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d over some time periodL = lead time to replenish an orderS = safety stockC = container sizeNo. of Kanbans = average demand during lead time + safety stockcontainer sizeN = dL + SC21Copyright 2023 John Wiley Sons, Inc.Determining Number of Kanbans: Exampled = 150 bottles per hourL = 30 minutes = hoursS = (150 x ) = C = 25 bottlesRound up to 4 (to allow some slack) or down to 3 (to force improvement)N = == = kanbans or containersdL + SC(150 x ) + 2575 + 2522Copyright 2023 John Wiley Sons, Inc.Small LotswRequire less space and capital investmentwMove processes closer togetherwMake quality problems easier to detectwMake processes more dependent on each other23Copyright 2023 John Wiley Sons, Inc.Inventory Hides Problems24Copyright 2023 John Wiley Sons, Inc.Less Inventory Exposes Problems25Copyright 2023 John Wiley Sons, Inc.Components of Lead Timew Processing timen Reduce number of items or improve efficiencyw Move timen Reduce distances, simplify movements, standardize routingsw Waiting timen Better scheduling, sufficient capacityw Setup timen Generally the biggest bottleneck26Copyright 2023 John Wiley Sons, Inc.Quick Setupsw Internal setupn Can be performed only when a process is stoppedw External setupn Can be performed in advancew SMED Principlesn Separate internal setup from external setupn Convert internal setup to external setupn Streamline all aspects of setupn Perform setup activities in parallel or eliminate them entirely27Copyright 2023 John Wiley Sons, Inc.Common Techniques for Reducing Setup Time28Copyright 2023 John Wiley Sons, Inc.Common Techniques for Reducing Setup Time (cont.)29Copyright 2023 John Wiley Sons, Inc.Common Techniques for Reducing Setup Time (cont.)30Copyright 2023 John Wiley Sons, Inc.Uniform Production Levelsw Result from smoothing production requirementsw Kanban systems can handle +/ 10% demand changesw Smooth demand acr