Industrial Engineering Letters www.iiste.

org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.3, No.6, 2013

Implementation of Just in Time Production through Kanban

System
Ahmad Naufal Bin Adnan (Corresponding author)
Faculty of Mechanical Engineering, Universiti Teknologi Mara, 40450 Shah Alam, Selangor, Malaysia.
Tel: 03-55435278 Email:[email protected]
Ahmed Bin Jaffar
Faculty of Mechanical Engineering, Universiti Teknologi Mara, 40450 Shah Alam, Selangor, Malaysia.
Tel: 03-55435159 Email:[email protected]
Noriah Binti Yusoff
Faculty of Mechanical Engineering, Universiti Teknologi Mara, 40450 Shah Alam, Selangor, Malaysia.
Tel: 03-55211821 Email:[email protected]
Nurul Hayati Binti Abdul Halim
Faculty of Mechanical Engineering, Universiti Teknologi Mara, 40450 Shah Alam, Selangor, Malaysia.
Tel: 03-55211821 Email:[email protected]

The research is financed by Research Management Institute, Universiti Teknologi MARA.

Abstract
Uncertainties brought about by fluctuations in demand and customers requirements have led many established
companies to improve their manufacturing process by adopting the Kanban system. By doing so, they are able to
manufacture and supply the right product, in the right quantity, at the right place and time. Implementation of the
Kanban system resulted in reduction of inventory to minimum levels besides increasing flexibility of
manufacturing. Successful implementation of the Kanban system furthermore reduces operational costs,
consequently increases market competitiveness. The Kanban system is basically an inventory stock control
system that triggers production signals for product based on actual customers requirements and demand. The
system is controlled by the Kanban card which dictates the optimum production parameters. It is used to
authorize production of any product to replenish those already consumed by the customer or subsequent process.
This study covers pre-requisite activities in establishing a Kanban system, starting from designing Kanban flow,
gathering manufacturing data, calculating optimum Kanbans in the systems, establishing pull mechanism and
rule and finally evaluating Kanban performance using lean parameter. This paper studied the implementation of
the Kanban system at a local auto-component company in Malaysia. The scope of implementation was focused
at BLM Cylinder Head Cover assembly process. This paper concludes that implementation of the Kanban
system reduced lead time, minimized inventory on floor and optimized storage area. The objective of this study
is to show that Kanban system improves a manufacturing system as well as achieving Just In Time practice.
Keywords: Just In Time, Kanban system, Manufacturing lead time reduction

1. Introduction
Traditional manufacturing strategy is driven by Push system with aimed to have huge inventory of product for
customers needs. Planning schedule that used as production authorization mechanism has push material from
one location to other location. However, this created big problem for people on the floor in dealing with huge
WIP inventories, unsynchronized production processes and producing non-required products.
As a result, established companies like Toyota Motor Corporation moved to the next level of manufacturing
strategy by adopting the Kanban system [1]. The adoption of Kanban system has improved their efficiency and
flexibility of manufacturing according to customer needs. The Kanban system is a pull system approach that
gives authorization to produce at a required rate and specific time in order to replenish part that already
consumed by the customer [2, 7].
As one of the lean manufacturing principles, Kanban system emphasized minimum level of inventory by
producing only what is needed. It ensures the supply of the right product, at the right time, in the right quantity
and at the right place. Kanban system becomes practical; it synchronizes all manufacturing activities entire
manufacturing with customer demand [5]. Every process on the floor is controlled by Kanban system which is
designed to respond to actual demands.
Nowadays, many companies has faced customer pressure to produce products with high value, to deliver quality
product at a competitive price. They have to focus to meet these needs as a requirement to remain and stay
successful in todays market [5]. The process of producing product is more efficient and effective when Kanban
system is implemented [2]. A comparative study was made between push and pull systems in order to justify the
benefits of Kanban system. Push system that holds huge inventory tend to have higher cost of operating than pull

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Vol.3, No.6, 2013

system. However it required additional investment to change current system to pull system [6]. Therefore,
support and commitment from management is crucial to achieve the goal.
To achieve world class manufacturing level, many companies have moved toward becoming lean by adapting
Just in time (JIT) practice in their manufacturing system. The Kanban pull system under JIT approach offer great
benefits. The purpose of this system is to link manufacturing activities to market demand. Many research carried
out has shown that maximum benefits can be gained in manufacturing areas such as reduction of inventory,
reduction in lead time, improvement of value added time, increased productivity of process and also improving
product quality [8].
In Malaysia, the implementation of lean manufacturing had started in mid 1980s through the introduction of the
Look East Policy by the government [4]. Implementation then had focused on quality and efficiency
improvements. Furthermore, this policy provided valuable knowledge to practitioners in identifying customer
value and eliminating waste in order to deliver superior products at less cost.
Due to stiff competition in the automotive and manufacturing sectors, the awareness of lean manufacturing had
increased among local players because one of the ways to stay competitive and become a champion in industry is
by adopting lean methodologies and principles in all aspects of manufacturing processes.
This research paper discusses the implementation of the Kanban pull system to a high volume medium variety of
manufacturing line at a local auto-component company in Malaysia. A cylinder head cover manufacturing
process was selected for study. This research focuses on activities from assembly production line to warehouse.
The objective of this paper is to demonstrate the various gains achieved when the Kanban system is used in
manufacturing area. Hence paper presents a case study research which features the actual Kanban
implementation at the Cylinder head cover assembly line until the finished good warehouse. Methods of kanban
implementation are highlighted.

2. Literature review
The Just in time (JIT) approach is based on a lean manufacturing system which was developed to optimize and
improve manufacturing efficiency by reducing manufacturing lead time through waste elimination. It was
derived from the Toyota Production System as a purpose to minimize inventory and improve throughput [9].
It has been described as an approach to produce the right part and quantity when it is needed either by end
customer or next process [2, 4]. Takt time which derived from demand is used to regulate manufacturing pace on
floor [10]. As a result, smoothed material flow and synchronized processing time has been established to
increase efficiency and productivity of the manufacturing system. JIT implementation would expose all wastes at
the entire area that are currently hidden when inventory is reduced.
Levitt and Abraham [11] conclude that implementation of JIT in semiconductor manufacturing has lead to
reduction of manufacturing time and excellent regulating of manufacturing method with different bottleneck
time. However, Stump and Badurdeen [9] had argued that JIT is applicable for industries with less customization
module and high standardization. Only a few ideas are practical to apply in mass customization and low
standardization area for example kaizen and visual housekeeping management (5S).
Pull system is used to manage inventory and control flow of material. It is driven from downstream needs which
trigger upstream production. At the manufacturing area, the pull system would be able to reduce inventory level
by replenishing parts that are consumed by the customer. The authorization of production begins when a part is
pulled from the inventory area [1, 2]. Kanban means card in Japanese; this card contains all the required
information for this system [2]. The Kanban system serve as a tool to regulate pattern of material flow that
effectively links upstream operations to downstream operations.
Several research were made about the Kanban system. Sendir Kumar and Panneerselvam [4] in their literature
review had described that a few methods was found out such as Kanban, Conwip and supply chain management
in order to achieve JIT goals. Other than that, the Kanban pull system is widely implemented in repetitive
manufacturing environments that focus to minimize work in progress inventory, increase throughput and
improve production efficiency. Card attached to part is removed when demand from downstream occurs. Then
this card would be returned to trigger production at upstream. Therefore, the Kanban system aid to reduce
inventory by producing just in time to meet demand at each production stage [2, 4].
N. Singh and Kwok Hung Shek[2] studied how to develop the Kanban system at an assembly area using General
Purpose Simulation System. In order to achieve lean goal, essentially kanban system is established on factory
floor to align flow of material by removing all waste and sources of waste. Waste is anything that customer is not
willing to pay for and it could be categorizes into 7; transportation, over inventory, excess of motion, waiting,
over process, over production and defect [4, 5, 8].
There are two types of the Kanban systems, the single card Kanban system and two card Kanban system [4].
Single card Kanban system uses only 1 type of Kanban card to trigger upstream production when it needed. This
card is called the Production Instruction Kanban (PIK). The two card Kanban systems uses two types of card

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which are Production Withdrawal Kanban (PWK) and Production Instruction Kanban (PIK). PWK card is used
to withdraw needed goods from preceding process and PIK card is used to give instruction to preceding process
to produce what is needed for replenishment purpose.
A Kanban system implemented at a manufacturing area is equipped with relevant tools. These tools are used to
smooth the system, visualize current operation and assist production associate to work according to takt time.
Heijunka board, lot formation post, kanban post and kanban card are tools used in establishing kanban pull
system.

3. Methodology
In this section, the method to develop kanban system is presented. Then evaluation of performance was carried
out once the Kanban system was adopted in manufacturing area. The adoption of continuous flow system is
essential prior to any kanban system implementation. In fact, Siemens Standard Drives Congleton factory was
initially implemented continuous flow system in order to reduce stability issue before kanban system was
adopted [3]. Hence, the production line has adopted continuous flow system, which mean, wastes were
eliminated and line was working according to takt time.
To achieve the objective of case study, the method was structured as follow;
i. Designing kanban flow
ii. Gathering relevant parameter of manufacturing and customer
iii. Calculating number of kanbans to determine optimum level of inventory
iv. Establishing pull mechanism and rule to assist production associate in daily operation
v. Evaluating kanban using lean parameter
The first stage is designing kanban flow based on company operation. A few criteria had been considered during
kanban flow. Then gathering of relevant parameter from production floor was carried out at site. Identifying
appropriate parameters were crucial for this study to achieve the objective. The observation was conducted
starting from delivery area and walked throughout the manufacturing flow. This to ensure that manufacturing
data are accurate and reliable for this study.
Next is calculating optimum number of Kanbans in the system. The method of calculation was based on Toyota
formula. However, the model has been customized to suit with subject company. For this case, subject company
has made some decision to implement two card system at final assembly line and single card system at vibration
welding. Two card system is using PIK and PWK card while single card system is using PIK card only.
First, batch factor or known as Part interval [15] was defined to determined optimum batch of production for
each part. Second was determination of takt time that used to synchronize manufacturing process and actual
demand.
The Kanban numbers were then determining using two equations which are Production Instruction Kanban (PIK)
and Production Withdrawal Kanban (PWK). The model of calculation is as follows;
Part interval =
(1)
()*+,*-,. /+0.
!"# #!$# #%&' = (2)
1*2/ 3.0*43
56 = ((89 + ;< )/;? + @)/A + ;B (3)
where, kanban variables area:
WK = withdrawal time,
TL = time to replenish part
TT = part takt time,
TW = time for waiting kanban,
= safety stock
c = container capacity
TD = Setup time + Processing time + Waiting 1 container complete (4)
P P P P
W =( )2 (5)
R P P
P P
TS = T U 1 + 8W (6)
86 = (X + 6Y + @)/A (7)
where,
D = customer demand,
KW = quantity of kanban waiting
= safety stock
c = container capacity

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Once number of kanban is defined, the fabrication of pull mechanism was initiated. It started with preparation of
kanban card, in which, must contain the required information with regard to kanban system. Second was
establishing leveling or Heijunka method to regulate variety of part and volume throughout production time [10,
12, 17]. This task consists of designing and fabricating Heijunka post and kanban post. The Kanban chute was
then fabricated prior to establishment of The Kanban rule. The fabrication of pull mechanism and rule is crucial
in order to ensure the Kanban circulation is smooth and uninterrupted as well as for visualization purposes [17].
Finally, evaluation of the Kanban system performance was carried out using lean metric. Three metrics used are
manufacturing lead time, inventory level and space of inventory. The identification of metric was done jointly by
engineer and researcher. Some authors have demonstrated their lean metric to verify and justify the effectiveness
of pull system in manufacturing area [6, 16].

4. Present Scenario at the case study area

BLM Cylinder Head Cover assembly process is a production assembly line that produces Proton product. This
assembly line consists of two stages of production. First stage is the vibration welding line that produces semi-
completed parts for Proton and other customers models. The second stage is the final assembly line that is used
to produce Proton products. The major process flow is sketched in figure 1.
Vibration welding line Final assembly line

Incoming Vibration Cold Seal Air leak

part store welding insertion assembly test

Ware- Out going

house inspection

Figure 1. BLM Cylinder Head Cover assembly process flow.

Both production lines are currently running on push systems. Planning schedule is used to authorize production
of specific quantity or batch quantity. The batch of completed parts is then pushed to next process until the last
manufacturing area which is the warehouse. Change-over activity is required at both production lines to switch
production of part. However, the planner currently plans the schedule to produce one type of part per day in
order to reduce frequency of change over and minimise loss of production time.
Based on observations at production floor, flow of material through process was disturbed by accumulation of
Work In-Progress (WIP) part or product on floor. This was due to the current planning schedule that is used to
authorise production. It has forecast well in advance according to customer forecast order, which is against lean
manufacturing principles. As a result, inventory was high, long lead time required to accomplish customer order
and large space needed to accommodate finished goods at warehouse. Continuous flow system which was
adopted at the production floor was not sufficient to enhance manufacturing performance in terms of lead time
and inventory. This problem and discussion can been seen in previous journal and book [3, 15]. Therefore, this
contributes to lower efficiency of manufacturing capability in meeting fluctuations in demand. For example,
Alvarez et al [16] discussed the impact of material flow to operational excellence.
Due to this, the management had decided to adopt a pull system through implementation of kanban system in
order to improve their manufacturing performance and also meet customers need. With the support from UMW
Toyota team, the activities were initiated in 2011.

5. Implementation of kanban system

The objective of this research is to demonstrate gains through the Kanban system. However, this paper also
discusses how the Kanban system was established and implemented at the study site. Therefore, the researcher
would like to present steps of activities prior to kanban system implementation.
5.1 Designing Kanban flow
The design of the Kanban flow was based on current situation at study site. Three criteria such as distance of
process, method of operation and method to convey information from downstream to upstream were taken into
consideration while designing the flow. The purpose was to determine Kanban waiting point in flow. Through
discussion between engineer and researcher, important criteria were defined for establishing Kanban flow.
5.2 Gathering relevant parameter of manufacturing and customer
As a start, gathering of relevant manufacturing parameter was done at production area (refer table 1). Production
volume collection was then collected by referring to forecast demand. For this case, 3 consecutive months of
forecast demand was obtained (refer table 2 and table 3). The reason is to avoid frequent change of takt time at
production line due to limitation of current process layout. However, takt time has been reviewed by quarterly in
order to prevent over inventory and over production.

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Table 1: Manufacturing Parameter.

Parameter Final assembly line Vibration welding line
Inventory (Finshed goods or WIP) 1780 units 4840
Customer delivery 120 units -
Working hours 10.25 hours 13.25 hours
Working days 19 days 19 days
Hourly production output 60 units 80 units
Change-over time/setup time 5 minutes 70 minutes
Part variants produce at final assembly line 3 variants of product 6 variants of semi-completed part
Processing time 171 seconds 180 seconds
Container capacity 5 5 (Proton part only)

Table 2: Forecast demand for finished goods.

Part no. January February March
11001-PTN 4125 4080 2640
11003-PTN 5280 5040 4440
11004-PTN 1090 1405 2010

Table 3: Forecast demand for semi-completed part.

Part No. Customer January February March
PC180 Proton 4125 4080 2640
PC224 Proton 5280 5040 4440
PC225 Proton 1090 1405 2010
SA050 Perodua 6545 5745 5822
90001-SAP Sapura 5200 2000 1000
12001-PTN (other product of Proton) Proton 1000 1030 1050
Based on table 1, working hours for both production lines were different although hourly output for vibration
welding line is higher than final assembly line. This is due to the production volume for both lines being
different because the vibration welding line is used to cater for product not only for Proton models, but for other
customers such as Perodua and Sapura. The production loss time due to setup time also has contributed to
additional of working hours at vibration welding line.
The highest volume among 3 consecutive months (refer table 2 and 3) was selected to defined takt time. This is
to ensure that manufacturing process is able to supply customer product during peak volume.
This plant currently supplies material or sends finished goods to warehouse every 15 minutes since continuous
flow of product was adopted at the production floor. Thus, withdrawal time of each process occurs every 15
minutes. However, the time would be reduced when material handling system was improved.
5.2 Calculating number of kanbans to determine optimum level of inventory
To ensure that manufacturing pace is based on actual customer needs, it is essential to defined the number of
Kanban and inventory level in the Kanban system. The Kanban number should tally with inventory in order to
create smooth Kanban circulation and efficiently implementing Just-In-Time production.
Hence, the model of calculation that is based on the Toyota formula was used. Basically, the model is used to
determined optimum number of Kanbans in the system. In the first step, batch factor or part interval was defined
(refer to Eq. 1). Possible number of change-over was defined according to a few factors such as available time
for change-over activity, current capability of machine to switch production and as well as company policy. The
method to determine possible number of change-over has been described by Art Smalley in his book [15]. For
this case, possible number of change-over for final assembly and vibration line were 13 and 4 times respectively.
Therefore, part interval at final assembly line was defined as follows;
^_&`'" ]\ a!"#b 3
Z!#A \!A#]" = =
]bb%`c' d_&`'" ]\ A!de' ]f'" ! g!h 14

Z!#A \!A#]" = 0.21

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Table 4: Part Interval

Production line Part interval
Final assembly line 0.21
Vibration welding line 2
Following on from table 4, the amount of batch or lot size for each part could now be determined. The value
shows lot size factor, in which the smaller the value of part interval, the smaller the lot size has to be produced.
Takt time was then determined for basic parameter in kanban system [16]. The takt time value is determined by
Eq.2. The calculation of takt time for part 11001-PTN as follows;
mf!%c!`c' #%&' 36900 b'A]dgb
!"# #!$# #%&' = = = 170 b'A]dgb/ _d%#
!"# g'&!dg 217
Table 5: Takt time
Part number Part Takt time
11001-PTN 170 seconds/unit
11003-PTN 132.8 seconds/unit
11004-PTN 348.8 seconds/unit
PC180 386.9 seconds/unit
PC224 302.3 seconds/unit
PC225 794.0 seconds/unit
SA050 243.9 seconds/unit
90001-SAP 305.9 seconds/unit
12001-PTN 1520 seconds/unit
Once part interval and takt time were defined, next step is calculation of PIK and PWK using Eq. 3 and 7. A few
parameters, however, has to be defined using Eq. 4, 5 and 6 prior to PIK calculation. Hence, the appropriate
number of PIKs was obtained. On the other hand, calculation of PWK was done by referring Kanban waiting
point in Kanban flow. The determination of optimum kanban waiting has to be made in order to justify the
necessity in the system.
The following shows calculation of PIK and PWK for 11001-PTN;
56 = ((89 + ;< )/;? + @)/A + ;B
TD = Setup time + Processing time + Waiting time parts equal to container capacity
TD = 180 seconds + 114 seconds + 228 seconds = 522 seconds
Part interval Part demand Part demand
W =( )2
c Total demand
0.21 217 217
W =v w2 =7
5 601
Part interval Part demand
TS = v w1+W
c
0.21 217
TS = v w 1 + 7 = 16
5
56 = ((1080 + 522)/170 + 30)/5 + 16
56 = 25
86 = (X + 6Y + @)/A
86 = (152 + 53 + 217)/5
86 = 84
Table 6: PIK and PWK number
Part No. Production line PIK number PWK number
11001-PTN Final assembly 25 84
11003-PTN Final assembly 31 108
11004-PTN Final assembly 13 41
PC180 Vibration welding 127 -
PC224 Vibration welding 171 -
PC225 Vibration welding 58 -
SA050 Vibration welding 18 -
90001-SAP Vibration welding 42 -
12001-PTN Vibration welding 2 -

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Based on table 6, PIK number for semi-completed part is higher than finished goods. This is due to the lot size
for each part at vibration welding is bigger than that at final assembly line. Consequently large inventory was
built up to waiting cycle of part replenishment. The numbers of PIK and PWK were also different for finished
goods. PWK number is higher than PIK because the company policy was to prepare 1 day worth of stock at
inventory area in order to keep up supply of product although a breakdown has occurred. Therefore, they could
maintain on time delivery within that day and have time to rectify the problem.
5.3 Establishing pull mechanism and rule
Before the Kanban pull system is realized on manufacturing floor, establishing their mechanism and rule is
needed in order to assist smoothen out the Kanban activity. It has been reported that production lines assisted by
pull mechanism were more effective [10]. On the other hand, a visual factory would create communication
support system between actual process and employee. Therefore, everybody is aware of production condition at
real time [17].
For the start Kanban card was designed and prepared. There are many guidelines on how to establish Kanban
card [15, 16], and the design and information in card will vary since all organizations are different. The
following is the guideline used to prepare Kanban card at this study site. This guideline was provided by UMW
Toyota team.
Customer information such as customer, customer product name and type of model,
Product information such as part name, part picture and quantity per packing,
Production process address and storage area.
All information at card must be clear and correct in order to help the user to send kanban at affected production
line. Quantity of PIK and PWK card were based on PIK and PWK number respectively. Figure 2 shows an
example of kanban card used in this case study.

Figure 2: Example of PIK and PWK

Heijunka post was then established. The purpose of this tool is to prevent uneven demand from actual market by
leveling the production volume throughout the time. To establish Heijunka post, the guideline as follows;
Define Heijunka pitch interval by measuring withdrawn cycle time,
Determine number of pitch intervals by taking available time of final assembly divided by withdrawal
time,
Determine frequency of Kanban delivery to Heijunka and Kanban loading according to future state
design and current delivery operation,
Determine sorting number for Kanban loading using UMW Toyota approach,
Indicate withdrawal time according to pitch interval,
Visualize customer information such as demand, customer name,
Visualize production line information such as break time, part name, production line name,
Allocate fluctuation area for balance of Kanban card
Therefore, pitch interval was 15 minutes and total number of pitches was 41. Therefore, total number of slot at
heijunka post was 41. The followings table shows frequency of kanban delivery and Kanban loading time.
Table 7: Frequency of Kanban delivery and Kanban loading time
Trip 1 2 3 4
Time of delivery to customer 10.00 am 2.10 pm 9.00 pm 2.30 pm
Preparation time of delivery 8.00 am 12.00 pm 6.00 pm 9.00 pm
8.40 am 8.40 am
Kanban delivery 8.40 am 1.00 pm
tomorrow morning tomorrow morning
Kanban loading 8.40 am 1.00 pm - -

Due to frequency of kanban delivery at twice per day, slot numbers has been divided into two groups to ensure
demand is leveled and mix of production. As a result, slot number per kanban delivery was 21 slots. Figure 3
shows sketch of Heijunka post board.

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Figure 3: Sketch of Heijunka post board.

Next was fabrication of Kanban post based on Kanban delivery (refer table 7). This tool was used as temporary
collection post. PWK card which was generated by pulling of goods at inventory was then put into Kanban post
before delivers to Heijunka post.
KANBAN POST
Part No: 11001-PTN 11003-PTN 11004-PTN
Trips: 3,4 & 1 2 3,4 & 1 2 3,4 & 1 2
Hejunka Setup time: 8.40 am 1.00 pm 8.40 am 1.00 pm 8.40 am 1.00 pm
Sent to Heijunka board: BLM CHC line BLM CHC line BLM CHC line
Kanban IN @ 7 pm & 12 pm:
Kanban OUT @ 8.40 am & 1
pm:

Figure 4: Sketch of kanban post.

Lot formation post is a tool to prioritize the part according to lot size. Thus, this tool was required at both
production lines due to change-over activity. The guideline to establish lot formation tool can be;
Visualize lot size number (in Kanban),
Visualize production information such as part number,

LOT FORMATION POST

BLM CHC FINAL ASSEMBLY LINE
Lot size: 9 kanban 10 kanban 2 kanban
Part No: 11001-PTN 11003-PTN 11004-PTN

Kanban IN:

Column 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 9 1

*Note: 1 kanban per column

Figure 5: Sketch of lot formation post at final assembly line.
Next tool was the Kanban chute. The tool is used to arrange part sequence in First In First Out manner as well
as to visualize current performance of production line. Color signs were used to indicate current status of
production line performance. The following is description of color at Kanban chute and figure 6 shows example
of Kanban chute used at study site.
Green color shows that cycle time is equal or below than takt time,
Yellow color shows that cycle time is above than takt time,
Red color shows that cycle time is higher than takt time or production breakdown has been occurred.
Immediate action need to carry out to avoid stock-out.

Green Yellow Red

Figure 6: Kanban chute.

The final stage of the Kanban system development was setting up Kanban rule. Kanban rule is used to govern
and manage the activity on floor. Hence, it would assist production personnel become aligned with the goal of
the system. The following shows figure of the Kanban system and rule.

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Kanban Rules (Withdrawal)

Take empty polyboxes Withdrawal PW Kanban

2 based on PWK Card 1 Card at Heijunka Post
quantity. according to pitch time.

Empty polyboxes Heijunka Post

area
PW
PW

Lot Formation : PW Empty

Put PI to Lot Form Post , polyboxes
5 when PI number was met
to specified quantity, put
to into kanban chute

PI PI

Supply empty
3 polyboxes 7 Repeat task no. 1

PI
Ex-change PI with
Assembly 4
PI PW and put FG
Line onto trolly

Finish
Production Goods
Line Store PW
PW

Q-Gate PW

PW

Move Finished PW
6 Goods to Q-gate or
Warehouse Line
Store Warehouse
Line Store

Figure 7: Kanban Rules

6. Result and Discussion

In this section, the result after kanban system implementation is discussed. The case study results have been
evaluated using lean metric parameter. Three lean metrics has been identified which are manufacturing lead time,
inventory level and space of inventory. A comparison between two conditions was carried out to validate if the
manufacturing performance had improved or deteriorated. The two conditions are before and after
implementation of the Kanban system. The outcomes of the results were appeared in figure 8.

Lead Time (day) In-process Inventory (piece)

15 6000
4840
10.7 Before
5000
Before
35% 52%
10 4000
6.9
After 3000 2321
After
5 2000

1000

0 0

a) b)
Finished Good Inventory (piece) Finished Good Area (feet2)
2000 1780 600
Before
Before
55% 500 4% After
1500
400
794
1000 300
After

200
500
100

0 0

c) d)
Figure 8: % of reduction; a)Lead time, b)In-process inventory, c)Finished good inventory, d)Finished good area.
Lead time (manufacturing lead time) has been reduced as seen in 8(a). The lead time is reduced from 10.7 days
to 6.9 days. The reduction of lead time shows that it could response to customer need. Thus efficiency increases
and production process became easier by producing based on Kanban signal [2]. There are also significant
improvements recorded at inventory level, in which in-process and finished goods inventory were reduced by 52%
and 55% respectively (see figure 8 (b) and (c)). For in-process inventory, total of WIP was 4840 pieces, however
after the Kanban system was adopted the WIP decrease to 2321 pieces. Finished goods inventory was reduced
from 1780 pieces to 794 pieces. This resulted from the adoption of PIK card and PWK card that were used as
authorization of production. The production at both lines are initiated when kanban signal appear. The metric of
finished good area also decreased after introduction of kanban system. As shown in figure 8(d), the area
decreased from 504 square feet to 483 square feet. This resulted from replenishing those items that had been

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Industrial Engineering Letters www.iiste.org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.3, No.6, 2013

consumed by customer, not forecast number. Therefore, quantity of finished goods to store also has been reduced
as well as their area.
From the results and discussion at above, can be seen that implementation of kanban system at manufacturing
area would improve lead time, inventory and space. The improvement of three areas had enhanced
manufacturing capability in term of resource efficiency and low operation cost.

7. Conclusion
This paper presented a real industrial case study of kanban system implementation in manufacturing site. The
research findings show that kanban system is essential in ensuring the success of Just In Time production and
create smooth flow of part throughout manufacturing system. Systematic and full commitment in implementing
kanban system is crucial in ensuring its effectiveness; ultimately meeting customer satisfaction. The
implementation shows that lead time, in-process and finished goods inventory and also finished good area will
certainly improve. Subsequently manufacturing pace will be controlled and synchronized with market demand.
Therefore, it can be concluded that implementation of kanban system has improved manufacturing system and
this should be part of the core task of JIT practitioner.

8. References
A. Bonvik and S. Gershwin, Beyond Kanban-Creating & analyzing lean shop, Manufacturing and Service
Operations Management Conference,
N. Singh, K. Shek and D. Meloche, The Development of a Kanban System: A Case Study, International
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A. Lee-Mortimer, A continuing lean journey: an electronic manufacturers adopting of kanban, Assembly
Automation, 28(2), pp 103-112.
C.S Kumar and R. Panneerselvam, "Literarure review of JIT-KANBAN system," International Journal of
Advanced Manufacturing Technology, 32(3-4), pp 393-408.
A. Agus, M. Hajinoor, Lean production supply chain management as driver towards enhancing product quality
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B. Singh, S. K. Garg, S.K. Sharma and C. Grewal, "Lean implementation and its benefits to production
industry," International Journal of Lean Six Sigma 1(2), pp 157-168.
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study," Journal of Intelligent Manufacturing, 23(1), pp 109-124.
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M. Levitt and J. Abraham, Just-in-time methods for semiconductor manufacturing, IEEE/SEMI Conference on
Advanced Semiconductor Manufacturing Workshop, pp 3-9.
J. Matzka, M. Di Mascolo and K. Furmans, Buffer sizing of a Heijunka Kanban system, Journal of Intelligent
Manufacturing, 23(1), pp 49-60.
Dynamic simulation of a kanban production inventory system.
M. Jothishankar, H. Wang, I. City, Determination of Optimal Number of Kanbans Using Stochastic Petri Nets,
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A. Smalley, Creating Level Pull A lean production-system improvement guide for production-control,
operations, and engineering professionals, THE LEAN ENTERPRISE INSTITUTE, 2004.
R. Alvarez, R. Calvo, M. Pena and R. Domingo, Redesigning an assembly line through lean manufacturing
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DENSO industrial examples, Assembly Automation, 27(1), pp 12-16.

9. Acknowledgement
This acknowledgement was expressed to UiTM for funding this research under Research Excellence Fund
(Research Intensive Faculty). The work is partly from the first author for his master research at UMW
Advantech Sdn. Bhd. (UASB). Special thanks to research team from faculty of Mechanical Engineering UiTM
Shah Alam and UASB staffs who involve and give their support to this research.

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