principles of kanban - november 2016

1Marek.Piatkowski@Rogers.com

Principles of Kanban Introduction

Thinking win, Win, WIN

Principles of KanbanIntroduction to Kanban

Marek Piatkowski – November 2016

Introduction - Marek Piatkowski Professional Background

Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994

TPS/Lean Transformation Consulting - since 1994 Professional Affiliations

TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME

Lean Manufacturing Solutions - Toronto, Canada

http://twi-network.com

What is a Pull System?

TPS(Toyota Production System)

is born

Roots of Lean

1950 - 51

M r. Ohno's Idea

Food M art

Supermarket

W areho use

Supermarket for Manufacturing

Food M art

Supermarket

S ignS tock ro om

The Superm arket M odel

The Superm arket Suppliers

Food M art

Supermarket

W arehouse

S u p p lie r S u p p lie r

S tock room

“Shopping” at a Supermarket No Purchased Order required No schedule of what I need and when Supermarkets are open 24/7 EVERYRYTHING is available – there are no shortages All Supermarkets (anywhere in the World) have a standard layout

Can Supermarket principles work in Manufacturing?

Pull System

In a traditional operation Production Scheduling department generates Information by issuing schedules to all departments to produce and to move material.

Toyota reversed that process. At Toyota only material movement generates Information Flow - A Pull Signal (Kanban).

When parts are “pulled” from the Supermarket, a signal (Kanban) is sent to the supplying process to produce more.

Schedule is issued only to the Pacemaker process. This is called a Pull System.

Kanban System and Kanban Cards Kanban System is a practical tool of Just-in-Time manufacturing for

controlling production (Production Kanban) and delivery of parts and materials (Delivery Kanban)

The word Kanban in Japanese means “signboard”. A Kanban card signals what to produce or to deliver necessary parts,

in necessary quantities, at the necessary time, in the most economical manner

What is needed When it is needed In the needed amount

We control levels of inventory through a use of Kanban Card We can easily tell what parts we have and what parts we need –

we do not waste time looking for parts

Kanban System Each process maintains a small supply of parts necessary to

produce a final product. Parts are stored in containers. The amount of parts per container

is usually small, pre-defined and always the same. A Kanban card is always placed inside or attached to a new

container. When there are only few parts left in a container a light signal is turned on and the Kanban card is placed in the Kanban post.

Within few minutes an assembly stock person responds to the signal and collects Kanban cards. These cards are treated as a signal to replace used up parts by either delivering a container of new parts from the parts storage to the linesite, or by producing new parts in a different location of the process.

Two Types of Kanban

KANBAN

1. ProductionKanban(what to produce)

2. DeliveryKanban(what to deliver)

In processKanban (flow)

InternalKanban (delivery)ExternalKanban (Supplier)

SignalKanban (batch)

Traditional Production Scheduling method

Results = Long lead times and poor efficiency

Warehouse

ProductionControl

Op. 1 Op. 2 Op. 3

WeeklySchedule Shipping

ScheduleWeeklySchedule

WeeklySchedule

F act or y

How is Kanban System operating?

Shipping

ProductionControl

Shipping Schedule

Fact or y

F I F O

Op. 3Op. 2

Kanaban Kanban

Result = Shorter lead times and higher efficiency

Kanban Loops

Production Kanban

KANBAN

InternalKanban (delivery)

ExternalKanban (Supplier)

Production Planning Process

What is Production Planning

Plan production in order to: balance Manpower, Materials and Machines produce correct volume, mix and sequence and make a product that meets the Customer Demand at the Lowest Total Cost and deliver the final product on time

Production Planning Challenges Forecast vs. actual Sales orders Changing Customer orders Quality problems Premium shipments Unplanned overtime effect on Supply Chain Overproduction Engineered vs. Demonstrated Capacity Planning and Leveling week to week Inventory fluctuation Executive Monthly Performance Review

Planning based on Forecast (MRP)

Traditional method of scheduling production is to use the Sales Forecast to:

Order raw materials and purchased parts Schedule production on weekly basis

The problem with Forecasts is that: They are not accurate (50% - 70%) Customer demand changes all the time

This quite often results in: Long lead times Frequent schedule changes due to parts

shortages Overproduction

Customer Forecast

Shipping History

Production Kanban System In the TPS (Toyota Production System), a unique production control

method called the “Kanban system" plays an integral role The Kanban system has also been called the "Supermarket

method" because the idea behind it was borrowed from the grocery supermarkets

At Toyota, when a process refers to a preceding process to retrieve parts, it uses a Kanban to communicate which parts have been used.

Supermarket as a Production Buffer

Make to StockShip to Customer

Production Kanban

Supplier Production Kanban

Kanban based Production

Production Kanban

Part Number Part Description

Location in the Warehouse

Raw Materials requiredQuantity to produce

Production LineRouting: sequence of operations

Production e-Kanban

Production Line

Quantity to produce

Raw Materials required

Packaging instructions

Job durationHow long it should take to produce this order

Role of Production Control Department There is a very clear customer/supplier relationship between

processes There are several techniques that can be employed but the major

focus must remain on releasing production instruction in a manner that maintains the customer pace and best possible use of existing resources

The flow of material and information as designed by the shikumi is so vital to Toyota that they actually have a department that controls and monitors performance throughout their facilities

This department is called Production Control. It is one of the most powerful departments within the plant and the Corporation

Delivery Kanban

FIAMM Technologies - Kanban Loop - Line to F/Gs StoragePart Number Warehouse Storage Location

YF1T-13A803-AC B5Part Description Container Type

YF1T-13A803-AC Ford AM80S Full Size Black ReturnableProduction Line # of Parts per container

Line 5 390Special Instructions # of Boxes per Skid n/a

KANBAN

InternalKanban (delivery)

ExternalKanban (Supplier)

Delivery Kanban – Purpose A visual signal to the Supplier (internal or external) to deliver

materials consumed by a manufacturing process The only authority to move or deliver material - No Kanban; no

delivery Represents a standard pack of parts. It also serves as a container identification We control our inventory levels through the use of Kanban inside

the warehouse or the factory We can easily tell what parts we have and what parts we need –

we do not waste time looking for parts The most common way is with a Kanban Card – but there are

many other ways to signal a need for material delivery

Point-of-Use Location

Point-of-Use Buffers

Library of Kanban Cards

Kanban Post

Re-ordering System

Delivery of Small Boxes

Format of a Delivery Kanban Card

PartDescription

Warehouse Location Delivery Location

Types of Kanban - Signal

Card Container

LightEmpty space Electronic

Purchased Parts Kanban – cards and containers

These are Material Delivery Kanbans These cards and containers are used to control flow of parts from

the Warehouse to manufacturing Mini Markets or Point-of-Use locations

These Kanbans will be collected several times per day in order to deliver parts to manufacturing Supermarkets

Kanban is a Signal

It could be an empty container

Or it could be a card – “Shopping list”

31Marek Piatkowski - F.S.P. Consulting Inc.

Container as a Kanban signal

Delivery Kanban

Supplier Kanban card Example of Supplier Delivery Kanban Used only in the Purchase Parts Warehouse to order parts from

outside Suppliers Should not be found outside the Warehouse These cards should only be used by the Warehouse and

Purchasing personnel

Operating Rules - Kanbans Every box, every tray, every container must have a Kanban card

attached to it. All parts must be stored in one of the three designated locations:

Supermarkets storage Point-of-use (Mini-Market) storage WIP – Flow racks, work stations

Place for every part and every part in its place Inventory is controlled by the number of Kanban cards in each

loop Need more inventory – add more Kanban cards Reduce inventory – pull out Kanban cards

Operating Rules

Kanban Cards All permanent Kanban cards and returnable Kanban containers

must be treated as a valuable commodity and a Company property

Do not throw away any Kanbans cards or containers without an approval from the Material Management group

If any Kanbans are found out of place, please report them to the Materials Management group or your Leader

For low volume products (not stored in a Supermarket) we will issue a temporary one time “Make to Order” Kanban card – these cards can be disposed at the end of the process

Delivery Kanban – how does this work?

Purchased Parts Purchased parts will be delivered directly to the Point-of-Use or to

the Mini Market in your area – you no longer need to go to the Warehouse

If parts that you need are not in the Mini Market or at the Point-of-Use notify your Supervisor

Delivery Quantities There will be a standard quantity of parts in every tray and

container, as specified by a Kanban card All Purchased Parts will be in stored and delivered in easy-to-use

containers with small quantities of parts inside.

Delivery Kanban – how to order parts? When ordering parts from the Supermarket order only what you

need – one container or one Kanban at a time When you empty the container, return it to a designated location

in the storage rack (Mini Market) – for empty Kanbans Return all used Kanbans to a Kanban collection post Pick up the next container only if you need more parts When you finished the job and you have a partial container put the

container on a shelf in the Mini-Market - this partial container should be used first next time you run this job

What is Kanban ?

Lets all Pull Together

Changing the World. One Transformation at a timeThis presentation is an intellectual property of W3 Group Canada Inc.

No parts of this document can be copied or reproducedwithout written permission from:

Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631

Cell: 248-207-0416

Marek.Piatkowski@rogers.comhttp://twi-network.com

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