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Kanban System: Problem Statement

The company is facing high work-in-process inventory issues that are consuming space and increasing costs. The industrial engineering team proposed implementing a Kanban system with 10 cards attached to each pair of stock and machine. The simulation aims to analyze and validate the proposed Kanban system by limiting stock capacity to 10 units per station, with machine cycle times of 10 minutes and customer demand arriving exponentially every 30 minutes on average.

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86 views1 page

Kanban System: Problem Statement

The company is facing high work-in-process inventory issues that are consuming space and increasing costs. The industrial engineering team proposed implementing a Kanban system with 10 cards attached to each pair of stock and machine. The simulation aims to analyze and validate the proposed Kanban system by limiting stock capacity to 10 units per station, with machine cycle times of 10 minutes and customer demand arriving exponentially every 30 minutes on average.

Uploaded by

prashanth191182
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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KANBAN SYSTEM

Problem Statement:
A daily utility equipment manufacturing company produces mainly three kinds of
products. All the products are manufactured through a single line layout which comprises
of two machines. Currently the company is facing an issue in such a way that the work in
process inventory is very high which and it’s consuming the physical space badly and
increasing the holding cost. The industrial engineering team conducted a study on the
system and designed a Kanban system to implement in the system. However the manager
doesn’t want to jump into the Kanban design before testing out with a simulation
software. So the objective here is analyse and validate the proposed Kanban system.
Note: They are planning to incorporate 10 Kanban cards attached to each pair of stock
inventory and machine.

Source Stock1 Machine Stock2 Machine Stock3


1 2

Figure1, Material Flow

On introducing the Kanban system the manager wants to limit the stock capacity to 10
units. The cycle time of the both the machines are 10 minutes. And assume there is an
unlimited supply of raw materials. There are a total of two operators for material transfer
from stock area to the machine. The customer order arrives following an exponential
distribution exponential (0, 30, 1) minutes. The customers will come to the stock3 and
consume the goods. If no stock is available the customers will go out as unhappy n
customers.

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