1 / 17

Kanban Replenishment for All Types of Industries (Manufacturing & Non-Manufacturing)

Kanban Replenishment for All Types of Industries (Manufacturing & Non-Manufacturing). Tom Brown Colibri Limited Roswell, Georgia. Why consider kanban control?. Lower inventory investment Better “customer” service Reduced administrative costs. What is kanban control ?.

Antony
Download Presentation

Kanban Replenishment for All Types of Industries (Manufacturing & Non-Manufacturing)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Kanban Replenishment for All Types of Industries (Manufacturing & Non-Manufacturing) Tom Brown Colibri Limited Roswell, Georgia

  2. Why consider kanban control? • Lower inventory investment • Better “customer” service • Reduced administrative costs

  3. What is kanban control ? A method of Just-in-Time inventory replenishment that originated in Japan. • Kanban techniques can be used by both “manufacturing”and “non-manufacturing” org’s • Kanban systems can be: • 100% manual • 100% Oracle • A hybrid of Oracle and manual techniques • Non-manufacturing organizations will likely want to use a hybrid approach

  4. What makes kanban control different ? • Kanban is “pull” based – driven by actual usage not forecasts • Kanban replenishment is simple ?

  5. Kanban Systems Can use different methods to trigger replenishment activity • kanban cards are the most common • kanban containers are frequently • bar coding of cards / containers helps when automating kanban systems

  6. Kanban Systems Not suited for all inventory items – look for • items with frequent usage • items with short lead times • items with “willing” suppliers

  7. New Empty Wait Full In-Process Replenishment Flow for Kanban Cards When container is empty, signal sent to source to replenish kanban Wait until minimum order quantity is reached Planner determines when to add / remove cards When received, kanban status is updated and container is moved to usage area When order minimum is reached, a Job, PO, or Move Order is created

  8. Press / Paint Job Oracle Kanban Flow for Manufacturing Kanban replenishment auto- creates Purchase Requisition Supplier Kanbans AutoCreate PO or Blanket Release Blanks Sub-Inv Supplier Paint Op Press Op Assembly Sub-Inv Assembly Line Production Kanbans Finished Goods Kanban replenishment autocreates WIP Job Material Flow Kanban Flow

  9. Supplier Kanbans Stock Room Supplier Customers or Consuming Departments Receiving Material Flow Kanban Flow Oracle Kanban Flow: Non-Manufacturing Kanban replenish auto-creates Purchase Requisition Purchasing Creates PO or Blanket PO Release

  10. Pull Sequence #1. Setup a pull sequence to define Source, Replenishment, and Planning Parameters

  11. Kanban Cards #2. Add kanban cards associated to the pull sequence

  12. #3. Set supply status of each card – automatically updated by transactions

  13. Determining the number of kanban cards / containers needed for each item • An item has a 2 day lead time (when a kanban is emptied it will take 2 days to refill it) • An item has a 2 day lead time (when a kanban is emptied it will take 2 days to refill it) • Average daily usage of the item is 50 per day • You will need 100 within the replenishment lead time (average daily demand times lead time) • Thus, you need to activate 5 kanban cards (demand during lead time divided by kanban size)

  14. Kanban Plans

  15. Oracle Kanban Planning Assumptions • Constant rate of demand While average daily demand is 50 per day, what is the maximum daily demand? • Constant lead time While average lead time is 2 days, what is the maximum lead time? How can you account for these variances in demand and supply when planning kanban inventory?

  16. Kanban Planning Using MS Excel Determine which items are good candidates for kanban control:

  17. Kanban Planning Using MS Excel Determine number of kanbans to activate:

More Related