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    KANBAN SYSTEM

    HARI HARAN.K

    M.E(C.I.M)2009206028

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    Kanban Production Control

    SystemKanban:Card or other device that communicates

    demand for work or materials from the preceding

    station

    Kanban is the Japanese word meaning signal

    or visible record card

    Paperless production control system

    Authority to pull, or produce from a downstreamprocess

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    Kanban is not for everybody

    The conditions necessary for Kanban to work well are:

    Smooth production involving a stable product mix

    Short setups

    Proper machine layout

    Standardization of jobs

    Improvement activities

    Autonomation (autonomous defect control)

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    Kanban Control System

    Kanban card indicates standard quantity of production

    Derived from two-bin inventory system

    Kanban maintains discipline of pull production

    Q = order quantity

    R = reorder point

    = demand during lead time

    Bin 1 Bin 2

    Q - R

    R

    Reorder

    Card

    Kanban

    a. Two-bin inventory system b. Kanban Inventory System

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    Kanban

    Each kanban includes info on

    Part type

    Number of units authorized

    Possible additional info

    Often used together with transport container

    Possibly color-coded to match

    Empty container pulls parts / triggers production

    Kanban card is work order

    Transfer lot size = container size

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    Kanban Systems

    The first Kanban system was applied by Taiichi Ohno in

    Toyota around 1953 to:

    Reduce inventory and production cycle time

    Improve productivity Kanban and Kaizen

    Kanbana card (Japanese term), visual record

    Kaizencontinuous improvement

    A concept different than Kanban Problem solving by teams

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    Kanban Production Control System

    Kanban card indicates standard quantity of production

    Derived from two-bin inventory system

    Kanban maintains discipline of pull production

    Production kanban authorizes production

    Withdrawal kanban authorizes movement of goods

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    Important properties of Kanban System

    Production is carried out in multiples of a minimum

    quantity or batch.

    The number of cards (or containers) in the system is

    fixed, hence the total quantity of on-hand and on-order

    inventory in the facility is also fixed (fixed-volume pull

    system).

    Production is only initiated when finished inventory is

    removed from the cell, thereby releasing a card (or

    container).

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    A Sample Kanban

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    Types of Kanban System

    Single Card Kanban System:

    The production activity within the cell is controlled by the

    Production Kanban cards, but transportation activity from the

    cell is not controlled by the Withdrawal (transportation)

    Kanbancards.

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    Dual Card Kanban System:

    The only difference from the above is that there is an upper

    bound on the back orders, which is limited by the number oftransport Kanbans, since they are controlled by the

    withdrawal Kanban cards.

    Two-stage Kanban System:

    Consists of two cells in series.

    Simplest version of a multistage Kanban controlled process.

    Interactions can be determined in order to get insights.

    Types of Kanban System

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    Types of Kanbans

    Kanban Square

    Marked area designed to hold items

    Signal Kanban

    Triangular kanban used to signal production at theprevious workstation

    Material Kanban

    Used to order material in advance of a process

    Supplier Kanbans

    Rotate between the factory and suppliers

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    Single ard Kanban System

    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

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    Single ard Kanban System

    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

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    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

    Single ard Kanban System

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    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

    Single ard Kanban System

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    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

    Single ard Kanban System

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    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

    Single ard Kanban System

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    Storage

    area

    Empty containers

    Full containers

    Receiving postKanban card for

    product 1

    Kanban card for

    product 2

    Assembly line 1

    Assembly line 2

    Fabricationcell

    O1

    O2

    O3

    O2

    Single ard Kanban System

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    Dual Kanbans

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    Dual Kanban system

    Process

    A

    Process

    B

    P

    W Container with withdrawal kanban

    Container with production kanban

    PWP

    XX

    XX X

    Flow of work

    Flow of kanban

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    Types of Kanbans

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    Types of Kanbans

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    Determining Number of Kanbans

    where

    N = number of kanbans or containers

    d = average demand over some time periodL = lead time to replenish an order

    S = safety stock

    C = container size

    average demand during lead time + safety stock

    container size

    N =dL + S

    C

    No. of Kanbans =

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    Determining the Number of

    Kanbansd = 150 bottles per hour

    L = 30 minutes = 0.5 hours

    S = 0.10(150 x 0.5) = 7.5

    C = 25 bottles

    ContainersorKanbans3.3

    25

    5.775

    25

    5.7)5.0150(

    C

    SdLN

    Solution

    Round up to 4 (to allow some slack) or down to 3 (to force improvement)

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    Kanban

    Z

    Step N manufacturer

    Z

    Step N supplier

    Kanban card (and empty container) = request to

    supplier to make a container of Z and deliver ASAP

    Send request when remaining material = lead timefor replenishment

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    Kanban Example

    One-card kanban

    Low mix/high volume environment

    Products X and Z Each has 3 steps performed at same 3

    stations A,B,C

    One worker per station (aka Point Of Use,

    POU)

    Storage after each station

    Process A+B+CProcess A+BProcess A

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    Card located with product throughout the system

    Kanban Card For Example

    Model number

    Replenishment

    quantity

    X

    1

    Z product:X product:

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    Scheduling Kanban systems

    Each stage has its own schedule of Kanbans

    This schedule is determined at the Kanban

    system design stage

    Production is indirectly scheduled by Kanban

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    Kanban Control System

    Once implemented, a Kanban system acts acontrol system rather than a scheduling

    system

    It implements a repetitive schedule embeddedin the system

    This schedule can be generated by a

    scheduling algorithm Simulation can be used to determine the

    number of Kanbans, queue size, etc.

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    Kanban Control Systems Roles of Kanban

    To indicate what is needed at which production stage

    To allow various stages to efficiently communicate with

    each other

    The information can be obtained from the Kanbans

    Product name

    Code

    Volume

    Preceding stage and subsequent stage (From .. To ..) Process

    Companys production plan is given only to the final line

    Every stage automatically knows how much and when to

    produce the parts required

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    Strategic Implications of JIT

    Important for firms focusing on time-based

    competition

    Cutting cycle times

    Improving inventory turnover

    Increasing labor productivity

    Low cost

    Consistent quality Plant organized around product flows

    Not used for make-to-order or highly customized

    products

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    Operational Benefits of JIT

    Reduced space requirements

    Reduced inventory investment

    Reduced manufacturing lead times

    Increased productivity Increased equipment utilization

    Reduced paperwork

    Simplified planning systems

    Better production scheduling

    Work force participation

    Increased product quality

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    Implementation Issues

    Human costsstress, loss of autonomy

    Mitigate by allowing some slack in system

    implementing work teams

    Job rotations Cooperation and trust between work force and

    management

    Realignment of reward structures

    Layout changes

    Stable master production schedules

    Short setups

    Reliable supplies of materials

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    Kanban is:

    a) Device authorizing work from preceding station

    b) Kanban is the Japanese word meaning

    produce

    c) Paperless procurement control system

    d) Authority to push to a downstream process

    OVERVIEW

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    OVERVIEW(2)

    Typical Kanban includes information on:

    a) Kanban number, description, and number of units

    authorized

    b) Part number, description, and number of units

    authorized

    c) Kanban number, part number, description, and number

    of units authorized

    d) Part number, work center, and number of units

    authorized

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    THANK YOU FOR YOUR KINDATTENTION

    &

    LOOKING FORWARD FOR QUERIES