...What is a Kanban? James Chapados and Agnieszka Perlinska Stowe Consulting Company PO Box 3923 Stowe, Vermont 05672 Phone: 802-635-3676 info@stoweconsultingcompany.com www.stoweconsultingcompany.com 2 Introduction A key tool in lean manufacturing is the kanban. For one of the authors, James Chapados, learning about kanbans was helped by experiences with his mother. My mother was many things, an Olympic caliber tennis player and remarkable all round athlete, a brilliant English and math teacher, witty, charming, fun, impulsive, and a loving, kind human being. But she was not what one would call a good cook. Indeed, it is hard to think of her as a cook at all. To avoid her cooking, both my sister and I learned to cook when very young. My sister and father usually took turns cooking dinner until I was old enough to become a part of the rotation. It was more self-defense than anything else. But my mother ran one heck of an efficient pantry. I never knew us to run out of any staple, be it flour, sugar, the ubiquitous “luncheon meat”, eggs, crackers, milk, or catsup (she always spelled it catsup, not ketchup, I don’t know why). At the same time, we never seemed to have a lot of stuff on the shelves. My mother would put together a shopping list for my father to buy from on Saturday mornings. It always had on it what we needed in specific quantities – one box of oatmeal, two boxes of cornflakes, two dozen eggs, one can of asparagus, three cans of corn, etc...
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...Toyota’s Production System Kanban System was found by the Vice-President of Toyota Motor Company Taiichi Ohno in the middle of the 20th century. The idea behind Kanban System came from US supermarkets and this system is about producing only the necessary products, at the necessary time, in necessary quantity (Sugimori et al., 1977). The starting point of Kanban was the recognition of diversity of Japan’s features and the idea is developed by considering the two distinct characteristics of this culture : (1) lack of resources in Japan, (2) Japanese working culture (Sugimori et al., 1977). After World War II, Japan was affected excessively - insufficient and unproductive land for agriculture - and this lead them to import huge amount of raw materials especially food. Therefore, imbalance of import and export appeared. Since Japan is in a disadvantegeous position about these reasons, it is important to reduce the production cost and to add more value to products. In addition, unlike European and American work style, Japanese working culture includes group consciousness, sense of equality - little discrimination between blue-collars and white-collars -, desire to improve consistently, centralized their life around work and lifetime employment system. These features caused the consideration of full usage of workers capabilities in the production system. Because of these reasons, Toyota Motor Company decided to use Just-In-Time (JIT) production system and Kanban was developed. Toyota...
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...Abstract: Kanban is a Japanese term which means “visible record”. This is the term used in production and inventory control systems and methods which help us find out the answer or questions like: what parts to manufacture, when to start manufacturing, when to stop manufacturing, how many to manufacture and where to deliver them to. Kanban works on a pull systems to automatically schedule more production without intervention of Supervision nor Planning & Scheduling Department personnel. Kanban works for higher volume , repetitive products where setup time is short and there is great deal of demand certainty. A pull system has advantages over push system, 1:It can be observed easily unlike push system 2: Efficiency: Pull system is efficient as compared to push system, 3:Variability: There is less variability in a pull system as compared to a push system because a pull system regulate the fluctuation of WIP levels while a push system does not, 4: Robustness: A pull system is less sensitive to error than a push system is. The main focus of the article is on maintaining a constant flow of production using kanban signals and hence minimize waste of excessive inventories where no production will be initiated before a specific customer order into picture. INTRODUCTION: A Kanban inventory is often seen in accordance with Lean Manufacturing and Just-In-Time philosophies. The purpose of a Kanban inventory system is to have minimum inventory levels, and to keep...
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..."Today's kanban research is the modern equivalent of yesterday's economic order quantity research." Do you agree? Explain your answer. Both Economic Order Quantity and Kanban are based on finding the level of inventory that results in the lowest holding and ordering costs. Kanban research uses the rate of demand to control the rate of production. Customers or needs determine the demand and this drives the level of inventory. Production is made of only what is needed by demand, not based on a set amount. The biggest difference between the two is that Economic Order Quantity applies situations in which the demand is constant for the product and new orders are delivered at the point when inventory reaches zero. It is based on the assumption that the different parts: lead-time, purchase price, demand, and costs are all constant. Kanban is more refined, limits overproduction and is demand driven. It helps smooth out kinks in the production system and eliminate overstock. Here is a good link: http://www.gemba.com/tool-kit.cfm?id=193 2. There is considerable evidence that getting the correct operating conditions is more important than the choice between MRP, kanban, or reorder point methods in the MPC system. How general do you believe this situation to be? I agree that correct operating conditions are the most important choice in the MPC system. If you have good operating conditions, with reasonable people willing to do the job correctly they will do what it takes to...
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...UNIVERSITÄT DUISBURG ESSEN Campus Duisburg Fakultät für Ingenieurwissenschaften Abteilung Maschinenbau Institut für Produkt Engineering Transportsysteme und -logistik Keetmanstr. 3-9 47058 Duisburg Telefon: 0203 379-2785 Telefax: 0203 379-3048 eMail: bernd.noche@uni-due.de Prof. Dr.-Ing. Bernd Noche ABC-/XYZ Analysis Introduction tul Quelle: Powerpoint-Folien: Uta Horstmann ABC-Analysis 2 M0000 A short definition of ABC-Analysis The ABC-Analysis represents a simple method of material classification in respect of value and quantity. (G. Wöhe) Expressed in a more general way it is a process in order to identfy important kinds of customers, suppliers or articles. 3 ABC-Analysis M0000 The Pareto principle The so called Pareto principle indicates that for many phenomenons the following is valid: 80 % of effects are reached by 20 % of causes. The principle traces back to Vilfredo Pareto (Italian economist) who, related to Italy, had noticed that 80 % of property belonged to 20 % of the Italian population. Vilfredo Federico Damaso Pareto 1848 - 1923 4 ABC-Analysis M0000 However, the rule often is misunderstood: It seems that 80 % + 20 % = 100 %. But it can also be valid that: 80 % of effects are traced back to 10 % of causes. The principle can also be applied recursively, and not only used for 20% of the reasons : e.g. 64-4 Rule: 96-36 Rule: 64-4 Rule: 51,2-0,8 Rule: e. g. (80 – 16) % (20 – 16)% e. g. (80 + 16) % (20 + 16)% e. g. from (80•80/100)% - (20•20/100)%...
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...Value Stream Mapping 1 Value Stream Mapping Definition • Value Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product...
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...Sequence the Work and Execute the Plans Self-Assessment Introduction Course Overview Welcome to the CPIM Execution and Control of Operations — Sequence the Work and Execute the Plans self-assessment course. This introduction provides an overview of the CPIM program, this course, and further preparation for the certification examinations. The CPIM certification is the recognized standard for individual assessment in the field of production and inventory management. The certification is designed to validate the candidate’s in-depth knowledge of a variety of subjects specific to the field. APICS has ensured that CPIM exams are consistently reliable and that the highest professional standards are used in developing and administering the program. The program consists of five examinations and the candidate must pass all five examinations to earn the CPIM designation. The examinations that make up the program are: • Basics of Supply Chain Management (BSCM) • Master Planning of Resources (MPR) • Detailed Scheduling and Planning (DSP) • Execution and Control of Operations (ECO) • Strategic Management of Resources (SMR) A CPIM Exam Content Manual is published annually by APICS. It is a key resource for anyone preparing for the APICS certification examinations. The manual addresses all five of the examinations by documenting the scope of the module, the content outline, the key terms, and primary and secondary references...
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...oPRODUCTION SYSTEM A first possible distinction in production systems (technological classification) is between process production and part production. * Process production means that the product undergoes physical -chemical transformations and lacks assembly operations, therefore raw materials cant easily be obtained from the final product, examples include: paper, cement and nylon. * Part production (ex: cars and ovens) comprises both manufacturing systems and assembly systems. In the first category we find job shops, manufacturing cells, flexible manufacturing systems and transfer lines, in the assembly category we have fixed position systems, assembly lines and assembly shops (both manual and/or automated operations) Another possible classification[12] is one based on Lead Time (manufacturing lead time vs delivery lead time): Engineer to Order, Purchase to Order, Make to Order, Assemble to Order and Make to Stock. According to this classification different kinds of systems will have different customer order decoupling points (CODP), meaning that Work in Progress cycle stock levels are practically nonexistent regarding operations located after the CODP (except for WIP due to queues). The concept of production systems can be expanded to the service sector world keeping in mind that services have some fundamental differences in respect to material goods: intangibility, client always present during transformation processes, no stocks for "finished goods". Services can...
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...looked upon in a very careful manner. In this literature review, we also look at the role of JIT in the supply chain from three perspectives; quality, buyer-supplier relationship and customer relationship. 2- Just-in-time offers a smooth, continuous and optimised workflow, with carefully planned and measured work-cycle times and on-demand movement of goods, reduces the cost of wasted time, materials and capacity. Team members can concentrate on their tasks without interruption, which leads to better quality, timely delivery, and peace-of-mind for Toyota’s customers. Just-in-time is itself, based on four key principles that work together to support this unique concept at every level: Heijunka, Elimination of waste, Takt time and Kanban. HEIJUNKA – LEVELLING THE FLOW Heijunka The term Heijunka describes the foundation of the TPS approach to just-in-time processes – ones in which inventory costs are minimised by having the parts required arrive at their point of use only as they are needed. Unevenness in workload is known as mura. Heijunka is the elimination of mura by levelling the volumes to allow a smooth, continuous and efficient flow. It is the opposite of mass-production series, in which high volumes of a single product are produced, often significantly unrelated to demand. With heijunka a process is designed to switch products easily,...
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...Value Stream Mapping 1 Value Stream Mapping Definition • Value Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product...
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...http://www.studymode.com/essays/Inventory-Management-622640.html INVENTORY MANAGEMENT 1. INTRODUCTION DEFINATION AND MEANING Inventory is a list of goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. The reasons for keeping stock All these stock reasons can apply to any owner or product stage. Buffer stock is held in individual workstations against the possibility that the upstream workstation may be a little delayed in providing the next item for processing. Whilst some processes carry very large buffer stocks, Toyota moved to one (or a few items) and has now moved to eliminate this stock type. Safety stock is held against process or machine failure in the hope/belief that the failure can be repaired before the stock runs out. This type of stock can be eliminated by programmes like Total Productive Maintenance Overproduction is held because the forecast and the actual sales did not match. Making to order and JIT eliminates this stock type. Lot delay stock is held because a part of the process is designed to work on a batch basis whilst only processing items individually. Therefore each item of the lot must wait...
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...prepare. Assume inventory receipts are instantaneous. It costs $5 per hour to make up an order and $20 per motor per week to hold items in inventory. Demand averages 50 items per week. a. Determine the Q* lot size. b. Suppose the firm wishes to reduce lot size to one. How much does order time need to be reduced to ensure this? Assume all other costs are unchanged. 3. Quickie Manufacturing produces Widgets in work cells. Lead time per widget is six days, work content is three days, there are eight work stations, the average sales (demand) rate is three per day, thirty-two pieces are in-process, and product process speed is twenty-one per day. Where may there be problems here from a JIT perspective? 4. A JIT system uses kanban cards to authorize production and movement of materials. In one portion of the system, a work center uses an average of 100 pieces per hour while running. The manager has assigned an efficiency factor (X) of .20 to the center. Standard containers are designed to hold six dozen parts each. The cycle time for parts containers is about 105 minutes. How many containers are needed? 5. A machine cell uses 200 pounds of a certain material each day. Material is transported in...
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...CASE: QUALITY PARTS COMPANY Questions 1. Which of the changes being considered by the manager of Quality Parts Company are counter to the lean philosophy? The philosophy of Lean Production involves the removal of wastes and non-value processes or production in the supply chain. The manager of Quality Parts Company has been contemplating to install an automated ordering system to help control inventories and to keep the skids filled. But this means the use of inventory as the reason to continue moving production forward. This change would not be recommended in a Just-In-Time process, for it will create holding time and non-value storage production. She is also planning to add three inspectors to clean up the quality problem. This would also be a waste and a non-value aspect, for it will add new salaries to pay. In-process inspections can be done by their own factory workers. They should be their own inspectors to create personal responsibility to motivate them to produce quality output production. Another is about setting up a rework line to speed repairs. This does not follow a lean philosophy for this will only add more time and cost for labor and machine utilization. The company should only focus on reducing waste including overproduction. Finally, to look into high-rise shelving to store parts coming off machine 4. Installing high rise shelves would create or add non-value storage of wasteful inventory in their...
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...Business Brief Abstract This business brief will discuss Autoliv, a Fortune 500 company who manufactures automotive safety components (Krajewski, Ritzman, Malhotra, 2013). Autoliv has over 80 plants in more than 32 countries, all of which run on a lean manufacturing system, which is referred to as “Autoliv Production System (APS) (Krajewski, Ritzman, Malhotra, 2013). Toyota pioneered the principles that the APS is based on (Krajewski, Ritzman, Malhotra, 2013). Another A lean system allows businesses to improve operations, by getting rid of the “unwanted waste”, such as overproduction, transportation, waiting, motion, inventory, defects, etc (Krajewski, Ritzman, Malhotra, 2013). The four main items that will be discussed regarding Autoliv is as follows: • Why visual management is a big part of Autoliv’s lean system. • How the just in time (JIT) considerations are related to Autoliv. • Method of work flow • Operational and Implementation issues Visual Management Visual management is when a visual aid/device promotes more efficient and less wasteful processes. As mentioned in the text, a visual aid methodology that is commonly used is the Five S (5S). This method helps to organize, clean, develop, sustain, and sustaining a productive work environment (Krajewski, Ritzman, Malhotra, 2013). The 5S’s are: sort, straighten, shine, standardize, and sustain (Krajewski, Ritzman, Malhotra, 2013). The 5S practices enable workers to be able to see what they need to get done in a...
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...LEAN SYSTEMS Reduction in inventory because of robots. Quick and faster. Change the layouts and set-ups. Is learning organization approach for designing supply chain system known as lean system. Lean systems are operation systems that maximize the value added by each of the companies activities by removing waste and delays from them. It is making more efficient, more quicker and faster( is lean system). Lean systems develop more efficient manufacturing operations. What is JIT just in time-that incorporates generic elements of lean system by cutting unnecessary capacity or inventory and removing non value added activities in operations. Eliminates waste or muda. 8 types of wastes : 1 over production, 2) in appropriate processing,3) waiting, 8) transportation( Excessive handling during transportation), 4) motion, 5) Inventory , 6) defects and 7) underutilization of employees. JIT system organizes the resources, information flow and decisions that enables firm to realize the benefits of JIT principle. Lean system leads to continuous improvement in quality and productivity. The Japanese term for this approach to process improvement is KAIZEN. Hides underlying problems with processes that produce service or product. Service processes improved : scheduling, billing, order taking, accounting, financial planning . SUPPLY CHAIN CONSIDERATIONS IN LEAN SYSTEMS : 2 characterstics of lean systems that are related to creating nad managing material flows in a supply chain ;...
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