Withdrawal, Production, and Supplier; the Three Types of Kanban

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1 Withdrawal, Production, and Supplier; the Three Types of Kanban Each is used for its own unique situation dealing with processes, supermarkets, outside suppliers or any combination of customers

2 Production Kanban Production Kanban are the first form of Kanban implemented Production Kanban trigger upstream processes to create and replenish the items downstream processes have consumed The Production Kanban takes the place of standard production orders in a MRP push system With its implementation you can single handedly change your processes to pull systems

3 Production Kanban Cont d. Information includes but is not limited to: Upstream process Downstream process Part name Inventory number Shelf life Shelf or storage location Container quantity Lead time requirements Cycle Time A picture of the part

4 Production Kanban Cont d. You will always find Production Kanban in one of four places: With its associated item in storage On a Kanban board In a Kanban Post In the hands of upstream processes

5 Production Kanban Cont d. If the Kanban is in storage attached to the item, that means there is no call to action for the production process When Kanban are on a Kanban board or in a Kanban Post that means downstream processes have removed and consumed the item from storage and replenishment is needed If the Production Kanban is with the upstream process, that means fabrication has begun or is slated to begin shortly

6 Withdrawal Kanban The second type of Kanban is the Withdrawal Kanban It is used to signal and authorize transportation of items between processes Withdrawal Kanban are used in conjunction with Supermarkets

7 Withdrawal Kanban Cont d. Withdrawal Kanban are useful because they: Track moving products Provide information to the receiver, transporter, and producer Address Cycle and Lead Times that cannot respond quickly to downstream demand Withdrawal Kanban travel between Supermarkets and downstream processes

8 Withdrawal Kanban Cont d. As Downstream processes are called to produce, upstream process items are consumed To pull these items from the Supermarkets, downstream processes use the Withdraw Kanban As the items are pulled, Production Kanban are placed on the Kanban board, and the Withdrawal Kanban is attached to the item for transport back to the downstream process

9 Withdrawal Kanban Cont d. Withdrawal Kanban can be found in one of four places: With its associated item in transit With the person walking empty-handed back to the Supermarket On the item waiting for processing at the downstream process At the Supermarket waiting for additional Withdrawal Kanban to trigger a Production Kanban

10 Number of Withdrawal Kanban Information on the Withdrawal Kanban will be all the same as the Production Kanban, except for two additional figures: The number of Withdrawal Kanban to trigger a Production Kanban Value streams with longer cycle times or large batches are more likely to use multiple Withdrawal Kanban to trigger a Production Kanban This is because single withdrawals may not be appropriate to signal Production

11 Number of Withdrawal Kanban Cont d. Sometimes a set number of Withdrawal Kanban must be gathered on a Kanban board or in a Kanban Post before a Production Kanban is triggered This number depends the analysis of downstream demand and the capabilities of the upstream

12 Withdrawal Kanban Cont d. The second extra figure on a Withdrawal Kanban is a simple notation for the quantity of items to be transported Withdrawal Kanban are all about transportation between processes

13 Containers as Withdrawal Kanban Rather than have loose Kanban Cards, some companies have chosen to permanently attach Withdrawal Kanban Cards to transportation carts or containers This works because Withdrawal Kanban are always transporting items With this technique companies can further reduce the chances of loosing Kanban cards

14 Supplier Kanban Supplier Kanban communicate with your external material or component suppliers This is often the last to be implemented because it requires your suppliers to be Kanban capable Internally you will need both smooth operations and a well established Kanban system, before taking your ideas further upstream to a supplier If your supplier needs help, you will need the experience and know-how to be able to assist them

15 Supplier Kanban Cont d. As with other Kanban, Supplier Kanban are to be delivered on demand and should be tuned to the supplier's capability Be sure to consider the suppliers capabilities; especially delivery schedules and quantities The Supplier Kanban is similar to the Withdrawal Kanban as they both signal for replenishment of parts It differs by solely communicating with entities outside your organization

16 Information on a Supplier Kanban Part name Your Inventory number Supplier's inventory number Quantity From - their company To - your company Transportation schedule Delivery date Delivery gate location - which is where the delivery truck goes Shelf location Contact name and number