OPERATIONS MANAGEMENT

TOPIC: KANBAN SYSTEM

Submitted To: Submitted By:

Alex Kuruvila Ambili.K.C
Assistant Professor
KANBAN SYSTEM

The kanban system was introduced in 1950 at

Toyota by Taiichi Ohno.
A kanban system is a system of inventory and
production control which uses kanbans as the
principle information transmission devices.
Kan means card and Ban means signal.

kanban is referred to the card along with boxes or

craters used to transport materials or semi finish
components from one workstation to another, in the
product line.
 Thecomponents are moved only when needed (on
demand) by the next stations, such that there is no
waiting of parts for operation or further movement.

Two work centres A&B. Work centre A produces a

part that is kept in a bin. Work centre B uses the
parts from that bin. When the bin gets empty, its is a
signal for work centre A to refill it. This empty bin is
the Kanban signal.
EXAMPLE
Company A buys parts at the rate of 1000 per
day; these are delivered in container, each carrying
50 parts, i.e., 20 container per day. The supplier
makes one delivery per day. The truck leaves his
premises at 9 AM, delivers them at noon and
returns to the supplier by evening.
This means supplier should be getting ready
1000 parts for supply the next day. There should
also be empty containers available at the suppliers
factory by the evening of the previous day.
 TWO CARD KANBAN SYSTEM

1. MOVE CARD :-
To authorize the movement of parts from one work
centre to the next.

2.PRODUCTION CARD:-
To authorize the production of parts by the work centre.

Toyota uses two card Kanban system,

has its own inbound and outbound
material storage area.
Inbound Stock Area
Outbound Stock Area.
PROBLEM
Bryant Electronics produces short runs of battery-
powered pocket lanterns. You have been asked to
reduce inventory by introducing a kanban system.
After several hours of analysis you have developed the
following data for connectors used in one work cell.
How many kanbans do you need for this connector?
Daily demand 1,500 units

Production lead-time 1 day

Safety stock 1 day

Kanban size 250 units

SOLUTION:
Demand during lead time=1500
Safety stock =1500
Therefore: Maximum inventory level
=1500+1500=3000
Number of kanbans needed
=maximum inventory level/kanban size
=3000/250
=12
 RULES OF KANBAN OPERATION
The kanban must always be attached to the product.
Withdrawal of a product should never occur unless a
kanban is attached.
The part should be produce according to the

information provided on the kanban.

If no kanban is attached to be product, there should
not be any production function carried out.
In the event that defective items are produced they

should be not transferred to the subsequent process.

It should be assured that only 100% quality parts
are placed in the container available for use.
 ADVANTAGES OF KANBAN SYSTEM

Eliminate waste or scrape and reduce costs.

Design workstations to create mutual trust and support
among humans beings.
Design workstations to adapt and respond to change quickly.

Promote archiving and assuring quality improvement.

Over production is avoided.

It respond quickly to increase or decrease in demands.

Defective parts are isolated and move out of line.

THANK YOU