Put parts at the

designated place

Change

Kanban 2

3

4

Transport

c

c

b

a

c

A

B

C

a b

Production

instruction

2

3

c

1

a

b

c

A

B

C

store

c

Fo

llow

ing

pro

ce

ss

Preceding process

~ Flow of Pull Kanban

~ Flow of Production Kanban

1 4

1 3

c

VI. Operation of Kanban System

E. How to circulate Kanban

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 25

Page 26: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

2. Supplier Kanban

a. Delivery Cycle

How many times?

(number of deliveries)

1 2 4

What is delivery interval?

(number of days)

What is the number of delivery

intervals to send the Kanban

back?

= (transportation interval of

Kanban’s return) 2 – 1 – 1

1 – 4 – 2

1 – 2 – 2

1 – 2 – 1

1 – 1 – 1

MON TUE WED Cycle

Example:

①②

①②

①②③④

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 26

Page 27: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

b. How to circulate Supplier Kanban

2

6

(Put on cart and

place in the proper

sequence) 5

Assembly line

Parts rack

Kanban Post

Kanban sorting rack

3

4

Supplier

Delivery vehicle

1

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 27

VI. Operation of Kanban System

Page 28: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

VI. Operation of Kanban System

c. Determination of the number of Supplier Kanban (1) Delivery Cycle [Ex.] 1-4-2 delivery cycle

Inventory Circulation of Kanban Ⅰ

Quantity of

receiving parts

per delivery

Minimum inventory

① ② ③ ④ Delivery

Quantity of inventory is at the maximum

immediately after delivery

Immediately after receiving

with

dra

wa

l w

ithdra

wa

l

A

B

C

D

1st shift

2nd shift

Inve

nto

ry

A

c ①

Delivery ①

Returned d

C

A

B

Su

pp

lier

(N-1)day N day

1st shift 2nd shift

with

dra

wa

l

a

b

c

d

with

dra

wa

l w

ithdra

wa

l

with

dra

wa

l w

ithdra

wa

l w

ithdra

wa

l

Kanban to

be returned

to supplier

by the last delivery(④)

Kanban is circulated

in the group of

(transportation interval

of Kanban’s return +1)

1 – 4 – 2

Circulated within

I . II. III group

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 28

Page 29: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

x = # of days

y = # of deliveries

z = transportation interval

of Kanban’s return

(2) Formula to calculate the number of Kanbans in Circulation

Number of parts consumed per day: 120 Number of parts contained per box: 10 Delivery cycle: 1 - 4 - 2 (x) (y) (z) Buffer rate: 0.2 day Number of Kanbans in circulation: 1 2

[Example]

i. Number of Kanban used per day:

# of parts consumed per day (120) / # of parts contained per box (10) = 12 / day

ii. Number of Kanban loaded per delivery:

# of Kanban used per day (i) (12) / times of delivery (y) (4) = 3 / delivery

iii. Group of Kanban:

Transportation interval of Kanban’s return (z) (2) + 1 = 3 groups

iv. Buffer stock:

# of Kanbans used per day (i) (12) x 0.2 = 2.4 → 3 (Round it up)

v. Number of Kanbans in circulation:

(ii) x (iii) +(iv) = 3 x 3 + 3 = 12

vi. Inventory:

0 1st 2nd 3rd 4th

Maximum inventory: 6

# of Kanbans loaded / delivery

Minimum inventory (Buffer stock) : 3

The number of Kanbans

in circulation

# of parts consumed per day X x

# of parts contained per box

(z + 1) y

+ Buffer rate (Round it up) = X

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 29

Page 30: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

3. Signal Kanban (Triangle Kanban)

a. What is “Signal Kanban”?

Signal Kanban is used as a production order in processes where many different parts are made and changeover takes a long time (batch process), such as press, die casting, resin molding, etc.

Items to be indicated on a Signal Kanban are lot size and reorder point:

Lot size is the quantity produced at a time when a Signal Kanban is removed.

Reorder point (reference quantity) indicates timing when a Signal Kanban is removed, and, unlike lot size, depends on setup time and production time.

Reorder point shows how many hours the inventory lasts and when to start production, or within how many hours after a Signal Kanban is removed.

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 30

Page 31: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Figures in brackets ( ) are for a

sample Kanban at left

Lot size:

quantity produced at one time (1,000)

Reorder point (reference quantity):

quantity of products shipped from the time

a Signal Kanban is removed to end of

operation (300)

Qty.:

quantity of parts contained in one

container (10)

Finished product store:

address of store (1 - 1)

Finished product

storage 1-1

Line

name

500 Ton Material

store

Lot size Qty. 10

1,000 Container

Part

number

300

Following Process

Reorder

point

Part name

b. Signal Kanban

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 31

Page 32: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Production sequence

Press process Production

control board

1-1 1-2

Finished product store

shipment

Following process

Take sequentially

from the upper row

of the left side block

Production

Kanban Signal Kanban

Reference quantity

(reorder point)

c. How to circulate “ Signal Kanban”

VI. Operation of Kanban System

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Page 33: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

d. How to decide the lot size and the reorder point

i. Lot size: determined by the production volume. It is ideal to produce the lot size of one product more than once a day.

If the changeover time ratio is over 20%, more than 1 / day production is difficult.

Changeover time ratio = { (changeover time x # of times) / total working time } x 100

*Try to reduce changeover time if the ratio is over 20%.

ii. Reorder point (reference quantity) = (Processing time to produce the quantity indicated in removed Signal Kanban + changeover time)

Takt time (following process)

(unit: second)

iii. Buffer stock: used in actual operation, and determined by clearly defined needs for volume change, equipment failure, defects, etc. The number of the buffer stock should be

reduced as much as possible.

VI. Operation of Kanban System

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Page 34: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

e. How to calculate reorder point (reference quantity)

[Example]

Takt time: 2.0 min. (120 sec.)

Press processing time: 4.2 sec. / 1 sheet (press stroke)

Lot size: 1,000 sheets

Changeover time: 10.0 min. (600 sec.)

Quantity per container: 20 sheets / 1 container

Reorder point: 40 sheets (2 containers)

20 sheets

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 34

Page 35: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

i. When a Signal Kanban is removed for one part:

Processing time per lot = 4.2 sec. x 1000 = 4,200 sec. (70 min.)

Reorder point (reference quantity) = Processing time per lot (4,200 sec.) + Changeover time (600 sec.) / Takt time (120 sec.) = 40

In the actual production lines, there may be more than one Kanban removed at a time because multiple parts are used; therefore, add that number in this case.

Indicate due time on production control boards.

ii. Change of Inventory Level Max.

1,000

Qty.

Lot size

(1000)

0

Min.35 40

965 = 1000-35

Time

965+35

Take from the upper row

on the left side.

Reorder

point

Lot size

Consumed quantity

during press processing

Kanban removing point

(40 Sheets)

Starting pressing point

(35 Kanbans)

Press processing time

(70 min.) Changeover time

(10 min.)

Consumed quantity

during changeover

VI. Operation of Kanban System

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 35

Page 36: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Material flow

Production Kanban flow

Signal Kanban flow

Process name

Pull Kanban flow

Annual Production plan

Sequence

Monthly Production plan

Weekly or 10-day Production plan

Body

Body

Start

Body

Finish

Starting

Order

Sheet

Painting Assembly

Casting Forging Machining Parts

suppliers Molding

Paint

Finish

Line

Off

Domestic

& Overseas

Dealers

Information

Heijunka

Daily order system

Production Planning

Parts A

Parts B

Press Machine

2

3

1

Receiving Order -Planning-Producing-Shipping

VI. Operation of Kanban System

F. Flow of Material and information

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 36

Page 37: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

Shipping Board

9:00

14:00

22:00

3:00

A Plant

Empty containers

Shipping station

Finished products storage

Shipping control

board Exchange Vendor /

Production Kanbans Heijunka post

Kanban post

No.1

No.2

Empty box

storage

Delivery C.B.

10:00

15:00

23:00

4:00

Receiving station

Supply lane

Kanban sorting rack

by customer 8:00

9:00

10:00

11:00

A1

B1

C1

A1

a1

c1

e1

f1

t1

b1

d1

g1

T1

S1

X1

Y1

Delivery control board

Touch panel

& lift key

Kanban sorting rack

by supplier

3rd track 4th track

2 shift 1shift

16H

Delivery schedule table Time:10:00

Station: No. 1

Kanban post

Kanban sorter

B Plant Transport of empty containers and supplies

Scheduled

supply

A

B

A-2

A-1

Final assembly line

Parts processing line

In the cases of

1 – 4 – 2

1 – 4 – 4

1 – 2 – 1

Simulation

How does material

and information flow

change?

Supplier (A) ~ Assembly Plant (B)

Material Flow

Supplier Flow

Parts Handler Flow

Kanban Collector Flow

Information Flow

Supplier Kanban Flow

Production Kanban Flow

(Intra-process)

2nd track 1st track

VI. Operation of Kanban System

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1. Rules a. Production Kanban

After a Kanban is removed, produce only what the removed Kanban indicates in sequence of Kanbans removed

Attach Kanbans to all products on delivery

Never produce what does not have Kanban

b. Pull Kanban

Kanban is removed when the first piece or set quantity is used

Bring Kanbans when picking up parts

Exchange Pull Kanban with Intra-process Kanban at a store where the pull Kanban is brought

Never pick up what does not have Kanban

G. Rules of Practice

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VI. Operation of Kanban System

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2. Reminders for operation of Kanban System

Minimize lot size per Kanban as much as possible

Circulate only the necessary number of Kanbans

Bring and collect Kanbans frequently as much as possible

Assume all parts are good

VI. Operation of Kanban System

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3. Visual control with Kanban

Kanban enables you to :

① determine the capability of a process

② track the inventory status of a process

③ properly allocate staff in a process

④ grasp the progress of a following process

⑤ identify the urgency of a following process (priority of work)

Following Process

Preceding Process Production

control board Finished

products

store

VI. Operation of Kanban System

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4. Role as accelerator of Kaizen System

At High Tide (many Kanbans)

The seabed is unknown

(problems are hidden)

At Ebb Tide (fewer Kanban)

Bumps and potholes become visible

(problems become obvious)

VI. Operation of Kanban System

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Problem Problem

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[Example]

(1) Too many Kanbans

All problems are hidden

(2) Reduce by one Kanban

A problem becomes obvious

Take measures

Problem: Shortage

Reason: Delay in delivery

Reason: Lack of loading lifts

True cause: Failure of Heijunka in

delivery transportation system

Problem

VI. Operation of Kanban System

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(3) Reduce by another Kanban

(4) Eliminate one more Kanban again

Problem is revealed again.

Then Kaizen is endless…….

Another problem becomes obvious

Take measures

Problem: Shortage

Reason: Heijunka failure

True cause: The part concerned was

not subject to Heijunka

Problem

Problem

VI. Operation of Kanban System

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Transportation designed for Just-In-Time

Transportation designed for efficiency

Aiming at smooth production through timely production process, transport what is needed, when needed, and quantity needed.

There is a limit on frequent delivery by a single supplier.

Study better transportation methods.

Consider

the

Balance !

Just-In-

Time

Transport

Efficiency

Aiming at efficient transportation, transport larger quantity with a large vehicle.

VII. Concepts of Transportation

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Page 45: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

VII. Concepts of Transportation

Relationship with transportation

Frequent transportation to frequently collect production information

Mixed-load transportation to consolidate a small quantity of various

products at a time

1. Principles of transportation

① Fixed quantity variable schedule transportation:

Pull materials when a certain quantity is used, following

the principle of "pull what is needed, when needed, in the

amount needed."

② Fixed schedule variable quantity transportation:

Apply this system if it is difficult for the following process

to pull materials when they reach a certain level. It is based on the

elapsed time instead of usage (pull quantity).

Kanban and Transportation System

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VII. Concepts of Transportation

2. Styles of transportation

Frequent and effective transportation:

① One set transportation

② Sequential transportation

③ Truck-change transportation

④ Intermediary Transportation

⑤ Round transportation

⑥ Frequent/Mixed Transportation

⑦ Scheduled supply

⑧ On-call supply

⑨ Unpackaged part supply

⑩ Return transportation of

empty containers

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Production control board

Preceding process

Following process ① One set transportation

Make a set of supplies

for one truckload

① ② ③

A B F

B B B

C C D

D C E

E E A

F E C

C B B

E E C

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VII. Concepts of Transportation

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② Sequential transportation

In cases where parts are large and diverse, and not all types can be kept at line side

C

A

A

B

C

D

C B

D

D B A

Following process

Supply parts according to production

sequence

Downstream processed can get by

without having unsafe inventory

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VII. Concepts of Transportation

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③ Truck-change transportation

Supplier Plant

Assy. Plant

Unloading

Transporting

Loading

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VII. Concepts of Transportation

This method is to separate

transportation by truck from

loading. When the driver

arrives at the destination,

there is a truck already

loaded waiting for the driver.

He simply switches trucks.

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④ Intermediary Transportation Supplier Plant A

Supplier Plant B

Supplier Plant C Intermediary

Plant

Mixed Load

Transport

Assy. Plant

B

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VII. Concepts of Transportation

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⑤ Round transportation

Process C

Place of Dispatch

Process A

Process B

Multiple processes are

visited in a circuit, in a

set order, and required

parts are pulled

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VII. Concepts of Transportation

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⑥ Frequent/Mixed Transportation This means a transport method where units of parts are considered, transportation

frequency is increased and is used to decrease inventory between downstream and

upstream processes. However, so as not to simply increase the transport vehicles number

of runs/loads and decrease vehicle load efficiency, it‘s necessary to mix loads and take

considerations to not increase the total number of runs/loads of the transport vehicle. *case where 4 types of parts are transported, each has demand of 1 day and 1 vehicle's worth of

parts

Bad ex. of freq. mixed load transport Good ex. of frequent mixed load transport

1st shipment

A only A B C D

2nd shipment

B only A B C D

3rd shipment

C only A B C D

4th shipment

D only A B C D

Each product -- transported once / day

Inventory quantity -- 1 day

Each product -- transported 4 times / day

Inventory quantity -- 1 / 4 day

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VII. Concepts of Transportation

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⑦ Scheduled supply

Delivery Supply lane

Supply of

fixed schedule

variable quantity

Supply schedule table

Following process

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VII. Concepts of Transportation

Supply parts in the delivery sequence at the fixed time on fixed

schedule

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Delivery Store On-call supply

⑧ On-call supply

Following process

Because delivery timing wasn't known, the forklift was driving around taking orders

The driver receives a call from the line side and supplies parts

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VII. Concepts of Transportation

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Delivery

On-call supply

or

scheduled supply

only parts

⑨ Unpackaged part supply

Store

Following process

In case there‘s no space at the line side and its not possible to supply packing units as delivered, only parts are supplied to the following process.

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VII. Concepts of Transportation

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⑩ Return transportation of empty containers

A A

A A

Empty bins + Kanban

Put Kanban and

empty bins

Parts

(with Kanban)

C

C C C B

B

B B A

A

A A

Line-side

flow rack

Empty bin

return

C C C C

B B B B

A A A A

Empty box storage

Delivery lane

Following

process

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 56

VII. Concepts of Transportation

To eliminate wasteful trips only to collect empty boxes, deliver

parts to the lines and pick up empty boxes and bring them back

on the return trips. It is the basic rule.

Page 57: Profit = Global - Saskatchewan Health Authority · The pillars of the SGC production system are Just in Time and Autonomation . Heijunka is a prerequisite to support the two pillars

A. The need for Heijunka production

Time

If you try to establish operational capacity based on your peaks

there will be a lot of waste in manpower, materials and machinery

In Heijunka production, items are made in a leveled

fashion

Work

quantity

Required

operational

capacity

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VIII. Heijunka Production and Kanban System

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B. Relationship between the customer and the Gemba

Customer

Gemba

If there's no breakwater, the Gemba will be significantly affected

An enormous amount of waste is created

Incoming order

fluctuation

Do NOT send the waves to the

production processes!

Break-

water

Production

fluctuation

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VIII. Heijunka Production and Kanban System

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Product

A

B

C

Total

9,600

4,800

2,400

16,800

240

120

60

420

Takt time

2 min.

4 min.

8 min.

1.1 min.

Production

ratio

4

2

1

Symbol

Heijunka Production

A

B

C

A

B

Dango Production

Output / shift Output / month

C

C. Heijunka Production and Dango Production

Preceding process

Following progress

*(20 days / month, 2 shift, 480 minutes / shift)

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VIII. Heijunka Production and Kanban System

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D. Two importance of Heijunka

① If following process withdraws parts in batch, what will happen? Preceding process will be in trouble

Part A

Part B

Part C

Machining process (preceding process)

A B C A B C A B C………...

A A A B B B C C C………...

Case I

Case II

Assembling line (following process)

Takt time

1 minute

Case I : With Heijunka

Machining process (A, B, C) can be operated at 3 minutes of Takt time

Case II : Without Heijunka

Machining process (A, B, C) should be operated at 1 minute of Takt time

or all parts must be stocked for assembly line between processing process and

assembly line

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VIII. Heijunka Production and Kanban System

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70” 70”

50” 50”

60”

70” 70”

50”

60” 60”

70”

50” 50”

60” 60”

A A A A A B B B B B C C C C C

Working time A : 70”

(Cycle time) B : 50”

C : 60”

・・・・・

ケース Ⅰ

ケース Ⅱ

70”

50”

60” 60” 60” 60”

A B C A B C A B C A B C A B C ・・・・・

70” 70” 70” 70”

50” 50” 50” 50”

60”

Average

Assembly line

Takt time : 1 minute

A B C A B C A B C A B C A B C...

A A A A A B B B B B C C C C C..

② If a group of parts flow at a time, what will happen? O V E R S T U F F E D

Staffing to meet 60 seconds on

average is possible.

Manpower must be added during 70- second cycle to meet production demand.

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VIII. Heijunka Production and Kanban System

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A A A A A A A A

B B B B B B B B

Line A

Line B

A A A A A A A A

B B B B B B B B

Line A

Line B

AB AB AB AB AB AB AB AB

100 100 100 100 100 100 100 100

A A A A B B B B

AM PM

AM PM

AM PM

AM PM

50

200

50 50 50 50 50 50 50 50

50 50 50 50 50 50 50 50

50 50 50 50 50 50 50 50

100 100 100 100 100 100 100 100

(units)

50 50 50 50 50 50 50 50

E. Heijunka Production and Inventory

Preceding process

(units)

Case I: Heijunka in following process

Case II: Not Heijunka in following process

Preceding process

(units)

(units)

Following process

Following process

(units)

(units)

Inventory status of part A

Inventory status of part A

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VIII. Heijunka Production and Kanban System

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Production Plan Table

F. Heijunka Scheduling

A

B

C

160

80

40

280

4

2

1

Symbol

40

20

10

70

8

4

2

14

Daily base

Mon. Tue. Wed. Thu. Fri.

14 / day 14 / day 14 / day 14 / day 14 / day

Weekly

base

Mon. Tue. Wed. Thu. Fri.

14 / day 14 / day 14 / day 14 / day 14 / day

Daily base

Mon. Tue. Wed. Thu. Fri.

14 / day 14 / day 14 / day 14 / day 14 / day

Example of production schedule based on the above table

[Ex.]

Output / month Output / week Output / day Production ratio

Total

Item

(# of operating days: 20 days / month)

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VIII. Heijunka Production and Kanban System

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[Ex.] Production ratio

4

2

1

Item

A

B

C

Total

Output / month

160

80

40

280

Symbol Output / week

40

20

10

70

Output / day

8

4

2

14

Production Plan Table :

(稼働日数: 20 日 / 月)

① ②

A B C

4 2 1

1st

2nd

3rd

4th ×

5th

6th

7th

⑤ ④

③ ③ Production ratio

Item

合計 4 2 1 ⑦

Regular intervals

Heijunka Cycle Table :

Production Sequence Flow

1st Day

1 4 5 6 7 8 9 10 11 12 13 14 3 2 ⑧

2 nd Day

How to do the Heijunka scheduling: Heijunka scheduling is created with the Heijunka cycle table

Calculate the amount of production (output) per day.

Calculate the production ratio of other items (A and B) to

smallest production item (Item C) of which the reference

value is 1, and then fill in the Production Ratio column

with these numbers.

Fill in the column of Item (A, B, C) and Production Ratio

(4, 2, 1) with figures from the Heijunka Production data

table.

Fill in the numbers up to the total number of production

ratio (4 + 2 + 1 = 7) in the Production Sequence column

as the left table. This is the one production cycle to be

repeated.

Assign the number of each production ratio to each

production sequence.

Assign each of the items at regular intervals.

Confirm if the number of the assigned item corresponds

to the total number of production ratio.

Determine the production sequence of the total daily

production amount (14) based on the Heijunka Cycle

table created.

(# of operating days: 20 days / month)

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VIII. Heijunka Production and Kanban System

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① When delivery orders

come with Kanban

1 2 3 4 5 6 7 8

A

B

C

D

① Arrival of Kanban and

boxes

② Put Kanban in the Heijunka post

⑤ Store temporarily in the

yard until shipment

④ Produce

⑥ Shipment

③ Pull by delivery

Kanban Orders

Delivery

Create own

Heijunka plan

using Heijunka

post for collected

Kanbans.

store

Delivery

Delivery

Delivery

Delivery

A: Every 4 days, ship after reaching eight boxes. B: Every 3 days, ship after reaching five boxes.

A

B

(Day)

2 boxes

4 boxes

6 boxes

5 boxes shipment 4 boxes

2 boxes

8 boxes shipment

Machining line

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VIII. Heijunka Production and Kanban System

G. Concept of Heijunka Pull

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② When delivery orders come without Kanban

⑤ Store temporarily in the

yard until shipment

Create own

Heijunka plan

based on a batch

of orders.

2 boxes

4 boxes

6 boxes

5 boxes shipment 4 boxes

2 boxes

Machining line

① Order

② Create Heijunka pull system planning table

④ produce

⑥ Shipment

③ Pull by Heijunka pull

system planning table Orders

1 2 3 4 5 6 7 8

8 8

2 2 2 2 2 2 2 2

5 5

2 2 1 2 2 1 2 2

A

B

Shipping

Pull

4 4 3 4 4 3 4 4 Total of Pull

Store

8 boxes shipment

Shipping

Pull

A

B

(Day)

Unit: Qty.

Phone

Fax

E-mail

etc.

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VIII. Heijunka Production and Kanban System

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Practice

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Production Kanban flow

Pull Kanban flow

Material flow

Signal Kanban flow

Parts a

Parts b

2 3

1

Press

Assembly

Plant

Supplier Supplier Supplier

Machine

IX. Case Study & Simulation (Kanban Overviews)

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2 Bin System is the way to supply parts by rotating two boxes per part, and is transformed system of inter-process Kanban

(Pull Kanban) in Kanban System.

The system is nice for operation at close range

(EX:between warehouse and production line in a plant, between production line and production line)

The number of parts contained per box is determined by Supply Lead Time, the number of parts consumed per day and buffer

rate.

Empty box is collected(supply instruction) periodically, fixed numbers of parts are replenished in the box and the box is supplied

in flow rack of production line side.

It is better to prepare a flow rack that we can consume parts in production order and can return the empty box easily.

By rotating two boxes of 2 bin system, Muda of inventory is eliminated and the system for parts supply is simplified and efficient.

Kanban System

*Set up 2 bin system

(From the collection of Supplier Kanban

to the order and parts supply)

(From the collection of empty box to replenishment and supply)

Supplier Warehouse Production Line

Delivery Lead Time Supply Lead Time

Empty Box

Consume

the parts

Return

empty box Empty Box

Supplier

Kanban

Replenish and supply

parts in the empty box

2 Bin System

Deliver for the

number of Supplier

Kanban

flow rack flow rack

IX. Case Study & Simulation (Case Study Ⅰ)

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Part A Part B Part C

Parts consumed per day 5 10 3

Lead time from collection of empty box to supply 2 days 1 day 3 days

(Supply Lead Time)

Buffer rate

Variation of parts consumed per day 20 % 10 % 30 %

Supply(Transportation) timing variation

1). Check the number of parts consumed per day. 2). Count how many days it takes from the day the empty box is collected to the day it is supplied. 3). Calculate the number of parts consumed per Supply Lead Time 4). Determine Buffer rate 5). Determine Buffer stock 6). Determine the number of parts contained per box

Part A

5

2 days

10

20%

2

12

Part B Part C

IX. Case Study & Simulation (Case Study Ⅰ)

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① ② ③=①×② ④ ⑤=③×④ ⑥=③+⑤ ⑦= ⑧ ⑨=⑧-⑦

Buffer Buffer

Rate Stock

A 5 2 days 10 20% 2 12 7

B

C

# of parts

contained per

box

Average

Stock

Current

StockExt. Inventry

Kanban Set-up Sheet(2 Bin System)

Part

Number

Part

NameSupplier

Price of

one part# of parts

consumed

per day

Lead Time# of parts consumed

per Lead Time

⑤+⑥

2

IX. Case Study & Simulation (Case Study Ⅰ)

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Parts A Parts B

Press Processing Time 7.0 sec./sheet 6.0 sec./sheet

Takt Time (the following process)

120 sec. 60 sec.

Press Lot Size 600 sheets 480 sheets

Qty. per Container 30 sheets/box 30 sheets/box

Material Preparation Time 30.0 min. 24.0 min.

Setup Change Time 20.0 min. 18.0 min.

Reorder Point=

Parts B

Reorder Point= =60 120

4200+1800+1200

Parts A

Press Processing Time

Material Preparation Time

Setup Change Time

(2 boxes)

*Set up Signal Kanban

IX. Case Study & Simulation (Case Study Ⅱ)

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① How to determine the reorder point of Signal Kanban 1). Check press processing time.

2). Determine the lot size for press, check on press processing time in the case of 1 lot being processed.

3). Determine the quantity per container.

4). Calculate how many boxes are needed from the lot size and quantity per container.

5). Check Takt time for the following process (check pulling speed)

6). Check preparation time for materials

7). Check setup change time

8). Calculate the reorder point

② How to work 9). Hang a signal Kanban on the pallet of the finished products store.

10). Create a Kanban Production board and hang a Kanban at the time and place of the Signal Kanban remove point.

11). Create a material Kanban, and when a signal Kanban is removed, take a material Kanban and prepare material.

Part A Part B

1. Case of Signal Kanban

IX. Case Study & Simulation (Case Study Ⅱ)

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2. Case of Kanban being set up for each pallet

1). Create a Kanban for each pallet, and every time each pallet is used, collect a Kanban

and hang it on the Kanban production board.

2). Create a Kanban Production board, display the production starting point from the

reorder point calculated above to the board.

3). When it reaches the production starting point, take a material Kanban and prepare

material.

☆ Illustrate the change of inventory level, check if the parts flow continuously,

and then determine buffer stock.

IX. Case Study & Simulation (Case Study Ⅱ)

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① Qty. when Signal Kanban is removed 60

② Time when Signal Kanban is removed and preparation for

material is finished

30 min.

Qty. consumed in the course of the process 15

③ Time when the setup change is finished 20 min.

Qty. consumed in the course of the process 10

What is the minimum Qty. 35

④ Time when 1Lot process is completed since press processing has

started

70 min.

Qty. consumed during the press processing

Buffer stock

35

① Qty. when Signal Kanban is removed

② Time when Signal Kanban is removed and preparation for material is finished

Qty. consumed in the course of the process

③ Time when the setup change is finished

Qty. consumed in the course of the process

What is the minimum Qty.

④ Time when 1Lot process is completed since press processing has started

Qty. consumed during the press processing

Buffer stock

Change of Inventory Level

Part B

Part A

600-35=565

15min.

10

70min. 20 30

600

60

35 0

sheet

Time

15 min.

10

70 min.

480

60

35 0

sheet

Time

IX. Case Study & Simulation (Case Study Ⅱ)

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Material

Kanban

Empty pallet store

Press processing

Finished products

Material

1-1 1-2 1-3 1-4 1-5

Body processing

Line side store

Kanban

Post 1

3

2

4

5

6

8

7

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Signal Kanban : Material Kanban: Flow of parts :

Cutting processing

Production

control board Finished products store

Production

control board

Flow of material and information

IX. Case Study & Simulation (Case Study Ⅱ)

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Part A Part B Part C

Parts consumed per day 10/day 30/day 2/day

Parts qty per container 4/box 3/box 2/box

Lead time from parts order to delivery(Delivery Lead Time)

2 days

1 day

5 days

Buffer rate

Variation of parts consumed per day

Delivery(Transportation) variation

20%

30%

20%

*Set Up Supplier Kanban ・Delivery instructions to the supplier are by computer

IX. Case Study & Simulation (Case Study Ⅲ)

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Part A Part B Part C 1. Create a Kanban set up sheet

1). Check the number of parts consumed per day.

2). Check the number of parts contained per box.

3). Count how many days it takes from the day the

parts are ordered to the day they are delivered. (Delivery Lead Time)

4). Determine Buffer Rate

① Check variations of the number of parts

consumed per day

② Check variations in delivery (transport)

5). Determine the delivery lot size

6). Determine the buffer stock.

7). Determine the parts reorder point.

8). Create a Kanban set up sheet of parts order.

(another page)

9). Enter the information of the sheet in the computer.

IX. Case Study & Simulation (Case Study Ⅲ)

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Kanban Set-up Sheet (Signal Kanban)

Part

Name

① ② ③ ④≧①×③ ⑤ ⑥=①×③×

⑤ ⑦=①×③+⑥ ⑧

⑨=(Max+Min)/2 ⑩ ⑪=⑩-⑨

Price of

one part

(Minimum) Stock

Part

Number Supplier # of parts

consumed

per day

# of parts

contaied per

box Lead Time Lot Size

Buffer

Rate Buffer Stock Reorder Point ④+⑥ ⑥

Average

Stock

Current

Stock Ext.

Inventory MAX MIN

A 10 4 2 days 20 20% 4(1 Box) 24(6 Boxes) 24(6 Boxes) 4(1 Box) 14

B

C

IX. Case Study & Simulation (Case Study Ⅲ)

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Change of Inventory Level Part A

Part B

Part C

① Delivery Lot Size 20

② Delivery Lead Time 2 days

③ Buffer Stock 4

④ Reorder Point 24

Stock

Average stock

24

4

14

MAX

MIN

① Delivery Lot Size 20

② Delivery Lead Time

③ Buffer Stock 4

④ Reorder Point 24

Stock

Average stock

4

14

MAX

MIN

① Delivery Lot Size 20

② Delivery Lead Time

③ Buffer Stock 4

④ Reorder Point 24

Stock

Average stock

24

4

14

MAX

MIN

0 1 2 3 4 5 6 7 0

5

10

15

20

25

30

date

quantity

35

40

0 1 2 3 4 5 6 7 0

5

10

15

20

25

30

date

quantity

20

24

4

12

date 0 1 2 3 4 5 6 7

0

5

10

15

20

8 9 10 11

5

quantity

IX. Case Study & Simulation (Case Study Ⅲ)

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Delivery Control Board

Mon Tue Wed Thu Fri Sat Sun 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

2. Create and operate supplier Kanban

Part # Name

Delivery lot size Location

Reorder

point Supplier

Delivery date

1). Create supplier Kanban.

① Fill out parts number and name

② Fill out delivery lot size

③ Fill out location of store

④ Fill out reorder point

⑤ Fill out delivery date (scheduled)

⑥ Fill out name of supplier

2). Determine the location for stores and set up Kanban at the

reorder point.

3). Set up a Kanban collection box and when it reaches the re-

order point, put out Kanban.

4). The parts order person collects Kanban, order the parts

through computer, and enter the delivery scheduled date in

the column of Kanban delivery number (expected).

5). Create a Delivery Control Board and hang a Kanban on the

delivery scheduled date.

6). When the parts are delivered, remove Kanban from the

Delivery Control Board, and take the parts and Kanban to

the store, and set Kanban at re-order point.

7). Illustrate the change of inventory level. (another page)

IX. Case Study & Simulation (Case Study Ⅲ)

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Kanban

Kanban Box

Store

Production Line

Flow of material and information

Delivery Control Board

IX. Case Study & Simulation (Case Study Ⅲ)

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Licensing agreement between the Province of Saskatchewan, as

represented by the Minister of Health and Shingijutsu Global Consulting USA Inc. & John Black and Associates LLC.

Global Kanban System

Shingijutsu Global Consulting USA, Inc. I John Black and Associates LLC. All rights reserved.

First edition: March 2011 Propriety of Shingijitsu Global Consulting USA Inc. & John Black and

Associates LLC. Any copy or distribution of whole or part of the contents is strictly

prohibited without prior written approval by Shingijutsu Global Consulting USA Inc. & John Black and Associates LLC.

© 2013 Shingijutsu Global Consulting USA, Inc. & John Black and Associates LLC. Licensed Materials – USA Copyright Laws Apply 83