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Course - Materials Handling

Topic – Kanban System


• Introduction
• Origin
• Operations
1. Toyota Six Rules (Done by Meraj)
2. Kanban Cards, Three bin System (Done by Meraj, Delete it after verify seq.)
3. Electronic System
• Types of Kanban
• Conclusion
• Reference

When you
• Rough Translation : “Card You Can See”
• Visual Signal to trigger an action

Manufacturing System in which the supply of components is

regulated through the use of an Instruction card (KANBAN) sent
along the production line.


• Developed by Toyota Engineer Taiichi Ohno

• Inspired by visit to an American Supermarket Piggly Wiggly.
Shelves were stocked
with enough products
to meet the customer

Inventory would be
restocked when there
was a Visual Signal

Operations in Kanban System

Toyota six rules

Master in Industrial Engineering

Summer Semester 2019
Kanban Card & Three bin system

Physical Kanban Card

Digital Kanban Card

Front Side of Kanban Card Back Side of Kanban Card

Master in Industrial Engineering

Summer Semester 2019
Types of Kanban Systems
When to Move

Customer In-House
Withdrawal Withdrawal Where to Move
Kanban Kanban
How to Move

Production Storage
Kanban Kanban
Flow of Kanban Systems

Supplier Kanban Movable Kanban Production Kanban Movable Kanban Customer Kanban

External Internal Raw Production Planning Plant FG External

Supplier Material Flow Unit Team Store Customer

If Need to Store Parts When Required for Production

Storage (W.P)
Kanban flow
Simple Electronic Kanban Process

Control the Optimise

System Processes

Scan Kanbans
Multisite Cloud

Eliminates manual entry errors and lost cards

Enables real-time demand signaling

Better tracking of replenishment times

Benefits Limitations
• Misinterpretations – sometimes visual signs may be
• Improves responsiveness to changes in • A breakdown at any point in the line can cause entire
demand. shutdown.
• Focused and continuous delivery.
• Increased efficiency of operations.
• Reducing stock levels and overhead
• Reduction of wastage.

Misunderstanding Kanban
X With Kanban you don’t use iterations or iteration’s not possible.
 With Kanban iterations are possible.

X With Kanban you don’t estimate.

 With Kanban demand fluctuation are estimated and easy to overcome the bottlenecks as the system is
pull type.

X Kanban is better than other tools or replacement to other tools.

 Kanban is just a process implemented in parallel to other manufacturing methods and is all about about
managing workflow or materials.