Good Afternoon Everyone. What Is Kanban (1

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Good afternoon everyone.

WHAT IS KANBAN
(1. https://www.ijcrt.org/papers/IJCRT2101126.pdf
2.https://books.google.co.in/books?id=uXLhDwAAQBAJ&newbks=0&printsec=frontcover&so
urce=newbks_fb&redir_esc=y#v=onepage&q&f=false)

Kanban in Japanese means signal or card. Kanban cards are pull-based visual signals that
trigger the requirement of materials demanded by the downstream process. This system
triggers the flow of materials from one part of the production process to the other. So, these
cards are allocated for each part being manufactured, that travel between preceding and
subsequent processes. The kanbans tie the different manufacturing plants together and
ensure that the necessary amounts o f material and parts arrive at the appropriate time and
place in each stage.

Kanban is not an inventory control system. Rather, it is a scheduling system that pin points
what to produce, when to produce it, and how much to produce

TYPES OF KANBAN
Kanban can be classified into two classes: production and withdrawal. The production
Kanban can be further classified into ordinary production Kanban and triangular Kanban,
while withdrawal Kanban can be classified interprocess Kanban and supplier Kanban.
Withdrawal Kanban (also called conveyance Kanban and transportation Kanban) specifies
the type and quantity of the product to be withdrawn by the downstream process from an
upstream process. The production Kanban specifies the type and quantity of the product
which is to be produced by an upstream process to meet the demand as mentioned in the
Kanban card.

Ordinary production Kanban is generally used for producing the items which are not
produced in lots, while the triangular Kanban is used for lot productions. Interprocess
Kanban is used for parts or item withdrawals within a factory. For example, replenishment of
packed garments by the finished goods warehouse from the supermarket between the
finishing & packing section and the finished goods warehouse can be done using
interprocess withdrawal Kanban. If the goods are consumed by an external agency (such as
the distribution center of the buyer) from the finished goods warehouse of a vendor, then
supplier withdrawal can be used.

/*There are also other Kanban types including express Kanban (issued in extraordinary
situations when there is a shortage of parts or items and collected just after its use),
emergency Kanban (issued temporarily in emergencies when some parts or items are
required to rectify defective pieces or machine related issues.)*/

WHY KANBAN
(1. https://www.ijcrt.org/papers/IJCRT2101126.pdf
2.https://www.proquest.com/openview/f0d67ddad488b227acbb177f4ca83618/1?cbl=18750&
diss=y&pq-origsite=gscholar
3.https://www.ilo.org/wcmsp5/groups/public/---africa/---ro-abidjan/---sro-cairo/documents/pub
lication/wcms_621950.pdf)
● To achieve smaller lot sizes and huge inventory reductions.
● To authorise the upstream process to produce only when there is a requirement for
production.
● To eliminate losses occurring due to overproduction.
● To reduce costs by minimizing the W.I.P. inventory
● It allows an organization the ability to adapt to changes in demand, and therefore
production is quick.

Why kanban in messrs sun garment industry in bangalore


In This case study Kanban method is applied for controlling the production and material flow
in the industry. In the existing practice, the company (which follows the “push‟ system)
purchases raw material (fabrics) as per the customer requirement meant for 2000 shirts i.e.,
200 fabric rolls and holds it in the stores. The fabric rolls move from the stores department
and undergo various operations like cutting, production, inspection, packaging and
accordingly data is collected for WIP of each department. As per their work plan, it takes
nearly 25days to complete production and dispatch 2000 shirts.This method of push system
mandates holding of huge amounts of work-in process at every stage of the material flow.

So, as we can see, a huge amount of WIP was produced in each process.

The existing work-in process and the material flow were discussed in detail with the
managers and supervisors of the garment industry. It was suggested to implement the
Kanban system.

KANBAN RULES:
(https://shodhganga.inflibnet.ac.in/bitstream/10603/24243/9/09_chapter4.pdf)

Rule 1: Any withdrawal without a kanban is prohibited. Any withdrawal greater than the
number of kanbans is prohibited. A kanban should always be attached to a product.
Rule 2: The process should produce its products in the quantities withdrawn by the
subsequent process
Rule 3: Defective products should never be sent to the subsequent process
Rule 4: The number of kanbans should be minimized.
Rule 5: Kanbans should be used to adapt to small fluctuations in demand.

TERMS RELATED TO KANBAN

2-bin kanban

A two-bin system is a kanban method used to simplify replenishment on a production line.


The process is simple. An operator pulls from one bin until it is empty, and then, depending
on how the kanban card is attached, either turns in the kanban card (if fastened by hook and
pile), or turns in the whole bin (if the card is permanently fixed). The operator then pulls from
the second bin while the order is placed for materials to fill the first bin. If all goes well, the
first bin is filled and replaced when there are a few items left in the second bin.

The two-bin system is generally designed with a bit of safety stock, hence those extra parts.
If things don’t go well, the safety stock is used while the delays are resolved. The bigger the
potential for problems, the larger the safety stock.

A two-bin system is the most common form of kanban you will likely see.

Parts using more than two kanbans are possible, but are generally used for local
replenishment or for special situations.

In a single-card Kanban scheduling system, a “Signal” Kanban card is taken from the Kanban
location once a defined minimum stock quantity has been reached. The card is then for example
placed on a Kanban board, signaling the need for a stock replenishment order. The “supplier” process
responsible for the replenishment of the Kanban location schedules its production based on the
Kanban board and replenishes the Kanban location.

A dual-card Kanban scheduling system uses "Withdrawal" and "Production" Kanban cards. One
card is attached to each container holding a pre-defined quantity of items. To relocate or move a
container from the “supplier” process to the “customer” process for consumption, the attached
“Production” card is removed from the container and placed on the Kanban board. The “Withdrawal”
card is then attached to that container and the container is moved to the “customer” process for
consumption. The “supplier” process schedules production based on the cards on the Kanban board
and pre-defined scheduling rules. Once a container of items has been produced, a “Production” card
is removed from the Kanban board and attached to the container.

SUPERMARKET

Kanban and supermarkets are the backbone of pull systems. Supermarkets work as a bridge
between the consuming process and the supplier (producing process). A buffer inventory is
maintained at the supermarkets to ensure feeding of items and materials in the right amount
at the right time. Adequate replenishment and producing parts at the right time in the right
quantity become more vital in complex working environments such as apparel manufacturing
environments. Supermarkets are logically designed and installed facilities that work
according to the laid rules only. There are three conditions as follows:

1. The products are organized as per their type: The items or parts are stored physically in
the group of their types.

2, FIFO is maintained: The FIFO sequence should be followed which means that the part of
an item of a type that entered in the supermarket as first (oldest) should be issued at the
earliest.
3. Triggering the demand to replenish or reproduce: As soon as a part of an item leaves the
supermarket, the demand signal should be triggered for replenishment or reproducing the
item. It is an important requirement of flow management to maintain the WIP levels as
per specific requirements.

PREREQUISITE KANBAN
It is imperative to do some preparation (as groundwork before implementing Kanban). Such
preparation provides a valuable opportunity to become better equipped to implement a
sustainable Kanban system. The preliminary work involves some key activities

The report prepared based on the preliminary activities performed can be utilized in
determining the requirements related to the storage area and work area.

CALCULATION OF KANBAN CARDS

Determining the number of Kanban cards is an important aspect, as it directly affects the
inventory levels as well as the replenishment cycles suggested by a Kanban equation to
determine the number of Kanban required.

Number of Kanban = Average daily demand x (order frequency + lead time + safety time)

/Container quantity

For Messrs Sun Industry


Number of Kanban cards required = 10
Hence, five withdrawals and five production order Kanban were designed.

This can be understood with a simple example of apparel manufacturing. Assuming the
factory is working for 8 hours a day with a daily requirement of stitched garments for a
finishing & packing section is 5000 pieces. Order frequency (from finishing & packing section
to stitching section) is twice a day. The lead time to produce the pieces required and make it
available in the supermarket is 4 hours. Safety time to tackle any abnormality is 2 hours. The
stitched pieces are transported to the finishing & packing section in a caged trolley with a
capacity of 250 garments. Then, using the equation mentioned above, the number of
Kanban can be determined as:

Average daily demand: 5000 pieces

Order frequency: 2

Lead time: 4 hours (or 4/8 = 0.5)

Safety time: 2 hours (or 2/8 = 0.25)

Container capacity: 250 pieces

Number of Kanban = 5000(2+0.5+0.25)/250 =55 Kanban

INFORMATION ON KANBAN CARD

● Card serial number


● Item number/item code
● Item name
● Quantity
● Unit
● Item image
● Packaging type
● Customer information
● Supplier information
● Supermarket detail
● Other information

INFORMATION ON WITHDRAWAL KANBAN CARD

● part number
● part name
● lot size
● routing process
● name of the next process
● location of the next process
● name of the preceding process
● location of the preceding process
● container type
● container capacity
● number of containers released

INFORMATION ON PRODUCTION KANBAN CARD

● materials required as inputs at the preceding stage


● parts required as inputs at the preceding stage
● information stated on withdrawals Kan-ban

EXAMPLES

So, here is an example of a traditional kanban identification card. These have an inventory
number attached to part of production, containing all the information and details
required for each step, from production to assembly of a product. Also there are
several types of kanban cards, they are editable and flexible according to the needs of
each enterprise.

Manufacturing companies that adopt traditional Kanban system generally use a


Kanban board to visualize the movement of materials in a manufacturing / production
facility as shown below an example of a kanban board proposed for Demand to
prepare machine in a sewing workshop in order to formalize communication between
the various stakeholders. It also gives visibility on the progress of preparations of Sewing
machines by all the persons concerned.

STEPS IN KANBAN IMPLEMENTATION


Functioning of Kanban
The functioning of the Kanban can be understood with a simple example of replenishment of
stitched pieces in the finishing & packing process. As illustrated in Fig. 8.10, a supermarket
is installed between the sewing process and the finishing & packing process. The withdrawal
of stitched pieces for finishing & packing is done from the supermarket. Assuming a bundle
of 50 pieces along with the withdrawal Kanban is taken place. The withdrawal Kanban card
is removed in the finishing section, and the same card is placed in the Kanban post installed
nearby. Then the withdrawal Kanban card is taken from the Kanban post and put in the
supermarket. This is the trigger point for the demand for new stitched pieces to be
replenished in the supermarket. Then, a production Kanban card is issued and moved to the
Kanban board (which works as Heijunka Board as well for production leveling). From the
Kanban board, the production instructions are released to the sewing process in FIFO
manner. After receiving the production Kanban card (issued from the Kanban Board) the
pieces are produced according to the demand triggered. Keeping a buffer of 50 pieces,
assuming stitching to produce 100 pieces, then two production Kanban cards are issued to
the stitching process. As soon as the pieces are stitched, these are moved to the
supermarket as a replenishment to the consumed items by the finishing & packing process.

IMPLEMENTATION Of KANBAN in sun garment


The stores department now negotiates with the supplier and sets the revised schedule to
deliver 40 fabric rolls per day. After getting an order of 2000 shirts, withdrawal kanban1 is
prepared by the packaging department and is given to the inspection department.
Withdrawal Kanban (WK) is prepared for 200shirts per session i.e., 400 shirts per day.
Inspection department organizes withdrawal kanban-2 for 200 shirts per session which is
then passed on to the assembly department. Similarly, the assembly department will send
withdrawal kanban-3 for each component of the shirt which is then transferred to the product
line. Product line department sends withdrawal Kanban-4 to the cutting department. Finally
the cutting department will prepare withdrawal Kanban- 5 to stores. Stores section supplies
the raw materials as mentioned in withdrawal Kanban- 5 to the cutting department. Cutting
department will prepare a production order Kanban (POK) to cut shirt components of
quantity as mentioned in withdrawal Kanban-4 requested by the product line. All the shirt
components will be sent to the product line along with the withdrawal Kanban-4 for
verification. The product line will further process the components and will pass them on to
the assembly line along with withdrawal Kanban-3. Similarly, the assembly department will
assemble 200 shirts per session and send them to the inspection department along with
withdrawal Kanban-2. Inspection department will inspect shirts and will forward the lot to the
packaging department for pressing and packaging. 400 shirts will be prepared per day.
There is no work in process inventory at any stage of the production process. 2000 shirts will
be prepared in 5 days.

CONCLUSION
The Kanban „pull‟ system was conceived and implemented across various stages of the
garment flow. This resulted spontaneously in reduced inventory, minimum damage to the
materials and higher clarity in the material flow. More than 450 Kg of inventory of fabric has
been reduced at every section. This has resulted in enormous saving in inventory carrying
cost. In addition, production is wellstream lined and the morale of the employees has been
boosted up. Gross and net profits of the company are bound to escalate as a direct result of
the appreciably reduced inventory costs. Such an effective implementation of Kanban is not
confined to the medium size garment industry.

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