Product Flow Control Using Kanban Signals

This means that stock levels of raw materials, work in progress, and even finished products are kept to a minimum. However, this system requires a very carefully planned scheduling for it to work. Inventory levels are closely monitored such that stock is only obtained when it is needed. This makes storage or warehousing easy since less space is required transportation as well.

Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.

This lean production technique involves using a range of “practices designed to reduce waste and improve productivity and quality” (Chase, Jacobs, & Aquilano, 2006). The JIT principles use tools, and techniques that allow Riordan Manufacturing “to produce and deliver products in small quantities, with short lead times, to meet specific customer need” (Chase, Jacobs, & Aquilano, 2006).

For Riordan to implement this type of plan, an entire new strategy will need to be developed for handling inventory. Currently, each Riordan plant handles inventory independently. Now Riordan must centralize inventory and ordering systems. The two systems need to be centralized because lean production is based on the theory that goods are produced when needed, thus eliminating waste (Chase, Jacobs, & Aquiliano, 2006).

Our book defines JIT as, “… a philosophy of operation that seeks to maximize efficiency and eliminate waste in any form”( Vonderembse 2013, Chapt 11.1). Perhaps one of the greatest functions of JIT is that it uncovers the problems in production by keeping minimal items available. With no pools of inventory the goal of JIT it to allow a smooth flow of production without any kinks or waste. Since using the JIT system Space Age has uncovered a problem with its key worker ED putting in to many hours due to a glitch in the production of part 3079.

40. One major difference between the use of kanban and MRP II in scheduling the products to be built is that kanban is primarily a manual system while MRP II uses computers.

Riordan Manufacturing is a global plastics manufacturer and industry leader in the field of plastic injection molding with locations in Georgia, Michigan, California, and their most current expansion in 2000 to Hangzhou, China. The plant located in China manufactures fans using a make-to-stock operation that uses a forecasting method to determine future demand. A review of their strategic capacity planning and lean production for their new process design and supply chain process for the electric fans will address bottleneck and supply chain issues. Also outlined are the details of new processes and how the benefit the company.

(2016). In the case of Angel Pottery, the purchase of a second kiln (low-tech resource) could help to alleviate the bottleneck that exists due to limited space kiln space. Lean management could be applied to increase productivity and improve cycle times. With the constraint of firing space alleviated by capital expenditure on a second kiln, pull from the customer or demand will drive production. This Kanban will help to orchestrate when and how much inventory should be

Kanban increases productivity by keeping the work uninterrupted, always to plan ahead, accomplishing bigger tasks first and finishing projects by limiting multitasking. Kanban is characterized by visual workflow (Kanban boards to see the progress), team approach, continuously improvements.

The main advantages of “Jidoka” is the reduction in waste and the significant gains in productivity, the whole process is aided by people at certain workstations along the production line, each worker is tasked to ensure that the high quality and standards remains within the system with minimum defects. In a way it give a lot of the power to the

From the flow chart above, the Production Planning and Inventory Control Processes covers manufacturing, storage, and related areas. Specifically, the production planning controls the designing and management of the entire airplane manufacturing processes input material scheduling and acquisition, manufacturing, design, and material handling. The inventory control is on the design and management of storage procedures for the raw materials inputs in the airplane manufacturing processes, work-in-progress inventories, and final products.

Toyota production system organize manufacturing and logistics at Toyota, including the interaction with suppliers and customers. Toyota was able to much reduce lead-time and cost using the Toyota production system, while improving at the same time. This enabled it to become one of the largest companies in the world. Toyota applied lessons by reducing the amount of inventory they would hold only to the level that its employees would need for a small period of time. This is called just-in-time (JIT) inventory system.

Another benefit of JIT production is the amount of inventory tied up in the business. That inventory that is sitting idle on warehouse shelves, or seeking potential damage, can be converted into funds to invest in other areas of the business. The amount of space needed for its warehouse(s), would not be as much because it would not be used as a storage facility. Therefore, for these said reasons, it is recommended that Riordan using Just in Time production to maximize efficiency and effectiveness of it electric fan production process.

“Kanban is not a magic bullet. It won’t fix every problem. What it can do is simplify [your] project management; reduce time lost to meetings, bottlenecks, and rework; better govern our product quality; and make [your] throughput of customer value smoother, faster, and more predictable” (Brechner).

There are many advantages of the conveyer system a few of which are explained below: