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Transcript of Pull Principles & Kanban
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12009 Copyright ELSE Inc. All Rights Reserved. 1
Pull Principles and Kanban
Lean Thinking Series
George M. Bacioiu, P.Eng.Executive Director – ELSE Inc.
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32009 Copyright ELSE Inc. All Rights Reserved. 3
ELSE Inc. Copyright
This presentation is copyrighted under the laws of most nations. Any unauthorized
duplication or redistribution without the express written permission of ELSE Inc.is strictly forbidden, and may be punishable by law.
ELSE Inc authorizes the purchaser to have one copy in use and to keep a single
backup copy in the event of loss of original file. This copy may not be shared
between multiple trainers.
A trainer may print one copy of the training guide and may only print another whenthe previous one has been destroyed.
Trainee Handbooks have their own copyright limitations and those are listed on
the site and in the handbook.
No slide maybe printed except those suggested in the notes to be used as
handouts.
Additional information on our copyrights maybe be found at www.elseinc.com
For permission or additional information you may contact [email protected]
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• Understand the concepts and benefits of Kanban system.
• Describe the difference between traditionalPush systems and non-traditional Pull
systems.
• Describe Kanban, different types of Kanbansand how to calculate the number of Kanban
cards needed in a system.
In simple terms Kanban is a signal to replenish materials or supplies in a pull system.
Today’s Objectives
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The Original Agenda (48 slides in the
original presentation in one and a half hours)
• Kanban Basics
• Key inventory measure
• Push vs. Pull
• Definition, Key Terms, Benefits
• How it works
• Pull System Rules
• Types of Kanban cards
• Creating Links between Steps
• Calculating Number of Cards
• Kanban and Level Scheduling
• Kanban Applications & Implementation steps
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• Core concept to Leaning Processes• Affects the production schedule & production control
• Applied between steps of a VS as a system to moveWIP through the process from beginning to end
• Applies to industrial and transactional process.
• Typically applied to product movement AFTER Flowprinciples have been implemented to their full extent.
• Should be implemented where constraints in theprocess will not allow one-piece flow (such as whentwo dependent operations have large cycle timedifferences). Kanbans are used to enable a flow
process.
KANBAN & Pull Principles
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I. Production Overruns
•Lack of confidence in manufacturing
process
•Poor planning
•May increase scrap levels
• Insulates management from true
problems
•Builds inventory levels over time
•Takes up Floor Space…extra
Warehouses
II. Purchasing Large Quantities of Raw Materials
•Often due to Purchasing Manager
Incentives
•Lack of Systems Thinking• Increased Likelihood of
•Obsolescence
•Damage
•Carrying Cost
•Look for piles of files on desks
Poor Business Practices
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Key Terms
Product is pulled through the process at the rate of
customer demand - No More, No Less.
are replenished through a linked series of tactical buffers
that offer control of Work-In-Process (WIP) inventory.
Trigger: Customer Purchase of Goods
“If they buy it, We’ll build it!”
Manufacturing
Transactional
Finished GoodsCompleted Work
Pull Systems
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Information flows in the opposite
direction of the material flow.
Information flows from a central
source, unrelated to material flow.
Casting
Process
Part
Machining
Process
Final
Assembly
Line
Part
Assembly
Process
Material Push
Finite
Schedules
Production
Control
s u p p l i e r
c u s t o m e r
Push vs. Pul l
Casting
Process
Part
Machining
Process
Final
Assembly
Line
Part
Assembly
Process
Material Pull
Production
Control
s u p p l i e r
c u s t o m e r
“Make”
Signal
“Make”
Signal
“Make”
Signal
Customer
Demand
Shop Floor Control
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Pull vs. Push
Pull System Push System
Schedule Basis Actual Usage Forecast Usage
Lot Sizes Small Lots Large Lots
Problem Status Visual Control Hidden Problems
Amount of Waste No Waste Waste
Communication Good
Communication
Poor
CommunicationAccuracy Precision Approximation
Highlights of some of the fundamental dif ferences
between a push and pull system
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Key Terms
Kanban (Pronounced: Con-Bon, not Can-Ban)
A key element of Pull Systems, Kanban is a
Japanese word meaning display card or instructioncard and it is used as a tool of improvement within
the “PULL” system by signaling upstream
production.
Production Withdrawal Supplier
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What is Kanban?
Kanban allows employees to acquire from upstream
processes, only the goods that are needed, when
they are needed, and only in the required amount.
The Kanban system is often referredto as the “supermarket system”
because it is based upon the U.S.
model in which customers “pull” goods
off the shelves and stock clerks
replenish the inventory based on
consumption.
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Key Terms
Kanban Post – is a collection box for Kanban Cards. Using a Box with access
to both sides, cards can be placed in one
side and removed from the other. This
maintains the exact sequence in which
product was consumed, and exact
sequence in which product should be
produced.
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There Are Other Types of Kanbans
• In-Process Kanbans
• It is not a card – it is all Visual, an empty spot onthe floor or an empty box becomes the signal.
• Non-replenishable
• Used as a buffer at special times when a process
is undergoing a major modification and will bedown for an extended period of time. Kanban isthen discarded and normal Kanban size andprocess is used.
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How Many Cards Do We Need?
• Obviously, the # of cards you create, will determine how much
WIP your process will have.
• There are ways to determine the number of cards needed.
Typically you will start with more cards than needed untileveryone gets comfortable using the new system.
Then slowly reduce the number of cards, which reduces
WIP.
• Before we determine number of cards we must decide:
– How many pieces can be carried in a container?
– How many transport lots are needed in a given time?
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Kanban and Level Scheduling
Level scheduling is a process to reduce schedule variationprior to Kanban implementation.
It allows to level the use of resources by:
–Smoothing and stabilizing production
–Leveling material and resource usage
–Eliminating waste of productive time due to waiting,
unevenness or overburden –Balancing production volume (quantity) with demand
(consumption)
–Capacitize for peak volume
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Where Does Kanban Apply?
Inventory is one of the
7 Wastes
We want the product to FLOW through the processes
into the customer‟s hands.
Operation1
Operation2
Operation3
Operation4
So where do we use Kanban??
W St t With VSM f T i l
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We Start With a VSM of a Typical
Push Process
I
The original process has lots of WIP and waste.
STAMPING
2 Machines
C/T = 2 Sec.
WELDING
C/T = 40 Sec.
PAINTING
C/T = 10 Sec.
BENDING
C/T = 30 Sec.
I
I
I
RAW
DEBURR
C/T = 35 Sec.
GLUING
C/T = 12 Sec.
MENDING
C/T = 20 Sec.
WASHING
C/T = 25 Sec.
I
I
I
I
I
I
I
Finish
Goods
Lots of WIPLots of
Pushing
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Control the WIP With Kanban
STAMPING
2 Machines
C/T = 2 Sec.
WELDING CELL
C/T = 40 Sec.
PAINTING CELL
C/T = 20 Sec.
BENDING CELL
C/T = 50 Sec.
I
RAW
I
I
I
Finish
Goods
Because cycle times are so different, we must have some „buffer‟ – that
buffer is called a supermarket, and we use Kanban cards to control the
amount of material in the supermarket.
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Functions of Kanban in the Toyota
Production System
• Kanban system
– prevents overproduction
– conveys instructions from one work process to
another
– provides visual control of the production line
– makes it easier to make improvements in the
production process – helps to define and standardize each work
process
S
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Summary
• Kanbans can be one of the most effectivetools to help your facility run smoothly andkeep production even among processes
• Using them properly requires thought and
attention to detail
Remember that a Kanban is a management
tool to indicate how well its processes arerunning• “No kanban, no process”
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262009 Copyright ELSE Inc. All Rights Reserved. 26
• Understand the concepts and benefits of Pull systems.
• Describe the difference between
traditional Push systems and non-traditional Pull systems.
• Describe Kanban, different types of
Kanbans and how to calculate the number of Kanban cards needed in a system.
Objectives Revisited
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282009 Copyright ELSE Inc. All Rights Reserved. 28
We at ELSE Inc. – Experiential Learning Systems
for Enterprise & Education – www.elseinc.com
d t ILM I I l t L M f t i
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292009 Copyright ELSE Inc. All Rights Reserved. 29
… and we at ILM Inc. – Implement-Lean-Manufacturing
– www.implement-lean-manufacturing.com
We share the know ledge freely as we sincerely want to
br ing our smal l contr ibut ion to our communi ty .
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302009 Copyright ELSE Inc. All Rights Reserved. 30
… still many customers prefer the reasonably priced Lean
Simu lat ions, Presentat ions and other excel lent resou rces,
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Q & A
Thank You!
George M. Bacioiu, P.Eng.ELSE Inc.