BEC. Operations Special Interest Group (SIG)

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1 Operations Special Interest Group (SIG) Operations Special Interest Group (SIG) Purpose: The purpose of the SIG is to provide the opportunity for attendees to discuss their experience with the topic area of the month. The SIG meeting format is not intended to be a seminar or workshop but rather an information sharing opportunity where people can discuss their successes, struggles, and/or questions with one another in a facilitated environment. Strategic Partnerships and Members Economic Benchmarking Development & Coaching Placement Services On-Line Services BEC (800) World-Class Training Special Interest Groups / Tours Knowledge / Workshops Network

2 What are Kanbans Anyway? Kanban Japanese for signal or signboard 1. Kanbans are signals developed to automate inventory replenishment cycles for items in your business processes. 2. Kanbans tie related processes together in pull system that authorizes activity only upon signal demand as if they were connected by an invisible conveyor.

3 Kanbans are: Communication devices from the point of use to the previous operation (customer to supplier) Purchase orders for your suppliers Work orders for your manufacturing area Visual communication tools Paperwork eliminators

4 How Many Days in a Constant Cycle Kanban Loop? Number of days in transit from supplier Supplier s replenishment lead time Supplier may make more than one daily delivery

5 How Many Units in a Constant Quantity Kanban Loop? Determined by changeover cycle-time and sales rate. One-piece flow becomes more feasible as changeover cycle-time and transit time approaches zero.

6 How Many Cards in a Kanban Loop Determined by quantity in each container. Number of containers determined by lead time. Containers may be a bin, box, cart, tub, rack, or skid.

7 How Many Units in a Production Lot? Goal is enough for X # shifts. Daily demand to suppliers based on monthly MPS. Calculation includes allowances for all delays and producing defects. Changeover cycle-time and supplier lead-time allowances are delays. Lead-time is the sum of run-time, queue-time, transit-time, and kanban collection-time.

8 Kanban System Improvements Reduce Changeover Cycle-Time Reduce Production Lot Size Reduce Quality Defect Rate Increase Equipment Reliability Rate Increase Number of Parts and Operations in Kanban Control

9 Typical Kanban Card Information

10 Internal Kanban Example: KanBan Card for TRAK Item Part Number Description Support Chain Sheave Container Quantity 14 KANBAN CARD BOOM PLANT USER AREA VENDOR Container Intermediate Set-Up TRAK 1 of 2 Replenishment Location: Burn Table Data fields may be bar coded as an alternative and include part revision data. RFID technology may also be used.

11 External Kanban Example: KanBan Card for Vendor Item Part Number Description Weldment Outer Sheave Support Container Quantity 14 KANBAN CARD BOOM PLANT USER AREA VENDOR Container Outer Boom Atlas Set-Up Dave's Job Shop 1 of 3 Replenishment Location: Dave's Job Shop Data fields may be bar coded as an alternative and include part revision data. RFID technology may also be used.

12 Container 1 of 2 In House Kanban Two Bin System Kanban Replenishment Staging Refill Container Container 2 of 2 Replenishment Loop

13 Container 1 of 3 Container 2 of 3 Vendor Kanban Three Bin System Kanban Replenishment Staging Refill Container at Vendor or Vendor Fills at Location Replenishment Loop Container 3 of 3 Container 3 is Sitting at supply Point filled

14 Flow Manufacturing: In Process Kanbans Dedicated Low Volume Line: Ideal process is one piece at a time. Kanban Square IPK Flow of Process Op 10 Op 20 IPK Op 30 Op 40 Op 50 Unit Unit Unit Unit Unit IPK IPK IPK IPK Kanban Container Operators

15 Pull System Full---Don t build more Drill Empty --- Build more Drill

16 Examples of Containers and Kanban Signals

17 Examples: Containers and Kanban Signals

18 Examples of Spot on the Floor Kanban Signals

19

20 Kanban Calculations A few things to consider: Keep safety in mind at all times when working with Kanbans: Consider material handling weight of container operator lifting concerns ease of access to contents - operator ergonomics size & weight of part in relation to container stack-ability of the container package quantities content protection from damage, i.e.; painted or fragile components containers that can be used throughout the entire process etc. what type of assist will be needed, fork truck, hoist etc. use standardized containers whenever possible is the container designed to support automated processes?

21 Kanban Calculations Kanban Quantity = A X B X C X D For each operation: A = Weekly Part Usage B = Supplier Lead time in weeks C = 2 locations D = Smoothing factor (Smoothing Factor) = PN has an average weekly usage of 300 but a seasonal demand of 400 per week. 400/300 = the smoothing factor Use when variation extends 4 or more weeks and when variation represents more than a 25% increase over the average. If this condition does not exist, use a smoothing factor of 1.

22 Kanban Calculations Calculate the number of containers: # of containers = Kanban Qty # of pieces held per container

23 Host Company to present what they have done with value stream mapping. Group discuss questions & Answers Hand out tour guide sheets Conduct Tour After Tour get feedback from participants on the tour. Include recommendations that tour participants might have for the host. Tour Evaluation sheets will be ed in a day or two please fill them out we depend on your feed back to make improvements. Close meeting

24 Mission To provide the opportunity for organizations striving for world-class performance to work together supported by cost-effective, professional coaching, world-class training, special interest groups and a facilitated knowledge network. For More Information Contact us at:

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