KANBAN SYSTEM

Presented by
Aswin Sankar

Introduction
Kanban

was developed by Taiichi Ohno, an industrial

engineer at Toyota, as a system to improve and
maintain a high level of production

It was implemented in the year 1953 at Toyota

Kanban is a scheduling system for lean and just-in-time
(JIT) production

Kanban is a system to control the logistical chain from a

production point of view, and is an inventory control

system

Kanban is one method to achieve JIT

 The word Kan means "visual and the word "ban" means

"card". Roughly interpreted.. Kanban refers to "visual

cards".

What

is a visual card? It is a visual aid that triggers

action.

A system of continuous supply of components, parts and

supplies, such that workers have what they need, where

they need it, when they need it.

A visual signal to either move or make something.

Supports PULL, pulling the product at the demand of the
customer (VS PUSH)

Kanban
1. User
removes
a
standard
sized
container
2. Signal is seen by the
producing department
as authorization to
replenish

Signal
marker on
boxes
Part numbers
mark
location

Everyday Example
A signal to replenish..

Types of Kanbans

The two most common types of Kanbans used today

are:

1. Withdrawal (Conveyance) Kanban

2. Production Kanban

Withdrawal (Conveyance)
Kanban

Withdrawal

kanbans, also called conveyance kanbans

or "move cards" are used to signal when a part is ready
to move from one part of the production process to
another.

The

card is attached to a prescribed number of parts,

which are moved to the work area that requires them.
Once the parts are used, the card is returned as a
signal to send the same number of the same part back.

Production Kanban

A production kanban contains a comprehensive list of

everything the part requires in order to be completed.

This

includes the
required and the
withdrawal kanban.

Essentially,

materials required, the parts

information included upon a

a production kanban orders the

production system to get started with production, as
well as explaining what must be produced

Six Rules for an Effective Kanban

System
To ensure a proper setup of Kanban in the workplace,
Toyota has provided us with six rules for an effective
Kanban system:

1)Never pass on defective products

2)Take only what is needed
3)Produce the exact quantity required
4)Level the production
5)Fine-tune production
6)Stabilize and rationalize the process.

BENEFITS

Reduce Inventory and Product

Obsolescence

Since component parts are not delivered until just before

they are needed, there is a reduced need for storage

space. Should a product or component design be
upgraded, that upgrade can be included in the final
product ASAP. There is no inventory of products or
components that become obsolete.

This

fits well with the Kaizen system on continual

improvement. Product designs can be upgraded in small
increments on a continual basis, and those upgrades are
immediately incorporated into the product with no waste
from obsolete components or parts

Reduces waste and scrap

With

Kanban, products and components are only

manufactured when they are needed. This eliminates
overproduction.

Raw

materials are not delivered until they are

needed, reducing waste and cutting storage costs.

Provides flexibility in production

If

there is a sudden drop in demand for a product,

Kanban ensures you are not stuck with excess
inventory.

This

gives you the flexibility to rapidly respond to a

changing demand.

Increases Output

Kanban reduces wait times by making supplies more

accessible
barriers.

This

and

breaking

down

administrative

results in an increase in production using the

same resources

Reduces Total Cost

The Kanban system reduces your total costs by:

Preventing Over Production

Developing Flexible Work Stations
Reducing Waste and Scrap
Minimizing Wait Times and Logistics Costs
Reducing Stock Levels and Overhead Costs
Saving Resources by Streamlining Production
Reducing Inventory Costs

Video

Thank You