What is Kanban Production Control System ? State the different possible approaches for Kanban System. Determine the number of Kanbans needed for setting up a Kanban Control System.

What is Kanban Production Control System?

The Kanban system is a visual scheduling system that helps control production and inventory levels. It operates on the principle of “pull” production, meaning that production is initiated only when there is demand. Instead of pushing materials through the production process based on forecasts, Kanban uses signals (Kanban cards or electronic signals) to indicate when more materials are needed at each stage of production. This minimizes overproduction, reduces inventory costs, and improves responsiveness to customer demand.

Different Possible Approaches for Kanban System

While the core principles remain consistent, Kanban systems can be implemented in various ways depending on the specific needs of the organization. Here are some common approaches:

• Single Card Kanban System: This is the simplest form, using a single card to authorize production and movement of materials. It’s suitable for stable production environments with predictable demand.
• Dual Card Kanban System: This system utilizes two types of cards: a production Kanban (P-Kanban) and a withdrawal Kanban (W-Kanban). The P-Kanban authorizes production, while the W-Kanban authorizes the movement of materials. This is more effective in complex production systems with multiple stages.
• Index Kanban System: This approach uses a central control board to manage the flow of materials. Index cards are used to indicate the quantity of materials needed, and the board provides a visual overview of the entire production process.
• Signal Kanban System: This utilizes physical signals, like empty containers or lights, to trigger replenishment. It’s often used in continuous flow production lines.
• Electronic Kanban (e-Kanban): This leverages software and digital technology to manage Kanban signals and track inventory levels. It offers real-time visibility, improved data analysis, and enhanced collaboration.

Determining the Number of Kanbans Needed

Calculating the appropriate number of Kanbans is crucial for the system’s effectiveness. Too few Kanbans can lead to stockouts and production delays, while too many can result in excessive inventory. The formula for calculating the number of Kanbans is:

Number of Kanbans = (Average Daily Usage x Lead Time) / Kanban Size

Where:

• Average Daily Usage: The average quantity of a particular item used per day.
• Lead Time: The time it takes to replenish the item, from placing an order to receiving the materials. This includes order processing, manufacturing, and transportation time.
• Kanban Size: The quantity of the item contained in each Kanban.

Example: Suppose a company uses 50 units of a component per day. The lead time for replenishment is 2 days, and the Kanban size is 25 units. Then, the number of Kanbans needed would be: (50 units/day * 2 days) / 25 units/Kanban = 4 Kanbans.

It’s important to note that this is a starting point. The number of Kanbans may need to be adjusted based on actual performance and observed variations in demand and lead time. Safety stock considerations can also influence the number of Kanbans required.

Table: Comparison of Kanban Approaches

Approach	Complexity	Suitability	Advantages	Disadvantages
Single Card	Low	Stable Demand	Simple to implement	Limited flexibility
Dual Card	Medium	Complex Production	Improved control, better responsiveness	More complex to manage
Index Kanban	Medium	Centralized Control	Visual overview, easy monitoring	Requires dedicated control board
e-Kanban	High	Large-scale operations	Real-time data, automation	Requires investment in technology