Inventory Kanbans

1
Chapter 9

• Inventory Kanbans
• Automating the Replenishment Cycle

2
Kanban

• A Japanese word that means signboard or signal.
• Are signals developed to automate the inventory
  replenishment cycle for items used repetitively
  in a facility
• Communicate the need for additional material to
  be pulled from the supplier
• Integral in a pull manufacturing system.

3
Typical Kanban Signal

• An empty container designed to hold a standard
  quantity of material or parts.
• The container is sent back to the supplier from
  the customer when empty.
• If returnable containers are not used, a kanban
  can be as simple as a laminated card.

4
Kanbans

• Are
• Communication devices from the point of use to
  the previous operation.
• Purchase orders for your suppliers.
• Work orders for your manufacturing area.
• Visual communication tools.
• Paperwork eliminators.

5
Kanbans

• Are not appropriate for
• Single piece or lot production
• Safety stock
• Systems which push inventory carrying
  requirements and the associated carrying costs
  back to the supplier.
• Long range planning tools.

6
Kanbans Reduce Waste

• Eliminate
• Over-production
• The need for a stockroom
• The need to reissue purchase orders
• Reduce
• The data management task for prod plng, work
  orders
• Inventory
• Parts expediting
• Parts shortages
• Material handling

7
Types of Kanbans (Pull Signals)

• Cards attached to portable containers such as
  tote pans
• Supplier replaceable cards on cardboard boxes
  designed to hold a standard quantity
• A painted spot or border on the floor around the
  standardized container
• Color coded striped golf balls
• E-mails
• Bar code labels
• Variations of above

8
Summary

• Kanbans tie related processes together as if they
  were connected by an invisible conveyor. Kanbans
• Improve communication
• Improve customer satisfaction
• Reduce inventories
• Reduce waste

9
Pull Systems

• Outcomes
• Define Pull system
• Define supermarket
• Define kanban

10
Production Scheduling

• Constantly change
• Production never produces to a schedule
• Utilize MRP (Material Resource Planning)

11
Supermarket Pull
12
Scheduling
13
Small-Lot Production Leveling
14
Leveling Work Volume
15
Leveling Work Volume
16
Flow
17
The Problem with Inventory
18
Kanban Types

• Production Kanban
• One-per-customer kanban
• Supplying process can produce as little as one
  container
• Signal (Triangle) kanban
• One-per-batch kanban
• Signals when a reorder point is reached and
  another batch needs to be produced
• Used in supplying process where changeovers are
  required
• Withdrawal kanban
• Shopping list kanban
• Instructs the material handler to get and
  transfer parts

19
The Six Steps of Kanban

1. Consumption process withdraws only what is needed
2. Produce to replenish only what is withdrawn by
   the next process
3. Do not send defective products to the next
   process
4. Parts must not produced and conveyed when there
   is no kanban
5. Kanban must be attached to the actual parts or
   container
6. The actual number of parts in the container must
   match the number on the kanban

20
One Piece Flow

• Goal
• Represents a special case of kanban
• Lot size/quantity is one
• Benefits
• Minimizes waste in the process
• Defects affect only one component thus creating
  highest possible quality
• Minimizes inventory and space requirements
• Keeps pace with customer demand
• Efficiently utilizes labor in a balanced process
• Best possible throughput in a balanced process

21
Signal Kanban System
22
Summary

• Pull Systems
• Single scheduling point
• Produce to replenish use
• Customer demand creates production
• Level loading
• Kanban