KANBAN

1. A.V. Sri Harsha
Amit Kumar

2. Introduction
 Kanban is a Japanese word which literally means
“sign board” or “billboard”.
 It was developed by Taiichi Ohno, at Toyota, in 1953, to
find a system to improve and maintain a high level of
production.
 It is a concept related to lean and just-in-time (JIT)
production.

3.  It is a scheduling system that tells you “what to
produce”, “when to produce”, and “how much to
produce”.

4. What Kanbans Do
 Controls the amount of raw material amounts and of
materials in Work In Process (WIP).
 Smooth's out the entire material flow, if sized properly.
 Tells when and where there is a problem in the
process.
 Assures there is always just enough material on hand
to make what is needed.

5. Create Information System that Supports Lean Principles
Pull of Product Based on Usage
Lower Inventory / Reduced Lead-Time
The Objective

6. Types of Kanbans
 Raw Material Kanban – tells suppliers when to send
how much of particular item to a particular place.
 WIP Kanban – determines the amount of Work In
Process that can be kept between any two operations
in a process.
 Finished Goods Kanban – determines the amount of
a product to be kept on hand at any given time.
Removal of material from the Finished Goods Kanban
acts as a signal for more of that product to be
manufactured.

7. Types of Kanban Signals
 A calculated amount of material kept in a designated
space, such as a bin on a workbench or on the floor.
 A card that is used to tell the amount of material to be
made or ordered.
 The markings on a bin that determines when more
material needs to be ordered or made.
 Any other clear visual signal that indicates it is time
to get more material.

8. How Kanban Works

9. IN PROCESS
Feature to
develop Tasks in queue
Tasks in progress Tasks
complete
Feature complete

10. Flow of Kanban Signals
External
Supplier
Internal
Raw
Materials
Storeneeded
product
Internal
Production
Work
Unitneeded
product
Plant
Finished
Goods
Storeneeded
product
External
Customer
needed
product
Supplier Signal Move Signal Customer Signal

11. Raw Materials Kanban
 All of the RM used to manufacture a particular
product are identified as well as the number used in
each product.
 The goal is to order at the point when the number of
parts on hand reach the amount that will be used up
during the time it takes to order and get the new
needed parts delivered (Lead time).
 Usually, because of variability in the lead time, the
amount of reordered parts is a bit more than the
amount of parts needed to cover order lead time.

12. Raw Material Kanban Card
Kanban Signal NumberSupplier Name
Part Number Quantity Card No.
Customer
Store Address Work Unit
Address
Part Name

13. Work In Process Kanban
 Materials flow demands a very well balanced manufacturing
line, meaning that each process station uses approximately
the same amount of time to do the necessary work.
 First, the process times at each station are calculated.
 Then, when one station has to take significantly more time
to do its work than previous stations, Kanbans are put in to
keep material batching to a minimum.

14. WIP Kanban Card
WORK UNIT ADDRESSSTORE ADDRESS
SUPPLIER NAME Kanban Signal No. WORK UNIT NAME
PART No. QUANTITY CARD #

15. Finished Goods Kanban
 The demand for a particular product is tracked over
time.
 Based on the demand, the safety stock is calculated,
(e.g. a day or a week).
 Based upon the demand, it is then calculated how many
of the product needs to be made per day.
 Kanbans are set up in the shipping area with the
amount of product that has been determined as
required safety stock.

16. Supplier
Kanban
Signal No.
Part No.
Storage Location
Quantity Supplier
No.
Card No.
Container
Type
Description
Storage Address
Finished Goods Kanban Card

17. Advantages
 Elimination of Waste
 Overproduction
 Material movement
 Inventory
 Grows the Business
 Internal and external.
 Strengthens the resources.
 Improves the Competitive Position
 Continually strives for perfection.
 Reduces the cost.
 Eliminate wastes in operations.

18. Additional Advantages
 Support Visual Control
 Are we behind?
 What do I produce first?
 What is my inventory situation?
 Continuous Improvement
 Large inventories hide problems
 Facilitate continuous improvement

19. Thank You..