HUASHENG MACHINERY COMPANY（5年专业机加工公司）KANBAN PROCEDURESHUASHENG Kanban Procedure .Objective:To maintain optimal inventory for serving customers, balancing the need to provide good service with best possible inventory turns. This is especially necessary with our overseas suppliers where the transportation time is long.Overview:The HS 2 Bin Kanban SystemThe basic approach will be to utilize a kanban “pull” process, as initially developed by Toyota. The customer and the overseas supplier will each carry a predetermined amount of inventory. The basic unit of inventory will be the kanban quantity, also called a bin quantity. This will be calculated by the customer, and agreed upon by the supplier.HS will operate a 2 kanban system for sourcing . The supplier and the customer will each maintain 2 kanbans. The supplier 2 kanbans bins of inventory will be finished goods that have been inspected, packed and are ready to ship. The customer in the HS will maintain 2 kanbans.The Blanket Purchase OrderThe customer and supplier will negotiate a yearly blanket purchase order for the parts that will operate on the kanban system. Contained within the purchase order will be a yearly forecasted quantity of units. This quantity is merely a forecast or estimate and does not represent a commitment by HS to purchase this quantity. HS Company is only financially responsible for a maximum of 2 kanbans of material.The number of units in each kanban is fixed across all kanbans. The customer may at times change the quantity of units in each kanban. The following information will be defined in the blanket purchase order for each part number: unit cost, surcharges, quantity in each kanban, number of containers per kanban, quantity in each container, size of container (length, width and height in inches and centimeters) and weight of container. Warning! The yearly forecasted quantity specified by the blanket purchase order is a forecasted quantity. The supplier is not authorization to produce the entire yearly forecasted amount nor is it a commitment to purchase the entire amount.Operation of the 2 Bin Kanban SystemFigure 1 represents the operation of the two bin kanban system. When the customer consumes a kanban, a kanban shipping release instruction will be sent to the supplier. Upon receipt of the kanban release, the supplier will have a maximum of 2 weeks (14 calendar days) from the date of receipt of the kanban release instruction to deliver the kanban to the departure seaport of the ship (see table 1). The supplier is responsible for ensuring that the kanban is boarded on the ship and the ship departs the seaport within this two week period.Then upon shipment of the kanban, the supplier should immediately begin production to refill the kanban. The Supplier normally has the “total replenishment time” indicated in Table 1 to fill the kanban. In the case of a China supplier and a HS customer the supplier has seven weeks.Figure 1Operation of the 2 Bin Kanban System.Standard Replenishment Lead TimesTable 1 defines the standard replenishment time from the supplier’s location to the customer’s location. As an example, the China to HS kanban system is designed to deliver material in seven weeks to the HS located customer from a China based supplier. This seven weeks is broken down as follows:∙ A two week supplier response time represents:o The time for the China or India based supplier to process the order,o To arrange for transportation,o To deliver the order to the port,o To ensure the order is properly boarded,o To ensure the ship departs the port.∙ A seven week transit time represents:o The time for the ship to sail to the arrival port,o To clear customs in the HS,o To be loaded on the truck,o To arrive at the customer site.Standard Transit Times from Supplier Location to Customer LocationThe Use of Visual Management to Maintain Kanban SystemVisual management is key to the successful management of a kanban system. The two weaknesses of the kanban system are lost cards and containers. Both items must be displayed such that the human eye can identify lost or missing kanban or their cards. Remember the saying “ one picture is worth a tho HS nd words”.The Use of Green/Red Scheduling Boards By the Customer and the SupplierThe Green/Red scheduling board will be set up as shown below. It is used to visually manage the kanban cards. It is made of pegboard or plywood, painted green on the left, red on the right, and has hooks arranged to hold the cards. The board will be placed in the area where the parts are produced, as a tool for visual scheduling. The use of the board is required in both customer and supplier manufacturing plants.Figure 2.Green (Left)/Red (Right) Traffic BoardWhen the first kanban is shipped or consumed, it’s kanban card will be detached from the bin and hung on the left (green) hand side of the board. When the second kanban is consumed or shipped the first card on the green side along with the second kanban card is moved to the red side.As the kanbans are emptied in the warehouse, the kanbans are sent to purchasing so that shipping release instructions can be given to the supplier. The purchasing department then annotates the due date on the back of the card and the card is returned to the traffic board. Then the cards are placed on the board to quickly and easily reveal what the inventory position is.Rules for the order in which to produce parts for the kanban:∙First priority to produce parts –o The first kanban card of the double out kanban that is hung on the red side.Two kanban cards of the same part number that are hung on the board indicatethat we are entirely out of material.o If there are no other two card sets of kanbans on the red side of the board then both cards can be produced at the same time.o If there is another pair of kanban cards on the red side then the second card is moved back to the green side after production is begun on the first card.∙Second priority to produce parts - Any kanban card on the green side. The operator or supplier can produce a kanban card on the green side in any order. He may consider such things as common set-up, tool availability or other such things to make his decision on what to make first.∙For kanbans that consist of multiple containers as shown in figure 7, the kanban container cards are collected until all the cards are consumed in the first kanban,before the kanban is ordered or replenished. Normally it does not matter whichkanban is consumed first. In the case of a multiple container kanban, all of thecontainers must be consumed, before beginning on the next set of kanbancontainers.Examples of Green Only (Normal) Replenishment.Figure 3 represents the normal state of operation of the two bin kanban system. The manufacturing cell can produce any green cardGreen (Left) Only Traffic Board OperationExamples of Red (Emergency) Replenishment.Figure 4 represents an emergency replenishment of the two bin kanban system. In this situation both kanbans are empty. This is an emergency situation and the manufacturing cell or the supplier must immediately produce a single kanban container of the part number. This must be produced immediately. The organization must work 24 hours per day and expedite all material necessary to produce the product.Emergency ReplenishmentUnexpected Customer DemandThe kanban system is based on forecasted demand. When demand exceeds the forecast, the supplier must still meet the requirements of the order regardless of the lead-time given. When the supplier has two kanban cards unfilled he is in an emergency situation and needs to ship the first kanban immediately. Before shipping in this scenario he should contact the customer to determine whether to transport via ship or plane.When Suppliers’ Cumulative Manufacturers Lead Time Exceeds Total Replenishment Time.When the manufacturing time of the part exceeds the total replenishment time specified by table 1, the supplier must take steps to reduce his response time to the customer order. In the case of China, the replenishment time is seven weeks, this means the supplier must be able to manufacture the part in less that seven weeks. If the supplier cannot, he musteither keep extra containers of material in each kanban beyond the two required or locate raw material kanbans within his manufacturing process to bring his cumulative manufacturing lead time below 7 weeks. As an example, if the supplier of a machined casting has a cumulative manufacturing leadtime of 12 weeks (four weeks required to machine the raw casting and eight weeks for the foundry to pour the raw casting). The supplier must establish raw casting kanbans to support the machine shop. This buffer of raw material will enable the supplier to replenish the finish goods kanban in less than seven weeks.Management of the Kanban Card within the Customer’s CompanyAs the kanbans are emptied in the warehouse, the kanban cards are sent to purchasing so that shipping release instructions can be given to the supplier. The purchasing department then annotates the due date on the back of the kanban card and the card is returned to the traffic board.Movement of the Kanban Card with the Supplier’s CompanyAs the kanbans are emptied in the warehouse, the kanban cards are sent to the production cell to produce more of the product. When the production kanban is complete, inspected and packaged The kanban card is removed from the kanban board, the back of the kanban card is annotated with the in and out date and the kanban card in attached to the container. The kanban of finish goods is then forwarded to the warehouse and stored until the next customer demand is received.The Kanban Card and the Multiple Container KanbansFigure 6a- 6d represents an examples of a kanban cards for a two bin multiple containers kanban system. Multiple containers are required when the quantity of parts cannot be kept in one kanban container. In this situation the kanban is made up of multiple containers. In the ocean freight 2 bin kanban system we may have multiple container within a single kanban. Such a system will be required to ship heavy large castings. The bin quantity is divided equally between the containers. Below is an example of such a system.Figure 6a The Kanban CardFigure 6b Examples of Kanban CardsTop Production Kanban Middle: SuperMarket KanbanBotton: Supplier KanbanBack of Production Kanban CardBack of Purchasing KanbanFigure 7Example of Labeling of a 2 bin, 4 Container Kanban System.Movement of the Kanban CardKanban cards must be treated carefully and not lost. They are attached to the rack or to the container in the warehouse location where the kanban is kept. The card is detached and sent to the traffic board for replenishment when the kanban is shipped. When the kanban is filled, the card travels with the finished items to the storage location where the kanban will be kept until it is released for shipment. The picture below (Figure 8)shows kanban cards attached to racks. It also shows an actual, physical “bin” or kanban. It too has a kanban card permanently attached to it in order to identify the part number that would normally be present in the container.Each kanban has a permanently assigned home location and this home is f identified by a label on the storage rack. When the kanban is empty, the container will be gone, the detachable kanban card will be gone, and the space will be empty. The shelf label will indicate that this location is reserved for this. In this type of arrangement, the second kanban is placed behind the first one. You can see that the bin on the left does not have another behind it. You can see some empty Velcro to the left of the shelf label where the cards from the first kanban have been removed. On the right you can see two bins, one behind the other, with both cards in place.Figure 8Kanban Storage RackIt is an absolute requirement that the supplier must keep kanban in stock, and ship immediately upon receipt of release instructions. The supplier manufacturing replenishment lead time must be fast, so that the empty kanban can be replenished quickly, so if business is strong, the supplier will never be out of kanban. If the supplier cannot do this, then they must improve their manufacturing process. It may also be necessary for the supplier to work with their suppliers on kanban, if supply of raw materials is a limiting factor.Suppliers’ Responsibilities:∙Always maintain two kanbans of material of each part number in the program, ina finished goods state, inspected, packed and ready to be shipped immediatelyafter receiving notification.∙Immediately replenish the empty kanban, in order to be prepared in case another shipment release is received quickly.∙Only part number will be packaged in any single shipping crate/box/package.Boxes should not be packed with multiple different items.∙Only the kanban quantity should be shipped. Overages/underages will not beacceptable.∙The supplier will immediately (next business day) confirm receipt of kanban release instructions to customer.∙The supplier will take immediate steps to arrange ocean freight for the kanban item. The supplier will confirm shipping details within five days of notification, and will ship from their location in a timely manner.。
