Kanban Calculation Formula and Example


How to calculate the right number of Kanban? Here there is a formula to start to evaluate the right number. There is a calculation example, too.

✅ How Kanban System Works – Video Collection:
https://www.leanvlog.com/series/how-kanban-systems-works/



🎬 Related Videos:

An Example of Kanban in the Office:
https://www.leanvlog.com/lean-office-kanban/

Kanban Explained by a Real Example:
https://www.leanvlog.com/how-does-kanban-work/

Kanban and Pull System
https://www.youtube.com/watch?v=WfKzOBZHuQ8

Types of Kanban – Production Kanban vs Withdrawal Kanban
https://www.youtube.com/watch?v=gFkdL086qMI



🔖 Here the Transcript of the Video:

▶ The Goal of a Lean Company

The Goal of a Lean Company is to have a minimum number of Kanban.

This Goal has to be reached gradually to avoid drying the water too fast and expose the rocks.




▶ The Gradual Approach to Win

So, if you look at the gradual approach of reducing the number of Kanban you are going to win.

Why?

Case 1) You remove 1 or 2 Kanban and the system works. You have reduced inventory and lead time.

Case 2) You remove 1 or 2 Kanban and some rock appear. You have an improvement opportunity.

So, the general rule on kanbans is to start with a generous amount of safety stock and then constantly remove kanban until the first rock occurs.



▶ Kanban Calculation Formula

To have a reference number to start with, there is a formula.

N = (D for LT + SS) divided Q

Where:

– N is the number of Kanban
– D is the demand in time unit chosen
– LT is the replenishment time
– SS is the safety stock in quantity
– Q is the quantity in the container

Let me explain with an example.


▶ Kanban Calculation Example

The demand for a workstation is 20 pieces a day.
The lead time from the warehouse to replenish is 3 days.
The Safety Stock to start is 40 pieces, around 2 days of work.
The parts are delivered in a box of 5 pieces.

Hence, the number of kanbans to start will be.

N = 20 pieces a day for 3 days + 40.
all divided by 5.

= 100 over 5 = 20 Kanban.

In this example, 20 Kanban Signals should be put into the system and then steadily remove 1 a week or month and see what happens.

Thank you for watching and see for more info below.




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