LEAN: Kanban Tool – Implementation Example
A good example of implementation of kanban system is the ‘three-bin’ system for parts supplied (it is assumed no in-house manufacturing is available). In this system, there is a bin in the factory floor (demand point), one bin at the factory store, and another bin in the suppliers’ store. These bins contain the kanban card which is removable, and containing product details and other information.
When a demand is faced for parts, the factory floor bin gets empty, which is returned to factory store along with its kanban cards in exchange for full bin and kanban cards. The factory store then presents its empty bin and kanban cards to the suppliers’ store and gets full bin with kanban cards in turn. This completes the system, which is like a loop.
This system ensures that only the exact needed amount is provided, with just one spare to regulate the supply, with room for uncertainty in supply and transport. It also ensures the process never runs out of product. You have to calculate the number of kanban cards needed for every product, in order to implement a good kanban system. In this system, the colored board system (Heijunka Box) is used for holding kanban cards.
Nowadays, many manufacturing organizations have switched over to E-Kanban systems, which have eliminated errors in manual entry, loss of cards, and similar problems.
E-Kanban systems can also be integrated into ERP (Enterprise Resource Planning) systems, which enable real-time demand signals across supply chains and clear view of the processes. The data gathered can be utilized for optimization of inventory levels through enhanced tracking of replenishment times and supplier lead.
