Kanban Training
A Comprehensive Training Tool for
Using Kanban
Agenda
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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
Before
UsingKanban
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
Kanban Card
Part Number
Description
Order Quan.
Card 1
Pull From
Supplier
Special Instructions
Container
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:
6
4
2
0
Demand
Production
Functions
• Serves as the “nervous system” for
production
• Improve and strengthen the factory
Rules
1. Don’t send defectives to the subsequent
process
2. The subsequent process comes to withdraw
3. Produce only the quantity withdrawn
4. Equalize the processes
5. Kanban is a means to fine tuning
6. 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
Material
Kanban
Suppliers
Signal sent
from Customer
Production
Kanban
Production
Process
Final
assembly
Customer
Calculating How Many Kanbans
• # of Kanbans=
𝐷𝑎𝑖𝑙𝑦 𝑜𝑢𝑡𝑝𝑢𝑡 𝑋(𝑙𝑒𝑎𝑑 𝑡𝑖𝑚𝑒+𝑠𝑎𝑓𝑒𝑡𝑦 𝑚𝑎𝑟𝑔𝑖𝑛)
𝑃𝑎𝑙𝑙𝑒𝑡 𝑐𝑎𝑝𝑎𝑐𝑡𝑖𝑡𝑦
• Daily output =
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑜𝑢𝑡𝑝𝑢𝑡
𝑊𝑜𝑟𝑑𝑎𝑦𝑠 𝑖𝑛 𝑚𝑜𝑛𝑡ℎ
• 𝐿𝑒𝑎𝑑 𝑡𝑖𝑚𝑒 = Mnfting 𝑙𝑒𝑎𝑑 𝑡𝑖𝑚𝑒 + 𝑙𝑒𝑎𝑑 𝑡𝑖𝑚𝑒 𝑓𝑜𝑟 𝑘𝑎𝑛𝑏𝑎𝑛 𝑟𝑒𝑡𝑟𝑖𝑒𝑣𝑎𝑙
• 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
• T𝑎𝑘𝑡 𝑡𝑖𝑚𝑒 =
𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 ℎ𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
𝑜𝑢𝑡𝑝𝑢𝑡 𝑑𝑒𝑚𝑎𝑛𝑑 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ
• O𝑢𝑡𝑝𝑢𝑡 𝑑𝑒𝑚𝑎𝑛𝑑 𝑝𝑒𝑟 𝑑𝑎𝑦 =
𝑜𝑢𝑡𝑝𝑢𝑡 𝑑𝑒𝑚𝑎𝑛𝑑 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ
𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑑𝑎𝑦𝑠 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ
How Many Operators Needed
• # of operators needed=
• Need to find TCT
𝑇𝑜𝑡𝑎𝑙 𝑐𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒
𝑇𝑎𝑘𝑡 𝑡𝑖𝑚𝑒
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
Going Lean, Using Kanban
US Synthetic Kanban
US Synthetic Customers
Customer
Customer H
V On Time
TimeDelivery
Delivery%%
100%
100%
95%
95%
90%
90%
85%
85%
80%
80%
75%
75%
70%
70%
65%
65%
60%
60%
55%
55%
50%
50%
1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435363738394041424344454647484950515253
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 53
Week Number (2011-2012)
Week Number (2011-2012)
Exercise for Kanban
• Demand Analysis
Demand Analysis Worksheet
Part #
Daily
Demand
A123
A-B-C
Machine
1 Cycle
Time
Machine
2 Cycle
Time
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
Selected
Machine
Machine
Center
Load
Finished Demand Analysis
Part #
Daily
Demand
A-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
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