KanbanCalculations Tutorial
KanbanCalculations Tutorial
AlcoaBusinessSystem
かんばん
KANBAN
CALCULATIONS
Learning Objectives:
Understand the philosophy of
Kanban and its role in JIT production
Understand the types of Kanban
and the proper use of each
Be able to properly calculate the
number of Kanban needed in a
particular application
Agenda
Philosophy and Role of Kanban
Kanban System Review
Kanban Calculations
20 Questions
Classroom Exercise
= 150 '
54 slides
≈ 3'per slide
ClassExercise≈ 60'
STABILITY
(Equipment Reliability, Stable Processes, Quality,
Suppliers)
People
2003 Alcoa Inc. 5
ABS
AlcoaBusinessSystem
KANBAN
D
D
Supplier C
C Customer
B
B A
AA
Why Pull?
“Manufacturers and workplaces can no longer
base production on desk-top planning alone
and then distribute, or push, their products
onto the market.
It has become a matter of course for
customers, or users, each with a different
value system, to stand in the frontline of the
marketplace and, so to speak, pull the goods
they need, in the amount and at the time
they need them.”
2003
Taiichi Ohno
Alcoa Inc. 7
ABS
AlcoaBusinessSystem
KANBAN
Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful
Production System
2003 Alcoa Inc. 8
ABS
AlcoaBusinessSystem
KANBAN
Why Kanban?
Kanban is a way to achieve just-in-time; its
purpose is just-in-time [a test of one-piece flow].
The kanban system makes clear what must be
done by workers, managers and supervisors.
The goal of eliminating waste is highlighted by
kanban.
“In the production plant, kanban is a powerful
force to reduce manpower and inventory,
eliminate defective products, and prevent the
recurrence of breakdowns.”
Taiichi Ohno
June 1987
Kanban Types
1 x 1 Production
Production Kanban
Kanban Signal
Kanban
Kanban
Process Move
Move Kanban
Kanban Supplier Move
Kanban
Type B System:
• Low volume & high variety
• Generic, not part specific
• Uses FIFO queues
• Longer lead times
• Arrow comes down at start of flow
• Inventory generally lower, due to
queues
Shelf 7-C
Pick-up AJ
Process Move Kanban
…removed when first item is withdrawn from
container
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KANBAN
Count from
the bottom
FIFO
Signal Kanban Signals
Production Kanban (1 x 1)
FIFO
…removed when item is withdrawn from store Production
Kanban Rules
Function Rule
Provides pick-up or transportation Consumer picks up the number of items
information indicated (by the Kanban) at the supplier
Kanban-to-Kanban Example
Product Machine
Cycle
Container
Capacity
Monthly
Demand
Weekly
Demand
Daily
Demand
A B C
A 2’ 5 1560 360 60
7 hr / day
Production Containers
Product
A 1 1 1 1 1
(420’) B 1 2 1 2 1 …
C 3 2 3 2 3
Pitch
(30’) Process move kanban used to
Assemble
Stage & withdraw single item from store
Ship
Production kanban removed and
3
placed in collection box
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KANBAN
1x1 Production
Production leadMonthly
time fluctuation
Product Machine Container
Cycle Capacity
Weekly
Demand
Daily
Demand Demand Level withdrawal
6 7 7 3
A 2’ 5 1560 360 60
B 0.5’ 5 2340 540 90
A C C B B
C 0.5’ 5 4680 1080 180 C
C
A A A A A
Alternate Representations…
n rate+ ζ
Productionleadtime× Consumptio
Numberof kanban=
Containercapacity
Additional kanban needed to compensate
for:
Pull sequence fluctuation
Pull quantity fluctuation
Production lead time fluctuation
Productionleadtime+ ξ × Consumptio
n rate
Numberof kanban=
Containercapacity
t sa
na axe
A 1 1 1 1 1 1
m … +
el p B 1 2 1 2 1 2
C 3 2 3 2 3 2
② kanban stagnation time
…A
B
Pitch +
C
(30’)
③ machine (+ c/o) time +
Assemble Product Production Consumption Container No. of
④ conveyance
Lead Time Rate time
Capacity Kanban*
3 (max) (peak) (min)
② ③ ④ A 25.5’ 5 / 30’ 5 1
B 25.5’ 10 / 30’ 5 2
17.9’ 2.6’ 3’
C 25.5’ 15 / 30’ 5 3
3 3 3 3 3 3 3 3
3 3 3 3 3 3 3 3
30’ pitch
Maximum production lead
time – level withdrawal, no
25.5’ 25.5’ fluctuation*
p
dor ael n
A 2 1 2 2 2 2
oitcu d m
?e
it B 1 2 2 3 2 … consumption rate: up to 100%
C 3 2 2 3 5 1 Estimated increase in kanban
…?
?
needed: 1.20 x 2.00 = 2.40, or
Pitch 240% of Example 1
?
(30’)
② ③ ④ A 44.3’ 10 / 30’ 5 3
B 44.3’ 15 / 30’ 5 5
? ? 3’
C 44.3’ 25 / 30’ 5 8
…
3 3 3 3 3 3 3
2xB
1xC
3 3 3 3 3 3 3
30’ pitch
Net effect of fluctuation is to extend
production lead time – more inventory is
required
25.5’ →
44.3’
A 5 1560 60 5 3 2 1
B 5 3120 120 5 5 5 0
C 5 4680 180 5 8 10 -2
Signal Kanban
Need to know:
Daily demand Need to determine:
Scheduled daily work time
C/O times
Number of C/O
Machine time per piece possible per day
Container capacity
Lot size
Consumption rate
Production lead
time
Key Points: Order point
Choose appropriate replenishment strategy:
fixed time, fixed quantity or combination
Additional lead time due to lot making, etc.
2003 Alcoa Inc. 31
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KANBAN
Signal
A 2’ 5 1560 360 60
B 1’ 5 3120 720 120
C 1’ 5 4680 1080 180
7 hr / day Production
(420’)
FixedTime= ∑ Specificat
ionsrequiredeachday
Numberof C/O per day
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KANBAN
Signal
Example 3 – Fixed Quantity Replenishment
Product Cycle Container Monthly Weekly Daily C/O
Time Capacity Demand Demand Demand Time
General purpose machine –
c/o time does not yet allow
A 2’ 5 1560 360 60 3’
1x1
B 1’ 5 3120 720 120 4’ Scheduled production time
C 1’ 5 4680 1080 180 5’ is 7:30 per 9 hr day,
6 days per week
Product Lot Size / Daily Lots Needed per
Determine (per day):
Demand Day
Time Available 7.5 hr x 60’ / hr =
450’ A 60 ÷ 60 = 1 1 / day
Pieces Needed 60 + 120 + 180 = B 60 ÷ 120 = 0.5 2 / day
360
Machine Time 120’ + 120’ + 180’ =
C 60 ÷ 180 = 0.33 3 / day
420’
Available C/O Time Check for
Available - Machine 450’ – 420’ = consistency
C/O Run M T W T F S
30’
Longest c/o time max {3’, 4’, 5’} = 4’ 60’ B B B B B B
5’
5’ 60’ C C C C C C
Maximum C/O’s possible
Daily C/O
Available time:c/o26’ 30’ ÷ 5’ = 6
÷ Longest 3’ 120’ A A A A A A
Lot SizeDaily run time: 420’
Pieces Needed ÷ c/o’s 360 ÷ 6 = 5’ 60’ C C C C C C
60
Plan is consistent, now determine order 4’ 60’ B B B B B B
point(s) 5’ 60’ C C C C C C
2003 Alcoa Inc. 34
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KANBAN
Signal
Example 3 – Fixed Quantity Replenishment
Product Cycle Container Monthly Weekly Daily C/O Lot Machine
Time Capacity Demand Demand Demand Time Size Time
P
udor B B ① kanban collection time +
c
t sa
na axe
el p
m 2’ ② kanban stagnation time +
A ① time to replenish the
first container of the ③ machine (+ c/o) time +
C lot
④ conveyance time
Stamp Product Production Consumption Container Order
Lead Time Rate Capacity Point*
3 (max) (min)
(peak)
② ③ ④ A 147’ 30 / 60’ 5 15
B 202’ 60 / 60’ 5 41
188’ 9’ 3’
C 202’ 60 / 60’ 5 41
A 5 1560 60 60 15 12 3
B 5 3120 120 60 41 48 -7
C 5 4680 180 60 41 48 -7
41
P
udor A A ① kanban collection time +
c
t sa
na axe
el p
m 2’ ② kanban stagnation time +
B ① time to replenish the
first container of the ③ machine (+ c/o) time +
C lot
④ conveyance time
Stamp Product Production Consumption Container Order
Lead Time Rate Capacity Point*
3 (max) (min)
(peak)
② ③ ④ A 177’ 30 / 60’ 5 18
B 172’ 60 / 60’ 5 35
159’ 13’ 3’
C 142’ 60 / 60’ 5 29
A 5 1560 60 30 18 15 3
B 5 3120 120 60 35 30 5
C 5 4680 180 90 29 36 -7
29
Show
me!
Show
me!
Casting
Pit
Example
Key Points:
Proximity of consuming process to up-stream
store
A 5 30 / 60’ 15’
B 5 60 / 60’ 15’
C 5 60 / 60’ 15’
Up-stream
store Line-side
supply
Assemble Pack
Product A
No. kanban= 15' × (30 / 60') × 2 = 3
5
Product B A B C
No. kanban= 15' × (60 / 60') × 2 = 6
5
Product C
Pack
No. kanban= 15' × (60 / 60') × 2 = 6
5
Key Points:
Used when distance between supplier and
customer is significant
Assemble
2
Planning
Kanban Maintenance
Monthly Demand Forecast Daily Orders Detailed schedules
must be prepared in
Determine the Sequence for advance for each
Master Production Schedules
Production Variety production center
using monthly
Predetermined ProductionDispatch Actual Production planning data
Quantities and Daily Average
Quantity of Each Product Daily Daily materials must
Production To Upstream Process by Pull
be prepare din
advance to be avail
Monthly Capacity Planning
Daily Production Dispatching
24 24 4h 36
h h h
Schedule
8h
Production lead time = collection time+ stagnation time + setup time + run time
+ conveyance time = 4 days
Safety coefficient = 50% (1/day)x(4
days)x(1 + 0.5)
Daily demand = 1 / day (5 / week)
No. Kanban =
Container capacity = 1 / skid =6
1/
2003 Alcoa Inc. container 56
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KANBAN
Examples of Kanban
Storage Area
Time of Delivery
Farm Fresh
09:30 A 1 - 1 Tractors
Assembly No.2
Item No. Identification
2531 – 0471
Item Name
Radiator Cap
Used in
AJ
Engine Type
ABC Mobile
54
Equipment Box Type
A-4
SPECIAL
Store Shelf No.
75
Box
7 - Center Capacity
Parts-ordering Kanban
Examples of Kanban
Supplying Process
75
Capacity
5
SP
AJ
E
CI
A
Assembly
L
Requesting Process
Examples of Kanban
22-9
Lot Size Item No. No. of Containers
250
Radiator Plug
5
AJ B-9 50
Line No. per
Store
Container
Material
4”x4”
2
Order
Point
Examples of Kanban
Store
Shelf No.A33-5 Item Back No. 23 Process Line
Production
Instruction
(what +
Leveling Box when)
(Heijunka) A 1 1
Product
B 1
C 1 1
D 1 1 1 1 1
Time
A
B Stage &
Stamp Assemble
C Ship
D
Product
A 1 1
B 1 1 1
C 1 1 1 1 1
Time
Stage &
Assemble
Ship
3
Schedule
Instruction
Production Pacing (when)
Instruction Box 1
● ● ●
(what)
Assembly
2 ● ●
Line
Assemble
3 ● ●
1
Time
FIFO Queue
FIFO Queue
Assemble
3
Adapted From: Lean Production Simplified A Plain-Language Guide to the World’s Most Powerful
Production System
2003 Alcoa Inc. 65