Kanban

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Kanban Overview Training
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Chrysler Electronic Kanban System
System Description and Presentation Outline

• The goal of Chrysler Electronic Kanban system is
  to utilize assembly and manufacturing systems to
  gather real time data needed to generate material
  replenishment orders.

• In this course, you will learn about
• Definition of Kanban
• Chrysler System and Tools
• Types of Kanban methods used
• Assy Consumption Pull
• The Flow of Material Within the Plant
• Kanban Setup Functionality
• Types of Routes
• Importance of Lineside and Accum
• Logic Behind Reorder Levels
• Error-Proofing Capabilities
• Management by Alerts
• Resources Available

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What is Kanban?
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Kanban System

• The Chrysler Kanban system lies across 2 main
  systems
• KBIMS Kanban Information Management Systems
• Used by all floor operators to Pick/Deliver
  Material
• Used by Supervisors for configuration and setup
• Used for reporting and performance monitoring
• Receiving The Receiving system also has a KBIMS
  Trid
• Used by Supervisors as part of their monitoring
• Used to view and update current lineside
  information
• Used in trouble-shooting processes

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KBIMS Kanban Information Management System
Open a BlueZone Session Login to KBIMS Region
KBIMS Is System Used On the Floor For All Mobile
Devices
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Receiving KB11
Open a Blue Zone Session, Login to Receiving
(NR), Type KB11
The Receiving KB11 is used by Supervisors to
perform research, view Lineside information, and
perform inquiries
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Kanban System Tools
Many tools and pieces of equipment play a role in
the Kanban System
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Types of Kanban

• The System can automatically generate material
  orders (without manual intervention) via one of
  the following processes

Projected Pull Assembly Consumption
Pull Manufacturing Consumption Pull Robotic
Interface (Bodyshop)

• Common Benefits
• Eliminate manual requests visual management
• Provide an electronic audit trail
• Provide electronic pick lists
• Reduce lineside inventory
• More transparent view of material in the
  pipeline
• Smoother flow from warehouse to line

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Projected Pull

• Projected Pull was the initial logic behind the
  Kanban System
• It looked at planned production and scheduled
  deliveries
• It was based on PUP Part Usage Projection
• It works well if line runs as planned and has no
  stops
• It did not react to actual prod and could flood
  line with material
• This method is being phased out and replaced by
  Consumption Pull throughout our plants

Projected Pull is really a PUSH system
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Consumption Pull

• Consumption Pull is the current standard for the
  Kanban System
• Used by Assembly (ACP) and Manufacturing (MCP)
• Automatically generates orders based on line
  consumption
• A lineside value is maintained and decrements
  each time a vehicle passes through the station
• When a reorder point is reached, a call for
  material is generated
• Any stoppages are reflected immediately as the
  consumption stops along with the line

Now the line is pulling needed material
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Assy Consumption Pull (ACP)

• Chrysler Kanban System Information
• Systems Required To Support Assembly Consumption
  Pull

(2) Provides total usage of each part for all
in-system VINs
(1) Maintains necessary VIN information
(3) Provides hourly projected part usages for
each production day
PUP Kanban Reorder Points automatically adjusted
based on Part Usage Projections
(6) Compares lineside inventory vs reorder
level to generate new orders
(4) Updates Kanban when vehicles arrives at
station
(5) Determines parts used on VIN at station
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Kanban Part Set-up

• The following items must be configured
  appropriately for each Part within the Kanban
  Setup stage for the system to work properly
• Part / station relationship
• - Each part assigned to a physical
  workstation for delivery and a QAS station for
  consumption
• - Part usage qualification required for
  multi-use parts
• -VBOM will show a vehicle uses 10 pieces
• -The part must be qualified to show quantity
  used at each station (4 4 2)
• -Optional multi-use parts require sales code or
  body model qualification
• Pack Size
• - Shows the quantity of material contained in
  the handling unit used on the line
• - This quantity may or may not match the
  information found in CRATES
• - Kanban calls and deliveries are based on
  standard packsize
• Assigned Route and Type
• - Bulk (one-for-one call and delivery)
• - Dolly-delivered (max 4 containers or max
  time interval hit)
• - Picklist (scheduled generation
  times-usually for small lot)

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Kanban Part Set-up (Contd)

• The following items must be configured
  appropriately for each Part within the Kanban
  Setup stage for the system to work properly
• Reorder Level
• - Fixed reorder level (requires manual
  intervention to change)
• - Automatic - Adjusts based on PUP and route
  delivery cycle times
• - Reorder level will be compared to Accum
  after each change in quantity
• Route Delivery Schedule
• - A delivery pattern assigned for each
  calendar day
• - Multiple patterns can be created for
  different production schedules

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Kanban Route Options
The Kanban System manages 3 main types of
pick/delivery routes
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Sample Flow of Assembly Consumption Pull
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Assy Consumption Pull Small Lot or Bulk Example
Plant TCF
Chrysler Kanban System
3rd Party Warehouse / Plant Storage areas
1. Kanban Lineside Qtys fall below reorder level
2. Orders are Queued
Small Lot CMA
Kanban System Order Queue Order 1 801AM Order
2 801AM Order 3 803AM . . . . . . Order 68
859AM
BLUE route production line
3. Pick list generated, warehouse picker (plant
or 3rd Party) receives orders in Handheld, and
prepares route.
4. Material in a Route from plant CMA or 3rd
Party.
Blue Route Electronic Material Order via Kanban

• When material is pulled from a 3rd party,
  Chrysler Systems are in place
• Chrysler Network
• Handheld Device
• Kanban Application

3rd Party
1030am Small Lot Picklist Delivery Departure
1100AM Small Lot Delivery Blue Route
Plant
Note This application can be used for both TCF
and BIW
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Dolly Delivery Example
Dolly Router
Dolly Picker
Dolly Delivery

• Optional Set-up. F18 screen
• Receive Electronic Picklist by Route (4
  containers or X minutes).
• Stage empty Dollies in reverse sequence.
• Deliver empty Dolly train to Picker and mark
  Picklist staging complete.
• Capable of managing multiple routes.

• Receive Electronic Picklist for sequenced
  Dollies when Dolly Router marks staging complete.
• Load Dollies with assigned material according to
  picklist.
• Mark Picklist picking complete.
• Capable of managing multiple routes.
• Capable of part scan verification.

• Receive Electronic Picklist for Delivery when
  Dolly Picker marks complete.
• Deliver material to line. Mark Picklist complete
  after last delivery. Lineside inventory is
  updated.
• Capable of part scan verification.
• Return empty dollies. Capable of managing
  multiple routes.

NOTE Dolly delivery Alert Screen (hands free)
displays exceptions (ie. LATE in picking or
delivery)
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Dolly Delivery Example - WAP
Dolly Top Hating
Dolly Picker
Dolly Delivery

• Receive picks for top hating when they go into
  WAIT status for a particular dolly route
• Retrieve material from storage bank
• Tophat parts in marshalling areas.
• Capable of receiving picks for multiple dolly
  routes

• Receive Electronic Picklist for sequenced
  Dollies
• Creates train for dolly route
• Mark Picklist picking complete.
• Capable of managing multiple routes using a work
  assignment
• Capable of part scan verification

• Receive Electronic Picklist for Delivery the
  picklist is marked picked
• Deliver material to line. Mark Picklist complete
  after last delivery. Lineside inventory is
  updated.
• Capable of part scan verification.
• Return empty dollies.
• .

NOTE Dolly delivery Alert Screen (hands free)
displays exceptions (ie. LATE in picking or
delivery)
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The Importance of Lineside
The entire Kanban system is based on the
integrity of the lineside
Lineside is a calculated number based on the
following equation Lineside ACCUM WAITING
REQSTD PIP PICKED - DIP

• Accum is the sum of all parts in the Kanban
  Supply Chain and is the value used for Reorder
  Point
• The reorder point is compared to Accum each time
  there is an update to part quantity
• Material orders when Accum reorder point
• Waiting Any material queued and waiting for max
  requests / time interval to be reached
• Requested Once picklist drops, qty moves from
  Wait to REQ status and is now visible to Picker
• PIP Pick In Process shows that a Picker has
  acknowledged a picklist and is in process of
  picking
• Picked Shows material has been fully picked and
  is ready for delivery
• DIP Delivery In Process shows that delivery
  operator has acknowledged a picklist and is
  delivering
• Once material delivers, the quantity updates into
  the Lineside

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The Importance of Lineside

• It is the job of the Material Supervisors to
  check and maintain the lineside values of parts
  in their areas.
• This activity is usually done when plant is not
  running
• What is physically counted on line is not always
  what the system will show

Lineside ACCUM WAITING REQSTD PIP
PICKED DIP

• If lineside is found to be incorrect, the
  Supervisor must analyze the part to determine the
  proper steps to take to update the lineside
• Raising a lineside moves the Accum further away
  from the Reorder level and slows the flow of
  material to the line
• Lowering a lineside brings the Accum closer to or
  below the Reorder level and speeds the flow of
  material to the line

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Negative Lineside

• Lineside can go negative
• The system continues to count as vehicles move
  through regardless of lineside value
• Negative lineside is a signal to a Supervisor to
  analyze the part
• Negative lineside shows that part of the process
  is not working or being followed
• Deliveries not being bought off appropriately by
  delivery drivers
• Pack size incorrect in system
• Material was expedited to line without system
  being updated
• Improper lineside update was performed

Negative Linesides must be investigated
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Receiving -gt KB26
Within Receiving Region, KB26 will show you the
current lineside for all parts and can be
filtered by route, station, part number, etc This
screen shows all relevant data for the parts on
white route and is used by Supervisors to detect
possible issues If a Supervisor has a question on
a specific part, they will put an L in the far
left Action field and press Enter to go to KB46
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KB46 Lineside Detail

• KB46 shows all of the current detail of the ACCUM
  for the selected part
• The current Accum is 444 and the Reorder Qty is
  400. Once 44 more pieces are consumed at this
  station, an additional order for material will be
  automatically generated because Accum will equal
  Reorder Qty
• The Lineside calculation is displayed and shows
  you the quantity of parts within each status of
  the process
• The bottom of the screen shows you the most
  recent Picklists and their current status
• DIP Delivery in Process Tugger driver should
  be en route to line with material
• Pick Picked Status Showing that a picklist
  has been picked and is staged for delivery

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KB26 Lineside Quantity

• When looking at KB26, if a lineside shows
  , this is indicating that the
  operator assigned to that route is not buying
  their routes off and old routes exist in the
  accum. In this example the routes are that are
  10 days old.

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Common Causes For Inaccurate Lineside Qty

• 1) Part not setup in Kanban.
• Countermeasure Specifications to set
  up part as soon CN drops.
• 2) Part is not counting down. Issue with QAS
  point.
• Countermeasure Verify QAS is setup
  properly. Audit one route per day to validate
  QAS point is counting down.
• 3) Internal SPD cell counting down material at
  Lineside QAS point and not the pick cell.
• Countermeasure PFS enhancement to
  relieve material at pick cell when material is
  scanned and sequenced.
• Part is not counting down. Issue with effective
  point.
• Countermeasure Specifications using
  checklist to validate count down is set up
  properly.
• Small Lot routes are late delivering. Small Lot
  Lineside Qty update automatically.
• Countermeasure Small Lot Dock unload
  monitors delivery of Small Lot routes to Plant
  and communicates via radio when delivery is
  late. Material Handling BULs collect route
  delivery sheets when operator s are
• done with
  delivering.
• Bulk Routes have been bought off as delivered in
  Kanban before they are physically delivered.
• Countermeasure Kanban buy off
  training.

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Common Causes For Inaccurate Lineside Qty

• 9) Parts are on Scrap table.
• Countermeasure Monitor Scrap report
  and adjust Lineside.
• 10) Parts have been removed from the line.
• Countermeasure Daily communication
  with SQA and repair garage. EPICS to compare
  KB26 Lineside when
• physically counting.
• 11) Lineside Qty adjusted up in error.
• Countermeasure Supervisor training.
• 12) Metering Center mis-picks.
• Countermeasure Small Lot drivers
  validate paper picklist. Bulk drivers validate
  electronic picklist.
• 13) Pack Size discrepancies.
• Countermeasure Validate pack size
  when picking parts.
• 14) Production mis-use.
• Countermeasure Analyze expedite log
  for parts ordered out of Kanban process.

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Reorder Level

• Each part in Kanban has a reorder level that is
  compared to the ACCUM to order parts
• The reorder level is set based on the following
• Usage of the part (one all, option, multi-parts
  per vehicle, etc)
• Cycle time from part order through delivery to
  line
• 20 Mins Wait, 20 Mins to Pick, 20 Mins to Deliver
  60 Mins
• Fixed Reorder Point
• Set by plant after performing analysis of above
• Auto-Reorder Point
• Automatically adjusts reorder point at each PUP
  turn
• Uses same information above and also considers
  future production
• System set to look at PUP for next X amount of
  hours
• If 6 or less hours, system takes top hour usage
  for calculation
• If 7 or more hours, system takes top 3 hours and
  usages an average of them
• PUP look up hours can range from a minimum of 3
  to a maximum of 99.

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How to Establish a Reorder Point

• In this small lot scenario, you have a worst case
  example of 6 hours between order and delivery
• 6 hours is multiplied by the Jobs Per Hour to get
  the reorder point (which is set to worst case
  example to protect the line)
• Any time the Accum reaches or falls below 420, a
  new order will be sent for this part

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How to establish cycle time and reorder point
Above Example Pick Time
60 Intransit Time 30 Delivered
60 Time between picks 60
Total 210 minutes / 60 mins per hour 3.5
hours Reorder Point Total cycle time (3.5
hours) X average usage per hour of part (72)
252
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Error-Proofing

• The Kanban system has error-proofing capabilities
  based on Scanning
• Picking
• Pickers use an RF terminal to see their picklists
  in REQ status
• Once they select one, they can use a scanner to
  verify they are picking the right part requested
  by the system
• Delivery
• Delivery drivers use an RF terminal mounted to
  the PIV Equipment
• They will scan material to the line to ensure
  right part / right place

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Dos and Donts of Scanning

• Dos
• Always scan the actual label that is on the
  container being picked or delivered
• Always notify the supervisor if a bar code will
  not scan
• If you have the same part numbers on a pick, scan
  each container separately
• Donts
• Dont type part numbers in Kanban
• Dont type SPD rack numbers in Kanban
• Dont scan parts until they are loaded on the
  rack or dolly
• Dont scan a part label that has already been
  picked
• Dont take labels off containers and scan them
  repetitively

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Alerts in Kanban

• Hot Picks
• Hot picks are a signal that the flow of material
  has been interrupted and you are at risk of a
  potential line shortage.
• Hot Picks must be monitored and analyzed
  throughout the day!
• There are only 2 causes for a hot pick
• 0 Pick of Material
• A request from the line was made but no material
  is able to pick
• Operator 0 picks the material so that they can
  continue with the picklist
• 0 Delivery of Material
• The material was picked, but was not delivered
• Material may still be in staging, on a truck, or
  was inadvertently 0 delivered
• When either happens, a new request is made for
  the single part called a Hot Pick
• Hot picks show on screen as their own line item
  and can be fulfilled once material is available
  and expedited to the line as needed

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Hot Picks - Monitoring
Hot Picks can be monitored through the above
screen KBIMS Region F10 Option 99 Option 31-
Filter to Status 7-HOT
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Hot Pick Analysis

• The following are some of the steps Supervisors
  should take in analyzing Hot Picks
• Hot picks should be checked after each route is
  complete

• Look at book record through SDSA Screen How
  many should you have?
• Look at Day Rate within SDSA to determine how
  long you have until run-out
• Look at Parts In-Yard and In-Transit using IYPT
• Look in Controlled Storage Screens MI08-MI09 to
  see if show parts in storage
• Look at KB26 for Station, Pack size, reorder
  point, and lineside value
• Go to station and physically count line and
  ensure it is updated properly using KB26
• If part is multi-use, check qualifiers in Kanban
  to ensure they are entered correctly
• Check each station where part is used and ensure
  proper lineside quantity. Each station added up,
  should equal the record showing on SDSA.
• If plants uses controlled storage, check MTA2
  Bookout screen. This will show all transactions
  for that part in controlled storage.
• This is useful if part was pulled and expedited
  to line without lineside being updated

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Hot Pick Analysis

• Always update the lineside using KB26 before
  voiding a hot pick.
• When checking a hot pick and information
  regarding the station, bay, or route is
  inaccurate. Always update Kanban after the pick
  is gone from the system.

• In order to void a hot pick, the lineside
  quantity must be more than the reorder quantity.
  
• Ex. Lineside quantity is -176, reorder point is
  184. If the hot pick is voided using Kanban, the
  pick will regenerate as soon as another piece is
  consumed at that station. The lineside quantity
  must be set and over the reorder point to void a
  hot pick.

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Hot Pick Analysis
After lineside has been updated and record has
been verified, the hot pick can be voided in
Kanban.

• Go to KBIMS, F10, Option 99, Option 31
• Place a V next to the part you wish to void and
  press enter. The screen will then ask you to hit
  F9 to confirm or press any key to cancel.

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Hot Pick Analysis
How to view Voided Hot Picks

• Go to KBIMS, F10, Option 99, Option 31. You can
  then filter through status 6 to view all voided
  hot picks
• As seen below part 06511000AA was voided 5 times.
  T-IDs are also associated with each part
  voided.

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Hot Pick Analysis
Key Factors to Remember while checking Hot picks

• Hot picks are used to signal the supervisor that
  there is a part shortage
• When checking hot picks, always check SDSA to
  ensure you have the record for the part
• Always check the qualifier to ensure the part is
  set up correctly in Kanban.
• When voiding a hot pick, the lineside quantity
  must be over the reorder point. If a part is
  voided in Kanban and the quantity is lower than
  the reorder point, the pick will generate in
  Kanban once a piece is consumed at that station.
• When checking hot picks that are multi-use parts,
  make sure to count all stations when comparing
  your count to SDSA
• If you have any doubt about voiding a hot pick,
  check with your area manager or supervisor for
  direction.

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Kanban Alert Screen KBIMS F21

• The Kanban Alert Screen is found through KBIMS
  Region F21
• This screen allows for real-time monitoring of
  routes and their current status within the plant
• The left-side shows picklists within Picking
  process - The right-side shows within the
  Delivery process
• Each status has a set time interval. If interval
  is exceeded, an alert is generated and listed in
  RED
• This screen will show all routes set in Kanban on
  E-Pick or Dolly Delivery
• You can place an X next to a picklist and drill
  down to see pick details.

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Nucleus of Material Flow
Kanban is the nucleus of the material flow
process in the plant The system must be regularly
monitored and updated