Kanban System for Effective Just in Time Manufacturing

Kanban System for Effective Just in Time Manufacturing

1. Kanban Systems for
Effective Just-In-Time
(JIT) Manufacturing
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Topics of Discussion
What is Kanban
Why Kanban?
Kanban Theory
Kanban Disciplines
The Benefits of Kanban
Card Specifics
Sample Kan Board Layout
Kanban Factory Flow
Financial Impact of Missing Cards
Test

3. What is Kanban?
Kanban simply means a signboard or
cards.
Production personnel from the
following process goes to collect
parts from the previous process
leaving a kanban card signifying the
delivery of a given quantity of a
specific part.
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4. What is Kanban?
When all the parts have been used,
the same kanban card is sent back,
at which point it becomes an order
for more.
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Why Kanban?
Process by which you replace the exact
amount of product your customer PULLS.
Enables you to possess ONLY the material
needed by your customer.
Eliminates over stocking and increases
inventory turns.
Money is not tied up in inventory.

6. Benefits of Kanban Systems
Visual Scheduling
Improved Inventory Control
Increased Inventory Turns
Lower Inventory Dollars
Improved Orderliness on the factory floor
Reduce wasted time looking for material
Bin Identification
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7. Benefits of Kanban Systems
Pull system
Real time scheduling
Process Ownership
The next process is the customer
Reduce wasted floor space
Supplier control
No over production
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Kanban Theory
Only Quality Parts are sent to subsequent
processes. Quality is ensured prior to
placing parts in containers.

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Kanban Theory
The operators from the subsequent
operations obtain their own parts.

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Kanban Theory
Nothing is made or moved without a
kanban card.

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Kanban Theory
Cards are not to be left on products in the
HOLD area.

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Kanban Theory
Only manufacture the specific quantity
that was pulled by the subsequent
operation.

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Kanban Theory
The final assembly schedule must be load-
smoothed and sequenced.

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Kanban Theory
Cards are to be returned to the machine
specific mail box at the designated
location during breaks, lunches and at the
end of the shift.

15. Kanban Disciplines
Always turn kanban cards inafter lunches,
breaks, and between shifts to get up to
date scheduling every two hours.
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16. Kanban Disciplines
Have a common drop off locationfor
cards to be dropped off (Example: break
room, restroom or production office).
Operators on the way back from break or
restroom will look at kanban drop off to
see if any parts are pulled from their
processes. If there are cards the operator
will return the cards to their work station
and place them on the kanban board.
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17. Kanban Disciplines
Never run over the kanban card amount
and never substitute paper notes for
kanban cards. If you must run extra parts
get overrun cards from the scheduling
department. It’s always best to run the
specified kanban amount.
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18. Kanban Disciplines
Never run machines with set-up times
earlierthan when the cards are fully up to
the green on the kanban board. This
would create unnecessary set-ups. If no
cards are up to the GREEN don’t run the
machine.
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19. Kanban Disciplines
Nothing is made or moved without a
kanban card.
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20. Kanban Disciplines
Always fill containers to specified quantity
on kanban card. If you have a partial
container generated at the end of a run,
use a partial tag to identify the container
and store it away from the primary
location. When that part is set-up on the
next run then finish filling the container.
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21. Kanban Disciplines
Always define kanban cardswith a color
scheme. (Example: W.I.P. “Green”,
Finished Goods “Yellow”, Overrun Cards
“Orange”, etc...
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22. Kanban Disciplines
Always start out slowwhen implementing
kanban. Do one machine and then audit
that machine for at least two weeks to
make sure you have the discipline in the
system. Then implement another
machine. As you get more machines
done the faster the process will go,
because people will see the system work
and want it on their machines.
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23. Kanban Disciplines
Train Everybody!!!! This is very
important.
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24. Kanban Disciplines
Always start the kanban system simple,
then fine tune the system later. If you
start a difficult kanban system, it will
fail.
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25. Kanban Disciplines
Pass scheduling responsibility to the
Operators. This gives process
ownership to the people operating the
equipment or work center. They will get
a feel for the schedule and smooth out
the flow. Scheduling personnel should
only step in when a designated quantity
of parts are in the red.
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26. Kanban Disciplines
Schedule overtime based on kanban
cards in the red zone.
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27. Kanban Disciplines
Only quality parts are sent to the
subsequent processes.
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28. Kanban Disciplines
Kanban cards are not to be left on
products in the hold area.
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29. Kanban Disciplines
Establish a primary location for all parts.
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30. Kanban Disciplines
Place a kanban card on all parts in
stock when setting up the kanban board
on a machine. This will tell you where
your at with the schedule on the Kanban
board.
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Kanban Cards
Part Number
Work station
Next Station
Container
Standard Pack
Operation
Code
Description
Lot Number
Operator
Number

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Kanban Cards
A variety of colors can be used to help easily identify the
various processes. i.e Finished Goods, W.I.P., Internal
Process, Supplier Cards, Bank Cards, Partial Container
Cards, etc.

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Sample Kanban Board Layout
Part Number
Card Position &
Quantity per Peg
Greenmeans Setup on
job and run.
Cards in Red Zone
means we are using
up safety stock.

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Sample Kanban Board Layout
Card Position &
Quantity per Peg
Written with erasable
marker
Start adding cards from
the bottom and work
your way up!

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Finished Goods
Kanban Card Rack
Break Room
Kanban Factory Flow
Kanban Boards
Material flow
Kanban Cards
**Kanban cards from finished goods can be returned to
Kanban card rack by restroom or delivered back to
producing cell after shipment.

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Kanban Process Flow
Shipping pulls customer product
Shipping Tech. Pulls kanban card and returns
kanban card to appropriate area.
Some cards can be returned directly to previous
cell, and some cards will be returned to a central
zone. (Mailbox) (Example: By restroom where
everybody goes).

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Kanban Process Flow
When cards are put in the mailbox at the
designated location they will be picked up after
break,lunch or in between shifts by the operators
of that machine and placed on their kanban
board.

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Kanban Process Flow
When cards are pulled from W.I.P. containers (ex.
Assembly) these cards are pulled when the
container is empty and placed in the mailbox by
restroom and picked up by the operators after
lunch, break, or in between shifts and placed on
the Kanban board by their machine.

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Kanban Process Flow
The cards then are picked up from the restroom
mailbox by the operator and put on the kanban
board from the bottom up.
When the cards build up to the green line or run
status, setup and run that job.

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Kanban Process Flow
If there are multiple jobs up to the green line
chose which one to run next by your customer
pull. (Example: If part is directly shipped to
outside customer, probably run that one first.)

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Kanban Process Flow
If multiple cards on multiple parts are in the “Red
Zone” contact Materials Dept. for assistance on
what sequence to run the parts.
When containers are complete, cards are placed
in the pouches attached on the container.

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Kanban Process Flow
Once container is full, a kanban card is placed on
the container which authorizes the tow motor
driver to put the part in the primary location.
If a container is not quite full due to a insufficient
amount of raw material, put a partial tag on that
container and store that container in a partial area
in the plant.

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Kanban Process Flow
When the operator sets up on a part that has a
partial container the tow motor should go to the
partial area to pick up that container, to finish
filling the container to the required kanban. The
operator will know he has a partial because the
partial tag is not on the kanban board.

44. Financial Impact of
Missing Cards
No cards means no production-which is good if
you truly have the product…..But if not!
Premiums-labor, freight, subcontractor charges.
Unscheduled downtime and tooling set ups.
Creates overtime.
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45. TEST
1. What does the Red zone Represent ?
A. Daily Pull
B. Safety Stock
C. Stop running because no cards are in the red zone
D. All the above
2. Cards built up to the green line represents ?
A. Run the part
B. Do not run the part
C. You’re using safety stock
D. None of the above
3. What does the green zone represent ?
A. Machine setup “run quantity”
B. Press & Assembly are the same
C. Overtime
D. None of the above
4. Why should a machine with setup wait until all the cards are in the green before they run ?
A. Less overtime
B. Better efficiency
C. Less setups
D. All the above
5. What is the overall effect if cards are lost ?
A. Overtime, free time
B. Doesn’t effect anything
C. Expedited shipments, overtime, sub contractor charges
D. All the above
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46. TEST ANSWERS
1. What does the Red zone Represent ?
A. Daily Pull
B. Safety Stock
C. Stop running because no cards are in the red zone
D. All the above
2. Cards built up to the green line represents ?
A. Run the part
B. Do not run the part
C. You’re using safety stock
D. None of the above
3. What does the green zone represent ?
A. Machine setup “run quantity”
B. Plenty of parts
C. Overtime
D. None of the above
4. Why should a machine with setup wait until all the cards are in the green before they run ?
A. Less overtime
B. Better efficiency
C. Less setups
D. All the above
5. What is the overall effect if cards are lost ?
A. Overtime, free time
B. Doesn’t effect anything
C. Expedited shipments, overtime, sub contractor charges
D. All the above
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