Kanban System Calculator

Kanban is a simple yet effective control system that can be easily introduced and adopted in various production environments. It is considered to be the “central element” of Lean and World Class Manufacturing.

Coined from the Japanese word kan which means “card”, and ban which means “signal”, kanban is simply described as a system for “pull” production control. When we talk of “pull”, it is more of a control measure to release materials into production “only when they are needed.”

On the other hand, the “push” system is a transposition of the “pull’ production system. “Push” is thereby releasing materials into production as customers’ orders are processed and the materials become available. Material Requirement Planning or Manufacturing Resource Planning (MRP) modules are typical “push” systems.

Some may say that Kanban is more of a visual scheduling system. The emphasis here is that Kanban is not a system where everything is put on schedule, it must be made clear that Kanban is a production control system intended to enable the process owner to easily view production requirements and ensure that parts or supplies are ordered/procured only if necessary.

Kanban is generally used in two instructional forms:

1. A simple production instruction (shikake) indicating what, where and when it is needed, and where materials are coming from or going to; and 2. The other form is for parts withdrawal (hikitori) or an illustrated piece to visually communicate materials that have been consumed and their quantities that need to be replaced by upstream processes.

The purpose of Kanban is, therefore, to automate the inventory controls without the need of analysis or planning.

The Two-Bin System

Long before Japanese manufacturing methodologies and Toyota production philosophies became popular in the 70s, the United Kingdom and some European countries have already been practicing an ingenious technique called the “two-bin system”.

An original western concept, the two-bin system is similar to the Kanban model where everything is visualized on easy-to-understand cards and comparatively easier to setup processes.

As described, the concept of a two-bin system can be likened to an empty standardized container. The container is then returned to the supplier once it becomes empty. Attached to the container is a card instruction on how the bin should be refilled. This way, production requirements and priorities are communicated clearly using simple instructions and visuals that let the customers or suppliers consciously participate in the production process if the situation so permits.

We can generally say that the just like Kanban, the two-bin system connects the production process with an invisible conveyor that can be translated into simple content-transmissible items such as cards, balls, boxes, carts, bins, electronic signals, etc.

The Kanban system can be introduced to either information or material flow in factories, stores, offices and other supplier-customer relationships where the flow of materials is constant and stable.

The Kanban Calculator

To help you improve performance and reduce waste, the Kanban Calculator is a handy tool that will provide you with valuable information to manage the entire production process.

Appropriate application of the Kanban system is a significant step towards achieving a true Just-in-Time (JIT) production.

Remember that too much overreaction and analysis will only result in costly production paralysis.

Oskar Olofsson, 2009

Reference

1. Implementing World Class Manufacturing, Second Edition (Includes Lean Enterprise)

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