Question

Markland 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 0.15. a. If there are 12 kanban containers in use, the current daily demand of the check processing facility is number.) units. (Enter your response rounded to the nearest whole

b. If the muda or waste in the system were eliminated completely, how many containers would be needed?

Answer 1

a.

The Kanban formula to use

K = D*(1+SF)*KCT/C

Here

K = number of units per container = 50

D = average demand =?

SF = safety factor = 0.15

KCT = cycle time = 24/(24*60) + 2/24 = 0.1

C = number of containers = 12

We need to determine D

50 = D*(1+0.15)*0.1/12

D = 50*12/(1.15*0.1) = 5217.39

Demand is 5217

b.

If the waste is eliminated then the contingency is not needed anymore. This means we will need

C = 5217.39*0.1/50 = 10.43 or 11 containers will be enough.