Supplier Kanban (From Supplier to Plant)

Kanban Process & its advantages

1. (FROM SUPPLIER TO PLANT)

2. MAHINDRA & MAHINDRA LTD.
Mahindra & Mahindra won
the Deming Prize in 2003
Next Target is
Japan Quality Medal (JQM)
in 2007

3. MAHINDRA & MAHINDRA LTD.
For Deming,
we focused mainly on
Quality of parts.
Through dedication of Supplier
up-gradation team and suppliers,
overall rejection reduced to
below 1000 PPM .

4. MAHINDRA & MAHINDRA LTD.
Now for JQM, greater focus will be
on “LEAN MANUFACTURING.”
For “LEAN MANUFACTURING” ,
pre-requisite is PULL-BASED
PRODUCTION & MATERIAL SUPPLY

5. MAHINDRA & MAHINDRA LTD.
For
PULL-BASED MATERIAL SUPPLY,
we have to implement
KANBAN

6. MAHINDRA & MAHINDRA LTD.
Kanban Definition
A method of just-in-time production
that uses standard containers or
lot size with a single card attached
to each container to produce what
is needed and when it is needed

7. MAHINDRA & MAHINDRA LTD.
•A Japanese word. Kanban-Signal.
•Originated by Taichi Ohno of Toyota in 1952.
Got idea from super market in USA
•It is a simple system for replenishment of
materials required for production
•Kanban is a JIT tool for Pull production
•Operating principle is :
Procure as per Consumption
(Rule for pull system)
What is Kanban

8. MAHINDRA & MAHINDRA LTD.
•Material supply in fixed lot qty (Kanban size)
•No of Kanbans between plant and supplier depend
on Transit lead time.
•Agreed no. of Kanbans should be in FG stock at
Supplier’s end, depending on Supplier’s mfg. lead
time.
•Only Kanban card/signal authorizes supplier to
supply.(Card sent either physically or by e-mail)
•Supplier dispatches one kanban qty for each
kanban Trigger received by him, from stock.
Features of Kanban

9. MAHINDRA & MAHINDRA LTD.
•Specified no. of Kanbans (finished Lots) of an
item to be kept ready at supply module (M&M)
and at supplier’s end.
•As soon as that item is issued by Supply-
module to production / assembly, order (Kanban
signal) will be given to supplier
•On receiving kanban signal (e-mail),supplier
will immediately dispatch the ready kanban lot
available with him.
•After dispatch of kanban ready lot, supplier will
immediately produce and replenish the same
How Kanban is Operated ?

10. MAHINDRA & MAHINDRA LTD.
KANBAN PROCESS -UNDERSTADING
Supplier
M & M
Mfg Store
One
Lot
One Lot
Kanban
Post
Kanban
Card
3

11. MAHINDRA & MAHINDRA LTD.
KANBAN PROCESS -UNDERSTANDING
Supplier
M & M
Mfg Store
One Lot
•Material is issued to Mfg and Kanban card attached with
material is shifted to Kanban post
Kanban
Post
Kanban
Card
4

12. MAHINDRA & MAHINDRA LTD.
•Trigger is given to Supplier immediately, through E-mail.
Trigger
KANBAN PROCESS -UNDERSTANDING
Supplier
M & M
Mfg Store
One Lot
Kanban
Post
5

13. MAHINDRA & MAHINDRA LTD.
Dispatch
KANBAN PROCESS -UNDERSTANDING
Supplier
M & M
Mfg Store
One Lot
Kanban
Post
•Material is dispatched by the supplier same day
6

14. MAHINDRA & MAHINDRA LTD.
KANBAN PROCESS -UNDERSTANDING
Supplier
M & M
Mfg Store
Kanban
Post
•Material is received by M & M and Kanban card from Kanban
Post is attached to Material
One
Lot
7

15. MAHINDRA & MAHINDRA LTD.
Supplier
M & M
Mfg Store
Kanban
Post
One
Lot
One
Lot
•The lot is Replenished by the supplier and kept ready for
next dispatch
8
KANBAN PROCESS -UNDERSTANDING

16. MAHINDRA & MAHINDRA LTD.
Rules of Kanban
•Down stream operations withdraw the parts from
upstream operations.
•Make only the exact quantity indicated on Kanban
•Demand is placed on upstream operation by means of
cards/ other signal
•Only active parts are allowed at the workplace, with
specific location.
•Authorization to produce is by card/signal only.
•Each card circulates between a particular pair of
workstations only.
•Quality at source is must
•The no of Kanbans should be reduced as problems
decrease.

17. MAHINDRA & MAHINDRA LTD.
Challenges
Products Varieties.
Set up change.
Machine Layout.
Batch Production.
Quality Problems.
Machine down time.

18. MAHINDRA & MAHINDRA LTD.
•Simplicity-Precise manual-visual control.
•Lower Cost-Production utilize low cost visual tools.
•Agility-quick response to change in customer demand.
•Reduced Inventory -avoids overproduction.
•Minimal Waste-Low Inventory, better utilization of floor
space & resources
•Improved Manufacturing Productivity -Control on
production line, synchronizing the process.
•Delegation of responsibility-Operators control the chain.
•Improved communication -Clarity on what managers &
supervisors must do. No fire fighting.
•Accelerated improvements -Promote & sustain continuos
improvement.
•Enabling JIT to operate-Ability to manage the flow &
control inventory. .
Benefits of Kanban

19. MAHINDRA & MAHINDRA LTD.
Waste Elimination
•Over production.
•Inventory
•Waiting
•Transportation
•Processing
•Motion
•Defects
•Produce only what is needed
•When your customer needs it.
•Minimize lead time
•Parts close to Point of use
•Minimize repackaging,
unnecessary material handling
•Ergonomic storage design.
•Demands defect free
production.
Waste Kanban Application

20. MAHINDRA & MAHINDRA LTD.

21. MAHINDRA & MAHINDRA LTD.
Kanban size
Derived from:
Peak Consumption per day.
Rounded off to:
•Packing Qty,
•Container size,
•Economical Transport Qty.

22. MAHINDRA & MAHINDRA LTD.
No. of Kanbans
No. of Kanban= Daily output X (lead time + safety margin )
Kanban size
•Lead time= Manufacturing lead time(Processing time+Retention time)
•Safety Margin: As few days as possible.

23. MAHINDRA & MAHINDRA LTD.
Supplier Upgradation Team
•Mr Sharad Phadke -Sr. General Manager, SSBU,
E-mail : [email protected]
Contact No. Direct 022-28850092
DID 022-66483128
•Mr Jignesh Parekh -Sr. Manager. SSBU
E-mail : [email protected]
Contact No. DID : 022-66483593