Delivery Kanban Operating Rules

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1 Delivery Kanban Operating Rules Marek Piatkowski July

2 Introduction - Marek Piatkowski Professional Background Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from TPS/Lean Transformation Consulting - since 1994 Professional Affiliations TWI Network John Shook, Founder Lean Enterprise Institute (LEI) Jim Womack Lean Enterprise Academy (LEA) Daniel Jones LEI Poland Tomasz Koch, President Lean Transformation Solutions, Toronto, Canada 2

3 Warehouse vs. Supermarket Supermarket is a storage place where all parts and components used by the specific Customers (Departments) are kept All parts kept in a designated location All parts kept in designated containers All parts and containers are clearly identified Minimum and maximum levels of inventory (number of containers) are defined Parts are replenished several times per day FIFO (First-in-first-out) is in place Lot control, when applicable, is in place 3

4 Delivery Kanban how does this effect you? Purchased Parts Purchased parts will be delivered to the Supermarket in your area you no longer need to go to the Warehouse If parts that you need are not in the Supermarket notify your Supervisor Delivery Quantities There will be a standard quantity of parts in every tray and container, as specified by a Kanban card All Purchased Parts will be in stored and delivered in easy-to-use containers with small quantities of parts inside. 4

5 Delivery Kanban how does this effect you? Supermarkets - When ordering parts from the Supermarket Order only what you need one container at a time When you empty the container, return it to a designated location in the Supermarket empty Kanbans. Pick up the next container only if you need more parts When you finished the job and you have a partial container Put the container on a shelf in the Mini-Market This partial container should be used first next time you run this job 5

6 Operating Rules - Kanbans Every box, every tray, every container, etc must have a Kanban card attached to it. All parts must be stored in one of the three designated locations: Supermarkets storage Point-of-use (Mini-Market) storage WIP Flow racks, work stations Place for every part and every part in its place Inventory is controlled by the number of Kanban cards in each loop Need more inventory add more Kanban cards Reduce inventory pull out Kanban cards 6

7 Supplier Kanban card Example of Delivery Kanban Used only in the Purchase Parts Warehouse to order parts from outside Suppliers Should not be found outside the Warehouse These cards should only be used by the Warehouse and Purchasing personnel 7

8 Purchased Parts Kanbans cards & containers This is a Delivery Kanban These cards and containers are used to control flow of parts from the Warehouse to manufacturing Supermarkets These Kanbans will be collected several times per day in order to deliver parts to manufacturing Supermarkets 8

9 Operating Rules Kanban Cards All permanent Kanban cards and returnable Kanban containers must be treated as a valuable commodity and a Company property Do not throw away any Kanbans cards or containers without an approval from the Material Management group If any Kanbans are found out of place, please report them to the Materials Management group or your Leader For low volume products (not stored in a Supermarket) we will issue a temporary one time Build to Order Kanban card these cards can be disposed at the end of the process 9

10 Advantages of a Pull System We do not have to depend on a Customer forecast, which in a lot of cases is inaccurate, to schedule production and to order parts and components We produce only what is needed we make only what was pulled from the Supermarket We control our inventory through the use of Kanbans We can easily tell what parts we have and what parts we need we do not waist time looking for parts The Pull System should: Eliminate part shortages Tell us to build only what the Customer needs 10

11 Lets all Pull Together 11

12 Lean Transformation Solutions This presentation is an intellectual property of F.S.P. Consulting Inc. No parts of this presentation can be copied or reproduced without a written permission from: Marek Piatkowski F.S.P. Consulting Inc. iphone: Cell:

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