Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 1.2Q
Summary Introduction

Interpretation:

Number of kanban cards to circulate in the loop.

Concept Introduction: Kanban card is an indicator used by various departments of a firm or a company to inform about the shortage of components being faced. It is a card that is used when raw material or any item is completely finished. The consumption team uses its kanban card only when its item is almost completely used up and the kanban card is used to give a signal to the production team for procurement of raw material and processing of it.

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Hartley Electronics, Inc., in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Janet Hartley, to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you need for this connector? Daily demand Lead time Safety stock Kanban size Number of kanbans = kanbans (round your response to the nearest whole number). 1,200 connectors 4 days 0.50 day 500 connectors
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost Annual holding cost Daily production Annual usage Lead time Safety stock Kanban container size = $30 $125 per subassembly 40 subassemblies 4,500 (50 weeks × 5 days each × daily usage of 18 subassemblies) 14 days 2 days' production units (round your response to the nearest whole number).
Flores Manufacturing, Inc., is moving to kanbans to support its electronic-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost $16 Annual holding cost subassembly $250 per subassembly 600 subassemblies Daily production Annual usage 62,500 (-50 weeks x5 days each x daily usage of 250 subassemblies) Lead time Safety stock The kanban size is (round your response to the nearest whole number). 2 days 1 day's production of subassemblies
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