Kanban cards - Trying to initiate a true Pull System - Fastener Products

[LeanThink]

Our company is trying to initiate a true pull system using kanban cards for our fastener products. The problem is we have many active part numbers (over 1400) that we must produce in any given period. Any suggestions as to how to make this system more manageable?

[wmarhel]

Originally Posted by LeanThink

Our company is trying to initiate a true pull system using kanban cards for our fastener products. The problem is we have many active part numbers (over 1400) that we must produce in any given period. Any suggestions as to how to make this system more manageable?

First, you need to identify those parts, which contribute significantly to the entire sales volume (say between 60-80%). This volume may only consist of a 5 or 6 parts numbers, but go through the exercise. These are the parts, which should definitely be placed on a pull system

One of our lines, which has a potential of over 600 varieties, we only kanban 22 parts. What you will quite possibly find is that the majority of sales is from a handful of parts. You may also want to include some lower volume products depending on the customer and strategic needs. Another factor to consider is the ability to produce that part when an order is received (i.e. Lead Time). Maybe the smaller quantities all just have some minimum inventory level.

Keep in mind that one kanban signal (signal, ping-pong ball, whatever) is for the quantity that makes the most sense for you. Many people get wrapped up in the "one-card, one-part" when it could mean one box, one pallet, etc.

Another topic is how the system will look and be used. For high volume parts, the kanban should probably be attached directly to the skid/pallet/case. For smaller volumes, maybe a min/max level is used. When the minimum level is reached, the card is removed from a pouch in front of the inventory location and sent to manufacturing. For example:

Min Level: 5 boxes
Max Level: 10 boxes
- When the level reached 5 boxes on the shelf, the card (only one in this instance) is issued to production for a quantity of 5 boxes.

If this is the first attempt at your facility, I would ignore the software method (MRP/ERP/etc.) for scheduling production. Most have a "Lean" module, but the reality, is that the cards are as much a management system as a production scheduling mechanism. The cards are physical and are something that people can relate to easier because they can hold it in their hands.

There are as many ways to implement a kanban system as can be imagined, you just need to do what makes the most sense.

If there are any other questions, please feel free to ask away.

Wayne