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Part A Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal kanban Production kanban 17 Determining the Number of Kanbans Needed ? Setting up a kanban system requires determining the number of kanbans (or containers) needed. ? Each container represents the minimum production lot size. ? An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required. 18 The Number of Kanban Card Sets CSdLk)(1c on t a i n e r t h eof S i z es t o c kS a f e t y t i m el e a d d u r i n g d e m a n d E x p e c t e d????k = Number of kanban card sets (a set is a card) d = Average number of units demanded over some time period L = lead time to replenish an order (same units of time as demand) S = Safety stock expressed as a percentage of demand during lead time C = Container size 19 Example of Kanban Card Determination: Problem Data ? A switch assembly is assembled in batches of 4 units from an “upstream” assembly area and delivered in a special container to a “downstream” controlpanel assembly operation. ? The controlpanel assembly area requires 5 switch assemblies per hour. ? The switch assembly area can produce a container of switch assemblies in 2 hours. ? Safety stock has been set at 10% of needed inventory. 20 Example of Kanban Card Determination: Calculations 3o r ,45( 2 ) ( 1. 1))(1co nta ine r t h eof S i zes to ckS af e t y t im ele ad du r i ng de m and E xp e cte d??????CSdLkAlways round up! 21 JIT Requirements: Design Flow Process ? Link operations ? Balance workstation capacities ? Relayout for flow ? Emphasize preventive maintenance ? Reduce lot sizes ? Reduce setup/changeover time 22 JIT Requirements: Improve Product Design ? Standard product configuration ? Standardize and reduce number of parts ? Process design with product design ? Quality expectations 23 Respect for People ? Level payrolls ? Cooperative employee unions ? Subcontractor w