Operations Strategy

Kanban Systems

Kanban Systems: overview; pull systems

The ‘Pull’ Principle

ƒ Pull means replacing stock after
consumption has occurred,
ƒ i.e. what we do today is to replace what was used
yesterday.

ƒ This is an old established principle in

production control (see previous
discussion of 2 bin, reorder level systems)
ƒ Pull usually associated with Kanban
ƒ what makes Kanban different, i.e. a key part of
‘Just In Time’ (JIT) system, is the way the factory is
operated.

Doug Love/Aston University

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Kanban Systems: Overview

Kanban
ƒ Material control system, plus
ƒ Part of a related manufacturing philosophy
ƒ Toyota Production System/Lean
ƒ delivers Just-In-Time (JIT) performance.
ƒ There are different forms of Kanban
ƒ Kanban square
ƒ One card kanban
ƒ Two card kanban
ƒ Kanban-MRP

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Kanban Systems: kanban squares

Control using Kanban Squares

Parts Assembly line 1

Parts Manufacture Finished

Parts Assembly line 2 Goods
Raw Stocks
Material
Stocks
Parts Assembly line 3

Cycle: consume - replenish - consume

Kanban Kanban
Square Square

Operator working -
kanban square empty Operator stopped -
kanban square full

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4
Kanban Systems; single stock point (1 card)

Kanban: single stock location or 1 card

ƒ Kanban card & bin cycle round together
ƒ Card specifies part number, qty, source, consumer
ƒ Card authorises movement & production
ƒ Number of ‘cards’ controls stock level.
KK
Unit 2
Kanban Unit 1
Stock
K Position
K M/c
M/c M/c KK
KK M/c M/c
KK
Make
Use
KK
KK
KK
KK

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5

Kanban Systems; calculation of number of kanbans

Number of kanbans in circuit

ƒ The number of kanbans has to be calculated (at least
initially) to ensure smooth operation
ƒ Number of kanbans controls material in system
ƒ Need enough material in loop to ensure stock is always
available to customer.
ƒ Disruptions (scrap, breakdowns etc.) are covered by the safety
factor in the formula
ƒ The formula is:

Number of kanbans = Demand Rate x (Replenishment Time) x (1+Safety Factor)

Container capacity 1

Where
Replenishment Time includes all the times required to:
Transport to cell & between machines + pass the card to the 1st operation +
Queue at machine(s) + Set machine(s) + Process the kanban quantity

Safety Factor is estimated/revised by users (can be statistically calculated)

1NB Container capacity can be simply the selected kanban card quantity

Doug Love/Aston University

6
Kanban Systems; dual stock (2 Card)

Kanban dual stock location or 2 card

full full
PP M
Unit 1 MM M Use
M/c PP Stock M/c
PP
P
Make Stock P SWOP CARDS Unit 2
PP P M
PP M empty
PP

ƒ Introduces the idea of ‘production’ and ‘move’ Kanbans.

ƒ Customer empties container releases Move card + container
ƒ Move card + bin taken to production cell
ƒ Full container same part located and cards swapped (Move on full,
Prod’n with empty).
ƒ Move returns to customer on full bin
ƒ Production joins queue at start of manufacturing process
ƒ Production + full bin added to stock at supplier

Doug Love/Aston University

7

Kanban Systems; dual stock (2 Card) cont.

MM M Use
PP Stock
Unit 1 M/c
M Unit 2
M/c PP M
PP MM
P
Make Stock P SWOP CARDS

PP P M
PP
PP
MM MM M Use
Stock M/c
Unit 3

MM

ƒ Can handle multiple ‘customers’

ƒ Allows stock to be located at producer & user units
ƒ Kanbans in each circuit calculated separately (different
loop delays & risks)
ƒ Good where units are a long distance apart & improves
accountability.
Doug Love/Aston University
8
Kanban: factory environment

Kanban - Environment
ƒ The system is very disciplined but it is also simple, so
ƒ low stock operation depends on changes to;
ƒ plant (productive maintenance, capability, setups),
ƒ working practices (flexibility, ownership),
ƒ supplier relationships (partnership, delivery, quality),
ƒ customer relationships (level MPS).
ƒ Levelled scheduling means building a schedule by making:
ƒ runners every day/period
ƒ repeaters when required (but as often as possible)
ƒ strangers fill up the capacity available

ƒ These changes eliminate disruption to produce smooth,

predictable material flow

Doug Love/Aston University

9

Operations Strategy, Systems & Implementation; Kanban System Description

Kanban as part of Lean

ƒ This old diagram shows some ‘building
blocks’ to Just In Time operation
J.I.T.

KANBAN QUALITY
CIRCLES

QUALITY SUPPLIER LEVEL

ON LINE INTEGRATIO N SCHEDULING

SHORT
RELIABLE CAPABLE
CHANGEOVER
MACHINES PROCESSES
TIMES

SIMPLE EDUCATION COMPLETE

FLEXIBLE
CELL AND ACCURATE
PEO PLE
STRUCTURE TRAINING DATA

Doug Love/Aston University

10
Kanban Systems; The improvement cycle

Driving the Improvement cycle

ƒ The elimination of disruption is aided by the improvement cycle:
1. remove a card (or few)
2. wait for a stoppage to occur, note cause
3. if no stoppage, goto 1
4. otherwise fix the cause of the stoppage, then goto 1
ƒ Note the direct link between the stock level and why it is needed,
thus
ƒ Kanban is used to focus improvement effort where it is most
needed
ƒ This process is a critical aspect of the success of the system

Doug Love/Aston University

11

Kanban Systems MPS

Kanban Limitations
ƒ Repetition of demand is required
ƒ Why?
ƒ Demand must be (relatively) smooth
ƒ Especially in terms of overall volume
ƒ Some change in mix OK if setups are quick
ƒ Direct Kanban links and smooth demand
ƒ Collaborating customers (customer development)
ƒ Otherwise an assembly schedule is used
ƒ the MPS/assembly schedule uses levelled
scheduling to minimise variability
ƒ may require customer-facing stock to damp
fluctuation

Doug Love/Aston University

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Kanban Systems MPS

Kanban – MRP
ƒ These systems use both MRP and Kanban at
the same time
ƒ Each system is used for areas/cells/products
that suit its characteristics
ƒ In parallel systems some self-contained MRP
modules or product lines will be MRP Cells

controlled and others by Kanban

ƒ MRP for - ?

MRP System
ƒ Kanban for - ?
Kanban Cells

Doug Love/Aston University

13

Kanban Systems: Kanban-MRP Sandwich

Parts Assembly line 1

Parts Manufacture Finished

Parts Assembly line 2 Goods
Raw Stocks
Material
Stocks
Parts Assembly line 3

MRP Control Kanban Pull Control MRP Control

MRP Push linking Purchases with MPS

Kanban-MRP “Sandwich”
ƒ MRP controls MPS and purchases
ƒ Kanban controls all parts/assemblies made
inside the factory
ƒ MPS drives assembly/product manufacture

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Kanban Systems: Kanban-MRP Sandwich
Parts

Parts

Parts

Kanban-MRP “Sandwich”
ƒ MRP system changed:
ƒ BOM:
ƒ MRP does not control/stock any kanban controlled part
ƒ Kanban parts entered as phantoms to implement this
ƒ active BOM much simplified
ƒ Lead times
ƒ include allowance for kanban controlled cycles
ƒ Critical to synchronisation of supply
ƒ Inventory
ƒ No tracking of kanban parts & no related transactions
ƒ Backflushing widely used to avoid recording issues of purchased items

ƒ Levelled schedules required for viable operation

ƒ Used where kanban links to customers & suppliers not feasible
ƒ or may be an intermediate step in implementation

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15

Kanban Tutorials: Review of principles

Kanban Tutorial – Review of Principles*

1. Is kanban a manufacturing philosophy or a control mechanism?
2. What directly & indirectly determines the level of work in progress in a
kanban-controlled manufacturing system?
3. 2 bin systems are a special case of which kanban mechanism?
4. In comparison with 1 card systems, 2 card kanban can be said to
provide a better fit to the causes of delay in the system(s). Why?
5. How can the number of kanbans in the conveyance circuit be said to
depend on motorway traffic jams?
6. How can the number of kanbans in the production circuit depend on the
handling system used?
7. How can the number of kanbans in the production circuit depend on the
TPM?
8. What do you have to do to make a manufacturing system (that uses
kanban) run with less work in progress and/or material stocks?
9. When designing a kanban system there is little point in trying to
calculate the number of kanbans in the circuit very accurately – why?
10. Why can 2 card kanban be said to provide better accountability than 1
card?
*based on material in the lecture, Control Systems text notes and other sources in the bibliography
Doug Love/Aston University
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Kanban Calc Tutorial 1

Calculation Tutorial 1 – 2 card system design

Demand Rate ( per 8hr day) = 1200 = 2.5 /min Production Circuit
The production circuit includes both operations in the supplier cell.
Container Size
Operation Data Operation
Weight Each 1 Kg 10 20
Size (LxWxD) 0.2x0.1x0.05m 0.001 m3 Machine (mins/each) 2 1
Operator Perf variability +/- % 20 30
Handling Method Capacity Kg
Other Data Operation (all times in Minutes)
Manual 40
Element 10 20
Hand Truck 500
Average Max. Average Max.
Power Truck 2000
Queue wait machining 120 180 120 200
Setting 30 40 20 25
Container Volume m3
Transport to next stage 20 45 20 45
Tote Pan 0.054
Bin 0.211
The above times include the effect of miscellaneous losses, breakdowns etc.
Stillage 1.000
The time to pass the kanban back to op 10 is estimated at = 20 mins

Move/Conveyance Circuit
The supplier and customer cells are located on
NB the formula is,
the opposite sides of a large industrial site.
No kanbans= Demand Rate x(Sum of Times in circuit) x (1 + Safety Factor)
Transport Data Transport
container capacity
Element Time (Mins)
Average Max
Wait Truck 15 30
Customer->Supplier Cell 15 18
Swop Cards 2 2
Supplier -> Customer Cell 20 24

Doug Love/Aston University

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Kanban Calc Tutorial 2

Calculation Tutorial 2 – 1 or 2 card system?

Cycle of activities
Description of activity Time (mins) Comment
Empty => supplier
Call truck 2 put up signal
Wait truck 30 next time on circuit
Transport to loading bay 3
Wait loading/lorry or van available 240
Load on lorry 60 wait while other items loaded
Transport to supplier 480 time depends on route
Wait unloading 10
Unload 20
Wait truck 20 forklift
Transport to manufacturing cell 3 drop off & place cards in rack

Swop cards 2 done by forklift driver

Production
wait free operator 10
transport card/bin to 1st op machine 2
queue until parts for minimum run available calculate minimum run quantity = 2000
set machine 30
process run quantity 2 NB std time is 2 mins each
move to next 2nd operation 2 1st operator does this
queue waiting machine free 240
set machine 30
process 3 NB std time is 3 mins each
move to cell storage area 5 2nd operator does this

Wait truck 20 forklift

Transport to loading bay 3

NB data continues on next page Doug Love/Aston University

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Kanban Calc Tutorial 2

Calculation Tutorial 2 – 1 or 2 card system? cont.

Supplier => return full
Wait loading/lorry or van available 240
Load on lorry 60 wait while other items loaded
Transport to customer 480 time depends on route
Wait unloading 10
Unload 20
Wait truck 30
Transport to assembly cell 5 drop off by track

Notes
Variabilty of the times has been estimated at:
Production Elements 30%
Transport Elements 50%

Possible container capacities are (in units):

Large 2000
Medium 400
Small 50

Demand
Estimated demand is (units/hr) 25

Doug Love/Aston University

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