Models of Heijunka-levelled KanbanSystems

Kai Furmans

Fifth International Conference on

``Analysis of Manufacturing Systems Production Management

A Kanban System
Production Kanban Withdrawal Kanban Or Market Demand

Raw Materials Warehouse

Production

Finished Goods Transport Warehouse

Customer

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

2 IFL

A Kanban System with Levelling

Next day Sequence Type 1 2 3 4 5 5 A 3 3 B 2 2 C 2 2

Production Kanban
N 6 2 2 O 3

Overflow

Withdrawal Kanban Or Market Demand

C C B B AAA C C B B AAA

Raw Materials Warehouse

Production

Finished Goods Transport Warehouse

Customer

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

3 IFL

EPEI Every Part Every Interval Calculation

Expected downtimes Setup Setup Setup

Product A

Product B

Product C

EPEI
Expected downtimes Setup Setup Setup

Setup

Setup

Setup

Product A

Product B

Product C

Product A

Product B

Product C

EPEI
Expected downtimes

EPEI
13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH) 4 IFL

No Capacity Limits, iid Demands, no Levelling

Assumptions: Periodic demand and review Fixed and constant lead times tr Demand is iid distributed , a demand of j items is described by the probability dj Stock development (up or down)

Distribution of stocks in replenishment period

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

5 IFL

Basic Model with Unlimited Capacity: Example

Probability distribution of the stock level within the replenishment period
0,12
demand distribution
0,50 0,40

Input parameter:
0,10 0,08
1 2 3 4
am ount

probability

0,30 0,20 0,10 0,00 5 6 7 8

Service level >= 95%

0,06 0,04

Replenishment time: 3 time units

0,02 0,00 -16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16

Necessary base stock level: 6 units

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH) 6 IFL

Basic Model with Unlimited Capacity

Necessary base stock level to satisfy an service level of 0,95
16 14

base stock level

12 10 8 6 4 2 0 0 0,1 0,2 0,3 0,4 0,5 0,6 0,7

coefficient of variation

The necessary base stock level increases linear with coefficient of variation of demand
13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH) 7 IFL

Capacity Limits, iid Demands, with Levelling

The assembly line has a capacity of c units per EPEI In period n Qn units are sold Kanbans, that exceed capacity c in one period, are collected in the overflow box If in one period, less than c units are sold, Kanbans from the overflow box are moved to the board (if available) Daily production is never more than c units, but can be less . Difference between Capacity and Demand: Number of waiting Kanbans in period n + 1 If replenishment interval equals 1, (for assembly systems often the case), then the number of not yet replaced items in stock is:

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

8 IFL

Duality: Heijunka Model as GI/D/1-System or D/GI/1-System

Stochastic demand deterministic capacity: GI/D/1-System? Discrete Time GI/D/1-Queueing-System: Distance between requests vary, requests for capacity are homogenous Discrete Time D/GI/1-System Queueing-System: Distance between requests is identical (one period), workload is varying Lindleys Equation in discrete time:

Distribution of probabilities can be computed with existing algorithms (i.e. Grassmann / Jain using Wiener-Hopf-Factorization)

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

9 IFL

Limited Capacity - Heijunka Controlled: Example

0,14 0,12 0,10

Service level >= 95%

probability

0,08 0,06 0,04 0,02 0,00 0 5 10 15 20 25 30

amount

Necessary base stock level: 17 units

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH) 10 IFL

Reduction of Variability of Demand

yi describes the distribution of the idle capacity per time interval for arriving Kanbans. zi describes the distribution of the idle capacity per time interval. The difference between the available capacity c and the idle capacity zi is the demand of parts which is requested from the supplier to replenish the raw materials. Thus:

The requested replenishment quantity at the supplier now is:

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

11 IFL

Limited Capacity - Heijunka Controlled: Example

comparison: customer demand vs demand to supplier 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 5 6 7 8 9 10 11 12 13 14 15 amount demand customer demand supply

number of kanbans in the overflow

0,6 0,5
probability

probability

If supplier has a capacity of 10 all demands will be fulfilled immediately

0,4 0,3 0,2 0,1 0 0 1 2 3 4 5 6 7 8 9 amount

Capacity: 10 The coefficient of variation of supplier demand decreases: v customer demand = 0,27 v demand to supplier = 0,17 Reduction of the bullwhip effect
13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH) 12 IFL

Multiple Product Case, iid Demands, Limited Capacity

The Multiple product case can be treated exactly as the single product case, if the capacity c is preallocated on the different products The calculations can be done for each product separately. If all requests are handled by the same assembly unit, then the single product case has to be applied With a subsequent stock sizing using the waiting time distribution of Kanbans for the determination of the respective stock sizes. Question: On which level should Levelling be performed?

Multiple Product Case, Demands generated from Kanban Loop, Limited Capacity
Ongoing work

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

13 IFL

Conclusions We have not succeeded in answering all of your problems. The answers we

have found only serve to raise a whole set of new questions. In some ways
we feel we are as confused as ever, but we believe we are confused on a higher level and about more important things
Sign in a computer shop

13.01.2005 Institut fr Frdertechnik und Logistiksysteme - Universitt Karlsruhe (TH)

14 IFL