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:
🎬 Related Videos:
An Example of Kanban in the Office:
Kanban Explained by a Real Example:
Kanban and Pull System
Types of Kanban – Production Kanban vs Withdrawal Kanban
🔖 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.
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
– 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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