Kanban Scheduling System Development Process

Author: Charles Wilson

Kanban is a Japanese word that means signboard. Kanban systems were first introduced by Toyota in the 1950s as a scheduling system to regulate what to produce, when to produce it, and how much to produce. Kanban systems lead to a better process flow through level-loading, decreased scheduling activities, and can result in important inventory reduction and work-in-process. A Kanban system can be a very simple and effective tool to design a procedure that is scheduled based on actual demand.

The basic concept of a Kanban system can be simply observed in a supermarket. In a supermarket, every item has a well-defined inventory location that holds a precise quantity of the item. Consumers select the essential quantity of a specific item and proceed to the checkout counter. At the checkout counter, the cashier scans each item and a signal will be transmitted to the supermarket’s database, representing the items’ part number and quantity that has been consumed. Once a certain quantity of a precise item has been consumed, a supermarket employee will take that item from the warehouse and refill the shelf space in the store.

What are the Development Process Kanban Scheduling System?

The most efficient way to develop and implement Kanban systems is to teach the Kanban concept and then let the authentic users of the system set it up and own it. Over time many of the steps can be accomplished without detailed documentation. Here are the following steps when developing and implementing a Kanban scheduling system:

Step 1: Analyze products and procedures and choose what parts and products would advantage most from a Kanban scheduling system. While most Kanban’s are developed for raw material and work-in-procedures inventories, the system also works for complete goods inventory and even office supplies.

Step 2: Study the daily usage for each Kanban part over the past six to twelve months and regulate the proper minimum and maximum stock levels for each part. Watch out for any other special consumption patterns. More inventory must be kept for regularly used parts, and pull triggers need to be set consequently.

Step 3: Study the main times for each Kanban part. Lead times are how long the product takes to reach at plant after place an order for it with the supplier, or how long it takes plant to manufacture a part. Decrease long supply lead times, if possible, either by negotiating better terms with suppliers otherwise switching to new, faster suppliers.

Step 4: Evaluate the minimum stock level for each part built on part lead time. Err on the side of attention and take possible manufacturing, quality, or supplier problems into account. Always squeeze the quantities later, once everything stabilizes.

Step 5: Classify the Kanban locations and containers for each part. Make the Kanban cards and Kanban board for a manual system or set up Enterprise Resource Planning or Production Management System according to Kanban parameters.

Step 6: Develop scheduling rules for the supplier procedure based on the Kanban board to confirm timely replenishment of all Kanban locations.

Step 7: Order and filled, maximum stock level for each item. Start the Kanban procedure for each item as its stocks are filled.

Step 8: Observe the competence of the Kanban system. Squeeze the minimum, maximum, replacement quantities, and pull trigger amounts until item usage rates, lead times, and inventory levels reach the perfect balance, with replacement stock received just before existing inventory runs out. Keep a small amount of safety stock on hand in case tweaking results in inventory shortages.

Kanban training PPT contains more than 150 PPT slides, and a trainer’s guide. It will deliver knowledge and training on Kanban Systems, so as to apply the Kanban principles to a specified area in the organization. This Kanban Training PPT describes steps methodology to implement Kanban system. Also, see the concept in practice in repetitive and non-repetitive as well as seasonal demand applications.