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Explain how cards are used in a kanban system.

Short Answer

Expert verified

Kanban is a signaling device that is used to control production. In Japanese, Kanban means a sign or instruction card. It is used in controlling and regulating the JIT flow.

Step by step solution

01

Cards are used in a kanban system

Cards are a visible order to function properly in aKanban system. It is a type of communication device used in the production industry. It helps give organizational directives for labor and material movement. Kanban cards are tangible cards that are affixed to various parts of an item.

These cards go back a and forth among the various stages of the manufacturing procedure, acting as a signaling system. In most kanban methods, many different kinds of cards are used.

02

Working on the Kanban system

The machining center forms two parts that are parts A and B which are stored in containers that are placed next to the assembly line and machine center. Each container that is placed next to the assembly line has a withdrawn Kanban and those that are next to the machining center have a production Kanban.

This whole system is called a two-card Kanban system. The cards can be used in place of containers and these cards and containers together make up aKanban pull system. The two cards are the T- Kanban and P- kanban cards.

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Most popular questions from this chapter

Question:Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location:

New York

50000

Fort Worth

70000

San Diego

60000

Minneapolis

80000

Bindley has three plants that can produce the motors. The plants and production capacities are

Boulder

100000

Macon

100000

Gary

150000

Due to varying production and transportation costs, the profit Bindley earns on every 1,000 units depends on where they were produced and where they were shipped. Thefollowing table gives the accounting department estimates of the dollar profit per unit. (Shipment will be made in lots of 1,000.)

Shipped to

Produced at

New York

Fort Worth

San Diego

Minneapolis

Boulder

7

11

8

13

Macon

20

17

12

10

Gary

8

18

13

16

Given profit maximization as a criterion, Bindley would like to determine how many motors should be produced at each plant and how many motors should be shipped from each plant to each destination.

a. Develop a transportation grid for this problem.

b. Find the optimal solution using Microsoft Excel.

What is required to make cross-docking a viable solution for a logistics provider?

What do you call the average total value of all items held in inventory for a firm, at cost?

This is the art and science of obtaining, producing, and distributing material and product in the proper place and quantities.

Question: Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 each. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected:

Requirements (annual forecast)

12,000 units

Weigh per engine

22 pounds

Order processing cost

\(125 per order

Inventory carry cost

20 percent of the average value of inventory per year


Order quantity

Supplier 1 Unit Price

Supplier 2 Unit Price

1 to 1499 units/ order

\)510.00

\(505.00

1500 to 2999 units/order

500.00

\)505.00

3000 + units/order

490.00

488.00

Tooling costs

\(22.000

\)20.000

Distances

125 miles

100 miles

Note: Assume that half of the lot size is in inventory on average (1,000/2 =500 units).

Two qualified suppliers have submitted the following quotations:

Order quantity

Supplier 1 Unit Price

Supplier 2 Unit Price

1 to 1499 units/ order

\(510.00

\)505.00

1500 to 2999 units/order

500.00

\(505.00

3000 + units/order

490.00

488.00

Tooling costs

\)22.000

\(20.000

Distances

125 miles

100 miles

Your assistant has obtained the following freight rates from your carrier:

Truckload (40,00 lbs. Each load):

\)0.80 per ton-mile

Less-than-truckload

$1.20 per ton-mile

Note: Per ton-mile 5 2,000 lbs. per mile.

a. Perform a total cost of ownership analysis and select a supplier.

b. Would it make economic sense to order in truckload quantities? Would your supplier selection change if you ordered truckload quantities?

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