This is a presentation I gave at the Association for Manufacturing Excellence Annual Conference. Please do not try to implement Kanban/pull systems based on what you see here. Contact me for assistance: WillFranksJr@Gmail.com It is meant to be a basic overview of the topic.

1. Using Kanban Systems to
Drive Your Lean Strategy
Will Franks, Vice President of Production
Reliable Automatic Sprinkler Company
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2. Agenda
• Overview of Reliable
• Elements of the Lean Journey
• Pull Systems
• Strategic Driver of Lean
• Turning Point and Lessons Learned
• Questions and Answers
Will Franks ©

3. Reliable Automatic Sprinkler Co.
Liberty, SC
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4. Reliable Automatic Sprinkler Company Inc.
Manufacturer and Distributor of Fire
Protection Equipment
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5. Worldwide Distribution Centers,
Fabrication Facilities & Sales Offices
NEW YORK, NY (Elmsford) SEATTLE, WA (Kent)
WASHINGTON, DC (Lorton, VA) PORTLAND, OR
ATLANTA, GA (Norcross) TORONTO, CANADA
ORLANDO, FL (Longwood) WESTERN CANADA
CHICAGO, IL MEXICO
(Hanover Park) & LATIN AMERICA
LONDON, UK
MINNEAPOLIS, MN
(Roseville)
MANCHESTER, UK
DALLAS, TX (Carrollton) MANNHEIM,
GERMANY
GRAND PRAIRIE, TX
NACKA, SWEDEN
HOUSTON, TX
BEIJING, PR CHINA
DENVER, CO
SHANGHAI,
LOS ANGELES, CA (Brea) PR CHINA
LAS VEGAS, NV HONG KONG,
PR CHINA
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6. 

Fenway Park
Cowboys Stadium
Worldwide Projects
 Dubai International Airport
 LaGuardia Airport
 London Heathrow Airport
 St. Patrick’s Cathedral
 Microsoft Data Systems
 Wal-Mart Distribution Center
 Arnold Palmer Hospital
 Trump Taj Mahal
 MGM City Center
 Ritz-Carlton
 BMW Manufacturing Facility
 Ford Motor Company Plant
 Boston College
 Notre Dame
 Bristol Meyers Office Building
 Soldier Field
 Daimler Chrysler Offices
 Nike Headquarters
 Time Warner Building
 Trump Towers
 Harrods
 Coors Field
 Riker’s Island Prison
 National Library of Scotland
 Google Data Center
 Yankee Stadium
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7. The Lean Journey
• Foundation in quality
• Process control and repeatability
• Takt time for line balancing
• One piece flow production
• Pull systems for materials
• Eliminate waste
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8. Typical Savings from Pull Systems
• Inventory reduced by 50-90%
• Stockouts reduced by 99.5%
• Space reduced by 50-90%
• Productivity improved by 5-10%
• Quality improved by 25-50%
Will Franks ©

9. What is a Pull System?
(a.k.a. Kanban System)
Kanban is a Japanese word that means “signal”
看 Kan: visual
板 Ban: card or board
• Produce only what is needed when needed
• Customer demand equals production
• Replenish material as it is consumed
• Sell a hamburger, make a hamburger!
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10. Key elements of a Pull System
• Trigger point
• Lot size
• Point of use materials
• Repeatable process
• Associate involvement
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11. The Process
• Consume parts
• Send the signal
• Replenish parts
• Deliver parts to point of use
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12. Pull System process
Pull System process
no
Production
Production
Hit the trigger
Consume material
point?
yes
Material
Handler
Material
Handler
Reorder: Wand the Flip the card
Put away material Flip the card
barcode “On Order”
Email
Supplier
Supplier
required
information to Produce material Ship material
supplier
automatically
Receiving
Receiving
Deliver material
Receive material to Production in
designated area
Will Franks ©

13. Trigger Point Calculation (basic)
• Trigger Point is defined as the point at
which the signal is sent
• The optimum trigger point is equal to
consumption during the replenishment
lead time
• Ideally, you run out as the next lot arrives
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14. Trigger Point Calculation (basic)
• Lead Time from
producing operation (days) _____
• Demand during Lead Time
(Units/day) x _____
• Equals Trigger Point =
_____
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15. Lot Size Calculation (basic)
• The optimum lot size is equal to
consumption during one replenishment
lead time
• Ideally, you hit the signal as the next lot
arrives
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16. Lot Size Calculation (basic)
• Lead Time from
producing operation (days) _____
• Demand during Lead Time
(Units/day) x _____
• Equals Lot Size = _____
Will Franks ©

17. Buffer Size Calculation (basic)
• Buffer Size is defined as the maximum
inventory on hand
• Trigger Point _____
• Plus: Lot Size + _____
• Equals: Maximum Inventory = _____
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18. Trigger Mechanisms
When What
• Close, visual • Space, Lines
• Close, not visual • Containers
• Same facility • Cards
• Demand > One card • Trigger Board
• Different facility • Electronic
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19. Point of use material
January 2009
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20. Bulk buy vs. demand driven
Before After
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21. Demand Driven
1. Pull finished goods 2. Signal the cell
3. Replenish finished goods
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22. A strategic driver of lean
Just starting?
• Start simple, expand
• Deliver measurable results quickly
• Reduce inventory
• Improve availability, quality
• Associates learn the benefits of lean
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23. Inventory hides the waste...
Sea of Inventory
Long
Machine Set-ups Line
Breakdowns Imbalance
Poor
Long Vendor Quality
Scheduling
Transportation Delivery Problems
January 2009
Absenteeism Will Franks ©

24. Reduce inventory, expose the rocks…
Sea of Inventory
Long
Machine Set-ups Line
Breakdowns Imbalance
Poor
Long Vendor Quality
Scheduling
Transportation Delivery Problems
January 2009
Absenteeism Will Franks ©

25. A strategic driver of lean
Been on the journey for a little while?
• Other lean elements are required:
Quality, process capability, TPM, level loading,
flow, cross training, set up reduction, 5S…...
• Remove the rocks
• Continue at a manageable pace
• Drive the lean journey!
Will Franks ©

26. Turning Point for Success
• #1: Seeing the bigger picture
• Commitment from all parties
• Measurable results
• Keep going!
Will Franks © 26

27. Lessons Learned
• Initial enthusiasm
• Complacency
• Resistance to change
• Resentment
• Keep going!
Will Franks © 27

28. Reliable Automatic Sprinkler Company Inc.
Questions and Answers
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29. Will Franks
• Will Franks has been at the leading edge of various continuous improvement and lean methodologies for
nearly thirty years. Beginning as a design and manufacturing engineer with Xerox Corporation in the early
80s, he participated in one of that company's first "Leadership Through Quality" teams, based on
Japanese "Quality Circles." This experience continued at Ciba Corning with their "TQM" or "Total Quality
Management" approach. In early 1986, he was part of their team to work on a new inventory reduction
program called "JIT" or "Just in Time," widely recognized as an early version of Lean.
• Throughout the 80's and 90's he became an expert and leader in what was known as "World Class
Manufacturing" and "Manufacturing Excellence," serving on the board of the Association for Manufacturing
Excellence, Northeast Region for seven years. Beginning in 1992 he became involved with and an expert
in a new improvement technique known as Kaizen. He helped spread the kaizen methodology to hundreds
of U.S. companies by leading "Kaizen Blitz" workshops in cities across the country.
• Operationally he has held positions such as Vice President of Manufacturing for Pfizer Infusaid, a medical
device manufacturer, and VP of Operations for PLC Medical, the Heart Laser Company. In 1997 he started
ICON Business Associates, a Lean Manufacturing consulting firm. His clients include Zildjian, the oldest
manufacturing company in the U.S., and Thermo Scientific, a $10 billion instrumentation and services
company. He currently is Vice President of Production at the Reliable Automatic Sprinkler Company,
manufacturer of fire sprinklers and related fire sprinkler system components.
• Franks has a bachelors degree in Mechanical and Aerospace Engineering from Cornell University, studied
toward a masters degree in Industrial Engineering at Rochester Institute of Technology and holds a Master
of Business Administration degree from UMass Dartmouth. He is also a member of Delta Mu Delta
business honor society, and the Mensa High IQ Society.
Will Franks ©

30. Are you a Future Presenter?
If you are interested in presenting or
volunteering for next year’s conference in
Chicago:
- Please submit the card provided and give to your
Room Host
- Or sign up at the Volunteer Table by Registration
- Or go to the AME website at
http://www.ame.org/volunteer to sign up for
volunteering
Thanks for attending this year!
Will Franks © 30

31. Closing slide
• Will Franks
• WillFranksJr@Gmail.com
• “Using Kanban Systems to Drive Your
Lean Strategy”. Session # 1654
Please return your completed
Session Survey to the Room Host
Will Franks ©