The Lean Enterprise

1
The Lean Enterprise

• An Introduction to Kanban concepts

Lean Foundations Continuous Improvement Training
2
Objectives

• Learn what Kanbans are and the different way the
  terminology is used in industry
• Understand how to setup a kanban
• Understand how to implement a kanban system

3
Kanban Definition

• What is Kanban?

Kan "card"
ban "signal"

• Card system that controls production inventory
• Visual pull system vs. a black box push
  system (ie - MRP)

4
Basic Kanban (Pull signal)

• Kanbans are All Around Us
• Kanbans are Inventory
• Inventory Is waste (costly!)
• Goal Is To Minimize Inventory In Kanbans And
  Eliminate If Possible

Ultimate Goal of Kanban is to not have a KANBAN !
One-Piece Flow is the Answer !
5
Benefits of Kanban

• Primary
• Eliminate over-production, the 1 waste
• Produce only what is ordered, when ordered,
  quantity ordered
• Secondary
• Increase flexibility to meet customer demand
• Reduction in scheduling by Production Control
  Manufacturing
• Competitive advantage by sequencing shipments to
  customers (what they want, when they want it, in
  the order they want it!)

6
Kanban Options

• No Cards
• Visual (Tape On Floor)
• Two-Bin or Bin Systems
• Supplier Containers
• Painted floors, i.e. squares, circles
• Card Systems
• Electronic Kanbans - Fax or Emails
• Warehouse Or Parts Racks
• Kanban Boards Magnetic or Cards
• Containers
• Flow Thru Racks
• Supplier Boxes

7
Categories of Kanban
8
Kanban Types

• Production or (In-Process)-Kanban
• Provides production instructions for the work
  center
• Tells the workers exactly the quantity and the
  type of part to produce
• Used for work centers that produce only one part
  number or have minimal setups in spite of
  multiple part number production
• Rectangular one piece flow production
• Triangular for small lot production
• Withdrawal-Kanban
• Inter-Process Kanban
• Delivers order for parts from a preceding process
• Specifies quantity and type of parts to deliver
  from Location A to Location B
• Later replenishment system kanban are filled
  from suppliers finished goods shelf
• Sequenced withdrawal supplier sequences parts
  in reverse order for truck loading
• Supplier Kanban
• Same as an inter-process Kanban, except it
  signals conveyance of part from an outside
  supplier

9
Other Kanban Types

• Job order-Kanban
• Issued for each job order
• Through-Kanban
• When two processes are very close, it doesnt
  make sense to issue two Kanbans. Used where one
  process directly feeds (conveyor) the next
  process.
• Common-Kanban
• Where a withdrawal kanban is used as a production
  ordering kanban if the distance between two
  processes is very short and share the same
  supervisor.
• Emergency-Kanban
• Temporary, when there is a defect or problem, can
  be withdrawal or production

10
Rules of the Kanban

• Never Pass on A Bad Part
• The Parts Are Always Withdrawn From The Prior
  Process
• Produce Only What Is Necessary To Replenish The
  Quantity Withdrawn
• Level Load Production, Rapid Changeover, Small
  Lot Production, Zero Defects
• Kanban Is Used To Fine Tune (Not Provide For
  Major Changes)
• The Process Must Be Capable Of Producing Good
  Parts (Rational And Stable)
• Need Efficient Methods Of Transportation,
  Shortest Routes Possible
• Disciplined Organization
• Nothing Is Made or Transported Without A Kanban.
• Kanban Cards Always Accompany the Parts
  Themselves.
• The Number of Kanbans Should Decrease over time.

11
Summary Definition

• Kanban
• An Information System That Signals the Need To
  Start An Event
• Name For Each Individual Signal (Card Or
  Otherwise)
• Purpose
• Control The Flow of Production by Providing
  Information Which Interconnects Upstream And
  Downstream Processes At Every Level
• Implementation
• Usually A Piece Of Paper in a Vinyl Envelope Or
  Container
• Outline Markings On The Floor
• Most Common Is Two - Bin System

12

• GEMBA FLOOR WALK
• Go and see where you could implement Kanban!

13
The Lean Enterprise

• An Introduction to Kanban concepts

Lean Foundations Continuous Improvement Training