The Quantum Leap: Next Generation

In Western countries, the philosophy that pulls material on demand is called "just-in-time inventory." In Japan, it is often referred to as "kanban manufacturing." Kanban is a very powerful technique that is more than simply a tool to execute the pull philosophy. It is also more than its Japanese-to-English translation of "communication signal" or "card." Kanban is the primary tow chain in a demand-pull system. It replaces the reams of paper associated with scheduling and issue actions. It is frequently the key to saving many millions of dollars per year because of the substantial reduction in time required to carry materials in inventory, as compared to traditional schedulized manufacturing.
Demand Flow Technology moves away from the philosophy of scheduled manufacturing and toward the kanban demand-pull philosophy where the material is pulled to the point needed, when needed, and no sooner. Many companies have adopted kanban techniques and methods, some with limited success. This limited success is surprising, given that the basic kanban methods are designed for easy deployment and use. The elements of a kanban material-pull environment described below enable an understanding of the basic tools and how they can be employed.
In Demand Flow manufacturing, points of replenishment (resupply), inventory supply areas, and carts or stations sit close to the consuming line or feeder processes they serve. It should be emphasized that these supply areas stock material at or near where it is consumed. When the consuming line needs components or materials, it pulls from these points...