Great podcast. I am going to share your words on the value of the Kanban cards. They have always given our company a struggle, so having a great way to explain the importance of the cards will be excellent.
The podcast is really really valuable. Please do share such things with us. We are going to impleent in this in our business now. Thanks for valuable insights.
Fantastic video, quick question we have introduced a kanban system into a Large city hospital for all medical stock, and other consumables... In your opinion, what is more lean and efficient.... daily top ups or one weekly delivery??
Question, I’m trying to introduce a 2 card Kanban in my place of employment for heavily consumed materials by production. We currently issue materials to work orders that use mostly the same items. I stated each card could have a cost center that the material can be charged. Without getting into the weeds, how can I introduce this system to my organization? Great video by the way.
We were lean from 1996-2008. Then as management changed and new people came in we lost our way and all lean systems were discarded and we went back to a production scheduling, high inventory and low on time delivery. How to stop reverting back to a the old ways and batch and queue
This is a difficult situation, culture is determined by the leadership team. Focus on improving you and improving what you can control, once you do.... never stop.
Can anyone help with our issue. We have a huge influx of inventory for a seasonal period. Does anyone have any advice for how to run a two bin system in this case? The items are ordered on a forward order otherwise the inventory is not available when we need it
What do you do with the kanban cards when you've filled out the entire back of the card for ordering and when prices change? Do you keep the data somewhere digitally or do you store the old kanban cards?
Hi, no we check if there are any improvements needed, if not we wipe these clean completely. All orders are placed on our PO system, we can access the data at any time, its just much easier for the person ordering to see the data every time they order, more opportunities for improvement having it visual like this.
Fantastic video. As a mater of interest, does anybody know, is Seating Matters re-order stock and order quantity the same on all their Kansan's? I see in the Card that Ryan shows that they're both 600 pieces. Just wondering
I would love to hear about lean implementation in high variance, low volume industries. I have worked as a quality engineer in ship building and in manufacturing the production lines that are used to make fiber optic cable. Typically in both all the products are designed to order and may have very little standardized components with the previous order. Also having any inventory of expensive, but long lead time, items is a no-go. For example ship engines or specialized measurement devices. A guest from such industries would be super-interesting!
Toyota originally developed their Kanban system for high mix/low volume inventory. While it sounds like you have a great deal of barriers, you may find a Kanban system will help you manage the complex inventory your carrying.
Thankyou for your comment, we have found that even in high variance, low volume industries there are lots of repetitive processes, usually due to the nature of the business one order may have a different specification than the other, but the skills required are the same, this is where you will find the repetition :)
I’m the Ops Manager for a modular builder who specialises in custom, thus high variance, low volume environment. We’re combining Kanban for runners and some high-volume repeaters, and MRP for low-volume repeaters and strangers.
Daar sla je de spijker op zijn kop: als je een goed systeem hebt. Ik kom het dagelijks tegen dat er gedacht wordt dat er een goed systeem gebruikt wordt, het tegendeel is echter waar. Een #Kanban systeem met bijvoorbeeld een #2bin of #1bin en/of #VMI geeft rust in de organisatie en is zeer kosten besparend.
Would be interested in learning how he manages transport costs. For instance a pallet delivery from Europe could cost €180 regardless what is on that pallet from supplier. Supplier could sell multiple components to his company. Yet only 1 product has run out kanban sent to office to order.. other products from same supplier are not quite at replenishment level.. but you are not going to just buy 1 item from supplier considering the transport costs. In real world you are going to fill up that pallet with other products to split or minimise transport contribution costs of the individual component. Would be interested in learning how he deals with that . Good podcasts!
Great point, we do use good judgement in cases like this to ensure carriage charges are cost efficient, we use a ‘Pre Pulled Kanban Card’ For more details contact us on info@leanmadesimple.com
@@leanmadesimplefrom my understanding it's quite simple. If you have one part of a supply finishing before others. That must have been factor in your order because not all part have equal usage. Like imagine you have a 6 material from same supplier and you use 10pcs of one while you use just 2pcs. It's simple that when making order you will always 5 pack for every 1pack of the other one. In that case you will technically need supply almost at the same time.
Bin Quantities have a few variables - Customer Orders, Promised Lead Time, Supplier Lead Time, Supplier Reliability, Supplier MOQ, Supplier Cost, Call Off Options, Bin / Space size, Carriage Costs & Safety Stock....
q for 7:22 : doesn't that mean that you always have to keep extra stock? like isn't that specifically an issue for ie exmpensive things and things that aren't used as frequent? Or do those things get treated differently then?
There are a range of commercial and risk factors that need to be considered. Commercial - is it more economical to hold stock than incur the costs associated with running out? - If the whole factory stops producing, your opportunity cost isn’t just any potential lost sales margin, it’s the overheads you can’t get a return on - that instantly comes out of your profit. Risk - What are the consequences of it running out, and how well can I control my supply chain to get it back in stock if I do run out? - If I buy it from down the road and I know they hold stock, then that’s probably low risk until the one time they DO run out of stock and I’m forced to stop producing… But what if my customer buy from me because I offer reliability at short lead times for a customized build to order product? If I don’t deliver, what are the chances I lose a vital customer? It may be something as simple as the fact that you forced them to find an alternative this one time and they happen to like their service more than yours. Generally if you sell a standardized product you can offset this risk by holding finished stock, however if you sell customized products, you may not have a choice but to build to order. You can do some basic maths to get to a commercial answer, but just make sure you consider all factors. If your business isn’t being run by an aggressive accountant trying to extract every percentage of return on capital employed, then my view is to just do it for the peace of mind and the customer certainty you can provide - adjust over time and allow your cash flow to cover the process.
We saw this issue coming and decided to implement a MRP software. Carry the least stock needed and never run out of stock also. Great for manufacturing orders with large quantities.
Great podcast. I am going to share your words on the value of the Kanban cards. They have always given our company a struggle, so having a great way to explain the importance of the cards will be excellent.
The podcast is really really valuable. Please do share such things with us. We are going to impleent in this in our business now. Thanks for valuable insights.
Lovely work guys
Any insights on when the book is coming? Am super keen to read it
Fantastic video, quick question we have introduced a kanban system into a Large city hospital for all medical stock, and other consumables...
In your opinion, what is more lean and efficient.... daily top ups or one weekly delivery??
Question, I’m trying to introduce a 2 card Kanban in my place of employment for heavily consumed materials by production. We currently issue materials to work orders that use mostly the same items.
I stated each card could have a cost center that the material can be charged. Without getting into the weeds, how can I introduce this system to my organization? Great video by the way.
We were lean from 1996-2008. Then as management changed and new people came in we lost our way and all lean systems were discarded and we went back to a production scheduling, high inventory and low on time delivery. How to stop reverting back to a the old ways and batch and queue
This is a difficult situation, culture is determined by the leadership team.
Focus on improving you and improving what you can control, once you do.... never stop.
Great podcast, guys, I've shared more than one of your videos with my students in the MBA and undergrad supply chain classes, valuable examples.
Can anyone help with our issue. We have a huge influx of inventory for a seasonal period. Does anyone have any advice for how to run a two bin system in this case? The items are ordered on a forward order otherwise the inventory is not available when we need it
What do you do with the kanban cards when you've filled out the entire back of the card for ordering and when prices change? Do you keep the data somewhere digitally or do you store the old kanban cards?
Hi, no we check if there are any improvements needed, if not we wipe these clean completely. All orders are placed on our PO system, we can access the data at any time, its just much easier for the person ordering to see the data every time they order, more opportunities for improvement having it visual like this.
Fantastic video. As a mater of interest, does anybody know, is Seating Matters re-order stock and order quantity the same on all their Kansan's? I see in the Card that Ryan shows that they're both 600 pieces. Just wondering
Its not always the case, for example, it could be... when 2 left order 10
Great to know, thanks!
I would love to hear about lean implementation in high variance, low volume industries.
I have worked as a quality engineer in ship building and in manufacturing the production lines that are used to make fiber optic cable.
Typically in both all the products are designed to order and may have very little standardized components with the previous order.
Also having any inventory of expensive, but long lead time, items is a no-go. For example ship engines or specialized measurement devices.
A guest from such industries would be super-interesting!
Toyota originally developed their Kanban system for high mix/low volume inventory. While it sounds like you have a great deal of barriers, you may find a Kanban system will help you manage the complex inventory your carrying.
Thankyou for your comment, we have found that even in high variance, low volume industries there are lots of repetitive processes, usually due to the nature of the business one order may have a different specification than the other, but the skills required are the same, this is where you will find the repetition :)
I’m the Ops Manager for a modular builder who specialises in custom, thus high variance, low volume environment. We’re combining Kanban for runners and some high-volume repeaters, and MRP for low-volume repeaters and strangers.
Daar sla je de spijker op zijn kop: als je een goed systeem hebt. Ik kom het dagelijks tegen dat er gedacht wordt dat er een goed systeem gebruikt wordt, het tegendeel is echter waar. Een #Kanban systeem met bijvoorbeeld een #2bin of #1bin en/of #VMI geeft rust in de organisatie en is zeer kosten besparend.
Thank you for listening :)
Would be interested in learning how he manages transport costs. For instance a pallet delivery from Europe could cost €180 regardless what is on that pallet from supplier. Supplier could sell multiple components to his company. Yet only 1 product has run out kanban sent to office to order.. other products from same supplier are not quite at replenishment level.. but you are not going to just buy 1 item from supplier considering the transport costs. In real world you are going to fill up that pallet with other products to split or minimise transport contribution costs of the individual component. Would be interested in learning how he deals with that . Good podcasts!
Great point, we do use good judgement in cases like this to ensure carriage charges are cost efficient, we use a ‘Pre Pulled Kanban Card’
For more details contact us on info@leanmadesimple.com
@@leanmadesimplefrom my understanding it's quite simple. If you have one part of a supply finishing before others. That must have been factor in your order because not all part have equal usage. Like imagine you have a 6 material from same supplier and you use 10pcs of one while you use just 2pcs. It's simple that when making order you will always 5 pack for every 1pack of the other one. In that case you will technically need supply almost at the same time.
Where can I find the link for the kanban tutorial? Please
How are you guys calculating bin qty and reorder point?
A few variables help us calculate the quantities, supplier lead time, customer promised lead time, storage area & admin time.
Why can't you just automaticly create task for responsible person when minumun level stock achived? Canban card just can be ignored or missed.
That’s what I was thinking.
How much inventory do i put in those bins so i never run out? If on average i use 300 times for a certain part
Bin Quantities have a few variables - Customer Orders, Promised Lead Time, Supplier Lead Time, Supplier Reliability, Supplier MOQ, Supplier Cost, Call Off Options, Bin / Space size, Carriage Costs & Safety Stock....
q for 7:22 : doesn't that mean that you always have to keep extra stock? like isn't that specifically an issue for ie exmpensive things and things that aren't used as frequent? Or do those things get treated differently then?
There are a range of commercial and risk factors that need to be considered.
Commercial - is it more economical to hold stock than incur the costs associated with running out? - If the whole factory stops producing, your opportunity cost isn’t just any potential lost sales margin, it’s the overheads you can’t get a return on - that instantly comes out of your profit.
Risk - What are the consequences of it running out, and how well can I control my supply chain to get it back in stock if I do run out? - If I buy it from down the road and I know they hold stock, then that’s probably low risk until the one time they DO run out of stock and I’m forced to stop producing…
But what if my customer buy from me because I offer reliability at short lead times for a customized build to order product? If I don’t deliver, what are the chances I lose a vital customer? It may be something as simple as the fact that you forced them to find an alternative this one time and they happen to like their service more than yours. Generally if you sell a standardized product you can offset this risk by holding finished stock, however if you sell customized products, you may not have a choice but to build to order.
You can do some basic maths to get to a commercial answer, but just make sure you consider all factors. If your business isn’t being run by an aggressive accountant trying to extract every percentage of return on capital employed, then my view is to just do it for the peace of mind and the customer certainty you can provide - adjust over time and allow your cash flow to cover the process.
Thanks vey helping
The link for the kanban card doesnt work for me 😢
All fixed now if you wish to try again!
22:55 How to manage stock levels
We saw this issue coming and decided to implement a MRP software. Carry the least stock needed and never run out of stock also. Great for manufacturing orders with large quantities.
If don't need this item anymore?