Kanban System
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Tagged: kanban MRP
This topic has 6 voices, contains 6 replies, and was last updated by 
Nitin Dixit 210 days ago.
| Author | Posts |
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| Author | Posts |
| July 31, 2012 at 11:59 pm #184429 | |
 amy lee @amylee  Reputation - 15 Rank - Aluminum
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currently i am facing a proble, where the planning and purchasing department quarreled over the shortage of stocks in purchasing. They are using the MRP system. My question is, is the Kanban System suitable in solving this problems, where many components are involved. Thanks for all the suggestions. |
| August 6, 2012 at 6:46 am #184526 | |
 Russell Lindquist @lindquistr Reputation - 677 Rank - Copper
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Ms. Lee, Like most things the answer is, “it depends.” Kanban systems are very effective to replenish supply but require knowledge of lead times, estimated consumption/demand quantities and pretty reliable delivery of the supply. I can only speak from experience but having thousands of components or more in a kanban system can work just fine, although I haven’t done one with millions of SKUs. MRP planning usually does worse when the above information is not accurate or demand cannot be statistically planned. Both systems suffer in low demand situations and tend to drive to higher inventories. There are a few alternatives but email me separately and we can discuss further if you would like. —Russell |
| August 6, 2012 at 11:32 am #184533 | |
 Kevin Clay @kevin_d_clay Reputation - 85 Rank - Aluminum
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Amy … I have worked with many companies in a high SKU environment. It is not feasible in most cases to install a Pull and Kanban system on all SKU’s. Instead, you want to look at a Pareto Diagram where you determine the 20% of your SKU’s that make your orginization 80% of value (whatever your company sees as value). This 20% is where you want to focus you pull and Kanban processes. You will find that in the other 80%, capacity will release and they will be easier to manage. Regards, |
| November 8, 2012 at 12:11 am #187090 | |
 Lucas Xu @lucasxu83 Reputation - 18 Rank - Aluminum
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Use aggregated Kanban than item level Kanban will help you to solve this problem.For purchasing dept., they don’t need to worry about the detail but a macro raw material demand, for planning dept., they should summarize and show the demand forecast with Sales and product manager.Kanban is used in “make to stock” bussiness mould, if your company is “make to order” mould, you need to analyze the history based on sales forecast if raw material lead time is long, Kanban is not available in “make to order” mould. |
| November 17, 2012 at 12:36 pm #187464 | |
 Rahmat Ali Khan @rahmatalikhan Reputation - 30 Rank - Aluminum
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I think Safety stock based on realistic forecasting is necessary, don’t think Kanban aims just at zero inventory. |
| November 20, 2012 at 6:17 am #187522 | |
 Stoke Prior Andy @Andy-Parr Reputation - 8 Rank - Aluminum
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Amy, take a look at the tools available on the Juran site. I think they will help and you can reach their site via the “Revitalise your Organisation” link on this page. They have a really useful Kanban template. |
| November 20, 2012 at 2:39 pm #187556 | |
 Chris Seider @cseider Reputation - 3118 Rank - Titanium
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IMHO, kanban application within a facility is one of the LAST tools to help a lean environment. Gather data on what the majority of understocks are, and find out lead times, varying usage rates, and average usage rates and see if you need to change average stock levels. If this information is wrong, even if you used kanbans, you’d run out of stock. |
| November 20, 2012 at 9:08 pm #187565 | |
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Nitin Dixit @NitinDixit Reputation - 229 Rank - Aluminum
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Agree with Chris. Demand pattern (Vol varience, mix varience, lead time) and supply reliability (inter consignment time, lead time and their variability) an quality reliability are the first things to determine. |
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