On Designing Robust Kanban Production Control Strategies in Multiproduct Manufacturing Environments

Abstract

In this chapter, two Kanban Allocation Policies, Shared (S-KAP) and Dedicated (D-KAP), are analysed to understand how they would perform under different manufacturing scenarios, and the authors identify the merits and demerits of each. To evaluate the performance, a three-stage two product system was simulated under scenarios that provide for different levels of demand variability for each product. When operated under S-KAP, the system contained less Work In Progress (WIP); however, under D-KAP, the system provided more robust service levels as the variability increased. Based on the results from the model, guidelines on how to effectively combine these two policies to achieve the benefits of both in a multiproduct manufacturing system are developed. By partitioning the system at locations that would suit the transformation from one policy to another in a similar fashion to what is obtained in hybrid push-pull strategies, and deploying the policies that match the dominant characteristics at each segment, gives reduced WIP while maintaining service levels.