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Implementing Kanban Pull Systems
in Non-Manufacturing Environments
July 20, 2010
Company

LOGO
Your Instructor
 Early career as a scientist; migrated to
quality & operations design in the mid-80’s.
 Launched Karen Martin & Associates in
1993; applied Total Quality Management.
 Introduced to Lean in 2000.
 Specialize in Lean transformations in nonmanufacturing environments.
 Co-author of The Kaizen Event Planner;
co-developer of Metrics-Based Process
Mapping: An Excel-Based Solution.
 Instructor in University of California, San
Diego’s Lean Enterprise program.
© 2010 Karen Martin & Associates

Karen Martin,
Principal
Karen Martin &
Associates

2
Learning Objectives
Participants will learn:







What a kanban system is.
The difference between kanban and FIFO
lanes.
How kanban-managed supply systems benefit
organizations.
The step-by-step process for implementing a
simple two-bin kanban systems.
 The role of 5S in establishing a kanban system.

© 2010 Karen Martin & Associates

3
Kanban - Defined
Kanban


A visual signal of some kind
 Sign, signboard, card, doorplate, poster, billboard, etc.

Kanban system




A just-in-time pull system whereby items are
replenished at the rate they are consumed.
Low tech, highly visual pull system for inventory
management

© 2010 Karen Martin & Associates

4
Kanban vs. FIFO Lanes – NEW SLIDE

Kanban systems are used when you’re
replenishing specific items/part numbers
(supplies) based on consumption.
FIFO lanes are used when you’re
replenishing work based on consumption.



Maximum WIP allowed is established.
All upstream work stops once max is reached.
Review
Drawings

Max = 10

FIFO

© 2010 Karen Martin & Associates

Prepare
Change
Order

5
Building a Lean Enterprise
Pull System Mechanics
Concept: Consumption by downstream process authorizes
replenishment by upstream process
Visual signal to replenish

Replenisher

Consumer

Replenishment occurs

© 2010 Karen Martin & Associates

7
How are supplies typically managed?
Storage issues





Multiple locations and “secret stash.”
Not stored next to where they’re consumed.
Like items not stored together.
Similar items not differentiated.

Management issues



Labor intensive
Re-orders based on forecasts rather than actual use.

Ordering issues





Unclear accountability.
Volume discounts often drive quantity ordered.
No criteria for ordering.

© 2010 Karen Martin & Associates

8
Kanban Benefits
Prevents carrying excessive inventory.



Reduced cash flow
Excessive space requirements

Prevents stockouts / reduces expediting expenses.
Forces stock rotation to reduce risk of obsolete,
damaged, or expired inventory.
Requires less effort and fewer resources to
manage.
Improved compliance (healthcare).
Drives discipline into the organization.
© 2010 Karen Martin & Associates

9
Eight Wastes (Muda)

Overproduction
Inventory
Waiting
Over-Processing
Errors

Motion (people)
Transportation
(material/data)

Underutilized
people

A well-designed kanban system
eliminates every single one!
© 2010 Karen Martin & Associates

10
Types of Kanban Pull Systems
One-bin system, divided into two sections
Two-bin system


Arrangement options
 Front and back
 Side-by-side
 Top and bottom



Color or no color

Three-bin system – supplier involved
Tape
Conveyors
Shadow boards
© 2010 Karen Martin & Associates

11
Single Bin Kanban System
Cardboard
Divider

Kanban
Card

Place card on top of
parts immediately
under divider

(1)
Appropriate
Sized Bin
(kanban
quantity fits
into one bin)

(2)
(3)
Draw Line Inside
Insert Cardboard
Pan at Order Divider to Create
Point Level
Physical Barrier
Two-Bin Kanban

Kanban card w/ reorder info
Two-Bin System / Bar-Coded / No Card
Red bin in front =
Replenish
Blue bin in front =
Do not replenish

Item # and reorder
quantities built into
computer system
Side-by-side Color Bins:
Red Arrows Signal Need to Replenish
Top/Bottom Color Bins:
Red Arrows Signal Need to Replenish
Kanban Cards

Typical information
on kanban cards:
• Supplier
• Item/part #
• Reorder quantity

© 2010 Karen Martin & Associates

17
Two-Bin System
Front

Back
Tape Kanban
Do not replenish

Replenish
Conveyor Kanban

Replenish when
first empty bin
moves into red area
Shadow Boards
Typical Two-Bin Calculation
Bin Quantity = (ADU x LT) x (1 + SS%)





ADU = Average daily use
LT = Supplier lead time (in days)
SS% = Desired safety stock percentage,
expressed as a decimal (e.g. 30% = 0.30)
 Safety stock can vary by item
 Typical beginning SS = 50% & reduces over time



Note: You can use different time periods as
long as the units of measure for demand and
LT are the same.

© 2010 Karen Martin & Associates
Typical Two-Bin Calculation Example
Scenario






40 used per day
Supplier delivers twice a week
Item always in stock
30% safety stock desired.

Bin Quantity = (ADU x LT) x (1 + SS%)
Bin Qty = (40/day x 2.5 days) x (1 + 0.3)



= 100 items x 1.3 items
= 130 items per bin

© 2010 Karen Martin & Associates
Setting up Two-Bin/Two-Card
Kanban System
 Considerations for selecting bins:



Size of the item
Frequency of use (data needed!)
 Plus safety stock desired (30-50%) – may need to resize for
seasonal demand



Supplier rate of replenishment / frequency of delivery

 Other bin considerations



Space available
Budget

 Methodology for replenishment notification



Scanners
Laminated cards
 Stored next to inventory; collected by a “water spider”

© 2010 Karen Martin & Associates

24
AkroBins available through Grainger, 5S Store, etc.
KANBAN BIN ORDER FORM - AkroBins® - p. 1796 Grainger catalog 398
Dimensions (in inches)

Red

Blue

Yellow

Green

Grainger # Qty
2W072

Grainger # Qty
2W776

Grainger # Qty
RW869

Grainger # Qty
2RV65

Depth
5 3/8

Width
4 1/8

Height
3

Akro #
30-210

7 3/8

4 1/8

3

30-220

2W073

2W777

5W870

2RV66

10 7/8

4 1/8

4

30-224

2RV94

2RV96

2RV98

2RY10

10 7/8

5 1/2

5

30-230

2W074

2W778

5W871

2RV67

14 3/4

5 1/2

5

30-234

4TJ77

4TJ76

4TJ78

2RV68

10 7/8

16 1/2

5

30-235

5W865

5W867

5W872

2RV69

10 3/4

8 1/4

7

30-239

5W866

5W868

5W873

2RV70

14 3/4

8 1/4

7

30-240

2W075

2W779

5W874

2RV71

14 3/4

16 1/2

7

30-250

2W076

2W780

5W875

2RV72

10 7/8

16 1/2

5

30-255

2RV86

2RV90

2RV88

2RV92

18

8 1/4

9

30-265

5YM92

5YM91

5YM93

2RV73

18

16 1/2

11

30-270

5YM95

5YM94

5YM96

2RV74
Kanban + 5S
Use 5S methodology to establish the
kanban system.







Sort
Set in order
Shine
Standardize
Sustain

© 2010 Karen Martin & Associates

27
PDCA Cycle

Plan

Act
© 2010 Karen Martin & Associates

Do

Check
28
Preparing for Improvement
Communicate improvement need and plan
to all stakeholders.




Use data to sell the need
Explain WIIFM (what’s in it for me)
Include high level plan re: dates, who will be
involved, etc.
 It may be disruptive to the workplace. If so,
communicate likely impact and for how long.

© 2010 Karen Martin & Associates

29
Preparing for Improvement
(continued)

Obtain relevant current state data:


Items









# of different types
Quantity on hand
Quantity expired/obsolete/damaged items
Consumption rate (this is critical – will determine bin size!)

Replenishment timeframe
Annual spend
Stock-outs
 Financial or customer impact
 Expediting costs




Pre-improvement audit
Pre-improvement staff survey

© 2010 Karen Martin & Associates

30
Pre-Improvement Audit
Visual Inventory Management Audit
Department: _________________________________
Date: ________________________________________
Auditors: ____________________________________
1
Desired Attribute
Material doesn't exceed kanban
1 bin quantities

2

3

4

5

0-30% 31-55% 56-75% 76-95% 95-100%

Root Cause

Corrective Action

2 No stockouts (both bins empty)
3 Stock has been rotated
4 No expired items
5 Materials properly identified
6 Each item has a specific place
Bin sizes are appropriate for daily
7 demand
Standard work for supplies
8 replenishment and use is posted
Accountability for supplies
9 management is clearly identified
No material in unidentified
10 locations
11 Evidence of root cause analysis
12 Storage areas are clean and tidy
Comments:

31
Gather Baseline Data
Supplies Management Survey – Staff
Name (optional):___________________________________ Date: _____________________
Title/Role

(optional):

_______________________________ Area/Dept: _________________
Strongly
Agree
(4)

Agree
(3)

Disagree
(2)

1.

The supplies I need are available at all
times.

2.

If an item is out of stock, I receive it within
the necessary timeframe.

3.

The supplies I use are located close to
where I need them.

4.

Overall, I’m pleased with supplies
availability, location, and organization.

5.

How often do you obtain supplies from your
dept’s “official” stock locations?

__________ times per day

6.

How often is an item you need out of stock?

__________ times per week

7.

What improvements would you like to see
related to the supplies/materials you use?

Strongly
Disagree
(1)
Pre-Improvement Staff Survey
10.0

9.0

8.0

7.0

6.0

1 = Strongly Disagree
4 = Disagree
7 = Agree
10 = Strongly Agree

22.7% of the time
Items not available

5.0

4.0

3.0

2.0

1.0

0.0
The supplies I need are
If an item is out of stock, I
The supplies I need are located
Overall, I'm pleased with
available at all times? Question
receive the item within the
cloes to where I need them?
supplies availability, location,
1
necessary timeframe? Question
Question 3
and organization? Question 4
2
© 2010 Karen Martin & Associates

33
Preparing for Improvement
(continued)

Form cross-functional team






Consumers (include frontline reps)
Replenishers (Purchasing? Admin? Materials?)
Inventory “owners”
Supplier rep?

Establish sort area
Gather cleaning and organization supplies

© 2010 Karen Martin & Associates

34
PDCA Cycle

Plan

Act
© 2010 Karen Martin & Associates

Do

Check
35
Step 1 - Sort
Determine items truly needed.
Label items (if categories).


Red – get rid of
 Return for credit, if possible



Yellow – keep, but move location
 Includes overstock that you’ll draw from until
consumed



Green – keep where is

Gain consensus on dispositioned items.
© 2010 Karen Martin & Associates

36
Step 2 – Set in Order
Determine where each item will be stored.
Considerations:






Central storage vs. point-of-use stores vs.
both.
Ergonomics.
Store related items together.
Error-proof items easily confused by using
color, signage, etc.

© 2010 Karen Martin & Associates

37
Step 3 – Shine
Done in conjunction with Step 2.

© 2010 Karen Martin & Associates

38
Step 4 - Standardize
Install kanban.







Label bins
Place items in bins, based on quantities calculated
Arrange as relevant; add cards as relevant
Store excess material away from supply area;
consume before additional orders are placed.
Labels storage areas, if needed

Design standard work for ordering, receiving,
kanban use, etc.
Install visuals / standard work aids.
Train staff.
© 2010 Karen Martin & Associates

39
Color-Coded Two-Bin Kanban System
Blue & Red Bins –
Regular Stock
Managed by Central
Materials Department

Yellow Bins –
Special Orders

Managed by Functional
Department

Standard
Work –
Kanban
Procedures
PDCA Cycle

Plan

Act
© 2010 Karen Martin & Associates

Do

Check
41
Step 5 - Sustain
Determine clear ownership.
Monitor frequently at first; reduce as
stabilization occurs.
Adjust as needed.
Gather post-improvement data.
Re-survey staff a month or two after
installation.
Communicate results.
© 2010 Karen Martin & Associates

42
Pre & Post Audit Results
5
4.5
4
3.5
3
2.5
2
Before
1.5

After

1
0.5
0

© 2010 Karen Martin & Associates

43
Kanban Success Story
Before
 56% in office supply budget over
2 yrs w/ no additional staffing
 Printer cartridges = 50% of the
budget
 128 cartridges on hand; 564 used
annually
 $18,732 inventory; $8,000 of
obsolete cartridges

After
 Working to carrying $5,000 max
inventory at a time
 Freed 32 sq. ft of space
 Happy staff, happy leadership
 Standardized ordering process
 Working to reduce printer types;
will reduce inventory further

44
The Sales Aspect
If people don’t see a problem, they won’t be
motivated to change.




Highlight the problem – use data!
Put the problem into context
 Explain why the problem’s a problem





Show them the organizational and personal
benefits of a change (WIIFM?)
Engage them in the solution
 Teach about two-bin systems
 Have them participate in creating and managing it

© 2010 Karen Martin & Associates

45
Learning Objectives
Participants will learn:







What a kanban system is.
The difference between kanban and FIFO
lanes.
How kanban-managed supply systems benefit
organizations.
The step-by-step process for implementing a
simple two-bin kanban systems.
 The role of 5S in establishing a kanban system.

© 2010 Karen Martin & Associates

46
Upcoming Webinars
Topic

Work Standardization & MetricsBased Process Mapping
Error-Proofing
Kaizen Events – Part I
Kaizen Events – Part II
A3 Problem-Solving – Part I
A3 Problem-Solving – Part II

Date

Tuesday, August 10
Thursday, August 12

Tuesday, August 31
Thursday, September 2
Tuesday, September 28
Thursday, September 30

Register at www.ksmartin.com/webinars

47
For Further Questions

Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
To register for our newsletter:
www.ksmartin.com/subscribe
© 2010 Karen Martin & Associates

48

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Implementing Kanban Pull Systems in Office & Service Environments

  • 1. Implementing Kanban Pull Systems in Non-Manufacturing Environments July 20, 2010 Company LOGO
  • 2. Your Instructor  Early career as a scientist; migrated to quality & operations design in the mid-80’s.  Launched Karen Martin & Associates in 1993; applied Total Quality Management.  Introduced to Lean in 2000.  Specialize in Lean transformations in nonmanufacturing environments.  Co-author of The Kaizen Event Planner; co-developer of Metrics-Based Process Mapping: An Excel-Based Solution.  Instructor in University of California, San Diego’s Lean Enterprise program. © 2010 Karen Martin & Associates Karen Martin, Principal Karen Martin & Associates 2
  • 3. Learning Objectives Participants will learn:     What a kanban system is. The difference between kanban and FIFO lanes. How kanban-managed supply systems benefit organizations. The step-by-step process for implementing a simple two-bin kanban systems.  The role of 5S in establishing a kanban system. © 2010 Karen Martin & Associates 3
  • 4. Kanban - Defined Kanban  A visual signal of some kind  Sign, signboard, card, doorplate, poster, billboard, etc. Kanban system   A just-in-time pull system whereby items are replenished at the rate they are consumed. Low tech, highly visual pull system for inventory management © 2010 Karen Martin & Associates 4
  • 5. Kanban vs. FIFO Lanes – NEW SLIDE Kanban systems are used when you’re replenishing specific items/part numbers (supplies) based on consumption. FIFO lanes are used when you’re replenishing work based on consumption.   Maximum WIP allowed is established. All upstream work stops once max is reached. Review Drawings Max = 10 FIFO © 2010 Karen Martin & Associates Prepare Change Order 5
  • 6. Building a Lean Enterprise
  • 7. Pull System Mechanics Concept: Consumption by downstream process authorizes replenishment by upstream process Visual signal to replenish Replenisher Consumer Replenishment occurs © 2010 Karen Martin & Associates 7
  • 8. How are supplies typically managed? Storage issues     Multiple locations and “secret stash.” Not stored next to where they’re consumed. Like items not stored together. Similar items not differentiated. Management issues   Labor intensive Re-orders based on forecasts rather than actual use. Ordering issues    Unclear accountability. Volume discounts often drive quantity ordered. No criteria for ordering. © 2010 Karen Martin & Associates 8
  • 9. Kanban Benefits Prevents carrying excessive inventory.   Reduced cash flow Excessive space requirements Prevents stockouts / reduces expediting expenses. Forces stock rotation to reduce risk of obsolete, damaged, or expired inventory. Requires less effort and fewer resources to manage. Improved compliance (healthcare). Drives discipline into the organization. © 2010 Karen Martin & Associates 9
  • 10. Eight Wastes (Muda) Overproduction Inventory Waiting Over-Processing Errors Motion (people) Transportation (material/data) Underutilized people A well-designed kanban system eliminates every single one! © 2010 Karen Martin & Associates 10
  • 11. Types of Kanban Pull Systems One-bin system, divided into two sections Two-bin system  Arrangement options  Front and back  Side-by-side  Top and bottom  Color or no color Three-bin system – supplier involved Tape Conveyors Shadow boards © 2010 Karen Martin & Associates 11
  • 12. Single Bin Kanban System Cardboard Divider Kanban Card Place card on top of parts immediately under divider (1) Appropriate Sized Bin (kanban quantity fits into one bin) (2) (3) Draw Line Inside Insert Cardboard Pan at Order Divider to Create Point Level Physical Barrier
  • 13. Two-Bin Kanban Kanban card w/ reorder info
  • 14. Two-Bin System / Bar-Coded / No Card Red bin in front = Replenish Blue bin in front = Do not replenish Item # and reorder quantities built into computer system
  • 15. Side-by-side Color Bins: Red Arrows Signal Need to Replenish
  • 16. Top/Bottom Color Bins: Red Arrows Signal Need to Replenish
  • 17. Kanban Cards Typical information on kanban cards: • Supplier • Item/part # • Reorder quantity © 2010 Karen Martin & Associates 17
  • 19. Tape Kanban Do not replenish Replenish
  • 20. Conveyor Kanban Replenish when first empty bin moves into red area
  • 22. Typical Two-Bin Calculation Bin Quantity = (ADU x LT) x (1 + SS%)    ADU = Average daily use LT = Supplier lead time (in days) SS% = Desired safety stock percentage, expressed as a decimal (e.g. 30% = 0.30)  Safety stock can vary by item  Typical beginning SS = 50% & reduces over time  Note: You can use different time periods as long as the units of measure for demand and LT are the same. © 2010 Karen Martin & Associates
  • 23. Typical Two-Bin Calculation Example Scenario     40 used per day Supplier delivers twice a week Item always in stock 30% safety stock desired. Bin Quantity = (ADU x LT) x (1 + SS%) Bin Qty = (40/day x 2.5 days) x (1 + 0.3)   = 100 items x 1.3 items = 130 items per bin © 2010 Karen Martin & Associates
  • 24. Setting up Two-Bin/Two-Card Kanban System  Considerations for selecting bins:   Size of the item Frequency of use (data needed!)  Plus safety stock desired (30-50%) – may need to resize for seasonal demand  Supplier rate of replenishment / frequency of delivery  Other bin considerations   Space available Budget  Methodology for replenishment notification   Scanners Laminated cards  Stored next to inventory; collected by a “water spider” © 2010 Karen Martin & Associates 24
  • 25. AkroBins available through Grainger, 5S Store, etc.
  • 26. KANBAN BIN ORDER FORM - AkroBins® - p. 1796 Grainger catalog 398 Dimensions (in inches) Red Blue Yellow Green Grainger # Qty 2W072 Grainger # Qty 2W776 Grainger # Qty RW869 Grainger # Qty 2RV65 Depth 5 3/8 Width 4 1/8 Height 3 Akro # 30-210 7 3/8 4 1/8 3 30-220 2W073 2W777 5W870 2RV66 10 7/8 4 1/8 4 30-224 2RV94 2RV96 2RV98 2RY10 10 7/8 5 1/2 5 30-230 2W074 2W778 5W871 2RV67 14 3/4 5 1/2 5 30-234 4TJ77 4TJ76 4TJ78 2RV68 10 7/8 16 1/2 5 30-235 5W865 5W867 5W872 2RV69 10 3/4 8 1/4 7 30-239 5W866 5W868 5W873 2RV70 14 3/4 8 1/4 7 30-240 2W075 2W779 5W874 2RV71 14 3/4 16 1/2 7 30-250 2W076 2W780 5W875 2RV72 10 7/8 16 1/2 5 30-255 2RV86 2RV90 2RV88 2RV92 18 8 1/4 9 30-265 5YM92 5YM91 5YM93 2RV73 18 16 1/2 11 30-270 5YM95 5YM94 5YM96 2RV74
  • 27. Kanban + 5S Use 5S methodology to establish the kanban system.      Sort Set in order Shine Standardize Sustain © 2010 Karen Martin & Associates 27
  • 28. PDCA Cycle Plan Act © 2010 Karen Martin & Associates Do Check 28
  • 29. Preparing for Improvement Communicate improvement need and plan to all stakeholders.    Use data to sell the need Explain WIIFM (what’s in it for me) Include high level plan re: dates, who will be involved, etc.  It may be disruptive to the workplace. If so, communicate likely impact and for how long. © 2010 Karen Martin & Associates 29
  • 30. Preparing for Improvement (continued) Obtain relevant current state data:  Items        # of different types Quantity on hand Quantity expired/obsolete/damaged items Consumption rate (this is critical – will determine bin size!) Replenishment timeframe Annual spend Stock-outs  Financial or customer impact  Expediting costs   Pre-improvement audit Pre-improvement staff survey © 2010 Karen Martin & Associates 30
  • 31. Pre-Improvement Audit Visual Inventory Management Audit Department: _________________________________ Date: ________________________________________ Auditors: ____________________________________ 1 Desired Attribute Material doesn't exceed kanban 1 bin quantities 2 3 4 5 0-30% 31-55% 56-75% 76-95% 95-100% Root Cause Corrective Action 2 No stockouts (both bins empty) 3 Stock has been rotated 4 No expired items 5 Materials properly identified 6 Each item has a specific place Bin sizes are appropriate for daily 7 demand Standard work for supplies 8 replenishment and use is posted Accountability for supplies 9 management is clearly identified No material in unidentified 10 locations 11 Evidence of root cause analysis 12 Storage areas are clean and tidy Comments: 31
  • 32. Gather Baseline Data Supplies Management Survey – Staff Name (optional):___________________________________ Date: _____________________ Title/Role (optional): _______________________________ Area/Dept: _________________ Strongly Agree (4) Agree (3) Disagree (2) 1. The supplies I need are available at all times. 2. If an item is out of stock, I receive it within the necessary timeframe. 3. The supplies I use are located close to where I need them. 4. Overall, I’m pleased with supplies availability, location, and organization. 5. How often do you obtain supplies from your dept’s “official” stock locations? __________ times per day 6. How often is an item you need out of stock? __________ times per week 7. What improvements would you like to see related to the supplies/materials you use? Strongly Disagree (1)
  • 33. Pre-Improvement Staff Survey 10.0 9.0 8.0 7.0 6.0 1 = Strongly Disagree 4 = Disagree 7 = Agree 10 = Strongly Agree 22.7% of the time Items not available 5.0 4.0 3.0 2.0 1.0 0.0 The supplies I need are If an item is out of stock, I The supplies I need are located Overall, I'm pleased with available at all times? Question receive the item within the cloes to where I need them? supplies availability, location, 1 necessary timeframe? Question Question 3 and organization? Question 4 2 © 2010 Karen Martin & Associates 33
  • 34. Preparing for Improvement (continued) Form cross-functional team     Consumers (include frontline reps) Replenishers (Purchasing? Admin? Materials?) Inventory “owners” Supplier rep? Establish sort area Gather cleaning and organization supplies © 2010 Karen Martin & Associates 34
  • 35. PDCA Cycle Plan Act © 2010 Karen Martin & Associates Do Check 35
  • 36. Step 1 - Sort Determine items truly needed. Label items (if categories).  Red – get rid of  Return for credit, if possible  Yellow – keep, but move location  Includes overstock that you’ll draw from until consumed  Green – keep where is Gain consensus on dispositioned items. © 2010 Karen Martin & Associates 36
  • 37. Step 2 – Set in Order Determine where each item will be stored. Considerations:     Central storage vs. point-of-use stores vs. both. Ergonomics. Store related items together. Error-proof items easily confused by using color, signage, etc. © 2010 Karen Martin & Associates 37
  • 38. Step 3 – Shine Done in conjunction with Step 2. © 2010 Karen Martin & Associates 38
  • 39. Step 4 - Standardize Install kanban.      Label bins Place items in bins, based on quantities calculated Arrange as relevant; add cards as relevant Store excess material away from supply area; consume before additional orders are placed. Labels storage areas, if needed Design standard work for ordering, receiving, kanban use, etc. Install visuals / standard work aids. Train staff. © 2010 Karen Martin & Associates 39
  • 40. Color-Coded Two-Bin Kanban System Blue & Red Bins – Regular Stock Managed by Central Materials Department Yellow Bins – Special Orders Managed by Functional Department Standard Work – Kanban Procedures
  • 41. PDCA Cycle Plan Act © 2010 Karen Martin & Associates Do Check 41
  • 42. Step 5 - Sustain Determine clear ownership. Monitor frequently at first; reduce as stabilization occurs. Adjust as needed. Gather post-improvement data. Re-survey staff a month or two after installation. Communicate results. © 2010 Karen Martin & Associates 42
  • 43. Pre & Post Audit Results 5 4.5 4 3.5 3 2.5 2 Before 1.5 After 1 0.5 0 © 2010 Karen Martin & Associates 43
  • 44. Kanban Success Story Before  56% in office supply budget over 2 yrs w/ no additional staffing  Printer cartridges = 50% of the budget  128 cartridges on hand; 564 used annually  $18,732 inventory; $8,000 of obsolete cartridges After  Working to carrying $5,000 max inventory at a time  Freed 32 sq. ft of space  Happy staff, happy leadership  Standardized ordering process  Working to reduce printer types; will reduce inventory further 44
  • 45. The Sales Aspect If people don’t see a problem, they won’t be motivated to change.   Highlight the problem – use data! Put the problem into context  Explain why the problem’s a problem   Show them the organizational and personal benefits of a change (WIIFM?) Engage them in the solution  Teach about two-bin systems  Have them participate in creating and managing it © 2010 Karen Martin & Associates 45
  • 46. Learning Objectives Participants will learn:     What a kanban system is. The difference between kanban and FIFO lanes. How kanban-managed supply systems benefit organizations. The step-by-step process for implementing a simple two-bin kanban systems.  The role of 5S in establishing a kanban system. © 2010 Karen Martin & Associates 46
  • 47. Upcoming Webinars Topic Work Standardization & MetricsBased Process Mapping Error-Proofing Kaizen Events – Part I Kaizen Events – Part II A3 Problem-Solving – Part I A3 Problem-Solving – Part II Date Tuesday, August 10 Thursday, August 12 Tuesday, August 31 Thursday, September 2 Tuesday, September 28 Thursday, September 30 Register at www.ksmartin.com/webinars 47
  • 48. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com To register for our newsletter: www.ksmartin.com/subscribe © 2010 Karen Martin & Associates 48