The Lean Enterprise

1. The Lean Enterprise Kanban – Types and Operating Systems Lean Foundations Continuous Improvement Training freeleansite.com

2. Kanban What is Kanban? Kan = "card" ban = "signal" • Card system that controls production & inventory • Visual pull system vs. a “black box” push system (MRP) freeleansite.com

3. Production Kanban (non lot production) Instruction Triangle Kanban (for lot production) Kanban Interprocess Kanban Withdrawal Supplier Kanban Categories of Kanban freeleansite.com

4. Types of Kanbans & Systems freeleansite.com

5. Milkman vs. Breadman • What did a Milk Man do? • What did a Bread Man do? freeleansite.com

6. Real Life Kanban – Milkman Replenish What Was Consumed. Take Empties Back To Factory Delivery Milk To House Replenish Empties Deliver Only What’s Needed Constant Time freeleansite.com

7. Breadman Replenishment • Replenishment Signals • Empty Rack Inventoried Daily • Kanban Card Attached At Reorder Point • MRP Report • Replenishment Options • Constant Quantity or Constant Time • Flow through Rack • Material Warehouse • Withdrawal Kanban Rack At Preceding Process • Outside Stores • Production Ordering Replenishment • Supplier Replenishment • Point Of Use • Transmitted Signal (Filled From Finished Goods) freeleansite.com

8. TWO-BIN System • Replenishment Signals • Empty Bin • Kanban Card Attached To Bin • Visual – Lines On Floor • MRP Report • Replenishment Options • Constant Quantity Or Constant Time • Material Warehouse • Stockroom • Supplier • Vendor Managed Inventory • Point Of Use At Line or Stockroom • Transmitted Signal • EDI • Production Ordering Replenishment • Supplier Replenishment • Maturity Path • Stockroom • Pick List/ MRP • Kitting • Centralized Breadman • P.O.U. Two Bin Warehouse • Two Bin Line Side • Integrated Supply • Inventory Turn Goals • One To Two • Once A Month • Twice A Month • Once A Week freeleansite.com

9. Definitions Conveyance or Milk Run Route: • The Conveyance is the designated path or standard work that a water spider (material handler) takes to replenish the shelves. Pitch: • Refers to the time relating to the cycle the “water spider” has to replenish the stock. • Pitch is a lean concept and is calculated by multiplying cycle time by pack quantity (the number of products per container transferred to finished goods from the work cell). freeleansite.com

10. X X Kanban Squares X X X X Flow of work Flow of information Simple Common Kanban freeleansite.com

11. Kanban Shelving & Labeling Schemes A B C 1 Part 1232 Battery Clip Location A-1-A 2 3 4 5 Rack A freeleansite.com

12. Kanban – No Cards Sheet Metal Final Assy Weld Paint Sheet Metal Kanban Weld Kanban 1 day to paint • Steps: • Final assy pulls from paint kanban. • Paint pulls from Weld kanban • Welder replenishes weld empties, pulls from S/M Kanban • Paint replenishes paint kanban daily and puts finished units back in Paint Kanban • Sheet metal replenishes S/M Kanban once a week Milk Man 2 days supply Based on current Mix Bread Man 1 Week supply freeleansite.com

13. Supplier Kanban With Cards Supplier delivers Material with Kanban cards from yesterday attached and picks up today's Kanban cards Withdrawal Kanban Post Withdrawal Kanban Card SIPLACE 80S Material SMT Machines Material Handler (Water Spider) delivers material to supermarket Material Supermarket Lean Materials Strategy Will Maximize Inventory Turns Through Supplier Managed Inventories freeleansite.com

14. Triangle Kanban • Established for internal lot-processing or batch worksites • For processes that have lengthy set-up times • Production time is at a faster pace than that required in the following process • This type of Kanban has a signaling device built in to prepare for change over freeleansite.com

15. Location Description Lot Size Mold Part Date Trigger Point Tool # Press Visual Management • Kanban used for batches freeleansite.com

16. Part Description Location parts will be consumed (customer) Part Number Area defining lot size and time allotted for run Area defines when product needs to be rescheduled for production Date is hand written by consuming area when pulled Defines which equipment product is dedicated to run on What tool is used to produce this product Triangle Grid Definition freeleansite.com

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18. Triangle Kanbans at Work Weld Cell #1 Assembly Cell Weld Cell #2 freeleansite.com

19. Toyota Kanban Timeframe • Took 12 years to flow down kanban within Toyota • It then took: • 8 years to have 60% of first tier suppliers on kanban • 20 years to get 98% of first tier suppliers on kanban • Only approximately 50% of Toyota suppliers are using kanban systems internally today freeleansite.com

20. Implementation keys • Keep it simple • Develop strategy in phases toward P.O.U. • Utilize stockroom and warehouse on floor • Then Eliminate stockroom • Then Eliminate warehouse • Have supplier continue to play larger role • Make it very visual. Should not have to count: • Label shelves and boxes • Use water levels • Taped /sealed boxes • Color codes, Bar Codes • Egg carton approach, mistake proof system • Continue to reduce quantity and increase replenishment frequency. Kanbans are inventory (evil) and need to be constantly minimized or eliminated • As you move from Kanbans to Job Order (MTO) replenishment - upstream processes must adapt. (sets to job order decreases lot sizes i.e. sheet metal) freeleansite.com

21. Questions ? Discussion ? freeleansite.com

22. The Lean Enterprise Kanban – Types and Operating Systems Lean Foundations Continuous Improvement Training freeleansite.com