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Kanban Replenishment for All Types of Industries (Manufacturing & Non-Manufacturing). Tom Brown Colibri Limited Roswell, Georgia. Why consider kanban control?. Lower inventory investment Better “customer” service Reduced administrative costs. What is kanban control ?.

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kanban replenishment for all types of industries manufacturing non manufacturing
Kanban Replenishment for All Types of Industries

(Manufacturing & Non-Manufacturing)

Tom Brown

Colibri Limited

Roswell, Georgia

why consider kanban control
Why consider kanban control?
  • Lower inventory investment
  • Better “customer” service
  • Reduced administrative costs
what is kanban control
What is kanban control ?

A method of Just-in-Time inventory replenishment that originated in Japan.

  • Kanban techniques can be used by both “manufacturing”and “non-manufacturing” org’s
  • Kanban systems can be:
    • 100% manual
    • 100% Oracle
    • A hybrid of Oracle and manual techniques
  • Non-manufacturing organizations will likely want to use a hybrid approach
what makes kanban control different
What makes kanban control different ?
  • Kanban is “pull” based – driven by actual usage not forecasts
  • Kanban replenishment is simple

?

kanban systems
Kanban Systems

Can use different methods to trigger replenishment activity

  • kanban cards are the most common
  • kanban containers are frequently
  • bar coding of cards / containers helps when automating kanban systems
kanban systems6
Kanban Systems

Not suited for all inventory items – look for

  • items with frequent usage
  • items with short lead times
  • items with “willing” suppliers
replenishment flow for kanban cards

New

Empty

Wait

Full

In-Process

Replenishment Flow for Kanban Cards

When container is empty, signal sent to source to replenish kanban

Wait until minimum order quantity is reached

Planner determines when to add / remove cards

When received, kanban status is updated and container is moved to usage area

When order minimum is reached, a Job, PO, or Move Order is created

oracle kanban flow for manufacturing

Press / Paint

Job

Oracle Kanban Flow for Manufacturing

Kanban replenishment auto-

creates Purchase Requisition

Supplier

Kanbans

AutoCreate PO or Blanket

Release

Blanks

Sub-Inv

Supplier

Paint

Op

Press

Op

Assembly

Sub-Inv

Assembly Line

Production Kanbans

Finished

Goods

Kanban replenishment autocreates WIP Job

Material Flow

Kanban Flow

oracle kanban flow non manufacturing

Supplier

Kanbans

Stock

Room

Supplier

Customers or

Consuming

Departments

Receiving

Material Flow

Kanban Flow

Oracle Kanban Flow: Non-Manufacturing

Kanban replenish auto-creates

Purchase Requisition

Purchasing Creates PO or Blanket PO

Release

slide10

Pull Sequence

#1. Setup a pull sequence to define Source, Replenishment, and Planning Parameters

slide11

Kanban Cards

#2. Add kanban cards associated to the pull sequence

determining the number of kanban cards containers needed for each item
Determining the number of kanban cards / containers needed for each item
  • An item has a 2 day lead time (when a kanban is emptied it will take 2 days to refill it)
  • An item has a 2 day lead time (when a kanban is emptied it will take 2 days to refill it)
  • Average daily usage of the item is 50 per day
  • You will need 100 within the replenishment lead time (average daily demand times lead time)
  • Thus, you need to activate 5 kanban cards (demand during lead time divided by kanban size)
oracle kanban planning assumptions
Oracle Kanban Planning Assumptions
  • Constant rate of demand

While average daily demand is 50 per day, what is the maximum daily demand?

  • Constant lead time

While average lead time is 2 days, what is the maximum lead time?

How can you account for these variances in demand

and supply when planning kanban inventory?

kanban planning using ms excel
Kanban Planning Using MS Excel

Determine which items are good candidates for kanban control:

kanban planning using ms excel17
Kanban Planning Using MS Excel

Determine number of kanbans to activate: