Kanban Training

A Comprehensive Training Tool for Using Kanban

Agenda• Defining Kanban• Brainstorming Exercise• Kanban in Depth• How it works• Example of Kanban• Exercise using Kanban• Summary

Defining Kanban• Kanban is Japanese for “card, ticket, sign,

or signboard.”• Comes from Toyota’s Production System• Manages flow of production and materials

– Used in a JIT “pull” system

After Using KanbanBefore Using Kanban

Brainstorming Exercise• Goals and hopes for kanban

– Why are you implementing this system?• What will a pull system do for you, the

company, your employees?• What are some things you could do with the

potential savings from using kanban?

Kanban in Depth• Kanban card example• System attributes

– Types of kanban cards• Functions• Rules

Kanban Card Example

SupplierPull From

ContainerCard 1Order Quan.

Part Number Description

Kanban Card

Special Instructions

System Attributes• Material vs. Production cards

– What to pull/produce– When to pull/produce– How much to pull/produce– Where to pull from

• Visual process helps people

System Attributes• Kanban is used to eliminate waste and level

production• Typical production looks like this:

Jan Feb Mar AprMay Ju

n Jul

Aug Sep OctNov Dec

0

2

4

6

DemandProduction

Functions• Serves as the “nervous system” for

production• Improve and strengthen the factory

Rules1. Don’t send defectives to the subsequent

process2. The subsequent process comes to

withdraw3. Produce only the quantity withdrawn4. Equalize the processes5. Kanban is a means to fine tuning6. Stabilize and rationalize the process

How Kanban Works• Push vs Pull activity• Calculating:

– How many kanbans are needed– Finding takt time– How many operators are needed

• ABC Classification

Kanban System

Suppliers Production Process

Final assembly

Material Kanban

Production Kanban

Signal sent from Customer

Customer

Calculating How Many Kanbans• # of Kanbans• Daily output• Mnfting • Safety margin: zero days or as few as possible• Pallet capacity: keep pallet contents small but receive more deliveries

Finding Takt Time• Takt time is the rate at which products/parts

must be produced to fulfill customer orders• T• O

How Many Operators Needed• # of operators needed• Need to find TCT

ABC Classification• A- frequently ordered items, high volume• B- somewhat frequently ordered, medium

volume• C- infrequently ordered, small volume

Example of Kanban• US Synthetics has been using lean

principles, including kanban• USS was able to stabilize their production,

along with their customers’ and suppliers

US Synthetic 7 Years Ago• Batch Processes (Extremely Difficult To See and Fix Problems)

• Production Forecast (Almost always wrong)

• Push Systems (Producing even if there is no demand)

• Hero mentality / Constant Expediting• Working overtime, but never working on the right stuff

Suppl ier Customer

Going Lean, Using Kanban

Suppl ier Customer

US Synthetic Kanban

US Synthetic Customers

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 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 5350%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Customer H On Time Delivery %

Week Number (2011-2012)

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748495051525350%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Customer V On Time Delivery %

Week Number (2011-2012)

Exercise for Kanban• Demand Analysis

Demand Analysis WorksheetPart # Daily

DemandA-B-C Machine

1 Cycle Time

Machine 2 Cycle Time

Selected Machine

Machine Center Load

A123 35 15 25

B123 25 15 25

C123 75 20 30

AA321 95 20 35

BB321 20 35 50

CC321 15 45 55

XYZ101 50 60 85

Finished Demand AnalysisPart # Daily

DemandA-B-C Machine

1 Cycle Time

Machine 2 Cycle Time

Selected Machine

Machine Cnt Load

A123 35 B 15 25 M1-2 525

B123 25 B 15 25 M1-2 375

C123 75 A 20 30 M1 1500

AA321 95 A 20 35 M1 3325

BB321 20 C 35 50 M2 1000

CC321 15 C 45 55 M2 825

XYZ101 50 A 60 85 M1-2 3000

Summary• Define Kanban• Brainstorm Exercise• Kanban In Depth

– Material vs. Production Kanban– Rules of Kanban

• Activity Review

Questions?

Reading List• Kanban, Just-In-Time At Toyota by Japanese

Management Association-David Lu• Kanban For The Supply Chain by Stephen Cimorreli• Implementing a Mixed Model Kanban System by

James C Vatalaro• Kanban For The Shopfloor by Productivity Press

Development Team