KANBAN

WHAT IS KANBAN?
• Meaning "visible record" in Japanese, it is
a system of notification from one process to
the other in a manufacturing system.
Kanban cards, which may be multicolored
based on priority, are stored in a bin or
container that holds the items. They
describe the parts, supplier and quantity.
 EXAMPLES OF KANBAN
SYSTEM
• Use of “kanban” to manage some home inventory
items. Two items that are managed via kanban are
toilet paper and paper towels.
• In the garage (the “bulk warehouse”) sit two large
warehouse club sized packs of toilet paper and two
packs of paper towel. This is a very simple system —
when one warehouse club pack is empty, that’s our
signal that we have to buy more. The beauty of the
“two-bin” system is that we still have a whole pack left
(plus what is in the house). We don’t have to interrupt
our lives to go to the warehouse club “NOW.” We can
wait a week (or even two) and have it on our list to buy
when it’s convenient.
 ANOTHER EXAMPLE OF
KANBAN
• FILLING UP THE FINISHED GOODS.
• E.G.: STAR (A SMALL FIRM)
MANUFACTURES HOME APPLIANCES.
• STARTED IN THE YEAR 1998.
• HEADCOUNTS IS VERY LOW, ITS
ABOUT 100 – 150 EMPLOYEES.
• TARGETS MIDDLE-LOW SOCIAL
CLASS.
• PROVIDES FACILITIES SUCH AS
GUARANTY, WARRANTY, SERVICES...
 PROBLEM FACED BY STAR
• DOES NOT HAVE A LARGE INVENTORY TO
STORE GOODS.
• IN THE INITIAL YEARS, THEY WERE
ORDERING RAW MATERIAL AFTER THE
INVENTORY WAS ALMOST FINISHED.
• LEAD TIME OF THE RAW MATERIAL WAS
3 WEEKS.
• STAR RECEIVES RAW MATERIAL 3
WEEKS AFTER THEY ORDER FOR IT.
IN THOSE 3 WEEKS, WORKERS HAVE TO SIT
IDEAL.
 CONTD...
IN THOSE 3 WEEKS, WORKERS HAVE TO
SIT IDEAL.

HENCE, THEY FOUND OUT THE

PROBLEM AND STARTED ORDERING IT
BEFORE 3 WEEKS.
 IMB LTD.
• IMB LTD. uses kanban system for a Vendor Managed
Inventory item utilized simple painted lines on the sides of
the item’s pallet rack location. The lines represented the
kanban level, or lowest level of inventory, that would trigger
replenishment. For example, when stock of a specific
cardboard box fell below the line, the supplier would see the
signal during her daily delivery, and drop off the needed
boxes the next day.
 CONCLUSION
• Kanban system is suitable for all types of
organisation be it inventory management,
supply chain management or manufacturing
because :
• It works
• It is simple
• It does not require complex calculations
• It does not require a computer system
THANK YOU