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Introduction
Relentless market competition and rapid technology development force managements
of manufacturing industries to improve productivity and cost-effectiveness of their
products. This leads manufacturing industries to adopt the philosophy of time-based
management of inventory using Kanban technique—an integrated Just in Time (JIT)
philosophy. Kanban is one of the primary techniques of JIT philosophy which signals
a cycle of replenishment for production and materials. It is a card-based control system
to transfer instruction based on logic that nothing will be produced until needed.
In case of the existing factory scheduling method, Material Requirement Planning
(MRP) based on the monthly forecast creates schedules on every 25th of the month for
the material required in the next month. Once schedules are communicated and
* Research Scholar, School of Management Studies, Punjabi University, Patiala, Punjab, India.
E-mail: sachin.1595@rediffmail.com
** Assistant Professor, School of Management Studies, Punjabi University, Patiala, Punjab, India;
and is the corresponding author. E-mail: vikassingla@yahoo.com
Literature Review
Kanban system was developed and implemented by Toyota Motor Corporation in their
car factories. Literally, the word Kanban means visible record which can be implied as
a card or a sign required to communicate the level of inventory between workstations.
The system is designed to minimize inventory and deliver the raw material or semi-
finished goods to next machine only when asked by it (Ravichandaran and Kumar,
Data Collection
Data was collected regarding customer requirement per day, daily production quantity
by each process, cycle time of the process, process flow of the part, standard quantity
of parts kept in bin in each process, process-wise safety stock, and replenishment
stock (quantity which is needed between time interval of one order and the next order).
Table 1 shows the process-wise data collected in initial stage.
Final
Inspection Assembly Painting
Customers Finished
Goods
Store
The data clearly shows the WIP inventory between every process to be very
high. For instance, for Emblem Maruti Suzuki, 10,560 units were produced after
injection molding, and they were kept as in process material to be asked for
processing by next step of plating. Similarly, for other parts, WIP was found to be
highest after Step 1, though it varied from one to four days of requirement. Data
Plating 2640*0.5=1320
Assembly 0
Inspection 0
Plating 1800*0.5=900
2. Emblem S Mark 1,800
Assembly 0
Inspection 0
Plating 1440*0.5=720
3. Emblem VXI 1,440
Assembly 0
Inspection 0
Bins to
S. Customer Process Flow of Lot Size Safety Replenishment Qty./Bin Total Number
Keep
Part Name of Kanban
No. Requirement/Day Part Stock Stock Stock Total
Required
Stock
(Nos.)
1. Emblem Maruti Suzuki 2,640 Injection Molding 972 1,320 2,640 972 6,600 6.8 7
2. Emblem S Mark 1,800 Injection Molding 975 900 1,800 975 4,500 4.6 5
3. Emblem VXI 1,440 Injection Molding 960 720 1,440 960 3,600 3.8 4
1. Emblem Maruti Suzuki Injection Molding 3,500 2,640 10,560 1,320 1.65 1.25
2. Emblem S Mark Injection Molding 2,200 1,800 7,200 900 1.17 0.97
3. Emblem VXI Injection Molding 1,700 1,440 5,760 720 0.91 0.78
Table 6 presents the before and after Kanban values of total daily production, WIP
stock/safety stock and process lead time. From the evaluation results, it is observed that
daily production, in case of Emblem Maruti Suzuki has reduced from 3,500 units to
2,640 units. In case of Emblem S Mark, it has reduced from 2,200 units to 1,800 units;
and in case of Emblem VXI, it has reduced from 1,700 units to 1,440 units. If we consider
the sum of WIP stock/safety stock kept in between processes for each part, then it is
observed that in case of Emblem Maruti Suzuki, it has reduced from 22,620 units to
8,580 units; in case of Emblem S Mark, it has reduced from 14,400 units to 3,600 units;
and in case of Emblem VXI, it has reduced from 11,520 units to 2,880 units. Finally,
reduction in daily production quantity and safety stock/WIP stock led to reduction in
process lead time of the parts. It is observed from Table 5 that the lead time has reduced
in each process. The process lead time in case of Maruti Suzuki reduced from 6.47 days
to 5.74 days; in case of Emblem S Mark, it reduced from 3.51 days to 3.11 days; and in
case of Emblem VXI, it reduced from 1.93 days to 1.75 days.
Conclusion
Based on the findings of the study, it is concluded that after Kanban implementation
the daily production quantity has reduced for Emblem Maruti Suzuki, Emblem S
Mark and Emblem VXI by 25%, 18% and 15% respectively. The WIP stock/safety
stock has reduced by 62%, 75% and 75%, and finally, the process lead time has
reduced by 11%, 11% and 9% for Emblem Maruti Suzuki, Emblem S Mark and Emblem
VXI respectively.
References
1. Adnan A N B, Jaffar A B, Yusoff N B and Halim N H B A (2013), “Implementation
of Just in Time Production Through Kanban System”, Industrial Engineering
Letters, Vol. 3, No. 6, pp. 11-20.
2. Al-Tahat M D and Mukattash A M (2006), “Design and Analysis of Production
Control Scheme for Kanban-Based JIT Environment”, Journal of the Franklin
Institute, Vol. 343, Nos. 4-5, pp. 521-531.
3. Antony J (2011), “Six Sigma vs. Lean: Some Perspectives from Leading Academics
and Practitioners”, International Journal of Productivity and Performance
Management, Vol. 60, No. 2, pp. 185-190.
4. Arasanipalai Raghavan V, Yoon S and Srihari K (2014), “Lean Transformation in
A High Mix Low Volume Electronics Assembly Environment”, International
Journal of Lean Six Sigma, Vol. 5, No. 4, pp. 342-360.
5. Balram B (2003), “Kanban Systems: The Stirling Engine Manufacturing
Cell”, Department of Mechanical & Industrial Engineering, University of
Manitoba.
Reference # 07J-2019-02-04-01