Vakif Bank employs the Kanban system in processing units of checks. If you know that each container in the Kanban system hold 50 checks and takes 30 minutes per day in processing and 1 hours per day in waiting and material handling. The check units operates 20 hours per day and adopts a policy variable for unpredictable contingencies of 0.15.

1 What is the current daily demand of the check processing unit if you know that there are 10 kanban containers in use?

2 What is the total planned inventory (work-in-process and finished goods) for checks in the system?

3 What is the process cycle time for the total planned inventory?

4 What is the process cycle efficiency of the check process assuming that the processing time is the added-value time? Is the process lean? Why?

5 How many containers would be needed if muda in the Kanban system were eliminated completely?