Difference between production order and KANBAN of planned production

The word “KANBAN”

When visiting a Japanese trading company in Indonesia and a manufacturing company and hearing the business requirements for system implementation

[speech_bubble type=”drop” subtype=”L1″ icon=”staff_man.png” name=””] Our factory is running with kanban [/speech_bubble]

In most of this case KANBAN arrives from customers each day by e-mail, and this corresponds to the delivery order for the scheduled order received at the beginning of the month, but if the total number of shipments by KANBAN is less than the fixed order quantity, you have to close the sales order on the system.

And it’s better to order merchandises or materials collectively to the suppliers in a monthly order, and the delivery from the suppliers is also according to the movement of the KANBAN from the customer, so that supply from suppliers link with the demand from customers.

KANBAN managed by a trading company in sales order and purchase order are as followed.

  1. KANBAN Arrived from customer.
  2. Request the suppliers to deliver the KANBAN.
  3. After shipping the kanbans from customers in the current month, close the sales order and purchase.

KANBAN are issued in units of BOX.

On the other hand KANBAN within the process of manufacturing flow as follows.

  1. Stuck in the shipping area by being shipped.
  2. Returned to the production area and stays.
  3. When KANBAN qty reach to processing point, production start, and KANBAN will be inserted into BOX
  4. Back to 2.

In-process KANBAN may be divided into takeoff KANBAN flowing through the site (movement results) and in-process KANBAN (production results) as production instructions.

  1. Removed by shipment and staying in the shipping area (takeover Kanban)
  2. Returned to the processing area (takeover kanban), BOX was taken over (takeover KANBAN), stayed in the processing area (in process KANBAN)
  3. When KANBAN qty reach the processing point, production start and inserted in BOX (in process KANBAN)
  4. Back to 2.

Whether to issue production order or calculate the number of KANBAN by MRP

Both the production order and the KANBAN are calculated based on the actual requirement which is the result of the PPC department run the MRP based on the customer forecast.

While the production order is a materialized by production plan(push method) , on the other hand the KANBAN method is taken by the post process from the previous process by the amount used at the manufacturing site (pull method), as a result of this it became the substance of the unit of work.

  • Production order total qty = Actual requirement – Current stock + Safety stock
  • KANBAN qtyxPack in a BOX=Production qty+Requirement qty in a dayx(KANBAN L/T+Production L/T+Safty stock)


Difference between 1 and 2

  1. The production order quantity which are monthly gross requirement minus current stock plus safty stock
  2. The requirement a day which are monthly gross requirement divided by working days, multiplied by (KANBAN L/T + processing L/T + safety stock days)

equal with KANBAN removed and accumulated in the shipping area, plus KANBAN accumulated until reach to the processing point in the processing area.

And the KANBAN flowing in the factory will stay in the following three locations.

  1. KANBAN removed in the shipping area and accumulated(KANBAN L/T)
    The idle period until returned to the site after removed on shipment.
  2. Accumulated until reaching the processing point on site(processing L/T)
    The period until the KANBAN next to the site reaches the processing point+The period for which processing lot is to be finished.
  3. KANBAN inserted in box at the work site or warehouse(Safty stock)
    It is the stock level N days which should not be lower, and if the safety stock = 0, it is the best that can be operated with “No stock without delayed delivery”, calculate the average usage and variance from the actual use of the past period, and have the amount not to cause statistically lack of stock.