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7/30/2019 Pull Principles & Kanban http://slidepdf.com/reader/full/pull-principles-kanban 1/30 1 2009 Copyright ELSE Inc. All Rights Reserved. 1 Pull Principles and Kanban Lean Thinking Series George M. Bacioiu, P.Eng. Executive Director  – ELSE Inc.

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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42009 Copyright ELSE Inc. All Rights Reserved. 4

• 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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52009 Copyright ELSE Inc. All Rights Reserved. 5

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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62009 Copyright ELSE Inc. All Rights Reserved. 6

• 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.

[email protected]