Who is Bill Gaw? And why should we listen to him? Business Basics Home Page	Bill Gaw's 3-Step, World Class Manufacturing Training Program World Class Manufacturing Increase the effectiveness of your Lean Manufacturing Program Manufacturing Simulation Game
	Kanban  Techniques Part 4 of 4
privacy policy Lean Manufacturing, Basics, Principles, Techniques For my latest Goggle.Knol article: Click Here  To review Bill's training  programs, click on    the links below:  Lean Manufacturing Solutions Performance Management Training Production Quality Supply Chain Management Training Lean Six Sigma Process Strategic Planning Training World Class Manufacturing Kaizen Training      Other Options:    Manufacturing Simulation Game Thinking Outside the Box Implementation, Methodology, and Excellence Improvement Training Balanced Scorecard Training Program Lean Kaizen Event Lean Manufacturing Operations  Six Sigma Management Manufacturing Supply Chain Management Strategic Planning Management Quality Manufacturing Lean Management Certification Program Lean Manufacturing Seminar Lean Manufacturing Jobs Continuous Improvement Training
	By following the 10 steps listed below, you can reasonably expect to implement kanban replenishment in a small pilot area of your plant in 120 days and be able to see tangible, bottom-line results. •      Step 1: Have an on-site assessment made. Understand the kanban replenishment process and the application to your particular environment. Identify the pilot area and select the pilot implementation team. Develop a preliminary list of paybacks. •      Step 2: Obtain the necessary implementation materials. These would include  -  materials for education and training -  layouts of the pilot area -  planning data for the pilot parts:  -  average use -  set up times -  lot sizes -  labor standards  •      Step 3: Educate the implementation team. •      Step 4: Develop a detailed implementation plan—who will do what and when it will be done. This is a lengthy step. It is important to  make deliberate haste here, but, do take the time to do it correctly.  -      Create a process flow chart. -      Determine the material flow for the selected area. -      Select the kanban system to control production. -      Select the kanban system to control replenishment. -      Establish kanban quantities and process balances. -      Identify material for point-of-use storage. -      Choose performance measures. -      Establish performance objectives:  -  lead times -  inventory -  space -  shortages  -  Define rules for sharing common equipment. -   Review maintenance schedules. -      Develop interfaces to existing systems. -      Define the points of material deduction. -      Define procedures for handling engineering changes. -      Define labor collection procedures. -      Design the kanban cards (signaling system). -      Produce/procure the kanban cards. -      Define the procedure to "bleed off" excess inventory.  •      Step 5: Begin "bleeding off' excess inventories. •      Step 6: Implement kanban controls for all material and production processes in the pilot area. •      Step 7: Begin to selectively reduce the number of kanbans. Also begin to:  -      Monitor and display performance measures. -      Conduct daily production meetings in the pilot area. •      Step 8: Educate the pilot implementation team, and selected others, in the total quality control problem-solving process called PDCA (Plan-Do-Check-Action). •      Step 9: Implement the PDCA problem-solving process. •      Step 10: Evaluate the results of the implementation. Begin to make plans to migrate the kanban process to the next pilot area. RESULTS After 120 days from the beginning of step 1, you should reasonably expect to find for the pilot area that •      The use of purchase orders has been eliminated. •      The use of shop orders has been eliminated. •      Labor collection is now being done on an exception basis. •      There will be more material stored at the point of use. •      Lead time has been reduced by 40 to 90 percent. •      Raw materials and WIP inventory has been reduced by 30 to 70 percent. •      Floor space has been reduced by 40 to 70 percent. •      Shortages have been reduced by 40 to 90 percent. SUMMARY Kanban replenishment is a simple, efficient, and highly visible way to authorize production and/or shipment of both purchased and manufac­tured material without the use of hard-copy purchase orders and shop orders. Placing a limit on the number of kanbans will set an upper limit on the total amount of inventory in the system. Gradually reducing the number of kanbans will expose and prioritize constraints to achieving higher velocities.    Kanbans are good because they make waste highly visible, whereas it once was hidden. Ultimately, of course, kanbans are bad because kanbans are inventory and that inventory sitting idle is waste—even though it may be necessary waste.   The intent of rule 3 (eliminate a kanban from the system periodi­cally) is to drive out all the waste—which would mean to eliminate all kanbans. The objective of every operation becomes to economically respond to its customers' requirements within their own lead time and with no inventory (kanbans) at all. Now this may seem to be Utopian at first, and it is true that we may never be able to reach that waste-free operation in some of our processes. Each waste reduction, however, no matter how small results in fewer potential defects, lower costs, and increased responsiveness—both for now and for the future! STAY CONNECTED To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation "How to Survive in an Entirely New Economy."  All at no cost of course.  First Name: Your E-Mail:  Your personal information will never  be disclosed to any third party. privacy policy Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter: "Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."                Kerry B. Stephenson. President. KALCO Lighting, LLC "Back to Basics" Training for anyone ... anywhere ... anytime Business Basics, LLC 6003 Dassia Way, Oceanside, CA 92056 West Coast: 760-945-5596  © 2001-2009 Business Basics, LLC