The Lean Enterprise Kanban – Types and Operating Systems Lean Foundations Continuous Improvement Training freeleansite.com © Improvement Initiatives (used with permission of author) Kanban What is Kanban? • Card system that controls production & inventory • Visual pull system vs. a “black box” push system (MRP) freeleansite.com © Improvement Initiatives (used with permission of author) Categories of Kanban Instruction Production Kanban (non lot production) Triangle Kanban (for lot production) Kanban Withdrawal Interprocess Kanban Supplier Kanban freeleansite.com © Improvement Initiatives (used with permission of author) Types of Kanbans & Systems freeleansite.com © Improvement Initiatives (used with permission of author) Milkman vs. Breadman • What did a Milk Man do? • What did a Bread Man do? freeleansite.com © Improvement Initiatives (used with permission of author) Real Life Kanban – Milkman Replenish What Was Consumed. Take Empties Back To Factory Delivery Milk To House Replenish Empties Deliver Only What’s Needed Constant Time freeleansite.com © Improvement Initiatives (used with permission of author) Breadman Replenishment • Replenishment Signals – Empty Rack Inventoried Daily – Kanban Card Attached At Reorder Point – MRP Report • Replenishment Options – Constant Quantity or Constant Time – Flow through Rack • Material Warehouse • Withdrawal Kanban Rack At Preceding Process • Outside Stores – Production Ordering Replenishment – Supplier Replenishment • Point Of Use • Transmitted Signal (Filled From Finished Goods) freeleansite.com © Improvement Initiatives (used with permission of author) TWO-BIN System • Replenishment Signals Maturity Path • Stockroom – Pick List/ MRP – Kitting – Centralized Breadman – P.O.U. Two Bin Warehouse – Two Bin Line Side – Integrated Supply – Empty Bin – Kanban Card Attached To Bin – Visual – Lines On Floor – MRP Report • Replenishment Options – Constant Quantity Or Constant Time – Material Warehouse – Stockroom • Inventory Turn Goals − One To Two − Once A Month − Twice A Month − Once A Week – Supplier • Vendor Managed Inventory • Point Of Use At Line or Stockroom • Transmitted Signal – EDI – Production Ordering Replenishment – Supplier Replenishment freeleansite.com © Improvement Initiatives (used with permission of author) Definitions Conveyance or Milk Run Route: • The Conveyance is the designated path or standard work that a water spider (material handler) takes to replenish the shelves. Pitch: • Refers to the time relating to the cycle the “water spider” has to replenish the stock. • Pitch is a lean concept and is calculated by multiplying cycle time by pack quantity (the number of products per container transferred to finished goods from the work cell). freeleansite.com © Improvement Initiatives (used with permission of author) Kanban Squares X X X X X X Flow of work Flow of information Simple Common Kanban freeleansite.com © Improvement Initiatives (used with permission of author) Kanban Shelving & Labeling Schemes A 1 B C Part 1232 Battery Clip Location A-1-A 2 3 4 5 Rack A freeleansite.com © Improvement Initiatives (used with permission of author) Sheet Metal Kanban – No Cards Final Assy Weld Paint Sheet Metal Kanban Weld Kanban Milk Man 2 days supply Based on current Mix Bread Man 1 Week supply © Improvement Initiatives (used with permission of author) 1 day to paint Steps: 1. Final assy pulls from paint kanban. 2. Paint pulls from Weld kanban 3. Welder replenishes weld empties, pulls from S/M Kanban 4. Paint replenishes paint kanban daily and puts finished units back in Paint Kanban freeleansite.com 5. Sheet metal replenishes S/M Kanban once a week Supplier Kanban With Cards Supplier delivers Material with Kanban cards from yesterday attached and picks up today's Kanban cards Material Withdrawal Kanban Post SIPLACE 80S SMT Machines Material Handler (Water Spider) delivers material to supermarket Material Supermarket Lean Materials Strategy Will Maximize Inventory Turns Through Supplier Managed Inventories freeleansite.com © Improvement Initiatives (used with permission of author) Triangle Kanban • Established for internal lot-processing or batch worksites • For processes that have lengthy set-up times • Production time is at a faster pace than that required in the following process • This type of Kanban has a signaling device built in to prepare for change over freeleansite.com © Improvement Initiatives (used with permission of author) Visual Management • Kanban used for batches freeleansite.com © Improvement Initiatives (used with permission of author) Part Description Location parts will be consumed (customer) Part Number Area defining lot size and time allotted for run Area defines when product needs to be rescheduled for production Date is hand written by consuming area when pulled Defines which equipment product is dedicated to run on What tool is used to produce this product Triangle Grid Definition freeleansite.com © Improvement Initiatives (used with permission of author) freeleansite.com © Improvement Initiatives (used with permission of author) Triangle Kanbans at Work Weld Cell #1 Assembly Cell Weld Cell #2 freeleansite.com © Improvement Initiatives (used with permission of author) Toyota Kanban Timeframe • Took 12 years to flow down kanban within Toyota • It then took: – 8 years to have 60% of first tier suppliers on kanban – 20 years to get 98% of first tier suppliers on kanban • Only approximately 50% of Toyota suppliers are using kanban systems internally today freeleansite.com © Improvement Initiatives (used with permission of author) Implementation keys • • Keep it simple Develop strategy in phases toward P.O.U. – Utilize stockroom and warehouse on floor • Then Eliminate stockroom • Then Eliminate warehouse • • Have supplier continue to play larger role Make it very visual. Should not have to count: – – – – – • • Label shelves and boxes Use water levels Taped /sealed boxes Color codes, Bar Codes Egg carton approach, mistake proof system Continue to reduce quantity and increase replenishment frequency. Kanbans are inventory (evil) and need to be constantly minimized or eliminated As you move from Kanbans to Job Order (MTO) replenishment - upstream processes must adapt. (sets to job order decreases lot sizes i.e. sheet metal) freeleansite.com © Improvement Initiatives (used with permission of author) Questions ? Discussion ? freeleansite.com © Improvement Initiatives (used with permission of author) The Lean Enterprise Kanban – Types and Operating Systems Lean Foundations Continuous Improvement Training freeleansite.com © Improvement Initiatives (used with permission of author)