From the Archives of a Common Sensei Volume 20: THE KANBAN CALCULATION


If your organization is beginning the “LEAN Journey” or if you are having difficulty executing your Kanban ordering, perhaps this blog volume 20 will help you. These formulas for “standard/ordering” and “inter-process” Kanban were derived from work we did at Toyota Industrial Equipment (TIEM) during the early days of the 1990’s, but may also be relevant in your organization. As you might suspect, the standard Kanban calculation formula is generally meant for external ordering, and the inter-process Kanban calculation is generally used only when material is transferred (moved) internally. When reviewing these formulas to be used as guides, I have presented the suggested formulas and considerations. These formulas have been used in a variety of JIT and Kanban driven environments since I left Toyota (TIEM) and have helped create enormous value in the form of: shorter order lead times, shorter processing time, less inventory expense, less handling, less space, better quality, lower engineering costs, less overall waste, lower financial costs, etc. for those who choose to take deployment seriously. The use of Kanban must be executed with high discipline! Anything less is likely to result in errors and shortages of supply. The implementation of Kanban alone in an organization is not likely to produce the intended benefits mentioned above! This is where the culture of many organizations MUST be tackled at the same time (as discussed in our previous blogs). Every associate must understand the seriousness of their actions and the consequences of not performing their role in the overall process.

True value creation requires that every associate understand their role in executing to plan AND perform that role as intended!

Max Allway

As has been stated in other articles/blogs, this example of methods used or previously used at a Toyota operation are only meant as examples for consideration in your organization.  Hopefully you will benefit from this and previous “ideas” we have included in our blog postings.

For More Information or help with your transformation effort, contact us at http://www.per-strat.com

Management by Emoticon


I am a people person.  I know that my strength is in motivating people not only through my words but through my actions.  That is why I find it difficult to manage in the digital era,  So many people working remotely, so many IM’s, texts, emails, conference calls, etc.  I am certain that I am not alone.

In this digital era that we find ourselves in, it is hard to connect with people in the same way we once could.  So, in an attempt to help transmit my personality in a modern and may I say innovative way, I have created my own emoticons.  These are intended to help lighten the mood, show a bit of my human side, and still get the message across.  So far, they seem to be getting a very positive response from my co-workers and peers.  Admittedly, I have not tried them with my boss yet.  I will let you know how that goes.

You
Hey boss, who should…?

Let me think about it
What do you think about…?

Are you kidding me
Did you know that…?

Approved
Can I…?

Absolutely
Should I…?