Kanbans Help Improve Customer Service and Lower Costs for Metal Stamping Companies

Lean manufacturing concepts including the concept of Kanbans have been around for many years but not all metal stamping companies take advantage of them. A Kanban is literally a visual signal to allow replenishment of a raw material, part, sub assembly or finished part or assembly at the optimal time. Kanbans were developed by the Japanese automaker Toyota but the principals apply to all organizations including metal stamping companies. The principals originate from the simple method of stocking supermarket shelves. Shelves or bins are stocked when they reach a predetermined low level so as to ensure they are restocked before the item runs out, that staff utilization in restocking is optimal and shelves are not overstocked.

Toyota used this simple concept to develop a sophisticated but simple way to replenish parts internally without generating complex Material Requirements Planning systems (MRP). The Kanban size is determined by the time to replenish the raw material to manufacture the part and the batch size costs associated with each of those. A Kanban card is used to produce the next part from the preceding operation but nothing is produced until it is required. Depending on the complexity of the part, the variance in demand and the time required to produce a batch, there will be a safety stock of inventory. There are several ways Kanbans can be used. The two bin system has a bin of the part or product at the end use point and one at the supplier. There are other methods of Kanbans including 3 bin systems and systems where nothing is produced until there is end use. Time of replenishment, complexity and criticality of the part, variability of demand, distance and time to ship all have an impact on how a Kanban is set up.

At Taurus Stampings, the majority of parts we make are complex deep drawn parts or stamped and formed metal that require multiple operations with the many set ups. We have worked with our customers in many instances to develop Kanbans to provide quick turn around with lower inventory and costs for both Taurus and our customers. Each of these parts is made with hard tooled dies that produce parts unique to a product for each customer. While this means that developing Kanbans is less straightforward than with a continuous production line for repeatable items there are steps that can be taken to reduce costs and to improve service.

Our experience at Taurus shows that lead times for deep drawn, formed and stamped metal components can be reduced by the use of Kanbans. One customer makes power steering reservoirs for class 8 trucks. These require 1.5 and 2 litre deep drawn metal canisters. These “cans” are then punched with various hole configurations depending on the model of truck they are being used in. Mutual agreement with the customer on volumes and guarantees to take all metal eventually, allow Taurus to buy metal in economic quantities. A Kanban of blanks to be deep drawn is maintained with a coil of blanks done at each time. The cycle time of deep drawing the metal canisters is approx 1 minute so in order to be able to respond a Kanban of deep drawn canisters is maintained ready to be quickly punched in the required hole pattern for as little as 100 canisters in an order and shipped in as little as two days. Another use of a Kanban involves a transportation equipment manufacturer that uses stamped and formed metal clamps in their product. This customer can order over 800 different clamps in volumes ranging from 5 to 5,000 per order. Because over 90% of the clamps can be stamped and formed from just 6 grades of steel the steel is ordered in a predetermined Kanban quantity instead of matching discrete order quantities. This reduces handling, material cost and speeds up delivery to the end customer. Response times are reduced further on these stamped and formed steel clamps because 20 different components make up 75% of the components used. By maintaining Kanbans of these stamped and formed components turnaround times can be reduced to as little as one day. Other customers who buy drawn metal ends for mufflers have standard order quantities for each of their parts. A Kanban is maintained of each of these parts at Taurus allowing both Taurus and the customer to respond to short turn around requirements.

These are just a few examples of how deep draw metal stampings can be turned around quicker and at lower cost with the use of Kanbans.

Other services include the manufacturing of light assemblies, spot and stud welding.

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Whether you simply need assistance or a specialist to provide deep drawn and metal stamped products in Canada, you can rely on Taurus Stampings to manufacture a product that is guaranteed quality, and a service experience that speaks of value and trust.

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