A company is using a Kanban system with 2 containers, each holding 50 parts, between a downstream (using) and an upstream (producing) work center. The using work center can handle 250 jobs per day. The average elapsed time for the entire cycle is currently 0.25 days. The company is concerned about the safety factor for the operation. Which of the following is the safety factor (α) of the current operation?
A) 20 percent
B) 60 percent
C) 80 percent
D) 40 percent

Question

Quizplus · Accepted Answer

The safety factor (α) is calculated using the formula: α = (Number of Kanban cards * Container size - Demand during lead time) / Demand during lead time. Here, the demand during lead time is 250 jobs/day * 0.25 days = 62.5 parts. The number of Kanban cards is 2, and the container size is 50, so the total parts available is 100. Therefore, α = (100 - 62.5) / 62.5 = 0.6 or 60 percent.

A Company Is Using a Kanban System with 2 Containers