Introduction to Kanban

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Introduction to Kanban
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Business needs are varied

• We need to be able to simplify how we control
  inventory and scheduling on the plant floor
• But, we still need to
• Forecast and transmit our future requirements to
  suppliers
• Be able to provide accurate inventory information
  to other areas of the organization.

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What is KanBan?

• What is Kanban
• Signal
• A card, ticket, empty container, etc
• A system or a set of rules
• Shop floor execution tool
• Visual based pull system
• Moves parts to point of consumption
• So Simply Define Kanban?
• Kanban is a signaling execution system to pull
  items forward only when needed.
• Some Challenges
• Managing all the cards
• Update inventory in planning system
• Setting Kanban sizes, and revising as demand
  changes

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Types of Kanban Practices?

• One Card System Cards are exchanged between
  users and producers.
• Toyota Two-Card System Standard container moves
  from W/C to W/C.
• Verbal and Golf ball User tells the producer.
• Colored Squares Colored tape on floor to be
  filled.
• Container as Kanban Empty returns to supply
  Operation to produce.
• Two Bin System Two bins on shelf. Empties gets
  replaced by full.
• gt All of these practices work with coordinated
  physical requirements Cards may indicate item
  number, quantity, location, colored bins. Verbal
  can be by email, phone, shouting. Bin priority
  could be defined by color or numbers. Wall
  boards with hooks where status of cards hang.
  Long cards so they do not get carried in a pocket
  and lost easily.

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The Kanban Rules

• Each container must have a card that indicates
  item number description user and producer,
  location and quantity.
• No parts are started without a card.
• All containers contain exactly their stated
  quantity.
• No defective parts may be sent to the customer.
• The producer can only produce enough to make up
  the withdrawn.
• The number of Kanban should try to be reduced.
• A kanban bin is filled in hours or a day not days
  or weeks.
• gt Kanban is a technique for work release.
  eKanBan enhances this method by tracking these
  movements automatically in your computer system.

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Electronic Kanban

• What does Electronic KanBan do?
• Streamlines inventory moves and enhances
  inventory visibility
• Takes advantage of pre-existing procedures
  inherent in an N-Bin kanban system
• Provides Low Touch techniques to automatically
  release complete
• Production Orders
• Purchase Orders
• Inventory Transfer Orders
• Easily extends kanban techniques to work with
  suppliers, sister plants, etc

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Electronic Kanban

• Proven Results
• Fast Implementation simple tailoring options
• No additional staff needed to manage kanban
  system
• Better historical information to manage inventory
  such as replenishment history
• Utilizes disciplines already in place fits your
  organizational needs

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Electronic Kanban Transactions Empty Bin
FINAL ASSEMBLY
Empty Bin
E
F
Sub-Assembly
1
2
E

• 2-Bin Kanban
• Subassembly work area depletes one bin
• When we have an Empty Bin, the workers begins
  to work out of other bin.
• The Empty Bin is the signal to replenish the
  empty bin in the feeder area.
• Many ERP systems signal work with a
• Work Order for Manufactured parts
• Purchase Order for Purchased parts

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Electronic Kanban Transactions Full Bin
FINAL ASSEMBLY
Full Bin
F
Sub-Assembly
1
2
F
E

• 2-Bin Kanban
• The feeder area manufactures product and fills
  the Empty Bin
• The now Full Bin is moved back to the staging
  area.
• The Full Bin is the signal that Inventory has
  been replenished.
• Many ERP systems signal a Full Bin by
• Close the Work Order for Manufactured parts, and
  backflush components
• Receipt and close the Purchase Order for
  Purchased parts

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Recommended Reading
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Electronic KanBan for XA

• What does Electronic KanBan do?
• Reduce component inventories
• Streamline inventory moves for
• Automatically Releases
• Manufacturing Orders
• Purchase Orders
• Repetitive Schedules
• InterSite Orders
• Internal kanban

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Electronic KanBan

• Adds the following transactions to PMC
• _at_E (empty) Drives new MO, repetitive schedule,
  PO or blanket release, InterSite Transfer,
  forward flush labor and/or allocations
• _at_F (full) takes appropriate action close
  oldest order and back flushes labor and/or
  allocations
• _at_T (transfer print) Print kanban transfer label
• _at_X (warehouse transfer) Internal kanban transfer

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Electronic Kanban Kanban-Size Calculator

• Kanban lot size 2ADD(RLT SSD)
• Where
• ADD is Average days demand
• RLT is Replenishment Lead Time (or decimal
  fraction)
• SSD is Safety stock days (or decimal fraction)

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Required XA Modules

• CAS
• PMC
• IM
• REP (Needed for automatic release of repetitive
  schedules/orders)
• PUR (Needed for automatic release of POs or to
  add PO release)
• ISL (Needed for automatic release of InterSite
  Orders)
• PCC (Needed for back flush of labor and
  materials, needed for when you milestone)
• PLMC is needed if you are going paperless
• Technical point MOMAST gets populated in
  MAPICS with the turnaround number (serial number)

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• QUESTIONS?