Let us consider the adjustment of production by using Kanban. Suppose a machine fabrication process should produce 100 engines per day. The next process, with Kanban-making, asking for five machines per one lot. Lot-lot was then drawn 20 times per day, in order to reach exactly 100 the number of machines produced each day.
With a production plan like this, if there is a need to reduce all of the production process by 10 percent as the adjustment procedure, the final process in this example should take the machine 18 times per day. Then, because the machine only produces 90 units a day, the time left for the 10 units will be saved by stopping production of this process. On the other hand, if there is a need to increase total production by 10 percent, the final process should take the machine 22 times per day with Kanban it.Then the previous process must produce 110 units, an additional 10 units could be covered through overtime.
Although Toyota’s production system has a production management philosophy that units can be produced without any excess or unnecessary stocks, there is the risk variations in production requirements. This risk is handled by using overtime and repair activities of each process.