Kanban Systems

Introduction

The concept behind the Kanban system is to reduce costs in high volume production lines.

One-way to do this is to smooth and balance material flows by means of controlled inventories.

A Kanban system allows an organization to reduce production lead-time, which in turn reduces the amount of inventory required.

In order to determine optimum Kanban system designs, research often uses simulation to determine the number of Kanbans and to study various aspects of pull systems, see for example [1,2].

A heuristic design method has been designed by Ettl and Markus [3], which can be used to evaluate a Kanban Systems performance by using alternative network partitions and allocations of Kanbans.

The heuristic design method integrates analytical techniques and a general-purpose genetic algorithm in order to model a Kanban System.

The heuristic method provides us with a useful procedure for evaluating the impact of design alternatives and can therefore serve as a decision support tool for managers to use when planning a large-scale manufacturing system.

What is Kanban ?

By this point you may be asking, "What is a Kanban?

A Kanban is a card containing all the information required to be done on a product at each stage along its path to completion and which parts are needed at subsequent processes.

These cards are used to control work-in-progress (W.I.P.), production, and inventory flow. A Kanban System allows a company to use Just-In-Time (J.I.T) Production and Ordering Systems that allow them to minimize their inventories while still satisfying customer demands.

A Kanban System consists of a set of these cards, with one being allocated for each part being manufactured, that travel between preceding and subsequent processes.

The Kanban System was developed (more than 20 years ago), by Mr. Taiichi Ohno, a vice president of Toyota, to achieve objectives that include [4]:

o reducing costs by eliminating waste/scrap

o try to create work sites that can respond to changes quickly

o facilitate the methods of achieving and assuring quality control

o design work sites according to human dignity, mutual trust and support, and allowing workers to reach their maximum potential.

Why Kanban?

Dramatic changes away from high product throughput and high capacity loads towards the new idea of lower production times and work-in-progress have lead to the idea of incorporating Kanban Systems in manufacturing industries (most notably in automotive industries).

These systems are most commonly used to implement the pull-type control in production systems with aims at reducing costs by minimizing the W.I.P. inventory.

This allows an organization the ability to adapt to changes in demand, and therefore production more quickly.

A pull-type production line is a sequence of production stages performing various process steps on parts where each stage consists of several workstations in tandem. The flow of parts through the overall facility is controlled by a combined push/pull control policy, which is established by the Kanbans.

A push-type policy is used for producing parts within each individual production stage. 6 sigma training

However, parts are pulled between the production stages in accordance with the rate at which parts are being consumed by the downstream stages.

Types of Kanbans

The two most common types of Kanbans used today are:

1. Withdrawal (Conveyance) Kanban

2. Production Kanban

Withdrawal (Conveyance) Kanban

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