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    Kanban

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    Ambili K C
    The kanban system was introduced by Toyota in 1950 to control inventory and production using signal cards. A kanban is a card attached to containers that moves materials between workstations based on demand. The empty container signals the previous station to replenish it. Companies implement kanban to reduce waste and only produce what is needed. The document provides an example of a company using kanban for daily connector production and calculates the number of kanbans needed based on demand, lead time, and safety stock levels.

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    Kanban

    Uploaded by

    Ambili K C
    85 views10 pages
    The kanban system was introduced by Toyota in 1950 to control inventory and production using signal cards. A kanban is a card attached to containers that moves materials between workstations based on demand. The empty container signals the previous station to replenish it. Companies implement kanban to reduce waste and only produce what is needed. The document provides an example of a company using kanban for daily connector production and calculates the number of kanbans needed based on demand, lead time, and safety stock levels.

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    kanban system based on inventory management

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    The kanban system was introduced by Toyota in 1950 to control inventory and production using signal cards. A kanban is a card attached to containers that moves materials between workstations based on demand. The empty container signals the previous station to replenish it. Companies implement kanban to reduce waste and only produce what is needed. The document provides an example of a company using kanban for daily connector production and calculates the number of kanbans needed based on demand, lead time, and safety stock levels.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    85 views10 pages

    Kanban

    Uploaded by

    Ambili K C
    The kanban system was introduced by Toyota in 1950 to control inventory and production using signal cards. A kanban is a card attached to containers that moves materials between workstations based on demand. The empty container signals the previous station to replenish it. Companies implement kanban to reduce waste and only produce what is needed. The document provides an example of a company using kanban for daily connector production and calculates the number of kanbans needed based on demand, lead time, and safety stock levels.

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    OPERATIONS MANAGEMENT

    TOPIC: KANBAN SYSTEM

    Submitted To: Submitted By:


    Alex Kuruvila Ambili.K.C
    Assistant Professor
    KANBAN SYSTEM

    The kanban system was introduced in 1950 at


    Toyota by Taiichi Ohno.
    A kanban system is a system of inventory and
    production control which uses kanbans as the
    principle information transmission devices.
    Kan means card and Ban means signal.

    kanban is referred to the card along with boxes or


    craters used to transport materials or semi finish
    components from one workstation to another, in the
    product line.
    Thecomponents are moved only when needed (on
    demand) by the next stations, such that there is no
    waiting of parts for operation or further movement.

    Two work centres A&B. Work centre A produces a


    part that is kept in a bin. Work centre B uses the
    parts from that bin. When the bin gets empty, its is a
    signal for work centre A to refill it. This empty bin is
    the Kanban signal.
    EXAMPLE
    Company A buys parts at the rate of 1000 per
    day; these are delivered in container, each carrying
    50 parts, i.e., 20 container per day. The supplier
    makes one delivery per day. The truck leaves his
    premises at 9 AM, delivers them at noon and
    returns to the supplier by evening.
    This means supplier should be getting ready
    1000 parts for supply the next day. There should
    also be empty containers available at the suppliers
    factory by the evening of the previous day.
    TWO CARD KANBAN SYSTEM

    1. MOVE CARD :-
    To authorize the movement of parts from one work
    centre to the next.

    2.PRODUCTION CARD:-
    To authorize the production of parts by the work centre.

    Toyota uses two card Kanban system,


    has its own inbound and outbound
    material storage area.
    Inbound Stock Area
    Outbound Stock Area.
    PROBLEM
    Bryant Electronics produces short runs of battery-
    powered pocket lanterns. You have been asked to
    reduce inventory by introducing a kanban system.
    After several hours of analysis you have developed the
    following data for connectors used in one work cell.
    How many kanbans do you need for this connector?
    Daily demand 1,500 units

    Production lead-time 1 day

    Safety stock 1 day

    Kanban size 250 units


    SOLUTION:
    Demand during lead time=1500
    Safety stock =1500
    Therefore: Maximum inventory level
    =1500+1500=3000
    Number of kanbans needed
    =maximum inventory level/kanban size
    =3000/250
    =12
    RULES OF KANBAN OPERATION
    The kanban must always be attached to the product.
    Withdrawal of a product should never occur unless a
    kanban is attached.
    The part should be produce according to the

    information provided on the kanban.


    If no kanban is attached to be product, there should
    not be any production function carried out.
    In the event that defective items are produced they

    should be not transferred to the subsequent process.


    It should be assured that only 100% quality parts
    are placed in the container available for use.
    ADVANTAGES OF KANBAN SYSTEM

    Eliminate waste or scrape and reduce costs.


    Design workstations to create mutual trust and support
    among humans beings.
    Design workstations to adapt and respond to change quickly.

    Promote archiving and assuring quality improvement.

    Over production is avoided.

    It respond quickly to increase or decrease in demands.

    Defective parts are isolated and move out of line.


    THANK YOU

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