Implementing a Mixed

Model Kanban System

The Lean Replenishment
Technique for Pull Production
Implementing a Mixed
Model Kanban System
The Lean Replenishment
Technique for Pull Production

“An implementation workbook for your next

challenge on the lean journey . . . when you
cannot achieve continuous flow.”

James C. Vatalaro & Robert E. Taylor

Boca Raton London New York

CRC Press is an imprint of the

Taylor & Francis Group, an informa business
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Librar y of Congress Cataloging-in-Publication Data

Vatalar o, James C.
Implementing a mixed model Kanban system : the lean replenishment
technique for pull production / James C. Vatalaro & Robert E. Taylor
p. cm.
Includes bibliographical references and index.
ISBN 1-56327-286-5
1. Just-in-time systems. I. Taylor, Robert E. II. Title.
TS157.4.V38 2003
658.5 ′1—dc21
2003006070
 “Think of inventory as a powerful narcotic.
When prescribed and used correctly, it could
save your life . . . when abused, it could lead to
your demise. Are you an abuser?”

JCV
 CONTENTS
Preface ix

Acknowledgments xi

Introduction xiii

Chapter I: Preparation Work 1

Chapter II: The Principles of Kanban 11

Chapter III: The Numbers 25

Chapter IV: Some Tools to Help You “Go-Do” 51

Chapter V: Managing the System 69

Chapter VI: Frequently Asked Questions 79

Conclusion 85

Glossary 87

Value Stream Mapping Icons 95

Recommended Reading 97

Index 99

About the Authors 107

Feedback Form 109

vii
 PREFACE
Many books have been written about controlling production and replenish-
ment systems with “lean” approaches, such as continuous or one-piece flow
and cellular manufacturing. In fact, these approaches are the best way to
add value to your products in the areas of your value stream that permit it. If
you are very fortunate, the approaches characterized by flow can be
deployed throughout your entire value stream. However, this is very rarely
the case. We have worked in a broad spectrum of companies around the
globe and have discovered a common reality. In most areas of the value
stream, implementing effective one-piece flow is either not physically possi-
ble or not the logical thing to do given the existing process technology.

We are painfully aware of the typical “current state” situation. The

customer wants the product delivered in smaller lot sizes and delivered
more frequently, in less time, at a lower cost, with better quality and better
customer service. The suppliers are trying hard to respond by controlling
production and/or replenishment using the traditional “solutions.” These
solutions include costly (both financially and emotionally) computer hard-
ware and software, “hot” or expedite lists, and the old “whoever shouts the
loudest” method. In some cases you may have attempted creative solutions
that exhibit some of the attributes of a kanban pull system, but at the end
of the day you find yourselves wondering, “Did we make the customer
happy by making the right things?” If this describes your operation, you
will find Implementing a Mixed Model Kanban System of great benefit.

Few of the tools of the Toyota Production System, also known as

“just-in-time production” or “lean manufacturing” are as misunderstood
and undocumented as kanban. Kanban is a term very frequently referred to
today, but a deep understanding of it has been elusive. Therefore, a clear
and concise step-by-step kanban implementation manual is long overdue.
The objective of this workbook is to remove the mystery and provide a
reliable implementation process.

Implementing a Mixed Model Kanban System begins where the vast majority
of the previously published material on value stream mapping and continuous

ix
 P R E FA C E

flow production finishes, and it explores new territory. We assume that the
user is familiar with the basic concepts of both. If not, a wealth of informa-
tion on these two prerequisite subjects is available through Productivity Press.

So, what exactly should you do if you fit the low-volume, high-mix
mold, and you have many shared supplying resources, batch processes, or
production equipment that is nearly impossible to dedicate and co-locate into
a continuous flow “cell”? The answer is actually very simple: you have three
choices. The first is to hire a qualified consultant to tell you where in your
value stream you should implement kanban, how to perform a requirements
study, how to determine order frequency, how to calculate the number of
kanban needed, how “the system” will work, and how it must be managed on
a daily basis. The second is to use the straightforward, low-tech, and flexible
approach found in this manual as a step-by-step guide in the implementation
of kanban in your value stream. The third is to use a combination of the two.

The approach we describe in this workbook is not theoretical; it is based

on a proven, reliable method that has been honed over years of implementa-
tion experience. This kanban implementation experience is not just limited
to the manufacturing environment. Kanban has been successfully deployed
in many nonmanufacturing environments where reliable replenishment is
just as important. Some examples include retail, government procurement,
hospitals, and administrative processes. With very little adaptation to suit
your environment, all the forms and worksheets necessary for you to imple-
ment kanban pull in your company, or as we say “Go-Do,” are included in
both hard copy and electronic format.

Your willingness to “Go-Do” is one of the main reasons why we decided to

write Implementing a Mixed Model Kanban System. We recognize that you have
been constrained by the absence of two things. First, a lack of educational
material on the principles of kanban pull systems. Second, by not having a
step-by-step process to follow to implement it. Your constraints are about to
be eliminated. To “Go-Do” immediately best sums up our challenge to you.

We wish you great success in your kanban pull implementation efforts.

James C. Vatalaro & Robert E. Taylor

x
 ACKNOWLEDGMENTS
The authors would like to gratefully acknowledge the contributions of the fol-
lowing individuals:
Joseph P. Cardinale Jr.
Paul McGrath
Jacqueline O’Banks Vatalaro
Rosemary S. Vatalaro
Additionally, the authors acknowledge Yasuhiro Monden for documenting vari-
ous kanban equations in use at Toyota.

xi
 INTRODUCTION
This text takes you through the step-by-step kanban implementation
process by telling the story of how kanban was implemented by a fictitious
golf club manufacturer—Emca Golf. Although the name of the company is
fictitious, the implementation process and the issues that surface during it
are not. The story of Emca is based on the authors’ many years of highly
successful, on-site kanban pull implementation experience in companies
much the same as yours.

KANBAN PULL
The concept of kanban pull has been around for quite a while. Its origins
date back to the late 1940s, when Taiichi Ohno, then the manager in charge
of Toyota Motor Company’s machine shop, was conducting some product
replenishment experiments. Much of his time was spent dealing with the
frustrations caused by ongoing product shortages. Taiichi was attempting to
adapt the concept of American-style supermarket replenishment (recently
transplanted into Japan) to his machine shop’s processes. After much trial
and error, he made the connection between just-in-time production and
kanban pull.

Kanban pull is a simple, but very powerful, concept. In its purest form, it is
a visual replenishment signaling system that effectively “connects” the supply-
ing and consuming processes that exist throughout the entire value stream.
Kanban pull is so effective because it is based on real-time, actual consumption,
not hypothetical production forecasting or prediction schemes (which are usu-
ally wrong). If your value stream is based on, or includes, any of the following
attributes, you have much to gain from implementing a kanban pull system:
• Component fabrication and supply
• Assembly and subassembly
• Manual production cells
• Semi-automated and manual lines
• Low-volume production

xiii
 INTRODUCTION

• High-volume production
• High and low mix

Kanban pull is one of many techniques that comprise a lean produc-

tion system. As is the case with any component of a larger system, kanban
has prerequisites that must be met and interdependencies that must be
understood in order for it to be able to achieve and sustain optimal results.

CHAPTER OVERVIEW
The subject matter of this text clearly explains how you should proceed
with implementing kanban pull in your manufacturing operations.

In Chapter I, “Preparation Work,” we describe the prerequisites and

interdependencies. We explain how to create a strong foundation upon
which to build your kanban pull system. It is here that we expose the inter-
relationship between kanban and other lean concepts, such as value stream
mapping, product family definitions, continuous flow production, set-up
reduction, process/equipment reliability, and the inevitable human issues
dealing with the willingness to unlearn past practices. We also address the
cultural discipline required to maintain and manage continual incremental
improvement, the essence of kaizen.

With a strong foundation built, we are well positioned to take full

advantage of controlling production and replenishment using a kanban
pull system.

In Chapter II, “The Principles of Kanban,” we explain the basic elements

and mechanics of a kanban pull system. We start with reviewing the various
forms the kanban signal can take and the factors that influence which sig-
naling approach is best for your application. We discuss the five essential
rules that govern a kanban pull system’s functioning. From there, we discuss
the design, functionality, and different types of kanban cards and how they
interact with the kanban board and supermarket subsystems. We thoroughly
explore the purpose, design and mechanics of kanban boards and explain
how all of the above collaborate in assuring that you produce the right

xiv
 INTRODUCTION

product at the right time in the right quantity. Once you understand these
various subsystems that form a kanban pull system, you can take the next
step, which involves some “number crunching.”

The focus of Chapter III, “The Numbers,” is to establish the number of

kanban (and thus the amount of inventory) needed in the kanban pull sys-
tem envisioned on the future state value stream map. We explain in detail
how to perform a requirements study and A-B-C-D classification, how to
allocate production resources to specific products, how to compensate for
shared supplying resources, how to determine order frequency, and how to
determine and allocate the set-ups available. We finish Chapter III by
exploring the multiple facets of the kanban equation and explaining the
mechanics of how to apply all of the previously collected data to the equa-
tion to determine the number of kanban needed for each product to be
placed under kanban control. After having analyzed all the facts and data,
it is time to “Go-Do” or act upon the analyses to implement kanban pull.

In Chapter IV, “Some Tools to Help You ‘Go-Do,’” we outline a recom-

mended kanban pull implementation strategy. We explain the logic of first
focusing internally in developing a competency with implementing kanban
pull systems before extending it to your suppliers and customers. Also, in
this chapter we provide you with “the kaizen kit.” The kit has everything
you need to conduct a highly successful kanban kaizen event. We include
detailed agendas and planning check sheets, event facilitation guidelines,
and blank forms.

The accompanying CD includes many of these forms, as well as the

calculation worksheets used throughout the book.

Once you have implemented your kanban system, you will need to
make sure you have a plan to manage it on an ongoing basis. In Chapter V,
“Managing the System,” we cover what you should consider when estab-
lishing a plan to manage the daily operation of the system. This includes
factors for managing both normal and abnormal conditions.

Keeping in mind the old adage that “forewarned is forearmed,” in

Chapter VI, “Frequently Asked Questions,” we explain some issues of

xv
 INTRODUCTION

your kanban pull implementation that you might not anticipate. These
include the need to prepare an inventory “burn-down” strategy and the
way to deal with typical performance measures conflicts that invariably
arise. Additionally, we outline what should be included in your kanban
pull procedure. It is here that you will document how your new kanban-
based production control system will operate and how it will be managed.
Also in this chapter we prepare you in advance for the issues that you will
run into concerning how your existing Information Technology should
(and should not) be integrated with your kanban pull system.

GETTING STARTED
Before we get started, a few very important points to keep in mind:

First, the implementation of kanban is not easy and there are no short
cuts. Most of the difficulty will come from changing the paradigms of the
people in your organization. That is the bad news. The good news is, the results
of implementation are well worth the effort. In fact, we consistently find that
once your new kanban pull system is up and running, your people will never
go back to past practices.

Secondly, because kanban is rarely the first lean tool applied in the lean
transformation process, we make the assumption that the reader has a basic
understanding of the concepts of waste (muda) elimination, value stream
mapping, and continuous flow production. A good understanding of these
three concepts will facilitate the understanding and use of this text. Please
refer to the Recommended Reading section in the back of the book for addi-
tional information.

Lastly, an assumption made in this text is the user’s ability to successfully

deploy cross-functional teams in the kanban pull implementation or “Go-Do”
phase. Cross-functional teams lead the most successful lean implementations.
As is the case with any lean tool implementation, no one person in your organ-
ization possesses all of the needed knowledge or perspectives. The involvement
of the users of your new kanban pull system (hourly operators, material han-
dlers, etc.) is mandatory, as they are the people that will make the system work
on a day-to-day basis. The kanban pull system will require materials and factory

xvi
 INTRODUCTION

management to closely collaborate with production associates on the following:

system design, launch, management, trouble-shooting, and future improve-
ment activity.

Although just a few people in your organization will need to under-

stand kanban pull fully to lead the implementation effort and train others,
everyone in the company needs to be trained on the basic functionality of
your new kanban pull system.

Key team members who will need to roll up their sleeves and physically
implement kanban on the factory floor will include people from:

• Production
• Scheduling
• Material management and handling
• Production control
• Industrial and manufacturing engineering
• Purchasing
• Suppliers
• Customers (as appropriate)

xvii
 CHAPTER I

Preparation Work

r What does the current state value stream map

look like?
r What is the takt time?
r What could the future state value stream map
look like?
• Where should the product flow continuously?
• Where should the product be “pulled”
via kanban?

1
 CHAPTER I

To begin, here is an introduction to the discrete products manufacturer case

used to guide you through the process of implementing a mixed model
kanban pull system.

The Company

Emca Golf Club Company

“The Sticks That Champions Use”
A Division of Emca Sporting Goods

Emca Sporting Goods is a manufacturer headquartered in Greeneville, USA.

They have four strategic business units: Golf, Water Sports, Racket Sports,
and Camping Equipment. Emca’s top management recognizes the competi-
tive advantages associated with improved product velocity through waste
elimination. As such, several months ago, Corporate determined their ini-
tial lean implementation would be in the high-end golf club business unit.
This business unit is the largest at Emca, as it accounts for 45 percent of
corporate revenues.

Camping
Business Units Golf Water Sports Racket Sports Equipment
% Annual Corp. Revenue 45% 25% 20% 10%
Annual Corp. Revenue $45,000,000 $25,000,000 $20,000,000 $10,000,000

Emca Golf is recognized as the world leader in innovative golf club

design. However, they have some particularly threatening problems too.
For several years, they have been plagued with very high inventory levels,
not much working capital, and very long manufacturing lead times. To
make matters worse, their assembly operations have been inundated with
frequent component shortages. Emca has plenty of the parts they do not need
and few of the parts they do need. No matter what they do, they are not able
to make the right parts at the right time. Attempts at better controlling
production using sophisticated computer hardware and software have
proved ineffective (even considered countereffective by some). The result
has been many meetings to discuss “what are we going to make today?”

2
 P R E PA R AT I O N W O R K

and frequent arguments among expediters. The problems continue while

management and the workforce become more disheartened with the pass-
ing of each day. The result is poor delivery performance and a slipping
market share trend.

MARKET SHARE HISTORY (5-Year Trend)

FY Ending 2002 2003 2004 2005 2006*
Market Share 57% 46% 41% 37% 34%
* = Projection

EMCA GOLF’S PRODUCTS AND PROCESSES

Emca Golf is a manufacturing division that produces four different lines of
golf clubs. They are: the “Sinker” putter, the “Blaster” pitching wedge, the
“Eagle” irons, and the “Redhawk” line of drivers.

The equipment and processes used to produce their club components

are highly specialized. They are all designed specifically to machine golf
club heads, mold grips and fabricate shafts, and assemble the final product.
Emca currently uses two computer numerical control (CNC) machining
centers for head production.

WHAT DOES EMCA’S CURRENT STATE VALUE STREAM MAP

LOOK LIKE?

Emca Golf acknowledges the need to improve, but needs to understand where
to start the improvement process. To help with these improvements they sent
their “lean champion” to a value stream mapping seminar to learn the tech-
niques. Immediately upon his return, he developed a current state value
stream map (page 4). A quick analysis of their current state map indicates a
production approach based on push, process islands, batch and queue, high
inventory, and no discernable flow at all. The results are very long lead times
and a general unresponsiveness to changes in customer demand. (The value
stream mapping icon definitions can be seen on page 95.)

3
 Emca Golf Current State Value Stream Map
90-day forecast
8 week forecast
Production Customers
Daily orders
Weekly e-mail
control Weekly schedule
Daily demand =1000
2 Shifts @ 7. 5 hrs.
Takt time = 54
Ships
semi-weekly Head machining
Kanban
Kanban pull system Supplier
Casting
supplier
pull system consolidation
I CT = varies
S/U = varies Bag Box
OTD = 70% 10,000 supplier supplier
Reliab. = Varies
Two machines
Very expensive I OTD = 60% OTD = 75% Ships
parts 30,000 Ships monthly Ships weekly weekly
Container Size = 75

Ships
weekly Grip fab. Assembly I I
Putter/pitch- 60,000 20,000
Kanban ing wedge
Rubber pull system
supplier I Kanban
CT = 47 sec. CT = 40 sec.
5,000

4
pull system S/U = 15 min I
S/U = 10 min
OTD = 95% Reliab. = 90% Reliab. = 100% 4,000
*Frequent head Packaging Shipping
CHAPTER I

stock-outs
I I
10,000 4,000
CT = 52 sec.
Ships Flow S/U = 2 min.
semi-weekly cell Reliab. = 100%
Assembly
I
Irons/
Cut off Form and Polish and
Kanban 3,000
drivers
Tube straighten clean pull system
supplier I I I CT = 50 sec.
10,000 20,000 10,000 S/U = 15 min
OTD = 85% CT = 15 sec. CT = 15 sec. CT = 20 sec. Reliab. = 100%
S/U = 45 min S/U = 30 min S/U = 0 min. *Frequent head
Reliab. = 90% Reliab. = 100% Reliab. = 100% I stock-outs Flow
10,000 cell
Kanban
pull system
TPM
Set-up
reduction Totals
15 sec. 15 sec. 187 sec. 50 sec. 52 sec. 319 sec. Value Adding Time.
10 Days 20 Days 10 Days 30 Days 4 Days 4 Days 78 days Lead Time
OTD = On-time-delivery CT = Cycle Time S/U = Set-up
 P R E PA R AT I O N W O R K

VALUE STREAM MAPPING GUIDELINES

The following information is the minimum needed to help establish the
area of initial improvement focus. Be certain to take the necessary time to
capture accurate data, as the quality of your decisions is a function of the
quality of the information you base them upon. All too often numbers are
accepted based on “tribal knowledge” that turns out to be inaccurate. Later
on, as part of the kanban kaizen event planning process (reviewed in Chap-
ter IV), additional detailed information will need to be collected:
• Machine cycle times. These will be needed in order to perform a
requirements study and determine order frequency, as outlined in
Chapter III.
• Set-up times. The current state set-up times will be needed in order to
determine how frequently we can set up our processes.
• Process reliability. This information will be needed to establish the
actual capacity of a supplying process. Mean Time Between Failure
(MTBF), Mean Time To Repair (MTTR) and Overall Equipment Effective-
ness (OEE) are the metrics most commonly deployed here.
• Number of machines and operators. Required for all processes in the
value stream.
• Container sizes. These will be needed for the kanban calculation process.
• Available production time. This is the basis upon which we determine
capacity in the takt time calculation.
• Customer demand levels. Expressed as the current average daily
demand for each item.
• Defect rates. Also needed to support order frequency determination.
• Work in process levels (quantities and dollars). These are needed in
order to estimate the current manufacturing lead time, and quantify
future state cash flow improvement.
• Chronic shortage resources. This data will help identify pilot product
candidates for kanban control.
• Communications. Illustrate the current production control communica-
tion methods and frequency.
• Takt time. A very important component, which is explained in more
detail below.

5
 CHAPTER I

WHAT IS THE TAKT TIME?

Takt means beat or rhythm. In the context of production, takt time is the
heartbeat of production. It is a calculated number that indicates the pace of
customer consumption. The equation is expressed as:

Available Production Time / Customer Demand

Takt time is usually expressed in seconds and expresses the frequency of

customer consumption.

Applying the takt time equation for Emca Golf’s combined product
lines, the result is:

54000 daily available seconds / 1000 units of daily demand =

54-second takt time (or 1 unit consumed every 54 seconds)

Remember that production operations designed to be equal to or less

than takt time are reliable, predictable, and stable—all attributes that facili-
tate the implementation of a kanban pull system.

WHAT COULD THE FUTURE STATE VALUE STREAM MAP LOOK LIKE?

Emca’s lean champion organized and delivered a presentation to manage-

ment to inform them of the current state findings. They were shocked to
see the 78-day manufacturing lead time and frequent stock-outs at assembly
caused by head fabrication. The lean champion then described the oppor-
tunity for compression of the manufacturing lead time and inventory
reduction. During the presentation, one of the managers stated, “Yes, it
looks bad in theory, but our business is different. There are reasons why we
do business the way we do.” The lean champion found it convenient to
quote his value stream mapping trainer—“If you always do what you have
always done, you will always get what you have always gotten.” The lean
champion, armed with the value stream facts, discovered that the change-
resistant forces within Emca Golf could mount little resistance.

6
 P R E PA R AT I O N W O R K

It was obvious what had to happen next. The lean champion collabo-
rated with the management team and developed a future state map for their
golf club lines (page 8). This future state map reflects what Emca Golf wants
to become. They understood it would most likely be a tiered or iterative
process to achieve their goal. By allowing the value stream map to guide
them, they knew where they had to begin.

WHERE SHOULD THE PRODUCT FLOW CONTINUOUSLY?

Reviewing the future state map, several opportunities presented themselves.

One major discovery was the ability to create one-piece flow in the shaft
fabrication portion of the value stream. Another big discovery was the iden-
tification of where one-piece flow was simply not possible. For example, the
head machining process must supply 16 different head models to final
assembly. The table below lists the 16 golf club head models.

HEAD PART NUMBER ANALYSIS

Club Type: Putter Pitching Wedge Irons Drivers
Head Part Number: PL10 PWL10 IR10 DR10
PR20 PWR20 IR20 DR20
IR30 DR30
IL10 DL10
IL20 DL20
IL30 DL30
Note: An “R” in the part number designates a right-handed club head and an “L” designates a left-handed
club head.

Thinking back to his value stream mapping training, the lean champion
remembered that when flow has to be broken, the next best approach in
controlling production is to pull by way of a kanban pull system. This new
kanban pull system would replace the daily production control functional-
ity of Emca Golf’s computer scheduling system. This is the system that has
proven to be so expensive (financially and emotionally) and ultimately
ineffective, primarily due to data integrity related issues.

7
 Emca Golf Future State Value Stream Map

Production 90-day forecast

8 Week forecast Customers
Daily orders
control
Daily demand =1000
2 Shifts @ 7. 5 hrs.
Head machining Bag & box Takt time = 54 sec.
supplier
Daily Schedule OTD = 60%
Casting CT = varies Ships Monthly
supplier S/U = varies
OTD = 70% Reliab. = varies
Ships weekly New container
capacity is 10

Ships
daily

Grip fab
Assembly cell(s)
Rubber
supplier

8
CT = 47 sec. Packaging Shipping
OTD = 95%
S/U = 10 min
Ships weekly
Reliab. = 90%
CHAPTER I

FIFO CT = 52 sec. FIFO Ship daily

CT = varies S/U = 2 min.
S/U = 15 min. Reliab.=100%
Reliab.=100%

Shaft cell

Tube !tsrif yllanretni sucoF

supplier
OTD = 85%
Ships Weekly
CT = 50 sec.
S/U = 45 min
Reliab.=100%

Totals
212 sec. 50 sec. 52 sec. 314 sec. Value Adding Time.
7 Days 6 Days 1 Day 1 Day 15 days Lead Time
 P R E PA R AT I O N W O R K

Demonstrating a bias for action and having learned the process of

kaizen, the lean champion planned for, organized, and conducted a series of
kaizen events. He started with 5S kaizen events, which helped instill a sense
of change acceptance and discipline in the workplace. He then refocused
the kaizen team on the shaft fabrication process. Emca Golf’s kaizen team
deployed the tool of cell design in the shaft fabrication process and created
“one-shaft flow.”

The team then noticed that shaft production became much more stable
and predictable.

SHAFT METRICS COMPARISON SUMMARY

Pre-Kaizen Post-Kaizen
Part travel distance 3,500 ft. 255 ft.
Space (sq. ft.) 45,000 17,000
# units of inventory 30,000 1,000
$ value of inventory $1,094,100 $36,740
Lead time 30 days 1 day

WHERE SHOULD THE PRODUCT BE “PULLED” VIA KANBAN?

Emca Golf decided to first focus internally with implementing kanban. They
recognize they must first achieve an internal competency with kanban
before they can extend it to their suppliers and customers.

Emca Golf is now well positioned to begin implementing a kanban

pull system. Due to the large disruption at club assembly caused by golf
club head shortages, the location to implement kanban pull first is between
the head machining and final assembly processes. Here again Emca will
deploy the principles of kaizen and organize a kanban kaizen event team.
The first challenge of the team will be to gain a better understanding of
the principles of kanban.

9
 CHAPTER II

The Principles of Kanban

r What are the fundamental components and

mechanics of a mixed model kanban pull system?

11
 CHAPTER II

The Emca Golf lean champion gathered the members of the kanban kaizen
team and reviewed the following information so that all members under-
stood exactly how kanban works.

KANBAN PULL SYSTEMS TECHNOLOGY

The literal translation of the Japanese word kanban is “signal” or “sign
board.” In the context of production, it refers to a visual production control
system that signals replenishment. The replenishment signal itself can take
a variety of forms, from cards to ping-pong balls to rings on a pegboard.
What makes kanban so powerful is the fact that this signal is generated by
actual consumption, what we refer to as the pull of the downstream cus-
tomer. Kanban connects processes together in the value stream by making
the pull of the customer (or consuming process) visual to the upstream sup-
plying resource. To visualize a kanban pull system, imagine a series of con-
nected loops, like a chain. By the customer pulling on one loop at the end
of the chain, all the other loops upstream “feel” the same pulling action.

Material Material
flow flow
Supplier Production Customer
(previous process) (next process)

Pull signal Pull signal

Virtually any product can be the subject of this pulling: hardware, parts,
subassemblies, and final assemblies. A properly designed and implemented
pull system results in the right parts being produced at the right time in
the right quantity throughout the entire value stream.

Several factors influence the decision of what form the pull signal
should take. Key considerations include:
• The distance the signal has to travel
• Speed (what is the effect of signal velocity?)
• Signal content (what information must be communicated?)

12
 THE PRINCIPLES OF KANBAN

As stated previously, Emca decided to first implement kanban at the

head machining-to-assembly cell loop, as illustrated on their future value
stream map (page 8).

Assembly cell(s)

Head machining

CT = varies CT = varies
S/U = varies S/U = 15 min.
Reliab. = varies Reliab. = 100%

This means the production “motivation” at the head machining cen-

ter will change. In the past, the center produced parts when a scheduling
report or an expediter authorized it to do so. Now, the center will com-
mence production only when a consumption signal is received from the
consuming process or customer (even if the material, an operator, and a
machine are available).

An important point to remember is that a kanban pull system

controls the activity of the supplying resource. As such, the supplying
resource receives the kanban pull signal to replenish a product it is
responsible for producing. A great degree of freedom exists in defining
a resource. A supplying resource could be defined as a single machine, a
group of identical or similar machines, a fully integrated and self-con-
tained cell, or an external vendor. The key point is that the supplying
resource receives the kanban pull signal indicating that consumption
occurred. A complete product can be produced in any of the ways
mentioned previously.

For Emca, the team thinks it makes sense to establish the two CNC
machines used for head production as two separate resources. The team
thinks each will be dedicated to the machining of specific golf club heads.

13
 CHAPTER II

Head CNC Machining Center 1 Head CNC Machining Center 2

Resources whose production activity is controlled by kanban pull must

recognize and adhere to some significant new rules of production. They are:
• The consuming process consumes only what is needed.
• The supplying process produces only what the kanban pull system
authorizes, when it authorizes it. Emca Golf could have a machine avail-
able, an operator available, the time and the raw material available, but
without a signal from the kanban pull system, NO PRODUCTION IS
AUTHORIZED!
• Defective products will not be sent to the consuming process from the
supplying process.
• Kanban should reflect changes in demand, as demand is frequently sub-
ject to trends.
• The number of kanban should be minimized over time as they buffer
waste in your value stream.
• These rules are not negotiable.

KANBAN CARDS
The most frequently used signaling method is the kanban card because it is
an adaptable and flexible method. There are two different types of kanban
cards. They are the permanent kanban card and the single use kanban card.

14
 THE PRINCIPLES OF KANBAN

Permanent Kanban Cards

Permanent kanban cards are cards that will be continuously recycled
through the kanban pull system. Inventory for the products authorized by
these cards will usually reside in the “supermarket” (discussed later in this
chapter). These products will be the items the customer typically consumes
at predictable time intervals.

In designing the permanent kanban cards for the new kanban pull
system, Emca recognized the need to include the following minimum
information:
• Material, part, subassembly, or assembly identifier
• The internal or external supplying process
• The consuming processes
• The container quantity
• The supermarket “address”
• A card serial number (facilitates auditing cards to identify missing cards)
• An illustration of the part

NOTE

Avoid serializing cards with a “# of #” scheme, i.e., 1 of 8, 2 of 8, etc. If cir-

cumstances warrant changing the number of cards in the system, ALL of the
cards will need to be replaced—a very wasteful procedure. Instead, just indi-
cate card 1, card 2, card 3, etc., and keep a separate record of how many
cards exist for that item.

To help facilitate “visual control,” Emca Golf’s kanban cards will make
use of color-coding at multiple levels.

15
 CHAPTER II

Emca Inc. Head Machining Kanban

Part number: 130 Supermarket

address:
Part description: Head
A-1
Assembly Container type: Box
address: Card #
Container quantity: 10
B-3

To visually manage the new kanban pull system, Emca Golf’s kanban
kaizen team decided that the kanban cards for the head machining supply-
ing resource would be red (the “base” color). The area at right designates
where the item is located in the supermarket. The area at left indicates the
consuming process is assembly.

Keeping the inventory information with the inventory is a key feature

of a kanban pull system. As such, kanban cards will be attached to standard-
ized containers, such as the following:
• Pallets
• Bins
• Trays
• Boxes
• The actual workpiece itself

In the case of Emca, the team decided new, right-sized plastic contain-
ers (color-keyed to the kanban card base color) would be used to hold the
machined club heads. Emca Golf’s future state value stream map indicates that
a new head container quantity of 10 units may work well. The kanban card will
be placed into a clear plastic sleeve firmly attached to each container.

16
 THE PRINCIPLES OF KANBAN

NOTE
In some instances, it might make sense to have a single kanban card represent
multiple containers—for example, having multiple containers on a pallet with
one kanban card for the entire pallet. There are two important issues that fac-
tor into the decision. First, you must not lose the ability to determine if the
inventory in the value stream is authorized once the first container is opened
and the kanban card has been removed. Second, be aware of the impact your
decision will have on the number of kanban in the value stream. Too many or
too few kanban can make the system unmanageable.

Another consideration for the kanban kaizen team concerns the rules as
to when the kanban card must be removed from the container. Typically,
three options are available:

• Full container rule—as soon as the first product is consumed from

the container, the kanban card is removed and returned to the
kanban board.
• Mid-container rule—as soon as half the products in the container
are consumed, the kanban card is removed and returned to the
kanban board.
• Bottom of container rule—as soon as the container is emptied, the
kanban card is removed and returned to the kanban board (see page 21).

The Emca team has initially decided to use the bottom of container rule
as they feel it lends itself better to visually controlling the inventory. A con-
tainer with any inventory in it will always have a kanban card with it.
Accordingly, any container found containing inventory that is missing a
kanban card will be suspected of being “unauthorized.”

The team recognizes that using the bottom of container rule is a trade-
off. This is because the sooner the consuming process removes the kanban
card and sends it back to the supplying process, the sooner the supplying
process will be replenished. This will facilitate keeping the value stream
inventory levels as low as possible and provide the fastest replenishment
lead time.

17
 CHAPTER II

Emca Inc. Head Kanban

Part Number: 130
Supermarket
Part Description: Head Address:

Container Type: Box A-1

Assembly

Full container rule Address: Container Quantity: 10 Card #

B-3

Supplying
Process
Emca Inc. Head Kanban
Part Number: 130
Supermarket
Part Description: Head Address:

Container Type: Box A-1

Assembly

Mid-container rule Address: Container Quantity: 10 Card #

B-3

Emca Inc. Head Kanban

Part Number: 130
Supermarket
Part Description: Head Address:

Container Type: Box A-1

Assembly

Bottom of container rule

Address: Container Quantity: 10 Card #

B-3

The Single Use Kanban Card

Single use kanban cards offer a way to deal with products where the cus-
tomer demand does not warrant maintaining the inventory that permanent
cards would authorize. With single use kanban cards, the card is introduced
into the kanban pull system only after a firm customer order is placed.
Replenishment is prevented as the kanban card is extracted from the
kanban pull system as soon as consumption occurs. Circumstances that fre-
quently warrant the use of single use kanban cards include:
• When a “spike” increase in demand occurs.
• When producing products that are very infrequently ordered.
• When producing special order items.
• For excess inventory burn-down (frequently resulting from implement-
ing kanban pull).

Single use cards are often specially color-coded so they stand out. With
the exception of the supermarket location, all of the information specified
on a regular kanban card is also specified on a single use kanban card.

SUPERMARKETS AT EMCA GOLF

Supermarkets help tie together the producing and consuming processes in
a kanban pull system by buffering the demand signals coming back from
the consuming processes. They contain inventory that was authorized by a
pull signal from the internal or external customer. Without supermarkets,
every signal coming back to the supplying process would mean immediate

18
 THE PRINCIPLES OF KANBAN

replenishment is required. In a high-mix manufacturing environment, the

supplying process most likely would not be able to keep up. Supermarkets
are very different from queues. Emca Golf’s traditional queues or accumula-
tions of inventory were the result of a computer system trying to push
product through the value stream. In a kanban pull system, the super-
market will be one of three places inventory will be authorized to reside.
The other two are point of use at the consuming process or in transit from
the supplying process.

Emca Golf’s consuming process, golf club assembly, will withdraw

machined heads from the supermarket, and the head machining work center
will replenish the supermarket when signaled to do so by the kanban board.

Kanban
Kanban board
Card

Head Golf club

machining Product Product assembly

Supermarket

Emca Golf’s future state value stream map makes extensive use of super-
markets in their new kanban pull system. The chief focus will be at head
machining. The quantity of inventory residing in the supermarket will be
the average expected inventory level minus the inventory positioned at the
point of use at the consuming process. In the following chapter we will
review the process for determining the number of kanban needed for each
product placed under kanban control.

The kanban kaizen team needs to make the decision about where to
physically position the supermarket in their plant. Three options exist.
They are:

19
 CHAPTER II

• At head machining.
• At assembly.
• At a point in between the two.

The best choice is the position that offers the least waste. Key factors
the team will need to consider in determining the amount of waste include:
• The number of supplying workstations versus the number of consuming
work stations.
• Travel distance.
• Space availability.
• The transport mechanism currently available.
• If the supplier is internal or external.

Supplier Consumer Supplier Consumer

S
S C S C
S
“One-to-one” “Many-to-one”
Either option Position SM at supplying W/C’s

Supplier Consumer
C
S C
C
“One-to-many”
SM = Supermarket
Position SM at consuming W/Cs
W/C = Workcenter

KANBAN BOARD
A kanban board is a visual display. It is here that the kanban cards accumu-
late after they have been removed from empty product containers. The
accumulation of cards continues until a predetermined number of cards is
achieved. This quantity is displayed by the positioning of the order fre-

20
 THE PRINCIPLES OF KANBAN

quency card (see page 23). Emca has developed a very robust, flexible, and
informative format for their kanban board that will be the foundation for
all their boards. It is called the ”common authorization line” design because
the movable order frequency cards are used to establish the common
authorization line (see page 22).

Machine Center 1 Kanban Board

PWL
Single Use Past Due IL30 DR30 DL10 DL20 PL10 DR20 DL30 Head Model
10

1 2 FIFO Tracking

Common
Authorization
Line

Order
Frequency
Card

Comments and Notes

Although we recommend the common authorization line design,

kanban boards come in infinite varieties. A robust kanban board design is
adaptable, scaleable, and visually communicates, at a minimum, the follow-
ing key information:
• The locations to position kanban cards in columns or rows, by product,
as they are returned from the consuming process;
• A visual indicator of when replenishment is authorized and necessary,
known as the authorization point;
• A visual indicator of the part number being processed, as well as the
next part number to be set up and processed, “FIFO tracking”;

21
 CHAPTER II

• An area to indicate overdue status;

• An area to make notations.

Common Authorization Line

The common authorization line kanban board design functions as follows:

1. Product is consumed from containers at the consuming process. When

the consuming process empties a container (remember, the team
decided to use the bottom of container rule, see page 17), the card and
container are removed from the consuming process area. The card is
removed from the container. The empty container is then staged in
close proximity to the kanban board.
2. The kanban card is placed on the kanban board at the next lowest
open location above the order frequency card for the given part num-
ber. This process repeats until enough kanban cards representing a
specific product accumulate to reach the authorization line on the
kanban board.
3. Immediately upon the authorization line being reached, all kanban
cards for that part number are removed and individually placed in trans-
parent sleeves attached to empty containers. The empty containers with
the attached kanban cards are delivered to the supplying process. This
action authorizes replenishment by the supplying process.
4. Once the containers are filled again with completed product, the con-
tainers with the attached card are returned to their specific supermarket
location (which is indicated on the kanban card). As the line stock at
the consuming process is depleted, product is removed from the super-
market and delivered to the consuming process. The process repeats.

NOTE
The various products produced at the supplying process must be produced in a
first in/first out “FIFO” manner.

When the supplying process has problems that delay its ability to
replenish within the determined lead time, the kanban cards may accumu-

22
 THE PRINCIPLES OF KANBAN

late past the authorization line on the kanban board. This means that the
consuming process may need to consume lead time and possibly safety time
inventory in order to satisfy consuming process demand. The kanban board
makes this situation very “visual.” If replenishment does not occur within
the lead time and safety time established, a product shortage will occur at
the consuming process.

Machine Center 1 Kanban Board

PWL
Single Use Past Due IL30 DR30 DL10 DL20 PL10 DR20 DL30 Head Model
10

1 FIFO Tracking

Common
Authorization
Line

Order
Frequency
Card

Comments and Notes

Order Frequency Card

The order frequency card establishes a common authorization line for each
part controlled by the kanban board. Without the order frequency card, all
kanban cards would accumulate from the lowest point on the board and
most likely have different authorization lines plotted on the board for them.
This approach does not lend itself well to the lean concept of visual control.

23
 CHAPTER II

NOTE
Refer to the PowerPoint file on the CD named “Animated Kanban Board” to see
an animated example of how a kanban board functions.

Capacity, changeover frequency, and replenishment lead time can be

manipulated by changing the position of the order frequency card. By mov-
ing the order frequency card up, the authorization line is reached faster—
thus, capacity will be decreased because there will be more frequent set-ups.
However, lead times will be reduced because the lot size to be manufactured
will be reduced. Moving the order frequency card down will have the oppo-
site effect of increasing capacity and increasing replenishment lead time. In
the next chapter, we will review the process for calculating the order fre-
quency card position and detail the process of determining the number of
kanban needed to properly “connect” processes.

24
 CHAPTER III

The Numbers

r What is a Requirements Study?

r What is Order Frequency Determination?
r What is the number of kanban needed?
r What is a kanban flow diagram?

25
 CHAPTER III

NOTE
Your company culture will affect the assumptions you will make while calculat-
ing the number of kanban needed (and subsequently, your inventory levels).
Decisions lie ahead for answers to questions such as:
• “Do we (remember, this is a team effort) round up or round down or
don’t round at all?” and “How much safety inventory (safety time) do we
really need?”
The most important question to consider is:
• “How aggressively do we want to drive waste from our operations?”

WHAT IS A REQUIREMENTS STUDY?

Once Emca Golf’s kanban kaizen team understands the basic principles of
kanban and has completed all the necessary kanban pull systems prepara-
tion work we discussed in the previous sections, they can begin the process
of determining the number of kanban needed to effectively link head
machining and assembly.

To start out, the team must identify all of the golf club heads that are
produced in head machining. The kaizen team identified the following part
numbers:

HEAD PART NUMBER ANALYSIS

Club Type: Putter Pitching Wedge Irons Drivers
Head Part Number: PL10 PWL10 IR10 DR10
PR20 PWR20 IR20 DR20
IR30 DR30
IL10 DL10
IL20 DL20
IL30 DL30

26
 THE NUMBERS

We can see from the above table that head machining is a shared
resource that produces a variety of 16 different heads for club assembly.

NOTE
Kanban is very appropriate in controlling shared supplying resources.

Having identified the 16 part numbers that will be placed under kanban
control, the kaizen team will need to quantify the amount of daily demand
each head model places on head machining in order to satisfy the needs
of its internal customer—assembly. This is called performing a requirements
study and the tool we use is called the Requirements Study Worksheet.

REQUIREMENTS STUDY WORKSHEET

COMPONENT: HEADS
Average Machine Machine Selected Machine Machine
Component Daily A-B-C-D Center 1 Center 2 Machine Center 1 Center 2
Part Number Demand Designation Cycle Time Cycle Time Center Loading Loading

TOTALS:

The first step for completing the Requirements Study Worksheet is fill-
ing in the column labeled Component Part Number. The next step is to
determine a current average daily demand for each head by analyzing his-
torical order patterns as well as current booked orders. The team did
this, and, as a result, the Requirements Study Worksheet looks as follows:

27
 CHAPTER III

REQUIREMENTS STUDY WORKSHEET

COMPONENT: HEADS
Average Machine Machine Selected Machine Machine
Component Daily A-B-C-D Center 1 Center 2 Machine Center 1 Center 2
Part Number Demand Designation Cycle Time Cycle Time Center Loading Loading
PL10 25
PR20 135
PWL10 29
PWR20 111
IR10 100
IR20 100
IR30 100
IL10 75
IL20 75
IL30 50
DR10 60
DR20 20
DR30 40
DL10 30
DL20 30
DL30 20
TOTALS:

The next step for the kaizen team is to categorize each head product by
its average daily demand level. We shall use a method referred to as A-B-C-D
Analysis to accomplish this.

A-B-C-D ANALYSIS
The Requirements Study Worksheet is where the team characterizes the level
of demand for each golf club head model. Relative to one another, golf
club heads are either “A” items, “B” items, or “C” items. “A” items are
frequently ordered, high-volume items. ”B” items are ordered somewhat
frequently and are medium volume. “C” items are infrequently ordered or
low-volume items.

NOTE
In the case of special order items, (at Emca Golf, the head machining resource
produces none) you would classify them as “D” items and assign single use
kanban cards for their production.

28
 THE NUMBERS

The Emca kanban implementation team agreed upon the following

parameters in establishing their A-B-C-D boundaries for the heads:

Classification Daily Demand

A > 76
=
B < > 51
= 75 and =
C <
= 50

Applying the above parameters, the team designated the various club
heads as follows.

REQUIREMENTS STUDY WORKSHEET

COMPONENT: HEADS
Average Machine Machine Selected Machine Machine
Component Daily A-B-C-D Center 1 Center 2 Machine Center 1 Center 2
Part Number Demand Designation Cycle Time Cycle Time Center Loading Loading
PL10 25 C
PR20 135 A
PWL10 29 C
PWR20 111 A
IR10 100 A
IR20 100 A
IR30 100 A
IL10 75 B
IL20 75 B
IL30 50 C
DR10 60 B
DR20 20 C
DR30 40 C
DL10 30 C
DL20 30 C
DL30 20 C
TOTALS:

Resource Allocation
We established previously that the head machining resource consists of two
similar, but not identical, machine centers. During the resource allocation
process, the team will determine which heads will be produced on which
machine. The Emca team will be guided by their A-B-C-D analysis findings.

29
 CHAPTER III

The machine cycle times for each golf club head were determined and
are shown below.

MACHINE CYCLE TIME ANALYSIS

Machine Center 1 Machine Center 2
Head Part Number Cycle Time (sec.) Cycle Time (sec.)
PL10 45 36
PR20 45 36
PWL10 50 40
PWR20 50 40
IR10 65 30
IR20 65 30
IR30 65 30
IL10 65 30
IL20 65 30
IL30 65 30
DR10 120 85
DR20 120 85
DR30 120 85
DL10 120 85
DL20 120 85
DL30 120 85

A quick analysis indicates that regardless of which product is being pro-

duced, Machine Center 2 has a faster cycle time than Machine Center 1. As
such, Machine Center 2 is the machine that Emca will want to run most, if
not all, of their “A” and “B” items. These higher volume items are typically
the leverage points in being able to maximize product velocity. In doing so,
Emca will maximize inventory turnover performance and minimize manu-
facturing lead time for these items. Accordingly, Machine Center 1 has a
slower cycle time, but also provides for a shorter set-up time. The team
rightly determined Machine Center 1 should be used for the “C” items. The
Machine Allocation Table, shown below, summarizes their initial decisions
about which product should be run on which machine.

30
 THE NUMBERS

MACHINE ALLOCATION TABLE

Head Part Number A-B-C-D Machine Center 1 Machine Center 2
PL10 C X
PR20 A X
PWL10 C X
PWR20 A X
IR10 A X
IR20 A X
IR30 A X
IL10 B X
IL20 B X
IL30 C X
DR10 B X
DR20 C X
DR30 C X
DL10 C X
DL20 C X
DL30 C X

Using the data the team has collected up to this point, they can com-
plete the remainder of the Requirements Study Worksheet (on the next
page) and determine if they have overloaded either of their two available
machining centers.

NOTE: TOTAL DEMAND

In designing a kanban pull system, you must understand, and factor into the
requirements study, the total demand placed on the supplying resource. Products
that are outside of the initial implementation focus may be produced at the sup-
plying resource. For the near term, these products will be controlled using the
traditional methodology. From a daily operating perspective, this will result in
using dual production control systems until all products are under kanban con-
trol. This dual replenishment approach is to be expected in the early stages of
kanban implementation. The unadvisable alternative is to “swallow the elephant
whole,” taking on more change than you can handle at one time. Attempting a
plantwide kanban implementation all at once may jeopardize a powerful
improvement technology. Our advice—do not take on too much all at once.

31
 CHAPTER III

REQUIREMENTS STUDY WORKSHEET

COMPONENT: HEADS
Average Machine Machine Selected Machine Machine
Head Part Daily A-B-C-D Center 1 Cycle Center 2 Cycle Machine Center 1 Center 2
Number Demand Designation Time (sec.) Time (sec.) Center Loading* Loading*
PL10 25 C 45 36 1 1125
PR20 135 A 45 36 2 4860
PWL10 29 C 50 40 1 1450
PWR20 111 A 50 40 2 4440
IR10 100 A 65 30 2 3000
IR20 100 A 65 30 2 3000
IR30 100 A 65 30 2 3000
IL10 75 B 65 30 2 2250
IL20 75 B 65 30 2 2250
IL30 50 C 65 30 1 3250
DR10 60 B 120 85 2 5100
DR20 20 C 120 85 1 2400
DR30 40 C 120 85 1 4800
DL10 30 C 120 85 1 3600
DL20 30 C 120 85 1 3600
DL30 20 C 120 85 1 2400
TOTALS: 22625 27900

Key Point: Machine selection was based on the faster machine, Machine Center 2, running the higher volume
(“A”/“B”) items.
* Machine Center loading calculation: Daily demand 3 Machine cycle time = Machine loading. This is
calculated for each part and then totaled by machine. For example, for PL10, multiply the daily demand of
25 by the cycle time for Machine Center 1, which is 45 seconds. Therefore, machine loading = 25 3 45 =
1125 seconds.

Emca is now ready to move on to the next phase of the kanban imple-
mentation process, “Order Frequency Determination.”

WHAT IS ORDER FREQUENCY DETERMINATION?

The Emca kanban implementation team needs to refer back to the value
stream map and supporting data to extract the information needed to
determine the actual capacity of the head machining resources. This infor-
mation includes:
• The number of machines available for production,
• The number of shifts they operate on,
• The calculation of gross machine capacity,
• Machine reliability,

32
 THE NUMBERS

• A calculation of net machine capacity,

• Cycle time data,
• Set-up data.

The following head machining equipment analysis summarizes the

above information for the machining centers.

HEAD MACHINING EQUIPMENT ANALYSIS

Capacity Gross Net Set-Up Set-Up
per Shift Number Machine Actual Machining Time Time
(sec.) of Shifts Capacity (sec.) Capacity Capacity (sec.) (min.) (sec.)

Machine
27000 2 54000 60% 32400 15 900
Center 1
Machine
27000 2 54000 70% 37800 30 1800
Center 2
Total Net Machining Capacity: 70200

The team determined that Emca has 54,000 seconds of gross available
capacity at each machine center. As the total demand for both machine
centers on the Requirements Study Worksheet (50,525) did not exceed
108,000 (54,000 3 2 machines) seconds, Emca has sufficient gross capacity.
However, the team needs to look at this more carefully and understand the
net (true) capacity and the impact of waste in the machining processes. The
team will accomplish this by performing a process called Order Frequency
Determination.

Order frequency is the frequency at which Emca plans to set up and

order each golf club head. Determining the order frequency is a four-step
process.

1. The first step in the process of determining the order frequency is to cal-
culate the time available per day for Emca to set up each head machine
center. To do this the team will need to refer back to the data captured
on the Head Machining Equipment Analysis table and Requirements
Study Worksheet. From the Head Machining Equipment Analysis table
"Net Machining Capacity" number we subtract the "Machine Loading
Time" number provided on the Requirements Study Worksheet. The fol-
lowing table illustrates the calculation process and result for each
machine.

33
 CHAPTER III

SET-UP OPPORTUNITIES CALCULATIONS

Net Machining Machine Loading Time Available
=
Capacity (sec.) — Time (sec.) to Set Up (sec.)
Machine Center 1 32400 22625 9775
Machine Center 2 37800 27900 9900

2. The second step in the process is to divide the Time Available to Set Up
by the set-up time recorded on the Head Machining Equipment Analysis
table. This will yield the number of set-up opportunities per day Emca
has at each machine.
Time Available Set-up Number of Set-up
to Set Up (sec.) / Time (sec.)
=
Opportunities/Day
Machine Center 1 9775 900 10.8
Machine Center 2 9900 1800 5.5

3. The third step for the Emca team is to distribute the available set-ups to
the products we determined in the requirements study would be made
by each machine (see the Machine Allocation Table, shown here again.)

MACHINE ALLOCATION TABLE

Head Part Number A-B-C-D Machine Center 1 Machine Center 2
PL10 C X
PR20 A X
PWL10 C X
PWR20 A X
IR10 A X
IR20 A X
IR30 A X
IL10 B X
IL20 B X
IL30 C X
DR10 B X
DR20 C X
DR30 C X
DL10 C X
DL20 C X
DL30 C X

34
 THE NUMBERS

There is no equation to apply for this process. There are, however, three
guiding considerations for the Emca team to apply.

Guiding Principle # 1: Distribute the set-ups such that they are

roughly proportional to the demand level of the item. This means
that the heads classified as “A’s” will be set up and ordered more
frequently than the heads classified as “B’s.” The same applies for
“B” heads relative to “C” heads.

Guiding Principle # 2: Leave some set-ups undistributed so that

the time value they represent can be used for the production of
"Special Order" requirements. This is called “discretionary capacity.”

Guiding Principle # 3: It is perfectly acceptable to distribute frac-

tions of a set-up. For example, distributing 0.5 set-ups per day to an
item means we intend to set up and run the item every other day.

By applying these principles to the products produced on the head

machining centers, the Emca team determined the following set-up
distribution:

SET-UP DISTRIBUTION TABLE

MACHINE CENTER 1 MACHINE CENTER 2
Head Average Daily Head Average Daily
Model # Demand Distribution Model # Demand Distribution

IL30 50 2 PR20 135 1

DR30 40 1 PWR20 111 0.75
DL10 30 1 IR10 100 0.5
DL20 30 1 IR20 100 0.5
PWL10 29 0.5 IR30 100 0.5
PL10 25 0.5 IL10 75 0.25
DR20 20 0.5 IL20 75 0.25
DL30 20 0.5 DR10 60 0.25
Total Allocations 7.0 Total Allocations 4.0
Total Opportunities 10.8 Total Opportunities 5.5
Discretionary 3.8 Discretionary 1.5

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 CHAPTER III

Using these distributions leaves Emca with a discretionary capacity of

3.8 set-ups (equaling 3420 seconds for 10.56% of net machine capacity)
at Machine Center 1 and 1.5 set-ups (equaling 2700 seconds for 7.14%
of net machine capacity) at Machine Center 2.
4. The fourth and final step in the process is to divide each number in the
Distribution No. column into the number one. The resultant number is
the "Order Frequency" of the golf club head model. The tables below
show the results of this calculation process.

ORDER FREQUENCY DETERMINATION WORKSHEET

Machine Center 1 Machine Center 2
1 / Distribution No. 1 / Distribution No.
Head Distribution “Order Frequency” Head Distribution “Order Frequency”
Model # No. (Days) Model # No. (Days)
IL30 2 0.5 PR20 1 1
DR30 1 1 PWR20 0.75 1.3
DL10 1 1 IR10 0.5 2
DL20 1 1 IR20 0.5 2
PWL10 0.5 2 IR30 0.5 2
PL10 0.5 2 IL10 0.25 4
DR20 0.5 2 IL20 0.25 4
DL30 0.5 2 DR10 0.25 4

WHAT IS THE NUMBER OF KANBAN NEEDED?

Having completed the Order Frequency Determination process, the Emca

team is now ready to calculate the number of kanban for each golf club
head. Before this calculation is made, a paradigm shift is required. Typically,
inventory at Emca has been viewed in terms of quantities of parts. The
team must now recognize that inventory takes on another form—time.

NOTE
The overriding principle of the lean organization is maximizing the effective
use of time.

36
 THE NUMBERS

There are many equations available for Emca to use in determining the
number of kanban needed in their kanban pull system. The one they
selected is very flexible and appropriate for many environments. This
kanban equation is expressed as follows:

Average Daily Demand 3 (Order Frequency + Lead Time + Safety Time)

Number of Kanban =
Container Quantity

Let us define the various elements of the kanban equation.

Average Daily Demand: This is the current average quantity level of daily
demand for a component. This is not a static number at Emca Golf, as sea-
sonality exists in the demand for all of their products. Recalculating the num-
ber of kanban required is vital to the effectiveness of the kanban pull system
as demand varies over time. As such, Emca Golf is going to document this
recalculation procedure and include it as an element in their standard oper-
ating procedures.

Order Frequency: Order frequency is the frequency at which Emca’s

machining centers plan on setting up and running each golf club head.
Order frequency is expressed in days, or a fraction thereof.

The order frequency is calculated by dividing 1 day by the number of

set-ups per day allocated to the golf club head.

NOTE
Items with comparatively long order frequencies should be controlled by single
use kanban cards. If these items were controlled by permanent cards, inventory
of these items would be maintained in the supermarket and “sleep” for rela-
tively long periods of time. In this case, the tool of production leveling should be
explored to enable the consuming process to consume more frequently, but in
smaller lot sizes.

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 CHAPTER III

Lead Time: Lead time is an estimate of how long the consuming process
(assembly) will need to wait for an order of golf club heads once replenish-
ment has been authorized. Otherwise stated, it is how much time elapses
from the time a replenishment signal is sent to the supplying process until
the consuming process is actually replenished. Factors that influence the
duration of lead time include:
• The number of orders that arrived at the supplying process ahead of the
one just sent.
• Machine cycle time.
• Quantity.
• Number and duration of set-ups.
• Replenishment signal method (manual or electronic).
• Product transit time.

NOTE
Order frequency should be at least equal to lead time in order to prevent replen-
ishment signals getting crossed.

Lead time is an estimate because the variation in the factors we just

reviewed can be significant from day to day and hour to hour. Lead time is
expressed in days, or a fraction thereof.

Safety Time: Safety time is time (inventory) we allot to compensate for

the impact of waste on the supplying process. This may take the form of
machine downtime, response delay, absenteeism, scrap, shortages, and
variation in demand-related issues. Safety time is expressed in days, or a
fraction thereof.

Container Quantity: This is the number of units of each product that the
team decided each container will hold. Emca Golf’s “right-sized” containers’
capacity for all golf club heads will be 10 units (as noted on the future state

38
 THE NUMBERS

value stream map). “Less is frequently more” with container quantity

because the material handler can easily transport smaller containers. The
impact on the material handler of more frequent pick-ups and deliveries (the
milk run path) when smaller containers are used must be considered as well.

Of all the elements of the kanban equation, container size is usually the
one that the team will have the most freedom to change. This is beneficial
because changing the container quantity is the most effective way to adjust
the number of kanban, up or down, in the system without changing the
level of inventory. In their initial calculation the team may finish with too
many cards or too few. By changing the container quantity, they can get to
a “workable” number of kanban.

When working through the kanban calculation process, the team

must be certain they account for a waste factor only once. The impact of
accounting for a factor more than once will be a greatly inflated level of
inventory that could prove fatal to the kanban implementation process.
A typical example of the opportunity to triple buffer is with demand. The
team could include it as a safety stock factor, use the high end of the
demand range, and consistently round up in the kanban calculation process.

The kanban equation described previously is embedded in the Kanban

Calculation Worksheet that follows.

Emca Golf’s kanban kaizen team will complete a Kanban Calculation

Worksheet for each of the two machining resources. The team focused on
Machine Center 1 first. This worksheet is where the team will tabulate
and calculate the key numerical values associated with Emca Golf’s kanban
pull system.

Their first step is to enter the part number and average daily demand
in the first two columns for the items that the team decided will be pro-
duced on Machine Center 1.

39
 KANBAN CALCULATION WORKSHEET

RESOURCE:
Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

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CHAPTER III

Note: Remember that order frequency should be at least equal to lead time in order to prevent signals from crossing.
 THE NUMBERS

KANBAN CALCULATION WORKSHEET

RESOURCE: Machine Center 1

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

IL30 50
DR30 40
DL10 30
DL20 30
PWL10 29
PL10 25
DR20 20
DL30 20

The next step for the team is to enter the order frequency. In the case of
the PWL10, every 2 days (see Order Frequency Determination Worksheet on
page 36). For example, the order frequency for PWL10 is 1/0.5 set-ups/day =
2 days. Therefore, the plan is that every 2 days, the PWL10 head will be set
up and manufactured on Machine Center 1.

KANBAN CALCULATION WORKSHEET

RESOURCE: Machine Center 1

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

IL30 50 0.5
DR30 40 1.0
DL10 30 1.0
DL20 30 1.0
PWL10 29 2.0
PL10 25 2.0
DR20 20 2.0
DL30 20 2.0

The team’s next steps are to determine the values for lead time, safety
time, and container size. This information will be added to the Kanban Cal-
culation Worksheet.

As we stated previously, lead time is an estimate. It is based on how long

assembly will have to wait to be replenished. Remember, the elements of
lead time include set-up time, processing time, signal delay, and transit
time. And keep in mind that there may be other orders ahead of the signal
just sent by assembly. The team estimated one day of lead time for all items
to be produced on Machine Center 1.

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 CHAPTER III

KANBAN CALCULATION WORKSHEET

RESOURCE: Machine Center 1

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

IL30 50 1.0 1.0

DR30 40 1.0 1.0
DL10 30 1.0 1.0
DL20 30 1.0 1.0
PWL10 29 2.0 1.0
PL10 25 2.0 1.0
DR20 20 2.0 1.0
DL30 20 2.0 1.0

NOTE
As a general rule, order frequency should be at least equal to lead time in order
to prevent replenishment signals from being crossed. In the case of the IL30
head, the team must manually adjust the “calculated” order frequency from 0.5
days to 1.0 days.

The team determined it needed 0.5 days of safety time to buffer

demand spikes and other process-reliability problems.

As stated previously, the team decided its new standardized container

quantity is going to be 10 units for all 16 club head part numbers.

Entering this data on the Kanban Calculation Worksheet for Machine

Center 1, the team saw the following.

KANBAN CALCULATION WORKSHEET

RESOURCE: Machine Center 1

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

IL30 50 1.0 1.0 0.5 10

DR30 40 1.0 1.0 0.5 10
DL10 30 1.0 1.0 0.5 10
DL20 30 1.0 1.0 0.5 10
PWL10 29 2.0 1.0 0.5 10
PL10 25 2.0 1.0 0.5 10
DR20 20 2.0 1.0 0.5 10
DL30 20 2.0 1.0 0.5 10

The Emca team has quantified all five variables required by the kanban
equation. Their next step is to work through the equation:

42
 THE NUMBERS

Average Daily Demand 3 (Order Frequency + Lead Time + Safety Time)

Number of Kanban =
Container Quantity

The result of applying this equation to each item to be placed under

kanban pull control at Machine Center 1 is as follows.

KANBAN CALCULATION WORKSHEET

RESOURCE: Machine Center 1

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

IL30 50 1.0 1.0 0.5 10 13

DR30 40 1.0 1.0 0.5 10 10
DL10 30 1.0 1.0 0.5 10 8
DL20 30 1.0 1.0 0.5 10 8
PWL10 29 2.0 1.0 0.5 10 11
PL10 25 2.0 1.0 0.5 10 9
DR20 20 2.0 1.0 0.5 10 7
DL30 20 2.0 1.0 0.5 10 7

Note that we round up for the kanban calculation process because it is

not physically possible to have a fraction of a kanban signal. Considering
this is Emca’s initial kanban implementation, it is also advisable to round
up because the effect would be adding inventory to the value stream.
Rounding down would remove inventory, thus making the value stream
more sensitive.

EXERCISE
As a way to reinforce your understanding of the process just illustrated, refer to
the CD file named “EMCA Calculation Worksheets-Exercise.” Beginning with the
worksheet tab labeled “Set-up Opportunities Calc.,” enter the missing informa-
tion into the highlighted cells. Then complete the worksheets labeled “Set-up
Distribution Worksheet,” “Order Frequency Worksheet,” and “Kanban Calc.
Worksheet MC2” (the separate kanban calculation worksheet for MC1 is
already complete). Compare your solution with the file on the CD named
“EMCA Calculation Worksheets-Solution.”

The Kanban Calculation Worksheet below shows the results of the cal-
culation process for Machine Center 2, based upon the Emca team’s
assumptions.

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 CHAPTER III

KANBAN CALCULATION WORKSHEET

RESOURCE: Machine Center 2

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

PR20 135 1.0 1.0 0.5 10 34

PWR20 111 1.3 1.0 0.5 10 32
IR10 100 2.0 1.0 0.5 10 35
IR20 100 2.0 1.0 0.5 10 35
IR30 100 2.0 1.0 0.5 10 35
IL10 75 4.0 1.0 0.5 10 42
IL20 75 4.0 1.0 0.5 10 42
DR10 60 4.0 1.0 0.5 10 33

NOTE
The kanban equation presented in this text possesses many interesting dynam-
ics. For example, large container sizes drive down the number of kanban
needed. Items that have long lead times require more kanban in the system, as
do products from unreliable suppliers. As the number for kanban increases, so
does the level of inventory. Inventory is the price paid for unresolved problems
or waste.

The next calculation the team must perform determines the location of
the order frequency cards on the kanban board. The location at which the
team places these special cards establishes how many consumption signals
(kanban cards) must accumulate to reach the authorization line on the
kanban board. This calculation must be performed for all club heads con-
trolled via kanban.

The order frequency card location is calculated as follows:

Order Frequency Card Location = 3 Average Daily Container

Demand 3 Order Frequency
Size
4 +1

Let’s look at the IL30 for an example.

Product [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

IL30 50 1.0 1.0 0.5 10 13

44
 THE NUMBERS

The order frequency for the IL30 head is one day. The average daily
demand for the IL30 is 50 heads. One kanban card will be attached to each
container, and each container holds 10 heads.

Order Frequency Card Location = 3Average Daily Container

Demand 3 Order Frequency
Size
4 +1
Order Frequency Card Location for IL30 = 3(50 x 1) / 104 + 1
Order Frequency Card Location for IL30 = 6

This means that the order frequency card location, indicated by a black
checkered card, is the sixth card position under the authorization line on
the kanban board. Five kanban cards must accumulate on the kanban board
in order for the authorization line to be reached for the IL30 head.

ORDER FREQUENCY CARD LOCATION

MACHINE CENTER 1 MACHINE CENTER 2

# of Positions Under # of Positions Under

Head Authorization Line Head Authorization Line

IL30 6 PR20 15
DR30 5 PWR20 16
DL10 4 IR10 21
DL20 4 IR20 21
PWL10 7 IR30 21
PL10 6 IL10 31
DR20 5 IL20 31
DL30 5 DR10 25

NOTE
Be aware of the effects of rounding during the order frequency card location
calculation process. Rounding up means that you will be setting up an item less
frequently, increasing capacity—as opposed to rounding down—setting up
more frequently, thus reducing capacity. The impact of deciding to round down
can significantly reduce capacity when applied to several products.

After the team completes the calculation process for Machine Centers 1
and 2, they check to see if the time value of the inventory seems to be cor-

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 CHAPTER III

rect. A good approach to testing the robustness of the team’s solution is to

simulate it in a training room. Here, the team can see, in advance, how
“fault-tolerant” the solution is under circumstances such as extremes in
demand or machine downtime.

WHAT IS A KANBAN FLOW DIAGRAM?

The purpose of developing a kanban flow diagram is to help the kanban

kaizen team better visualize what the new process will actually look like and
where, in the factory work area, key attributes of the kanban pull system
will be physically placed. As such, the diagram should be drawn approxi-
mately to scale. It will also help in the process of generating the action
items list necessary for the team members to “Go-Do.” One technique in
creating the kanban flow diagram is to create it on flip chart size paper
using Post-its® to represent the key attributes.

The process for developing a kanban flow diagram is as follows:

1. Illustrate the supplying and consuming process.
2. Illustrate the kanban board position in the workplace.
3. Illustrate the supermarket position in the workplace.
4. Illustrate the milk run path and frequency.

WHAT’S NEXT AT EMCA?

Emca’s activities have not gone unnoticed at Emca corporate. Today, Emca’s
other divisions are sending “scouts” to Emca Golf in order to benchmark
them and learn their best practices. But Emca Golf still has a great deal to
do to realize their “1st generation future state.”

Near-Term Focus
Emca Golf’s kanban team must now implement the kanban system they
designed. This means they must:

46
 THE NUMBERS

• Make it real on the factory floor.

• Train those who will be using the system.
• Test the system.
• Adjust it as necessary.
• Properly maintain their new kanban pull system.

In doing so, they will further expand their knowledge of kanban pull
systems and attain the many benefits they were seeking.

Mid-Term Focus
Emca Golf’s mid-term focus will address the various kaizen burst opportuni-
ties remaining on their value stream map. Prioritizing which opportunities
to attack first will require some speculation (also known as “what-iffing”) as
to the overall impact on the value stream.

Emca Golf needs to ask questions such as, Which improvement will
have the greatest positive impact on the customer? Will it be if they:

• Conduct a machine reliability kaizen on Machine Center 1 and as a

result, its uptime increases from 60% to 90%?
• Conduct a set-up reduction kaizen on Machine Center 2 that reduces the
set-up time from 30 minutes to 8 minutes?
• Extend kanban to raw material suppliers?
• Extend flow to include packaging?

An important outcome of robust “what-iffing” with a value stream is

gaining an understanding of the synergistic effect the next improvement
has upon improvements already made. For example, if Emca decides that its
next improvement focus would be to reduce the set-up time on Machine
Center 2 and achieve a new changeover time of 8 minutes, the impact on
the kanban pull system could be dramatic. Depending on how Emca decides
to “spend” the new capacity they create, a complete kanban recalculation
would be required, and the result would be an even greater reduction of
replenishment lead times, and even lower lot sizes. By performing this

47
 CHAPTER III

“what-iffing” process, the value stream map truly guides the improvement
process and ensures that improvements are “connected” to each other. This
is how organizations avoid the “pocket of excellence” syndrome.

Long-Term Focus
Some surprises will occur at Emca Golf as they progress along their improve-
ment journey. Their success with the initial lean implementation efforts will
heighten an organization-wide sense of awareness about how much improve-
ment potential really exists. They will be surprised to realize the magnitude
of the improvement possible at Emca. They will understand that major
improvement is possible on a scope broader than that illustrated on the
future state value stream map for the golf club operation. This is typical of
organizations poised to change their culture.

Emca will change their improvement perspective from “Lean Manufac-

turing” to “Lean Management,” or from “doing lean” to “being lean.”

Management at Emca Golf will truly “see the light.” They will begin
planning a lean function within Emca Golf that is staffed with full-time,
certified lean managers.

They will create an annual improvement resource plan that offers the
best mix of internal and external expertise. This will allow them to develop
a broad in-house “improvement competency,” one that is capable of effec-
tively deploying a wide array of improvement tools and methods.

Emca Golf will link their improvement know-how and speed directly to
the strategy of the organization. By doing, so they will leverage their new
improvement competency as a competitive weapon in their markets.

Some of the advanced tools and skills they will learn and internalize
include:

• How to apply lean to their product and process design functions.

• How to apply lean in non-manufacturing, administrative processes.

48
 THE NUMBERS

• How to integrate six sigma concepts with lean.

• How to improve the culture to the point where employees embrace con-
tinuous daily improvement as an aspect of their jobs. (For starters, every
employee is expected to identify and rapidly implement 50 low-cost or
no-cost improvements per year.)
• How to change management’s role gradually to one of enabler and sup-
porter of employee continuous improvement activity based on the scien-
tific method.

A Bias for Action

A key improvement enabler for Emca is their ability to consistently demon-
strate a bias for action. In the following chapter, we provide you with some
tools to help you “Go-Do,” so that you too can get to the action.

49
 CHAPTER IV

Some Tools to
Help You “Go-Do”

r A suggested implementation strategy

r The kanban kaizen event
– General and specific preparation check sheets
– Event agenda
– Event facilitation guidelines
– Product data sheets
– Suggested supplies checklist
– Blank forms

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 CHAPTER IV

A SUGGESTED IMPLEMENTATION STRATEGY

Enterprisewide kanban pull system implementation first requires a well-
thought-out strategy. The amount of time required to achieve full imple-
mentation of this strategy is a function of the scope of the specific value
stream and the resources dedicated to the implementation process. The fol-
lowing are typical implementation strategy considerations and milestones.

Basic Precepts
• The implementation strategy is built upon previous improvements and is
integrally linked to your future state vision.
• We encourage you to “start close to home.” Develop an internal kanban
pull systems implementation competency before taking the methodology
to external suppliers.
• If you need help—ask for it.

Preparation Work
• Product family definition must be determined.
– Many possible approach models for product family definition are avail-
able: by supplier, function, engineering content, processes, markets, etc.
• Value stream mapping (current state and future state) must be
performed.
— Collect key data points and verify where continuous flow is not possi-
ble. These areas are targeted for kanban pull system implementation.
• A requirements study must be performed.
• Evaluate the impact of the current state consuming process scheduling
approach. Also, assess set-up times and process reliability impact.

Implementation Strategy Execution

• Focus internally first. Identify the internally produced products that
should (and should not) be placed under kanban control. This determi-
nation will be the result of a balanced consideration of the demand
volume, order frequency, and lead time of each product.

52
 SOME TOOLS TO HELP YOU “GO-DO”

• Conduct kanban awareness training:

– One-day key concepts workshops
– Target audience
- Client internal trainers
- Process owners
- IT support personnel
- External suppliers
• Conduct kanban kaizen events (with your internal trainers):
– Include in the training
- Additional current state metrics
- Requirements studies
- Order frequency determination
- The new pull system’s design
- New pull system prediction metrics
- The new pull system’s implementation
- Test/fine tune the new pull system
• Integrate kanban into information system architecture.
• Perpetuate kanban kaizens with internal, certified training resources.
• Continually restate current and future state value stream maps as part of
the continuous improvement journey.
• Deploy additional lean “tools” to further compress manufacturing lead
time and reduce inventory.

External Focus
• Create a simple, but well documented, measurement system:
– Establish a baseline of performance.
– Share the measurements and the information on current performance
with all suppliers.
• Conduct kanban pull system roll-out meeting(s) with suppliers:
– Share your internal successes and misses with them.
– Explain the resources available to help them.

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 CHAPTER IV

• Identify the externally produced products that should (and should not)
be placed under kanban control:
– This will also establish the hierarchy of which suppliers you fold into
the process first.
• Repeat the above-specified steps regarding kaizen, integration, perpetua-
tion, and deployment.

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 SOME TOOLS TO HELP YOU “GO-DO”

A FEW KANBAN KAIZEN EVENT TIPS

• A qualified individual must facilitate the events.
• Define success up front.
• 50% improvement is good as a start.
• Focus on low-cost/no-cost solutions.
• The quality of the event planning determines the outcome.
• Do not try to establish too much change at one time — establish reason-
able boundaries.
• Identify solid subteam leaders.
• Keep subteams staffed between five to seven people.
• Make sure each subteam has a member knowledgeable in the use of
computer spreadsheet applications.
• Let event members know, in advance, that they are in for some hard
work and long nights.
• Make sure that all the members work respectfully as a team without
pulling rank.
• The more improvement ideas, the better for the company.
• Celebrate success with a vengeance!
• Pick a different area and repeat the process soon.

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 CHAPTER IV

PRE-EVENT PREPARATION CHECKLIST

• Is this event consistent with achieving the future state vision?
• Has a 5S level of 3 (demonstrated ability to sort, set in order, and
shine)—minimum—been maintained in the processes/areas involved?
This is important because if the areas involved don’t have the discipline
to maintain workplace organization, they will not have the discipline
necessary to maintain a manual production control system.
• Is it clear how this event is linked to the future state value stream map?
Does sufficient opportunity exist to improve the key metrics and transfer
knowledge?
• Do any major issues exist that threaten a positive outcome (i.e., produc-
tion or change resource shortages, conflicting activities, unwillingness
to disrupt)?
• Have you publicized the event for awareness to the entire plant
population?
• Have you drafted a preliminary agenda?
• Does a positive spirit exist in the attitude of supervisors and workers?
• Has management sponsored and/or is it willing to participate in
the event?
• Has a discussion occurred with management regarding expectations and
likely outcomes? Are you aligned?
• Are the area workers and supervisors clear on how their jobs and respon-
sibilities may be impacted?
• Have you communicated a detailed agenda with clearly defined
boundaries?
• Have you identified the team membership: multishifts, internal, or
external suppliers/customers?
• Have you determined the kaizen team membership and limited total
team size to 20?
• Have you anticipated subteams and identified subteam leaders?
• Have you conducted a team members’ and supervisors’ meeting, in
which the details of the event were addressed?

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 SOME TOOLS TO HELP YOU “GO-DO”

• Have you arranged a meeting room for the entire kaizen team and an
additional breakout room for subteams?
• Have food, beverages, and audio-visual equipment been supplied?
• Have you determined the supplying/consuming processes to be linked
via kanban? Limit to 25 part numbers per subteam of five members.
Consider:
– Chronic shortages.
– Chronic overages.
– A-B-C-D analysis findings.
– “Dead” inventory items.
• Have you mitigated management expectations that inventory levels will
always decrease for all items placed under kanban control?
• Have you performed pre-event communications to all impacted?
• Have you completed Product Data Sheets for all items targeted for place-
ment under kanban control?
• Have you ordered and verified that all the necessary materials and sup-
plies are available (see the Supplies Checksheet)?

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 CHAPTER IV

SUGGESTED KANBAN KAIZEN EVENT AGENDA

Day 1 A.M.:
• Management kick-off
• Kanban pull system training

Day 1 P.M.:
• Kanban pull system training (continued)
• Subteam formation (based on the number of focus areas)

Day 2 A.M.:
• Current state process definition
• Review and verify Product Data Sheets (pages 61-62)
• Complete Product Data Sheets as necessary (this should be minimal)

Day 2 P.M.:
• Perform a requirements study and order frequency determination
• Complete Kanban Calculation Worksheets
• “Verify” Kanban Calculation Worksheets
• Future state visioning
• Develop Kanban Pull System Flow Diagram
• Action item definition

Day 3 A.M. & P.M.:

• Action item execution (i.e., design and build boards, cards; build bin
holding systems, etc.)
• Draft a new standard operating procedure (SOP)
• Test the new kanban pull system
• Refine the system as necessary
• Update SOP as necessary

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 SOME TOOLS TO HELP YOU “GO-DO”

Day 4 A.M.:
• Train all necessary in SOP
• ID open action items and completion dates
• Develop team report-out presentations

Day 4 P.M.:
• Final team report outs, and celebration

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 CHAPTER IV

KANBAN KAIZEN EVENT SUB-TEAM LEADER CHECKSHEET:

• Review and verify that the product data sheets for the products to be
placed under kanban control are complete and correct.
• Lead the data collection process for any missing information your
team needs.
• Lead the calculation process with your team and resolve any issues that
are subjective in nature.
• Lead the new process visioning/brainstorming discussions.
• Design on paper the Kanban Flow Diagram. Be sure to indicate:
– Board positioning
– Bin and line stock positioning
– Card and product paths
• List the action items necessary to get the paper design to become reality.
• Lead the interim management report out.
• Lead the execution of the identified action items.
• Lead the creation of the new standard operating procedure.
• Test the new process and make any adjustments as necessary.
• Train all necessary in the new SOP.
• Identify open action items and assign people responsible for closure.
• Lead the development of the final report out.
• Lead the follow-up process regarding open action items.

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 SOME TOOLS TO HELP YOU “GO-DO”

BLANK FORMS

Kanban Pull System Product Data Sheet

Date: Sheet : of

Product Name: Storage Location(s):

Product ID Number: Current Replenishment Method:
Family/Comm. Group: A-B-C-D Designation:
Number of Customers:
Product Inventory Data:
Storage Qty.: Current Inventory:
Qty.:
Container Qty.: DOS:
Storage Method(s): 12-Month Inventory Profile:
(Provide a graphical
distribution)
Planned Safety Stock: Current Min./Max. Controls. (as applicable)
Qty.: Min.
DOS: Max.

Consumption Data:
12 Month Historical

n n
Monthly Consumption distribution: (Provide this distribution)

Is consumption cyclical? Y N
If yes, describe nature:
Order Qty. Distribution: (Provide this distribution)

Average:
Range:
Order Frequency:

n n
Average:
“Drop-In” Sensitive? Y N
Frequency:
Qty. per Occurrence:
Future
Existing Firm Order Data: (provide this information)
Existing Forecast Order Data: (provide this information)

n n
Factors Likely to Significantly Alter Next 12 Mo. Demand:
Obsolescence? Y N
Other: (list)

Current Daily Demand Determination:

(Continued on next page)

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 CHAPTER IV

Kanban Pull System

Product Data Sheet, continued
Date: Sheet : of

Supplier Data:
Supplier Name: (internal or external)

Total # of P/N’s Produced By this Supplier:

List along w/A-B-C-D Designator: (provide this data)

Current Process Cycle-time:

Typical Lot Size(s) and Range:
Changeover Time
Average (typical):
Range:
Current Run Frequency
Average (typical):
Range:
Shortage History (12-Mo.)
# of Occurrences:
Qty. per Occurrence:
Date of Each Occurrence:
Reason for Each Occurrence:
Quality Defect Rate:
Current Capacity:
# of shifts/hrs. available:
# of shifts/hrs. operational:
Key Equipment Data
Current Reliability
MTBF
MTTR
OEE
Constraint:

62
 SOME TOOLS TO HELP YOU “GO-DO”

Kanban System Kaizen Event

Suggested Supplies Checksheet
QUANTITY ITEM
1 Training room with (9) 3′ 3 6′ tables, chairs, projector: O/H & LCD, screen, VCR
1 per team Flip charts & stands
1 per team Team break out areas
1 per team Laminating machine per team
1 set Laminating supplies (enough for 300, 8.5″ x 11″ sheets)
3 per team White board, Hunt® display board #951450 or equivalent (40″ x 60″)
4 each 20′ roll of plastic coated wire
10 rolls Plastic tape: black, 1/4″ wide
500 each Plastic sleeves to hold kanban cards (packing slip holders work nicely)
3 each Single-hole punch
1 each Paper: ream, white 8.5″ x 11″
100 each Card stock: white, red, black, 8.5″ x 11″
1 per team Screwdrivers and Phillip’s head screws
1 per team Hand pliers
1 per team Hand wire cutter
1 per team Paper shear
1 each Velcro ®: roll, self-adhesive, 1″ wide
30 pkg. Adhesive 1-1/4″ adhesive clips
5 pkg. each Stick-on letters and numbers, 2″: Black, red, yellow, green
1 unit Label maker: Handy-mark by Brady ® (or equivalent)
1 set Label maker supply kit: mix of colors and widths
1 per team Packaging tape: clear
1 per team Yardsticks
1 per team Scissors
Teams will need regular access to:
1 per team Color printers
1 per team PC’s with spreadsheet software installed with autosave add-in functional
As checked off, include:
Materials to build parts presentation racks (tubing or wood)
Right-sized containers
Timecard rack
Digital camera

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 CHAPTER IV

REQUIREMENTS STUDY FORMS

RESOURCE CYCLE TIME ANALYSIS WORKSHEET

Component Part Resource #1 Resource #2

Number Cycle Time Cycle Time

MACHINE ALLOCATION TABLE

Component Part
Number A-B-C-D Resource #1 Resource #2

64
 REQUIREMENTS STUDY WORKSHEET

COMPONENT:

Component Part Average A-B-C-D Resource #1 Resource #2 Selected Resource #1 Resource #2

Number Daily Demand Designation Cycle Time Cycle Time Resource Loading Loading
ID

65
SOME TOOLS TO HELP YOU “GO-DO”

TOTALS:
 CHAPTER IV

ORDER FREQUENCY DETERMINATION FORMS

EQUIPMENT ANALYSIS WORKSHEET

Capacity Gross Net

per Shift Number of Machine Machining Set-Up Time Set-Up Time
Resource ID (sec.) Shifts Capacity (sec.) Uptime % Capacity (sec.) (minutes) (sec.)
Resource # 1
Resource # 2
TOTALS:

SET-UP OPPORTUNITIES CALCULATIONS

Resource ID Net Capacity — Resource Loading Time = Time Available to Set up

Resource # 1
Resource # 2

Resource ID Time Available for Set Up / Set up Time = Number of Set-up Opportunities/Day
Resource # 1
Resource # 2

SET-UP DISTRIBUTION WORKSHEET

MACHINE CENTER 1 MACHINE CENTER 2
Component Average Daily Component Average Daily
Part Number Demand Distribution Part Number Demand Distribution

Total Allocations Total Allocations

Total Opportunities Total Opportunities
Discretionary Discretionary

66
 ORDER FREQUENCY DETERMINATION WORKSHEET

Resource # 1 Resource # 2
1 / Distribution 1 / Distribution
No. = “Order No. = “Order
Component Part Number Distribution No. Frequency” (days) Component Part Number Distribution No. Frequency” (days)

67
SOME TOOLS TO HELP YOU “GO-DO”

Total No. Distributed Total No. Distributed

Flex Capacity Time (sec.) Flex Capacity Time (sec.)
 CHAPTER IV

KANBAN CALCULATION FORMS

KANBAN CALCULATION WORKSHEET

RESOURCE:
Component
Part Number [( Average Daily Demand x (Order Frequency + Lead Time + Safety Time)] / Container Quantity = Number of Kanban

Note: Remember that order frequency should be at least equal to lead time in order to prevent signals from crossing.

ORDER FREQUENCY CARD LOCATION WORKSHEET

RESOURCE # 1 RESOURCE # 2
Component Component
Part Number # of Positions Under Authorization Line Part Number # of Positions Under Authorization Line

68
 CHAPTER V

Managing the System

69
 CHAPTER V

MANAGING THE MIXED MODEL KANBAN SYSTEM

Now that the kanban system is physically designed and in place, Emca
must develop and communicate a plan to manage the system on a daily
basis. The plan must cover who is responsible for the various aspects of
managing the system, and it must define normal and abnormal conditions
so that the system users can respond quickly and appropriately if abnormal
conditions occur.

Because kanban is a production control function engineered into the

value stream, the value stream manager is ultimately responsible for the
health, well-being and continual improvement of the mixed model kanban
system. It is the value stream manager that must make sure everyone
adheres to the documented procedures for operating the system. The value
stream manager will require support from the various kanban system users
to help him or her be successful. First and foremost, it is through the proper
and diligent use of the kanban system that production control, material
handlers, and supplying and consuming process owners provide the best
support. System users can provide an additional level of support by giving
the value stream manager real-time kanban system performance feedback,
especially regarding the abnormal conditions discussed in this section, and
by sharing additional improvement ideas.

Under normal conditions, the production control manager, with fre-

quent involvement of the value stream manager, will need to manage the
day-to-day operational situations that commonly arise. Such situations
include:

• Introducing single use kanban cards

• Tracking and adjusting kanban equation variables
• Introducing new products into the kanban system
• Removing obsolete products from the kanban system
• Transitioning from permanent to single use kanban cards
• Transitioning from single use to permanent kanban cards

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 MANAGING THE SYSTEM

Every once in a while, an abnormal condition will present itself. When

this happens, it is critical that the kanban system users identify the condi-
tion as soon as it occurs and immediately bring it to the attention of either
the value stream manager or the production control supervisor. Abnormal
conditions include but are not limited to:

• All items achieve the authorization line at the same time

• No items achieve the authorization line for an extended period of time
• Kanban cards accumulate above the authorization line
• Lost kanban cards
• Excessive delays in material handling (container and kanban card
movement)

What follows are some methods on how to respond properly to these

“normal” and “abnormal” conditions.

MANAGING NORMAL CONDITIONS

Introducing Single Use Kanban Cards
Although it was not the case with Emca Golf, it is common that most of
the part numbers produced at a supplying resource and controlled using
a mixed model kanban system are actually controlled through single use
kanban cards. The 80/20 rule supports this: 80% of total unit demand is
typically derived from 20% of the products manufactured. The fact that
most products can be controlled by single use kanban cards is good news
because it makes controlling and managing the mixed model kanban sys-
tem much easier. As discussed earlier, single use kanban cards are used to
control the “D” or special order items. “D” items are consumed so infre-
quently that it does not make sense to always maintain inventory for them
in the supermarket (as would be the case if we controlled them using per-
manent cards). We know the capacity exists at the supplying process to pro-
duce these “D” items, because an element of performing the order
frequency determination process was to estimate how much flexible capac-
ity should be set aside to set up and produce them. When the consuming

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 CHAPTER V

process signals that one of these special order items is needed, it is typically
the responsibility of production control to place the single use kanban card
on the kanban board in the column labeled “single use.”

Machine Center 1 Kanban Board

PWL
Single Use Past Due IL30 DR30 DL10 DL20 PL10 DR20 DL30
10

Comments and Notes

Emca production control needs to think carefully about the timing of

placing the single use kanban card on the kanban board. Factors to consider
include:

1. The lead-time impact to the other consuming processes of permanent

card products produced by the supplying resource, and
2. The required delivery date/time of the single use product to the con-
suming process.

Tracking and adjusting kanban equation variables

Emca Golf production control is primarily responsible for maintaining the
integrity of the kanban calculation process.

72
 MANAGING THE SYSTEM

Number of Kanban = Average Daily Demand x (Order Frequency + Lead Time

+ Safety Time) / Container Quantity

Demand: Keeping a careful eye on the current demand for each item
and its demand pattern is a vital task that Emca production control must
perform in properly managing their mixed model kanban system. Factors
that influence the nature of the demand pattern include seasonality and
where the product is in the lifecycle. These factors need to be well under-
stood. As significant shifts in demand occur, the order frequency and kanban
calculation processes will need to be updated by Emca production control.

Order Frequency: Adjusting order frequencies is a relatively common

activity. Very few elements of manufacturing are static, especially in an
organization like Emca Golf, which is aggressively pursuing continuous
improvement. The most common drivers of the need to adjust order fre-
quency include changing the number of items controlled by kanban, fac-
tory capacity changes such as changes in shift structure or the number of
supplying process resources/machines, and lean improvements such as
improving set-up times and improving machine reliability. Staying on top of
these changes is vital. They require Emca to update the order frequency
determination, which in turn requires them to recalculate the number of
kanban required. If Emca were to fail to do so, they would be placing the
value stream in jeopardy.

Lead time: The most common reasons requiring modification of the

lead time element of the kanban equation are changes occurring in the lot
sizes of the products produced at the supplying resource, cycle time
improvements at the supplying resource, and changes in the number of
products the supplying resource is responsible for producing. As any of
these changes occur at Emca Golf head fabrication, production control must
recalculate the number of kanban required in the value stream and either
add or remove kanban as appropriate.

Safety time: Common reasons to adjust the safety time element of

the equation relate to changes in the reliability of the supplying process
controlled with kanban and changes in the stability of average daily
demand. For example, as reliability improvements occur at the supplier of

73
 CHAPTER V

the golf club head raw material, less safety time inventory is necessary. The
reduction in safety time inventory necessitates a recalculation of the num-
ber of kanban required.

Container Quantity: Altering container quantity is a common occur-

rence. Most frequently the container quantities become smaller as organiza-
tions reduce inventory levels and progress toward the ideal value stream
state of continuous one-piece flow. Altering container quantities is also the
most convenient way of keeping the number of kanban in the value stream
at a manageable level.

NOTE
It is important that Emca keep an accurate history of all changes made to
the kanban system so as to facilitate future problem solving and improve
organizational understanding of mixed model kanban system functionality.

Introducing New Products Into the Kanban System

As new products are introduced in the marketplace, additional production
requirements will be placed on the supplying process. Assuming that the
new products are designated “A” or “B” items, Emca Golf production con-
trol must completely redo the requirements study, the order frequency
determination, and the kanban calculation process. Kanban cards must be
created, the kanban board must be modified, space in the supermarket must
be created, and inventory for the new items must be positioned in the
supermarket.

Removing Obsolete Products From the Kanban System

If Emca Golf were to declare products obsolete (assuming no “spares”
requirements exist), the supplying process would obviously no longer have
to produce them. If these obsolete products were controlled with single use
kanban cards, then Emca production control would simply not have to
worry about issuing any more of them to the supplying process. If the obso-

74
 MANAGING THE SYSTEM

lete products were controlled by permanent cards, then the following activi-
ties must occur.

1. The kanban board and supermarket must be modified to exclude refer-

ences to the obsolete items.
2. A new order frequency determination must be performed on the bal-
ance of the parts controlled by kanban at the supplying resource,
because the capacity of the supplying resource is affected by the obso-
lescence.
3. The number of kanban must be recalculated along with the order fre-
quency card location.

Transitioning From Permanent to Single Use Kanban Cards

If the demand level of a product produced at Emca Golf was to decrease to
the point where it no longer made sense to control the product with perma-
nent cards, then production control would have to completely redo the
demand requirements study, the order frequency determination, and the
kanban calculation process. Additionally, the inventory in the supermarket
that traditionally exhibited permanent cards must now exhibit single use
cards. The inventory in the supermarket must be depleted, which will free
space in the supermarket for new products, and the kanban board must be
modified to exclude reference to the item.

Transitioning From Single Use to Permanent Kanban Cards

If, on the other hand, the demand level of a product produced at Emca Golf
was to increase to the point where it now made sense to control the product
with permanent cards instead of a single use card, then production control
would have to completely redo the requirements study, the order frequency
determination, and the kanban calculation process. Additionally, inventory
for the item needs to be created and placed in the supermarket exhibiting a
permanent card. Space would need to be created in the supermarket for the
new permanent product, and the kanban board would need to be modified
to provide a designated column for the item.

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 CHAPTER V

MANAGING ABNORMAL CONDITIONS

All Items Achieve the Authorization Line at the Same Time
When this condition occurs, the mixed model kanban system is telling the
users it needs more capacity. The quickest and simplest way to create this
capacity is to lower the position of the order frequency cards on the kanban
board. The capacity you gain will come from setting up products less fre-
quently than before. The penalty to be paid for gaining this capacity is
longer lead times because the lot sizes will increase.

No Items Achieve the Authorization Line for an Extended

Period of Time
When the system users observe that the authorization line is not being
achieved for any products for an extended period of time, issues related to
demand exist. The situation may be caused by disruptions in consumption
by the consuming process. Possibly, their line is down. Another possible
cause is that the average daily demand numbers may be significantly over-
stated. In the case of the latter, production control must completely redo
the requirements study, the order frequency determination, and the kanban
calculation process. Changes in the position of the order frequency card
may also be necessary.

Kanban Cards Accumulate Above the Authorization Line

When kanban cards accumulate above the authorization line, either the
supplying process is not producing and delivering within the estimated lead
time, or the consuming process is consuming at a rate significantly higher
than originally planned. In the case of the former, the root cause typically
turns out to be an inaccurate estimation of the average number of orders in
the FIFO queue at the supplying process. If the root cause turns out to be
the latter then production control must redo the requirements study, the
order frequency determination, and the kanban calculation process.
Changes in the position of the order frequency card may also be necessary.

76
 MANAGING THE SYSTEM

Lost Kanban Cards

Production control must perform a root cause analysis as to why kanban
cards are being lost. In most cases, it turns out to be either a discipline or
training issue. In both instances the opportunity exists to mistake-proof the
methods of kanban card attachment. Additionally, changes to the frequency
of auditing cards may be necessary in the short term.

Excessive Delays in Material Handling

(Container and Kanban Card Movement)
Production control must perform a root cause analysis as to why material
handling delays are excessive. In most cases, it turns out to be either a disci-
pline or training issue. In some cases the need to develop precise material
handling schedules with assigned responsibility may be necessary to ensure
timely kanban card and container movement.

77
CHAPTER V

78
 CHAPTER VI

Frequently Asked
Questions

79
 CHAPTER VI

WHAT HAPPENED TO ALL THE INVENTORY?

All shopfloor operators will need to be trained so they do not panic when
they no longer see the oceans of inventory in the workplace. The operators
on the implementation team are the means of communication to the work-
force on this issue.

WHAT ABOUT THE PIECEWORK INCENTIVES CURRENTLY IN PLACE?

If the violation of kanban pull rules and overproduction are to be pre-

vented, piecework mentality and systems must be abolished. Meeting takt
time and the level of multiskill capabilities of your employees are now
your new priorities.

HOW WILL THE SYSTEM BE MANAGED?

Your new kanban-based production control system must be documented.

You must, at a minimum, clearly explain:
1. How the entire system is designed to work.
2. Who is responsible for each task within the system.
3. Who is responsible for managing the system.
4. Who will audit the system, and how frequently that audit will occur.
5. How frequently the new kanban pull system will be re-evaluated for
necessary adjustments.
6. The standards to be met in the system (i.e. card design, kanban board
design, container color coding).
7. Appropriate graphical flow diagrams.
8. An explanation of how the system’s users will be trained in their role to
use the system.

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 F R E Q U E N T LY A S K E D Q U E S T I O N S

WHAT ABOUT “ALLOCATION”?

Allocation is an issue that often presents itself early in kanban pull system
implementation. Allocation is a process in which material is electronically
marked as sold in the computer system, but is not physically removed and
shipped. What happens to the kanban card? Our advice is to NOT hold the
cards “hostage” by delaying their placement on the kanban board. When the
product finally ships, the supplying process will experience huge demand
spikes. If you are certain that that the material will actually ship, the material
should be removed from its rack and placed in a waiting-to-ship area. The
kanban cards should be placed on the kanban board. A conscious effort should
be made to compress the allocation time frame and reduce the manufacturing
lead time for the product, thus possibly negating the need to allocate altogether.
Efforts to further level the customer demand should also be attempted.

WHAT ROLE DOES MRP PLAY?

A long-range demand, materials, and capacity planning capability is still

needed and MRP can assist with this. MRP can no longer play a role in the
daily execution of production control for items placed under kanban con-
trol. That is the job of the kanban pull system.

WHAT WOULD HAPPEN IF WE TRIED TO RUN THE KANBAN

PULL SYSTEM WITHOUT “PRIMING” THE SYSTEM FIRST?

Do not try to run the system without priming it first or try to run the system
from an unsteady state. This is one of the most frequently made mistakes
when implementing kanban. At best, it will lead to difficulty in managing
the kanban pull system, and at worst it could lead to the failure of the sys-
tem. An unprimed kanban pull system will not work properly because while
you are building inventory for the supermarket, you may not be responding
to the immediate needs of the consuming process. Take the time to build
and properly position the needed inventory. Do not jeopardize the kanban
pull system implementation process by creating “artificial” shortages at the
consuming process.

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 CHAPTER VI

HOW OFTEN SHOULD YOU RESIZE A KANBAN PULL SYSTEM?

The system must be resized as changes in consumption and supply variables

occur. Also, in the early stages of a product being placed under kanban con-
trol, we encourage you to verify the kanban sizing more frequently. Addi-
tionally, feedback from the users of the kanban pull system may indicate
kanban resizing is necessary. Neglecting to resize the system is a frequent
cause of failure.

WHAT HAPPENS IF I LOSE KANBAN CARDS?

The system is at risk of failing. By losing kanban cards, we can lose visibility
of two very important things. First, if the card was on a container when it
was lost, we no longer know if the material the card was attached to is
authorized. Secondly, if the kanban card was lost after the consuming
process emptied the container, the supplying process will be unaware that
consumption occurred. Therefore, replenishment will be delayed because
the authorization point will be reached that much later. This increases the
risk of a shortage occurring at the consuming process.

WHY NOT JUST FORGET THE KANBAN CARDS AND BOARD

ALTOGETHER AND JUST USE PAINTED SQUARES ON THE FLOOR,
OR JUST EMPTY CONTAINERS?

By using the “kanban square on the floor” technique, authorization-to-pro-

duce priority will be difficult to maintain in a high-mix environment. It also
assumes the consuming and supplying processes are in the line of sight of
one another.

HOW WILL I KNOW IF I HAVE LOST KANBAN CARDS?

By periodically auditing (counting) the number of cards in the system, you

will discover if you have lost any cards.

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 F R E Q U E N T LY A S K E D Q U E S T I O N S

DOES A MANUAL KANBAN PULL SYSTEM DISCONNECT INVENTORY

DATA FROM MY IT SYSTEMS?

Yes. The inventory data is kept with the inventory via the kanban card.

WHAT ABOUT “ELECTRONIC KANBAN”?

We generally do not recommend using electronic kanban, especially at the
early stages of implementation. We say this for several reasons. First, most
of the “solutions” we have come across are nothing but a repackaging of
“old school” reorder-point logic. As of the writing of this workbook, we
have heard rumors of some software vendors attempting to “get it right,”
but they are still working on it. Secondly, without the user understanding
the logic of kanban pull (by being involved with implementing it manually
first), you would just be throwing another piece of software at them. Also,
all electronic kanban pull systems are dependent on accurate data input and
timely computer transactions. This can be problematic, as data integrity
haunts most companies. In addition, unless you are in the software develop-
ment business, computer transactions are non-value-added by definition.

WHO IS RESPONSIBLE FOR MOVING THE EMPTY AND FULL

CONTAINERS AND CARDS, THE MILK RUN PATH?

We strongly suggest that the material handler or water beetle perform this
so your value adders can focus on adding value. These people perform a
vital role in the kanban pull process. In many companies, their roles and
images change as a result.

WHAT IS DIFFERENT WHEN IT COMES TIME TO EXTEND KANBAN

PULL TO EXTERNAL SUPPLIERS?
Not that much will really change. The signaling method may have to
change (the use of web cams may help with this). All of the variables in the

83
 CHAPTER VI

kanban equation still apply, but they need to be considered in a different

context. Your supplier will need to tell you what their order frequency is.
No, you cannot determine it for them! The lead time is likely to be longer,
and safety time issues may be different.

Several other factors are typically re-evaluated while extending kanban

externally. They include supply base consolidation initiatives, improving
the sharing of accurate, long-term forecast data, and a better understanding
of the suppliers’ shipping logistics. Of course, it helps to go into it with a
positive relationship based on mutual benefit and trust, rather than the
“rammer-jammer” mentality to working with your supply base.

HOW I MANAGE THE SITUATION WHERE THE SUPPLYING

DO
RESOURCE I PLACE UNDER KANBAN PULL CONTROL MUST ALSO
PRODUCE PRODUCTS FOR OTHER CONSUMING PROCESSES THAT ARE
NOT IN MY AREA OF KANBAN IMPLEMENTATION RIGHT NOW?

In this instance, at the order frequency determination stage, you must set
aside a certain amount of capacity at the supplying resource for the pro-
duction of these articles.

WHAT ABOUT THE “GOLDEN ROPE”?

The term “Golden Rope” was coined at Toyota. After a kanban kaizen event,
the situation may arise where the existing inventory level in the supermar-
ket may be very large compared to the inventory authorized by the kanban
pull system. This condition may prevent the permanent cards from circulat-
ing, thus preventing the system from being tested as designed. The Golden
Rope concept directs assigning single use kanban card(s) to the excess
inventory. Then the inventory should be removed from the supermarket
and placed in a separate area behind a “golden rope.” The inventory behind
the golden rope may be gradually consumed after proving the system works
with permanent kanban cards as designed.

84
 CONCLUSION
As is the case with most worthwhile endeavors, implementing kanban pull
will not be easy. However, understanding the principles of kanban, having a
reliable implementation method to follow, and anticipating the challenges
ahead makes the improvement effort much easier. We refer to this imple-
mentation method as “reliable” because when you follow the methodology,
it works. Conversely, when you do not follow the methodology or skip
steps, it does not work. So, do not skip any steps.

The task of trying to run and manage parallel production control sys-
tems—the old system and the new kanban pull system—will wear you down
over time. After you have conducted your initial pilot implementation, we
challenge you to aggressively implement kanban pull wherever it is appro-
priate in your value stream. Do not underestimate the magnitude of the
task. If you need help, do not wait long to ask for it. Good luck!

85
 GLOSSARY
Batch and queue: refers to the usual movement of part lots in mass-
production practices. Typically, large lots of a part are made and sent as a
batch to wait in queue for the next operation in the production process.
Contrast with one-piece flow.

Cell: a logical, efficient, and usually physically self-contained arrangement

of machinery, tooling, and personnel to complete a production sequence.
The cell enables one-piece flow and multiprocess handling.

Cellular manufacturing: manufacturing by the use of cells. See Cell.

Champion: an individual, from any level of the organization, who has the
authority and responsibility to inform, support, and direct a team effort to
implement and integrate a new tool, method, technique or technology, etc.
The champion is a first-line resource for all the participants and, in some
cases, has the authority to allocate the organization’s resources during the
life of the project. Also called lean champion or project champion.

Changeover: altering a process to accommodate a different product model.

Changeover time: the time between the last good piece off one production
run and the first good piece off the next run, producing at the target volume.

CNC machine: See Computer numerical control machine.

Computer numerical control (CNC) machine: a versatile and sophisticated

machine used in manufacturing for its complex motion-control capabilities,
which offer improved automation, consistent and accurate workpieces,
and flexibility.

Continuous flow: see One-piece flow.

Cycle time: specifically, the time that elapses from the beginning of one
operation or one part of a process until its completion. Operator cycle time

87
 GLOSSARY

is the total time for an operator to complete one cycle of an operation,

including walking, loading, unloading, inspecting, etc. Machine cycle time
is the time between when the “on button” is pressed until the machine
returns to its original position after completing the operation.

Defect: nonconformance in a product or part, or departure of quality from

the intended effect. In mistake-proofing terminology, a defect is not the
same as an error. A defect is the result of an error.

Discrete products: products typically made by the assembly of a compo-

nent parts.

Downtime: manufacturing time that is not useable because of equipment

problems, lack of materials, lack of necessary information, or operator
unavailability.

Five S (5S): an improvement process, originally summarized by five Japanese

words beginning with S, to create a workplace that will meet the criteria of
visual control and lean production. Seiri (sort) means to separate needed
tools, parts, and instructions from the unneeded and to remove the latter.
Seiton (set in order) means to neatly arrange and identify parts and tools for
ease of use. Seiso (shine) means to clean and inspect. Seiketsu (standardize)
means to require as the norm that everyone sort, set in order, and shine at
frequent (daily) intervals to keep the workplace in perfect condition, and
also to make use of visual control systems. Shitsuke (sustain) means to main-
tain the five S gains by training and encouraging workers to form the habit
of always following the first four S’s. Also called workplace organization and
standardization and referred to as the five pillars of the visual workplace.
(Safety concerns are sometimes added to the process and referred to as
the sixth S.)

Flexibility: the ability to rapidly respond to unforeseen circumstances.

Flow: the progressive achievement of tasks as a product proceeds along the

value stream, including design to launch, order to delivery, and raw materi-
als into the hands of the customer without stoppages, scrap, or backflows.
Flow can apply to the movement of information as well as material.

88
 GLOSSARY

Just-in-time: the first of the two major pillars of the Toyota Production Sys-
tem (the second being autonomation), just-in-time is a system for producing
and delivering the right items to the right place at the right time in the
right amounts, eliminating buffer inventories. This technique approaches
just-in-time when upstream activities occur minutes or seconds before
downstream activities, so that one-piece flow is possible. The key elements
of just-in-time are flow, pull, standard work (with standard work-in-process
inventories), and takt time.

Kaizen: composed of the Japanese kai, meaning “to take apart,” and zen,
meaning “to make good.” Kaizen is the gradual, incremental, and continual
“improvement” of activities so as to create more value and less non-value-
adding waste. Its success depends on the total commitment of the work
force to increasing efficiency and reducing costs.

Kaizen event: a planned and structured event that enables a group of asso-
ciates to improve some aspect of their business.

Kanban: meaning “signboard” or “signal” in Japanese. In the context of

production, it refers to visual production control signals.

Kanban system: in the context of production, it refers to a visual pro-

duction control system that signals the need to replenish the supplying
processes.

Lead time: the total amount of time required to get an order to the customer.

Lot: a volume of product that has been produced as a batch.

Manufacturing lead time: the amount of manufacturing time taken from

the issuance of raw material through the production process to the comple-
tion of the saleable product.

Material requirements planning (MRP): a computerized system used to

determine the quantity and timing of the supply of materials used in a pro-
duction operation. MRP systems include a master production schedule, a
bill of materials specifying each item needed, and information about cur-

89
 GLOSSARY

rent inventories from which to schedule the production and delivery of

needed items.

Material handler: a person on the production floor who paces the entire
value stream to ensure that integrity is maintained by the timely transport-
ing of material, containers, and kanban signals.

Mean time between failures (MTBF): a rating that indicates the average
ability of an item or system to perform a required function, under stated
conditions, without failure, for a stated period of time. It is determined by
dividing the time frame being analyzed by the number of breakdowns. It is
a reliability rating.

Mean time to repair (MTTR): a rating that indicates the average time
(rapidity and ease) in which maintenance operations can be performed to
either prevent malfunctions or to correct them if they occur. It is deter-
mined by dividing the total downtime for repairs by the number of repair
incidents. It is a maintainability rating.

Milk run: the routing of a supply or delivery vehicle to make multiple pick-
ups or drop-offs at different locations. The route of a material handler
within a factory is called a milk run.

Mixed-model: a value stream that is designed to accommodate multiple

product models.

MTBF: See Mean time between failures.

MTTR: See Mean time to repair.

One-piece flow: the manufacturing process in which product flows without

waiting through all necessary operations, one piece at a time, without back-
flows or excess inventory. This is also called single-piece flow. Contrast with
batch and queue.

Operation: an activity or activities performed on a product by a single

machine or person. Contrast with process.

90
 GLOSSARY

Order frequency: the frequency at which the consuming process will place
orders to the supplying process for the production of a component or product.

Order frequency determination: a method of establishing the net capabil-

ity of a resource to produce. Also quantifies the time available at each
machine center for set-up.

Paradigm: a closely held perception of reality, frequently unquestioned and

difficult to change, that conditions all our thinking about and our under-
standing of the world or some aspect of experience.

Pilot: an experimental task or exercise to determine the viability of a

concept.

Process: a sequence of operations (consisting of people, machines, materi-

als, and methods) for the design, manufacture, and delivery of a product or
service. Contrast with operation.

Pull: a system of production and delivery instructions in which replen-

ishment does not occur absent a consumption signal by the downstream
customer.

Push: conventional production, in which production schedules are pushed

along based on sales projections and availability of materials. It leads pro-
duction employees to make as much product as they can as fast as they can,
even if the next process is not ready to use the materials, which causes large
work-in-process inventories. Contrast with pull.

Queue: an accumulation of inventory authorized by a push signal.

Requirements study: the quantification and study of the amount of

resource consumption necessary to satisfy the needs of a consuming
process.

Safety time: the time (inventory) allotted to compensate for the impact of
waste on the supplying process.

91
 GLOSSARY

Set-up time: the time between the last good piece off one production run
and the first good piece off the next run, producing at the target volume.

Signboard: the English translation of the Japanese word “kanban.” See

Kanban.

Supermarket: a storage location for inventory authorized by a kanban

pull system.

System: a set or an arrangement of things so closely related or connected as

to form a unit or organic whole. From system dynamics we learn that sys-
tems have typical “behavior” patterns and feedback loops that are both pos-
itive and negative. Typical patterns of complex systems include resistance,
drift to low performance, general parameter insensitivity, heightened sensi-
tivity to particular influence points, and conflict between long-term and
short-term response. Systems also exhibit patterns of growth, decline, oscil-
lation, equilibrium-seeking, and goal-seeking.

Takt time: the rate at which product must be turned out to satisfy market
demand. It is determined by dividing the available production time by the
customer demand.

Team: a group of people who rely on cooperation, trust, and communica-

tion to achieve a common set of objectives or targets. A cross-functional
team is made up of people from different departments in an organization.

Toyota Production System (TPS): a manufacturing efficiency model built

upon three key factors: reduced lot sizes to allow for production flexibility,
the control of production parts so that parts are always available when and
where they are needed, and the arrangement of production equipment in
logical order of assembly.

TPS: See Toyota Production System.

Uptime percent: the percent time a resource is actually available for pro-
duction. The formula to determine uptime is: (net available resource time 4
gross available resource time) 3 100.

92
 GLOSSARY

Value stream: all the activities (both value-added and non-value-added)

required within one company to design and provide a specific product from
its conception to launch, from order to delivery, and from raw materials
into the hands of the customer.

Value stream mapping: the identification of all the specific activities

(material and information flow) occurring during the production of a
particular product or product family, usually represented pictorially in a
value stream map. (See page 95 for icons.)

Visual control: the control of the workplace by the visual regulation of

operations, performance goals, tool and parts placement, etc., so that a pro-
duction process or other system can be understood at a glance. However,
visual controls can appeal to any or all of the five senses.

Waste: basically, anything that adds cost or time without adding value.
There are many different kinds of waste in manufacturing.

Work-in-process: material in the process of having value added to it—being

converted into saleable goods.

93
 VALUE STREAM MAPPING ICONS

Dedicated U-shaped Kanban Supermarket

Process Box cell Post

Truck Finished Goods Push Arrow Manual Flow

Shipment To Customer Information

1x / Day

Schedule Box Inventory Manual Pull Electronic Flow

For Load Leveling or Withdrawal Information

O X O X I
100 pcs

Outside Customer Continuous Data Box First In, First Out

Or Supplier Improvement Or Sequence Arrow
Kaizen Burst C/T = 15
MAX 15
C/O = 1 min
UPTIME Uptime = 99% FIFO
2 Shifts

95
 RECOMMENDED
READING
Hirano, Hiroyuki. 5 Pillars of the Visual Workplace (New York: Productivity
Press, 1995)

Monden, Yasuhiro, Toyota Production System: An Integrated Approach to Just-In-

Time (Norcross, Georgia: Engineering & Management Press)

Productivity Press Development Team. Kaizen for the Shopfloor (New York:
Productivity Press, 2002)

Productivity Press Development Team. 5S for Operators (New York: Productiv-

ity Press, 1996)

Sekine, Kenichi. One-Piece Flow (New York: Productivity Press, 1992)

Tapping, Don, et. al. Value Stream Management (New York: Productivity
Press, 2002)

Tapping, Don, and Tom Shuker. Value Stream Management for the Lean Office
(New York: Productivity Press, 2003)

Tapping, Don, et. al. Value Stream Management Video Series (New York:
Productivity Press, 2001)

Womack, James, and Dan Jones. Learning to See (Massachusetts: The Lean
Enterprise Institute, 1999)

97
 INDEX
A-B-C-D analysis, 28–29, 57, 71 Color-coding, 15–16, 18
Action item, 58, 59, 60 Common authorization line, 21,
Advanced tools, 48–49 22–23, 24, 71, 76
Allocation, 81 Communication, 56, 57
Animated kanban board, 24 Company culture, 26, 49
Annual improvement resource plan, Computer numerical control (CNC)
48 machines, 3, 13–14
Authorization line, 76 Computer scheduling system, 7
abnormal conditions, 71 Computer transactions, 83
kanban cards and, 45 Consuming process
See also Common authorization capacity planning, 84
line current state, 52
Authorization point, 21 disruptions in, 76
Available production time, 5 for golf club assembly, 19
Average daily demand, 5, 27–28, 37, immediate needs of, 14
45. See also A-B-C-D analysis internal customer, 27
in kaizen event, 57
Bottom of container rule, 17, 18 kanban and, 12
Brainstorming/visioning, 60 point of use, 19
See also Lead time; Replenishment
Capacity Consumption signal, 13
of head machining resources, Container(s)
32–36 delays in movement, 77
order frequency card and, 24 empty, 82
for special order items, 71 material handler, 83
Capacity analysis. See Set-up times multiple, 17
Certified lean managers, 48 quantity, 38–39, 74
Certified training resources, 53 sizes, 5, 39, 44
Changeover frequency, 24 standardized, 16
Changeover time, 47 Continuous one-piece flow, 74
Chronic overages/shortages, 5, 57 Continuous daily improvement, 49
CNC (Computer numerical control) Continuous flow, 52
machines, 3, 13–14 Continuous flow production, xvi, 7, 9

99
 INDEX

Continuous improvement, 49, 53 Emca Golf, xiii

Cross-functional teams, xvi Equipment analysis worksheet, 66
Culture, 26, 49 External suppliers, 20, 83–84
Current average daily demand, 5
Current daily demand. See Daily Fault tolerance, 44, 46
demand “FIFO (first in/first out) tracking,” 21,
Current state consuming process, 52 22, 76
Current state value stream map, 3–4 First generation future state, 46
Customer, 47. See also Consuming 5S kaizen events, 9
process Flexible capacity, 71
Customer demand levels, 5 Flow diagram, 58, 80
Cycle time, 30, 73 Forms, 64–68
Full container rule, 17, 18
Daily demand, 27. See also Average Future state
daily demand cash flow improvement, 5
Daily production control, 7 first generation, 46
Data Future state value stream map, 6–7, 8
collection, 60 head machining-to-assembly
forecast, 84 loop, 13
integrity, 83 kaizen event and, 56
kanban card inventory, 83 long-term focus and, 48
“Dead inventory,” 57 supermarkets in, 19
Defective products, 14 Future state vision, 52, 58, 60
Defect rates, 5
Demand “Go-Do,” 46
changes in, 14, 73 “Golden Rope” concept, 84
customer levels, 5 Golf club head models, 7
daily, 27 Graphical flow diagrams, 80
extremes in, 46 Gross machine capacity, 32, 33
spike, 18, 42
total, 31 Head machining (at Emca)
See also Average daily demand; equipment analysis, 33–36
Requirements study part numbers, 26
“Discretionary capacity,” 35 production “motivation,” 13
Documentation, 70, 80 as shared resource, 27
Dual production control systems, 31 two head CNC machines, 13–14
Head part number analysis, 7, 26

100
 INDEX

High-mix environment, 19 machine reliability, 47

pre-event checklist, 56–57
Icons, 95 set-up reduction, 47
Implementation strategy, 52–54 sub-teams, 55, 56, 58, 60
Improvement, 47–49, 55. See also supplies checksheet, 63
Continuous improvement tips for success, 55
“Improvement competency,” 48 Kanban, 12
Improvement(s), 48–49, 52–54 awareness training, 53
Information system architecture, 53 calculating number of, 37, 43
Internal customer, 27 calculation forms, 68
Internal supplier, 20 calculation worksheet, 40–44, 58
Internal trainers, 53 demand and, 14
Inventory electronic, 83
after kaizen event, 84 equation, 37, 43
burn-down of excess, 18 equation variables, 72–74
data, 83 flow diagram process, 46
“dead,” 57 for head machining, 16
information control, 16 number needed, 36–46
kanban cards and, 75 shared supplying resources, 27
for manual system, 83 See also Container(s); Kaizen
shopfloor operators and, 80 event(s); Mixed Model Kanban
for special order items, 71 System; Permanent kanban cards;
time as, 36 Single-use kanban cards
turnover performance, 30 Kanban board
“unauthorized,” 17 animated, 24
unresolved problems, price for, 44 for golf club assembly, 19
See also Safety inventory; Machine Center 1, 23, 72
Supermarket(s) order frequency cards on, 44, 76
IT systems, 83 robust design elements, 21–22
See also Common authorization
Kaizen event(s) line
agenda, suggested, 58–59 Kanban card
burst opportunities, 47 color-coding, 15–16, 18
internal trainers for, 53 delays in movement, 77
inventory level after, 84 inventory data, 83
kanban card rules, 17 lost, 71, 77, 82
lean champion of, 9 material handler, 83

101
 INDEX

See also Permanent kanban cards; replenishment, 17

Single-use kanban cards See also Consuming process;
Kanban flow diagram, 60 Replenishment
Kanban kaizen. See Kaizen event(s) Lean, 48
Kanban pull system, xiii–xiv, 9 Lean champion
allocation and, 81 breaking flow, 7
basic precepts, 52 at Emca, 6–7
documentation of, 80 kaizen events, 9
external focus, 53–54, 83–84 Lean organization principle, 36
flow diagram, 58 Lean production system, xiv
implementation strategy, 52–54 Lean “tools,” 53
internal focus, 52–53 Leverage points, 30
key team member areas, xvii Linking head machining and
long-term focus, 48–49 assembly, 26
management, 80 Lot sizes, 37, 73
manual, 83 Low cost/no cost solutions, 55
mid-term focus, 47–48
near-term focus, 46–47 Machine
new products in, 74 allocation table, 31, 34, 64
preparation work, 52 cycle time, 5, 30, 73
priming, 81 downtime, 46
product data sheet, 58, 61–62 reliability, 47
production rules, 14 Machining centers, 31
removing obsolete products, 74–75 Management, 49, 56, 57, 58
resizing, 82 See also Mixed Model Kanban
visual production control system, System
12 Manufacturing lead time. See Lead
“Kanban square on the floor,” 82 time
Mapping icons, 95
Lead time Material handling, 71, 77, 83
as estimate, 41 Mean Time Between Failure (MTBF),
external supplier, 84 5
factors influencing, 38, 73 Mean Time To Repair (MTTR), 5
long, 44 Metrics. See MTBF; MTTR; OEE; Shaft
manufacturing, 5 metrics comparison summary
minimizing, 30 Mid-container rule, 17, 18
order frequency card and, 40, 42 Milk run path, 39, 83

102
 INDEX

Mistake-proof, 77 Parallel production control systems,

Mixed Model Kanban System 85
abnormal conditions, 71, 76–77 Permanent kanban card(s), 14–17
management, 80 “golden rope” and, 84
normal conditions, 71–75 long order frequencies and, 37
MRP, 80, 81 obsolete products, 74–75
MTBF (Mean Time Between Failure), transition to single-use, 70, 75
5 See also Single-use kanban cards
MTTR (Mean Time To Repair), 5 Piecework incentives, 80
Muda. See Waste Pilot product candidates, 5
Multiskill capabilities, 80 “Pocket of excellence” syndrome, 48
Process reliability
Net (true) capacity, 33 capacity and, 5
New products, 70, 74 impact considerations, 52
problems, 42
Obsolete products, 70, 74–75 Product Data Sheets, 57
OEE (Overall Equipment Product family definition, 52
Effectiveness), 5 Production control
Ohno, Taiichi, xiii communications, 5
One-piece flow, 7, 9, 74 dual systems, 31
“One-shaft flow,” 9 function, 70
Order frequency, 37 normal condition management,
lead time and, 40, 42 71–77
updating, 73 parallel systems, 85
Order frequency card, 20–21, 23–24 supervisor, 71
location, 44 See also Daily production control;
location calculation process, 45 Kanban pull system
rounding and, 45 Production leveling, 37
Order frequency determination, 5, Production “motivation,” 13
32–36, 84 Product lifecycle, 73
Order frequency determination Product velocity, 30
forms, 66, 66–67 Pull. See Kanban pull system
Overall Equipment Effectiveness Pull signal, 12
(OEE), 5
Overproduction, 80 Queues, 19
Paradigm shift, xvi,36

103
 INDEX

Replenishment Signaling method, 14, 83. See also

dual approach, 31 Kanban
lead time, 17, 24 Signals. See Kanban card
pull signal for, 12–13 Single-use kanban cards, 14, 28
signals crossing, 38, 40, 42 circumstances warranting, 18, 37
See also Consuming process; Lead for excess inventory, 84
time introducing, 70, 71–72
Requirements study, 26–28 transition to permanent, 70, 75
forms, 64–65 See also Permanent kanban cards
for kanban pull system, 52 Six sigma, 49
worksheet, 27, 28, 29, 32, 65 SOP (standard operating procedure),
Resource cycle time analysis 58–59, 60
worksheet, 64 Special order items, 18, 28, 71–72
Resource. See Supplying resource Standardized containers. See
Resource allocation, 29–32 Container(s)
Root cause, 76 Standard operating procedure (SOP),
Root cause analysis, 77 58–59, 60
Rounding, 26, 43, 45 Supermarket(s), 19, 75
Rules of production, 14 determining location of, 19–20
“Golden Rope” in, 84
Safety inventory (safety time), 26 kanban cards and, 15, 75
expressed in days, 38 queues, contrasted with, 18–19
external supplier, 84 special order items and, 71
See also Inventory
factors influencing, 73
Suppliers, 53–54
See also Waste elimination
external, 83
Seasonality, 73
unreliable, 44
Serializing kanban cards, 15
See also Supplying resource
Set-up
Supplies Checksheet, 57
distribution table, 35
Supplying resource, 31
distribution worksheet, 66
defining, 13
opportunities calculations, 34, 66
in kaizen event, 57
reduction, 47 lot sizes, 73
times, 5, 52 production rules, 14
Shaft Metrics Comparison Summary, 9 sharing, 27
Shaft production, 9 signal for, 14
Shopfloor operators, 80 total demand on, 31
two separate, 13–14

104
 INDEX

Takt time Visioning/brainstorming, 60

available time and, 5 Visual display. See Kanban
consumer consumption equation, 6 Visual production control system, 20
meeting, 80
Total demand, 31 Waste
Toyota Motor Company, xiii, 84 inventory and, 44
“Tribal knowledge,” 5 in machining process, 33
Waste elimination, xvi
“Unauthorized” inventory, 17 aggressive, 26
Unresolved problems. See Waste number of kanban, 14
elimination supermarket placement, 20
See also Safety inventory
Value stream, 52, 70 Waste factor, 39
Value stream mapping, xvi Water beetle, 83
at Emca, 3–4 Web cams, 83
current and future state, 52, 53 “What-iffing,” 47–48
icons, 95 Work in process levels, 5

105
ABOUT THE AUTHORS
James Vatalaro
Jim launched his career in manufacturing in the U.S.
aerospace industry over 20 years ago. He has spent
more than 10 years implementing the principles of
lean manufacturing by consulting in companies of all
sizes and cultures around the globe. Although Jim has
facilitated many hundreds of various kaizen and
kaikaku events, he still considers himself a student of
the Toyota Production System. He recognizes there is much more to discover
about how to further improve production operations. Jim and his family
reside in Earlton, NY.

Robert Taylor
Bob’s manufacturing experience spans over 30 years.
In the late 1980s, Bob learned lean manufacturing from
the individuals who created it at Toyota. Since then, he
has been transforming companies into lean enterprises.
He is one of the first individuals to study and imple-
ment lean in his own manufacturing plants in the
United States. Today, Bob is as devoted as ever to the
practical implemention and teaching of lean practices worldwide. Bob and
his wife reside in Narragansett, RI.

107