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The following formula is used to calculate the number of bins for a given part needed for a single Kanban loop between two cells in a production system:
N = D * (Tw + Tp) * (1+r) / c
Where:
N = Total number of bins for a given part
D = Planned usage rate for the part (parts per day)
Tw = Average waiting time for replenishment of parts (fraction of a day)
Tp = Average production time for a container of parts (fraction of a day)
c = Capacity of the standard container (number of parts)
r = Risk factor set by management (expressed as a decimal fraction)
At Company A, the boxing station at the end of an electric switch production line has a planned daily usage rate of 150,000 switches per day and receives the switches to be boxed from the preceding station in containers which hold 3% of the day’s demand. It takes 90 minutes for the preceding station to fill a bin and 9 minutes for the filled bin to be delivered to the boxing station.
How many such bins are needed for the Kanban loop to work efficiently in this production cell, given a single 10-hour shift per day and a risk factor of 6%?
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