Kanban System

Submitted to : Dr. Debomalya Ghosh

Presented by:Ratnodeep Paul(45) Azhar Alam(40) Sagardwip Dey(44) Zareen Mazumder(46)

Meaning of Kanban
Kanban , also spelled kamban and literally meaning "signboard" or "billboard", is a concept related to lean and just-in-time (JIT) production. According to Taiichi Ohno, the man credited with developing Just-in-time, kanban is one means through which JIT is achieved. Kanban is not an inventory control system. Rather, it is a scheduling system that tells you what to produce, when to produce it, and how much to produce.

 The term kanban describes an embellished wooden or metal sign often representing a trademark or seal. Kanban became an important part of the Japanese mercantile scene in the 17th century, much like the military banners had been to the samurai. Visual puns, calligraphy and ingenious shapes were employed to indicate a trade and class of business or tradesman.

In the late 1940s, Toyota began studying supermarkets with a view to applying store and shelf-stocking techniques to the factory floor, figuring, in a supermarket, customers get what they need, at the needed time, and in the needed amount. Furthermore, the supermarket only stocks what it believes it will sell, and customers only take what they need because future supply is assured. This led Toyota to view a process as a customer of preceding processes, and the preceding processes as a kind of store. The customer process goes to this store to get needed components, and the store restocks. As in supermarkets, originally, signboards were used to guide "shoppers" to specific restocking locations.

 "Kanban" uses the rate of demand to control the rate of production, passing demand from the end customer up through the chain of customer-store processes. In 1953, Toyota applied this logic in their main plant machine shop

Operation of Kanban
Kanban, is part of an approach of receiving the "pull" from the demand. Therefore, the supply or production is determined according to the actual demand of the customers. In contexts where supply time is lengthy and demand is difficult to forecast, the best one can do is to respond quickly to observed demand. This is exactly what a kanban system can help with: It is used as a demand signal that immediately propagates through the supply chain.

Sample Kanban

Types of Kanban
Production kanban
authorizes production of goods

Signal kanban
a triangular kanban used to signal production at the previous workstation

Withdrawal kanban
authorizes movement of goods

Kanban square
a marked area designated to hold items

Material kanban
used to order material in advance of a process

Supplier kanban
rotates between the factory and suppliers

Kanban Cards & types

There are different forms of Kanban One card kanban Two card kanban

What is Kanban?
Kan=Card Ban=Signal Japanese word Kanban means car ticket, sign or sign board. Originated in the Toyota Production System( Tough lean enterprise system) as a tool of managing the flow of production and material in a JIT(just in time) production process. JIT is one of the pillars of lean.

What Kanban does?

Kanban provide a mean of pulling into, and through , a manufacturing process. The material being pulled can include raw material, parts, component and subassemblies, including parts manufactured in house/ purchased from outside suppliers. The major element of a Kanban includes What to pull When to pull How much to pull Where to pull(from/ to) Kanban work best when the future demand is predictable and unexpected to remain relatively stable

Process: two bin

A Kanban system is the best option especially for Class C inventory items. A two bin Kanban system is proposed. A Kanban card will be attached to both the bins. Once the material inside one of the bins is used, the Kanban card is used for triggering and reordering. During the lead time second bin is used. The empty bin is replenished after the stock arrives from supplier.

The Pull Principle

Pull means replacing stock after consumption has occurred, i.e. what we do today is to replace what was used yesterday. This is an old established principle in production control Pull is usually associated with Kanban what makes Kanban different, i.e. a key part of Just In Time (JIT) system, is the way the factory is operated.

Kan-ban System
The Kanban System was developed (more than 20 years ago), by Mr. Taiichi Ohno, a vicepresident of Toyota, to achieve objectives that include [4]: o reducing costs by eliminating waste/scrap o try to create work sites that can respond to changes quickly o design work sites according to human dignity, mutual trust and support, and allowing workers to reach their maximum potential.

Kanban cards
The Kanban card is, in effect, a message that signals depletion of product, parts or inventory that when received will trigger the replenishment of that product, part or inventory. Consumption drives demand for more. Demand for more is signaled by Kanban card. Kanban cards thus, in effect, help to create a demand-driven system. Kanban cards, in keeping with the principles of Kanban, should simply convey the need for more materials. A red card lying in an empty parts cart would easily convey to whomever it would concern that more parts are needed.

Kanban Cards & types

There are different forms of Kanban One card kanban Two card kanban

Single/One card Kanban

The single card kanban, which often is not a card at all, but a container, is a very effective way of scheduling a producing work centre that feeds an assembly line. The first rule is that when the producing work centre has produced a container of parts, it keeps them. When someone on the assembly line needs more parts, they must come and collect them, but they must bring the empty container with them. This is the instruction to the producing work centre that more are required. If no one collects any, then obviously nobody needs any, therefore no more should be made. As the producing work centre may be supplying several different parts to a number of users, the rule that the producing work centre must follow is the FIFO system. The first empty container received is the part that must be made first. Again, simple and effective. It has just done away with a complex scheduling problem and a build up of work in process.

Two Card Kanban (Double Kanban).

This is the original Toyota method, developed at a time when replenishment supplies were routed through a component or parts store. The card released by the user authorizes the stores to move a replenishment supply to the user. When they do so, a second card, which is found on the pallet they are about to supply, is removed and sent to the component supplier as authority to produce another standard quantity. Dual-Card Kanban Rules No parts to be made unless P-kanban authorizes production. Exactly one P-kanban and one C-kanban should be there for each container Only standard containers are used, and they are always filled with the prescribed (small) quantity.

Three-bin system
A simple example of the kanban system implementation might be a "three-bin system" for the supplied parts (where there is no in-house manufacturing) one bin on the factory floor (demand point), one bin in the factory store, and one bin at the suppliers' store. The bins usually have a removable card that contains the product details and other relevant information the kanban card.

 When the bin on the factory floor becomes empty, i.e., there is demand for parts, the empty bin and kanban cards are returned to the factory store. The factory store then replaces the bin on the factory floor with a full bin, which also contains a kanban card. The factory store then contacts the suppliers store and returns the now-empty bin with its kanban card. The supplier's inbound product bin with its kanban card is then delivered into the factory store completing the final step to the system. Thus the process will never run out of product and could be described as a loop, providing the exact amount required, with only one spare so there will never be an oversupply. This 'spare' bin allows for the uncertainty in supply, use and transport that are inherent in the system. The secret to a good kanban system is to calculate how many kanban cards are required for each product. Most factories using kanban use the coloured board system (Heijunka Box). This consists of a board created especially for holding the kanban cards.

Replenish pull signal

Replenish pull signal

Replenish pull signal

Raw materials from vendor

Finished goods buffer

Raw material buffer buffer

WIP buffer

Work cell 2

Finished goods

Kanban has been known to do these:

Reduce Inventory Kanban will reduce inventory, on average, by 25 to 75%. This saves any company significantly in terms of rent, electricity, and storage space. In addition, all of the space freed by the implementation of a kanban system can be used for future expansions or new opportunities Improve work flow The visually organized environment ensures all parts are easily found and continually stocked. The speed of moving from one task to another is significantly reduced by the creation of clearly marked flow lanes, kanban cards, and clearly marked labels. Prevent Overproduction. Because parts are only created at the visual signal by the kanban label (link), inventory is much less likely to be overproduced. Resulting in significant savings in the holding of stock. Improves responsiveness to changes in demand. Unlike a predictive system, kanban immediately reacts to the environment. By responding to clearly and easily read kanban cards the lag time between a shift in demand and a shift in production is almost non-existent. Minimize risk of obsolete inventory, because inventory is only created as it is needed.

Introduction
Toyotas Taichi Ohno introduced kanban as a tool in the development of Just In Time manufacturing. Toyota philosophy about kanban: Kanban is an organized system of inventory buffers and as per TPS, inventory is waste, whether it is in pull system or push system. So kanban is something you strive to get rid of. Toyota uses kanban to force process improvements

Toyotas Six Kanban Practices

Never send defective products downstream to the next process Each process only orders what it currently needs from the upstream process Each process only produces the quantity ordered by the downstream process Maintain a level rate of production Use kanban to fine-tune the rate of production Work to reach a stable rate of production

Cont..
At Toyota, empty bin (a kanban) is send upstream after a demand instance. It is a signal to refill it with a specific number of parts or send back a card with detailed information about the part location. One can see Kanban cards and bins moving on the shopfloor. Instead of using sophisticated computer scheduling techniques, this is a simple, effective and visual system of managing and ensuring the product flow and JIT production system.

Conclusion
The need to maintain a high rate of improvements led Toyota to devise the kanban system. Kanban became an effective tool to support the running of the production system as a whole. In addition, it proved to be an excellent way for promoting improvements because reducing the number of kanban in circulation highlighted problem areas.

THANK YOU