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Pull / Kanban Systems

Pull / Kanban is a method of controlling the flow of production through the factory based on a
customer’s demand. Pull Systems control the flow of resources in a production process by replacing
only what has been consumed. They are customer order-driven production schedules based on
actual demand and consumption rather than forecasting. Implementing Pull Systems can help you
eliminate waste in handling, storing, and getting your product to the customer. Pull Systems are an
excellent tool to use in the areas where cellular or flow manufacturing can not be achieved.
Workshop Objectives
The Pull/Kanban Systems workshop illustrates how to link manufacturing output to customer demand.
Participants are lead through a six-step process for designing and implementing a pull system, using
hands-on exercises. This process applies to both purchased and manufactured products. This group
training exercise is designed to precede a Pull/Kanban implementation, or Kaizen event.

• Describe the difference between a Pull System and a Push System


• Identify opportunities to introduce Pull Systems
• Decide how to manage demand to meet customer requirements
• Locate and size supermarkets or buffers in the system
• Calculate order points and order quantities
• Select and implement appropriate Pull signals
• Recognize ways to monitor and fine-tune a Pull System

Topics Covered
• Defining Lean • Pull System Tools
• Push vs. Pull • Selecting Appropriate Pull Signals
• Six Step Pull Systems Process • Importance of training Personnel
• Determining Current State • Implementation of Pull System
• Conceptualizing the Future State • Pull System Case Studies
• Calculating Buffers • Keys to Success
• Impact of Demand Variation • Performance Impact and Benefits

Kaizen Implementation Event


IMEC will facilitate a group of your employees through implementation of the Pull/Kanban process, in
an area of your facility, utilizing the techniques learned in the workshop. Normally, everything cannot
be implemented during the two or three day Kaizen event. Therefore, the team implement as many
changes as possible within the allotted time, and will develop an action plan with assigned
responsibilities and expected completion dates to insure that the necessary follow-up takes place.
Benefits of Pull Kanban
Successful implementation of a Pull / Kanban System will reduce lead times, minimize work in
process, optimize floor space usage, simplify production signals and improve on-time delivery to your
customers.
Kanban
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Kanban (in kanji 看板 also in katakana カンバン, where kan, 看 / カン, means "visual,"
and ban, 板 / バン, means "card" or "board") is a concept related to lean and just-in-time
(JIT) production. The Japanese word kanban (pronounced [kambaɴ]) is a common term
meaning "signboard" or "billboard". According to Taiichi Ohno, the man credited with
developing JIT, kanban is a means through which JIT is achieved.[1]
Kanban is a signaling system to trigger action. As its name suggests, kanban historically uses
cards to signal the need for an item. However, other devices such as plastic markers (kanban
squares) or balls (often golf balls) or an empty part-transport trolley or floor location can also
be used to trigger the movement, production, or supply of a unit in a factory.
It was out of a need to maintain the level of improvements that the kanban system was
devised by Toyota. Kanban became an effective tool to support the running of the production
system as a whole. In addition, it proved to be an excellent way for promoting improvements
because reducing the number of kanban in circulation highlighted problem areas.[2]

Contents
[hide]
• 1 Origins
• 2 Operation
• 3 E-kanban
systems
• 4 See also
• 5 References
• 6 Further reading
• 7 External links

[edit] Origins
The term kanban describes an embellished wooden or metal sign which has often been
reduced to become a trade mark or seal. Since the 17th century, this expression in the
Japanese mercantile system has been as important to the merchants of Japan as military
banners have been to the samurai. Visual puns, calligraphy and ingenious shapes — or
kanban — define the trade and class of a business or tradesman. Often produced within rigid
Confucian restrictions on size and color, the signs and seals are masterpieces of logo and
symbol design. For example, sumo wrestlers, a symbol of strength, may be used as kanban
on a pharmacy's sign to advertise a treatment for anemia.
In the late 1940s, Toyota was studying supermarkets with a view to applying some of their
management techniques to their work. This interest came about because in a supermarket the
customer can get what is needed at the time needed in the amount needed. The supermarket
only stocks what it believes it will sell and the customer only takes what they need because
future supply is assured. This led Toyota to view earlier processes, to that in focus, as a kind
of store. The process goes to this store to get its needed components and the store then
replenishes those components. It is the rate of this replenishment, which is controlled by
kanban that gives the permission to produce. In 1953, Toyota applied this logic in their main
plant machine shop.[3]
[edit] Operation
An important determinant of the success of production scheduling based on "pushing" the
demand is the quality of the demand forecast which can receive such "push". Kanban, by
contrast, is part of an approach of receiving the "pull" from the demand. Therefore the
supply, or production is determined according to the actual demand of the customers. In
contexts where supply time is lengthy and demand is difficult to forecast, the best one can do
is to respond quickly to observed demand. This is exactly what a kanban system can help: it
is used as a demand signal which immediately propagates through the supply chain. This can
be used to ensure that intermediate stocks held in the supply chain are better managed,
usually smaller. Where the supply response cannot be quick enough to meet actual demand
fluctuations, causing significant lost sales, then stock building may be deemed as appropriate
which can be achieved by issuing more kanban. Taiichi Ohno states that in order to be
effective kanban must follow strict rules of use[4] (Toyota, for example, has six simple rules,
below) and that close monitoring of these rules is a never-ending problem to ensure that
kanban does what is required. Toyota's Six Rules are:
• Do not send defective products to the subsequent process
• The subsequent process comes to withdraw only what is needed
• Produce only the exact quantity withdrawn by the subsequent process
• Equalize production
• Kanban is a means to fine tuning
• Stabilize and rationalize the process
A simple example of the kanban system implementation might be a "three-bin system" for
the supplied parts (where there is no in-house manufacturing) — one bin on the factory floor
(demand point), one bin in the factory store and one bin at the suppliers' store. The bins
usually have a removable card that contains the product details and other relevant
information — the kanban card. When the bin on the factory floor becomes empty, i.e, there
is demand for parts, the empty bin and kanban cards are returned to the factory store. The
factory store then replaces the bin on the factory floor with a full bin, which also contains a
kanban card. The factory store then contacts the supplier’s store and returns the now empty
bin with its kanban card. The supplier's inbound product bin with its kanban card is then
delivered into the factory store completing the final step to the system. Thus the process will
never run out of product and could be described as a loop, providing the exact amount
required, with only one spare so there will never be an issue of over-supply. This 'spare' bin
allows for the uncertainty in supply, use and transport that are inherent in the system. The
secret to a good kanban system is to calculate how many kanban cards are required for each
product. Most factories using kanban use the coloured board system (Heijunka Box). This
consists of a board created especially for holding the kanban cards.
[edit] E-kanban systems
Many manufacturers have implemented electronic kanban systems.[5] Electronic kanban
systems, or E-Kanban systems, help to eliminate common problems such as manual entry
errors and lost cards.[6] E-Kanban systems can be integrated into enterprise resource planning
(ERP) systems. Integrating E-Kanban systems into ERP systems allows for real-time demand
signaling across the supply chain and improved visibility. Data pulled from E-Kanban
systems can be used to optimize inventory levels by better tracking supplier lead and
replenishment times.[7]

Kanban - Pull Systems


Overview: This article asserts that Kanban is a visual system of production control using
returnable containers, cards or spaces to pull products from the producing workstation or
supplier into the consuming workstation or business. Control inventory buffers and queue
sizes through defined First- In-First-Out (FIFO) squares or lanes. The system is very
disciplined, with defined rules. The goal is to continually reduce kanban / buffer sizes to
lower inventory level, improve quality and reduce lead-time. Information and services as
well as products can be pulled. McDonald’s method of keeping burger lanes full during peak
periods is a recognizable example of a pull system in a service application. One of the Key
Benefits are visual production control simplifies communication for a self-regulating
workplace requiring minimal management intervention; and shorter, predictable lead-times
improve ability to promise order completion and deliver on-time.

Kanban - Pull System


Saturday, 11. April 2009, 03:29:20
Hệ thống quản lý sản xuất
Kanban - Pull System
Source: www.xberry.fsnet.co.uk/Kanban.htm
We saw in "Value Stream" that not all operations can be connected into a "one
piece flow process" due to a number of reasons such as equipment being shared
with a number of product groups etc. In these circumstances we decided that we
needed to batch the product through the un-linked operation using as small a
batch size as the set-up reduction program would permit. In "Container Size" we
also mentioned that flowing the job quickly through the operation using small
containers was great provided that the completed container load did not sit
unattended for a long period of time waiting to be moved. In the same manner it
is not good to have numerous containers unnecessarily queuing at "non-
constraint operations" waiting to be processed through the operation (don't
panic, we will cover constraint operations at a later date). What we need is a
means to tell us (the person operating the machine) what to make, when to
make it and where to send it when we have made the parts....

Mass Production systems generally use MRP computer systems to tell people
what to do and when to do it. The system normally looks at a production period
of say a week and explodes the production schedule into all its component parts
and using lead-time information between processes calculates what should be
made and when it should be made. The lead-time estimates (time taken for each
part to travel through the system) are fixed. No account is taken of what is
actually happening on the shop floor at that specific time. Neither does the
system reflect that parts upstream may not be needed because processes
downstream are stopped due to machine brake down or other part shortages.
The system simply tells the people how many parts to make parts within a given
time frame. Unless there is manual intervention, parts are pushed forward
irrespective of whether they are required or not. These parts accumulate and
form large queues waiting to be processed throughout the system. As the parts
move through the system, the production quantity is recorded at set points and
the information is fed into the computer to track what is happening. When the
next explosion takes place the computer knows what parts have been made and
what else needs to be made to satisfy the latest sales requests and so issues
fresh production schedule instructions. This is called a "Push System".

Theoretically, Lean Manufacturing uses a different approach, called a "Pull


System", or Kanban. Kanban is a visual signal system which tells you what to
make, when to make and where to send it. The principle behind the system is
one that we use daily. Suppose we both like "pickled onions", I like "pickled
onions". If you run out, you go to the supermarket and take a new jar from the
shelf. When you pass through the check-out, the supermarket knows that you
have bought a jar of pickled onions and so orders another from its supplier to
replace the one you have taken. I know this system works because when I go to
the supermarket I can always buy my pickled onions. OK, let's stop thinking
about new bread, Cheddar cheese, pickled onions washed down with a lovely
pint of draft Guinness, and get back to looking at a part flowing through a
factory:-

We can see that attached to each container is a "Kanban Card". On this card is
the following information; "Part Number": "Part Description": "Quantity in
Container": "Where part is Made" and "Where part is Used". Let's assume that
Dave has just used the last part in the container adjacent to his machine number
12. He knows from the following operation that they want some more of the
same parts (e.g. part number 1335) produced because an empty container has
arrived from Anne working machine 14 requesting the parts from him. He moves
his empty container from his machine and leaves the Kanban card attached to it.
Dave draws up another full container and starts using those parts. When Fred
rides by on his truck he sees the "empty" and reads the card. The card tells him
to take the container to machine 7, so he delivers the empty container to Pat.
She reads the card and knows that Dave wants some parts (part number1335).
She makes the exact quantity to fill the container and when full Fred takes the
parts to Dave.

If Dave had wanted different parts (e.g. part number 7443) from Pat because
Anne had requested different parts on the Kanban that she sent him; Dave
would change the card on the container that he had just emptied. The new card
would tell Pat to make the different part number for him. If the new part could
not be made on the process that Pat was working, the card would have specified
a different machine and Fred would have taken it to that workplace instead.
Charlie, working that particular machine would read the card and know that
Dave wanted. It is a simple system that must be applied correctly for it to work
successfully. There are variations to that described including the use of coloured
cards to indicate priority, the use of golf balls instead of cards and the use of
containers without cards. The latter being used when the same part number is
requested every time from the same user. The system outlined above can be
used between operations in the factory and between the manufacturer and its
suppliers. It uses a single Kanban Card.
The system can also be operated with two cards, one card to instruct part
movement and a second to direct the manufacture of the parts. It is a bit more
complicated.
In this case Pat's machine suffers from long changeovers so when Dave sends a
request for 500 parts (part number 2378) and George sends another request for
400 parts (part number 8893), Pat has a problem. If she changes over each time
she is asked for more parts then the machine will not be working very much
because it is always being set-up. To avoid this, Pat decides she can only afford
to run batch quantities equal to or greater than 1,000 parts per run. Being
clever, Pat uses a second Kanban card to control production. When Dave sends a
Kanban card requesting 500 parts she takes the "production card" from the
container and puts it into a rack. Pat can easily see the card in the rack. When
George sends his request for parts Pat takes "his production card" and places it
into the rack. When Dave sends another request for a further 500 parts (part
number 2378) Pat adds this to the other card (part number 2378) that is already
in the rack. She now has a request for 1,000 of those parts which she is now
allowed to make for Dave. Pat will make George's parts when she receives two
more cards from him that, added to the first card, requests a total of 1,200
parts. Being very clever, Pat is not happy about the long changeovers and large
batches she is being forced to run. This situation is forcing her to add more parts
into the system than are wanted. Extra stock for Dave is required between Pat
and Dave's processes because she was unable to make the original quantity for
Dave at the time he needed them. The same situation occurs between Pat and
George. So she instructs Mr. Estie Mator, (who by now, she thinks, is a bit of a
"Lean Expert") to organize a set-up reduction program for this process.

The application of Kanban can be difficult when you have many products flowing
through the production area and there is considerable discussion on how Kanban
should be practically applied. Some companies mix traditional scheduling
techniques with Kanban.

Pull Systems / Kanban


Reduce Lead Time, Accelerate Inventory Turns, Improve Production Flow
and Simplify Scheduling.

House of Lean
Benefits of Pull Systems
• Reduces inventory requirements and floor space
• Increases productivity
• Links producing and consuming processes
• Establishes appropriate inventory and lot sizes
• Improves on-time delivery
• Improves lead-time
Pull Systems are scheduling and information systems designed to improve the flow
of materials and work in process (WIP). They control the allocation of resources
based upon actual consumption rather than on forecasted demand. Pull Systems
link consuming and producing processes to enable a reduction in WIP and floor
space. The impact of the effective implementation of this methodology will
include significant increases in throughput, inventory turns, cash flow, ROI and
profitability.
The Process
As with most concepts of lean manufacturing, the first step is to select a product
family and document current and desired future states through value stream
mapping. Upon completion of the mapping process, the following steps are
typically taken to introduce Pull Systems into the value stream:
• Determine which end items will be build-to-order and which will be build-to-stock.
Considerations include:
○ Customers' desired lead-time relative to the manufacturing time
○ Rate and variability of customer demand
○ Confidence in design and configuration
○ Equipment changeover duration at key production points
• Identify combinations of process steps where continuous flow is possible.
• Establish FIFO lanes where flow is possible and kanban supermarkets where flow is
not possible. Calculate maximum quantities for FIFO lanes and supermarkets.
• Determine what single point in the value stream will be used to trigger production.
• Establish standard re-order quantities for all assemblies and component parts.
As the process evolves the changes and results are measured and monitored to
evaluate effectiveness. Once the system has stabilized and the company has a
grasp of how to manage pull systems, the methods can be expanded into other
areas of the facility. It should be noted that, like many tools of lean
manufacturing, Pull Systems lend themselves to continuous improvement. Also,
periodic adjustments are necessary to accommodate changes in customer demand,
vendor responsiveness, manufacturing processes, etc.
Our Experience and Track Record
Insyte Consulting has Western New York's largest and most diverse staff of Lean Six
Sigma (LSS) manufacturing experts — all with extensive hands-on, industry
experience. We have helped WNY companies improve operations using lean
manufacturing methodologies for over 25 years. Insyte has worked successfully
with more WNY companies using these techniques than any other consulting
organization. We welcome the opportunity to discuss your specific situation and
how we may contribute to your improved competitiveness and profitability using
proven lean manufacturing tools.
Click here for a pdf version of this service

Kanban & Pull Systems


What is Kanban and Pull Systems and how will it help my workplace?
Kanban & Pull Systsem techniques allows your process to more accurately make only
want the customer wants, when the customer wants it and only in the quantity the
customer requires.
Kanban & Pull Systems provides:
• Controlled orders triggered from defined locations

• Reduce Work In Progress (WIP) and inventory costs

• Improved stock control

• Reduced lead time to delivery

• Visualisation of process demand

• Improved process deviation escalations and root cause rectification

http://www.slideshare.net/dgrossu/kanban-pull-system-presentation
http://www.gbmp.org/files/Implementing%20KanbanPDFwithLogo.pdf
http://www.thomasgroup.com/Services/tools/Lean/Pull-System---Kanban.aspx
https://urresearch.rochester.edu/retrieve/11870/Karmarkar_IntegratingMRP.pdf

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