Kanban
Push to Pull Processing Just in time manufacturing (JIT) is the practice of maintaining and manufacturing just enough inventory to fulfill the orders that have been placed, and not a single piece more. With the advent of next day shipping, modern tracking systems, and worldwide interconnectivity through the internet and satellites, JIT is not only possible, but some businesses could not run without it. Their margins are so razor thin that they would go out of business if they had to allocate any more money toward inventory than they already do. If JIT is the entire system that defines the pull version of production and manufacturing, then Kanban is the signal that triggers the production. Kanban is the path toward JIT achievement, and consists of cards, balls, or other devices like markers or trolleys. It can also be an electronic signal, and many companies are using RFID‟s as the signal in Kanban. Developed by Toyota, Kanban is an integral part of Lean manufacturing and is best used alongside Kaizen and JIT. Unless the company that wants to use the Kanban tool is fully versed in lean manufacturing and all of the tools associated with it, it should not be used. To fully and properly implement the process, they have to coincide with each other and require a complete analysis of the manufacturing plant and all of the processes associated with it. When the Kanban tool is properly used, the JIT manufacturing plan can effectively work. This means that a company can use all of its inventory to send to the end user, instead of stacking it on their shelves, freeing up capital for the company so they are able to expand and improve their bottom line. The effective use of Kanban can be demonstrated with a simple example. An auto parts manufacturer wants to expand their product line to include brake pads, but they do not have the cash necessary to purchase the equipment needed to start manufacturing the quality brake pads they want to start building. Management then got together and decided they would try to slim down costs by implementing lean manufacturing processes. After accomplishing a few other things, they turn toward JIT manufacturing to start producing some of their larger parts, one of them being pistons. They have accurate sales data for the previous year on their piston line of products. They decide to cut back on the manufacturing so they can get rid of their backlog and inventory and shift to the JIT system. One of the company‟s major customers has decided to help the company in employing their JIT system. They have agreed to help them use the Kanban system by keeping track of their inventory and using the company‟s standardized Kanban cards. These cards contain all of the information about the pistons… their model number, their dimensions, weight, color, etc. There is one card for every 50 pistons. When the customer runs out of pistons, they send the company one of their Kanban cards This triggers the manufacturing of more pistons and subsequently more pistons are made… 50 to be exact. The Kanban card represents a signal from the customer that more inventory is necessary in order to keep up with demand. The 50 pistons are not manufactured until the company that needs them is in need of them, and this is the epitome of JIT manufacturing. It should be pointed out that a true JIT manufacturing system is an incredibly complex system that can quickly force complex issues that may turn out to show significant costs or losses to the company that they may not be able to handle. A perfect example of this is the creation of a bar code, internet processing, and assembly line manufacturing system. When introducing the internet processing system, there is an entire system that is now being utilized by the company that requires upkeep, maintenance, and quality assurance. Without these, the system will quickly render itself ineffective. Of course, because of these requirements, additional costs are incurred and the costs saved by switching to a JIT system may not be realized. The bar code is represented by the yellow lightening in Figure (1), which portrays the signal that is generated anytime a customer requires an order. That signal, or The Kanban, goes straight to the supplier to order more material, as well as the fabricator to begin assembling additional product.
Additionally, the timeliness and quality of the product may be effected when switching to a JIT system. Because they are waiting for an item to become depleted without ordering more of the inventory, the order will always be rushed and with that comes the hurried atmosphere that is the backdrop for errors and waste. The company may also lose its unique selling position if they are to fall behind their competitors in speed of delivery of a product, and they may lose the market share associated with those types of customers. While it is not the answer to every problem a company faces with their supply chain, JIT manufacturing is a great tool that some businesses may find very useful to integrate into some, if not all, of their processes. It is strongly recommended that upper level management be the ones who decide the implementation strategy of this effective tool, and a complete redesign of the supply system be rethought. JIT, if done properly, has the potential to save companies a substantial amount of money, particularly if they are involved with manufacturing and distribution. By reducing the inventory necessary to meet the demand of the customer, the company is investing in their own business through cost reduction.
Everyday I will publish one tool's description.So visit my blog for next article where I will discuss about"pull system "
Push to Pull Processing Just in time manufacturing (JIT) is the practice of maintaining and manufacturing just enough inventory to fulfill the orders that have been placed, and not a single piece more. With the advent of next day shipping, modern tracking systems, and worldwide interconnectivity through the internet and satellites, JIT is not only possible, but some businesses could not run without it. Their margins are so razor thin that they would go out of business if they had to allocate any more money toward inventory than they already do. If JIT is the entire system that defines the pull version of production and manufacturing, then Kanban is the signal that triggers the production. Kanban is the path toward JIT achievement, and consists of cards, balls, or other devices like markers or trolleys. It can also be an electronic signal, and many companies are using RFID‟s as the signal in Kanban. Developed by Toyota, Kanban is an integral part of Lean manufacturing and is best used alongside Kaizen and JIT. Unless the company that wants to use the Kanban tool is fully versed in lean manufacturing and all of the tools associated with it, it should not be used. To fully and properly implement the process, they have to coincide with each other and require a complete analysis of the manufacturing plant and all of the processes associated with it. When the Kanban tool is properly used, the JIT manufacturing plan can effectively work. This means that a company can use all of its inventory to send to the end user, instead of stacking it on their shelves, freeing up capital for the company so they are able to expand and improve their bottom line. The effective use of Kanban can be demonstrated with a simple example. An auto parts manufacturer wants to expand their product line to include brake pads, but they do not have the cash necessary to purchase the equipment needed to start manufacturing the quality brake pads they want to start building. Management then got together and decided they would try to slim down costs by implementing lean manufacturing processes. After accomplishing a few other things, they turn toward JIT manufacturing to start producing some of their larger parts, one of them being pistons. They have accurate sales data for the previous year on their piston line of products. They decide to cut back on the manufacturing so they can get rid of their backlog and inventory and shift to the JIT system. One of the company‟s major customers has decided to help the company in employing their JIT system. They have agreed to help them use the Kanban system by keeping track of their inventory and using the company‟s standardized Kanban cards. These cards contain all of the information about the pistons… their model number, their dimensions, weight, color, etc. There is one card for every 50 pistons. When the customer runs out of pistons, they send the company one of their Kanban cards This triggers the manufacturing of more pistons and subsequently more pistons are made… 50 to be exact. The Kanban card represents a signal from the customer that more inventory is necessary in order to keep up with demand. The 50 pistons are not manufactured until the company that needs them is in need of them, and this is the epitome of JIT manufacturing. It should be pointed out that a true JIT manufacturing system is an incredibly complex system that can quickly force complex issues that may turn out to show significant costs or losses to the company that they may not be able to handle. A perfect example of this is the creation of a bar code, internet processing, and assembly line manufacturing system. When introducing the internet processing system, there is an entire system that is now being utilized by the company that requires upkeep, maintenance, and quality assurance. Without these, the system will quickly render itself ineffective. Of course, because of these requirements, additional costs are incurred and the costs saved by switching to a JIT system may not be realized. The bar code is represented by the yellow lightening in Figure (1), which portrays the signal that is generated anytime a customer requires an order. That signal, or The Kanban, goes straight to the supplier to order more material, as well as the fabricator to begin assembling additional product.
Additionally, the timeliness and quality of the product may be effected when switching to a JIT system. Because they are waiting for an item to become depleted without ordering more of the inventory, the order will always be rushed and with that comes the hurried atmosphere that is the backdrop for errors and waste. The company may also lose its unique selling position if they are to fall behind their competitors in speed of delivery of a product, and they may lose the market share associated with those types of customers. While it is not the answer to every problem a company faces with their supply chain, JIT manufacturing is a great tool that some businesses may find very useful to integrate into some, if not all, of their processes. It is strongly recommended that upper level management be the ones who decide the implementation strategy of this effective tool, and a complete redesign of the supply system be rethought. JIT, if done properly, has the potential to save companies a substantial amount of money, particularly if they are involved with manufacturing and distribution. By reducing the inventory necessary to meet the demand of the customer, the company is investing in their own business through cost reduction.
Everyday I will publish one tool's description.So visit my blog for next article where I will discuss about"pull system "
Prepared By: Md. Tarikul Islam
01912885383
jonytex073@gmail.com
No comments:
Post a Comment