BackStreet Lean: Solutions for the Job Shop, Plant Edition

Utilizing a Kanban System

Overview

Kanbans help eliminate the expense and inefficiency of carrying excessive inventory. Proper utilization of Kanbans means always knowing when to re-order parts and equipment to prevent running out.

Purpose

To attain efficient process control of tooling, inventory and material flow.

Who Does It?

A representative with purchasing authority drives the initiative with support from top management. The Kanban system is explained clearly to everyone involved in using it, particularly operators and support personnel.

Key Terms

Kanban: A Japanese term that means "card," 'billboard," or "sign." The term is often used synonymously for the card itself. It is a material flow system developed by Toyota and is often referred to as a supermarket inventory system.

Time Frame

3 4 weeks to develop the implementation concept or procedure. Maintaining a Kanban system will be an ongoing effort.

Tools and Techniques

Kanban Cards used to track levels of inventory

Inventory Analysis used to determine order placement indicators and quantities.

When utilized properly, a Kanban system lends structure and consistency to the purchasing function, which can, at times, be loose and arbitrary in nature. Discussion and decisions about when and how many to buy are eliminated because the Kanban automatically indicates to a purchasing agent what to buy, how much to buy, and when to buy the item.

Inventory levels for all items are reduced, which reduces inventory carrying costs and other expenses associated with excessive inventory. Kanbans offer security for the purchasing agent by ensuring the company will never run out...

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