Implementation of the Kanban System to Reduce Work in Process Inventory at Company X
Keywords:
Line Balancing, Mixed Model Schedulling, KanbanAbstract
Abstract. Company X is a make-to-order (MTO) and engineer-to-order (ETO) footwear manufacturing company that experiences frequent production delays despite stable monthly demand from LAF Project. These delays are primarily caused by imbalances in workload between work stations, resulting in significant Work In Process (WIP) accumulation. This condition leads to idle time at downstream stations and inefficient utilization of working time. The imbalance is suspected to arise from differences in processing times between stations and the use of a batch production system of ten pairs per batch. To address these issues, this study applies line balancing, mixed model scheduling, and a Kanban system to improve production flow and control. Line balancing using the Region Approach (RA) method increased line efficiency from 45.33% to 88.39%, reduced the smoothness index from 2.77 to 4.21, and reduced the number of work stations from five to four. Mixed model scheduling produced an optimal production sequence for six shoe models with two color variations and changed the batch size from ten pairs to one pair per sequence. The implementation of a Kanban system with one card per work station successfully eliminated WIP accumulation and maintained a controlled buffer of one pair at each station.
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