Concept explainers
Interpretation: The number of kanban cards to be used for production is to be determined.
Concept Introduction:
Kanban is referred to as a
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Practical Operations Management
- Gestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility operates 8 hours per day to produce the Jitterbug, a replacement for the obsolete but immensely popular Jitney Beetle. Suppose that a certain part requires 150 seconds of processing at machine cell 33B and a container of parts average 1.6 hours of waiting time there. Management allows a 10 percent buffer for unexpected occurrences. Each container holds 30 parts, and 8 containers are authorized. How much daily demand can be satisfied with this system?arrow_forwardGestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility operates 8 hours per day to produce the Jitterbug, a replacement for the obsolete but immensely popular Jitney Beetle. Suppose that a certain part requires 150 seconds of processing at machine cell 33B and a container of parts average 1.6 hours of waiting time there. Management allows a 10 percent buffer for unexpected occurrences. Each container holds 30 parts, and 8 containers are authorized. How much daily demand can be satisfied with this system? (Hint: Recall that r is the average processing time per container, not per individual part.)arrow_forwardDETERMINING THE NUMBER OF KANBAN CONTAINERS Hobbs Bakery produces short runs of cakes that are shipped to grocery stores. The owner, Ken Hobbs,wants to try to reduce inventory by changing to a kanban system. He has developed the following dataand asked you to finish the project.Production lead time = Wait time + Material handling time + Processing time = 2 daysDaily demand = 500 cakesSafety stock = 12 dayContainer size (determined on a production order size EOQ basis) = 250 cakesarrow_forward
- Hartley Electronics, Inc., in Nashville, producesshort runs of custom airwave scanners for the defense industry.The owner, Janet Hartley, has asked you to reduce inventory byintroducing a kanban system. After several hours of analysis, youdevelop the following data for scanner connectors used in onework cell. How many kanbans do you need for this connector?arrow_forwardConsider that a production company uses dual-card Kanban system. How can this company gradually reduce the total number of inventories using Kanban system? Note that the company must continue using Kanban system. Please make sure that you explain the process and logically explain how can the company reduce inventories using Kanban.arrow_forwardTej Dhakar’s company wants to establish kanbans tofeed a newly established work cell. The following data have beenprovided. How many kanbans are needed?Daily demand 250 unitsLead time 12 daySafety stock 14 dayKanban size 50 unitsarrow_forward
- A regional manufacturer of table lamps plans on using a manual kanban information system. On average the firm produces 1,200 lamps monthly. Production leadtime is 18 days, and the firm plans to have 15 percent buffer stock. Assume 20 working days per month.a. If each container holds 15 lamps, what will be the total number of kanbantickets required? (Use the formula given in this section.)arrow_forwardMarkland First National Bank of Rolla utilizes kanban techniques in its check processing facility. The following information is known about the process. Each kanban container can hold 50 checks and spends 24 minutes a day in processing and 2 hours a day in materials handling and waiting. Finally, the facility operates 24 hours per day and utilizes a policy variable for unforeseen contingencies of 0.25.a. If there are 20 kanban containers in use, what is the current daily demand of the check processing facility?b. If the muda or the waste in the system were eliminated completely, how many containers would then be needed?arrow_forwardIn value stream mapping, what does an arrow in the shape of a lightning bolt mean?arrow_forward
- The demand for milk at a coffee shop is 60 quarts per day. Lead time to replenish inventory is 2 days and the coffee shops want to have ½ of safety stock. If the container size of milk is 10 quarts, what is the Kanban number?arrow_forwardThe demand for screens for a computer manufacturer is 10,000 per week. The lead time is 5 days, and this manufacturer wants to hold 2 days of safety stock. If the container size of computers is 200, what is the Kanban number? If the lead time improves to 4 days, what is the Kanban number? If the lead time moves out to 6 days and the manufacturer wants 3 days of safety stock, what is the Kanban number?arrow_forwardHartley Electronics, Inc., in Nashville, producesshort runs of custom airwave scanners for the defense industry. The owner, Janet Hartley, has asked you to reduce inventory by introducing a kanban system. After several hours ofanalysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you needfor this connector?arrow_forward
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