Let's talk about Kanban

When you look at the toolbox of Kaizen you will find a lot of tools like 5S, SMED, TPM, TQC, JIT, QC Circles and Kanban. Of these, Kanban will probably make the largest initial change in a facility. A traditional manufacturing facility projects what quantities will be needed and pushes them through production. In a Kanban facility the customer demand pulls the inventory through production. I will try to summarize Kanban today using 3 steps:

Standardize - Standardize how the facility produces. Let's look at this from the perspective of a single station in the process:

1. The smallest batch of Component F that Station 6 can produce is 100.
2. Station 7 uses Component F in 20 unit batches.
3. Station 7 uses 80 of Component F in the time it takes for Station 6 to produce 1 batch (100).

Using the information above we can set up a storage queue at the beginning of Station 7. It will hold 3 batches of Component 6. Each batch will be placed in 5 bins that hold 20 of Component F in each. Now the units are standard.

Visualize - The key to Kanban is to have the workers see what they have to do without being told. Kanban means signboard. So we'll color code the queue for Station 7. One batch will be green, one yellow and one red. When the queue gets into the yellow that tells station 6 to start producing. If the queue gets into the red it is an emergency because if the red runs out station 7 will have to stop.

Labeling the bins is also important. Putting the item name, what station produces it, how many items per bin and possibly what station uses it should be put on the bin. Workers should not have to ask about a particular item.

Revize - After Kanban is in place find ways to improve the system. Make smaller batch sizes, reduce process waste and shorten changeover times. This might allow you to reduce station 6's batch to 50 units, increase production to 60 units for station 7's 30 and make the queue smaller so that it holds 7 bins instead of 15. You could then have station 7A and station 7B if demand requires it. Going back and revizing your production guides is a Kaizen kind of idea.

Retooling, upgrading items and introducing new items will require re-labeling. Having a good label printer will help. Also if you want custom label rolls you can talk to the folks at DuraLabel about making you some.

For more information about Kanban, request a free copy of our Kanban Guide. Visualize lean.