Overview

In order to fully realize the benefits of kanban, some decision making needs to be decentralized. To successfully implement kanban, the materials department must evolve from its traditional role of controlling production. This task can be tougher than it sounds, because some functions are difficult to decentralize. Typically, all material functions are coordinated by a materials department that:

• Generates the production and shipping schedules

• Coordinates raw material purchases and deliveries

• Controls material handling and storage systems

Since these activities occur in all parts of the plant, it is difficult for these activities to take place at the work cell level. It is critical for the success of Lean manufacturing, however, that control of these vital functions to be turned over to the work cell.

The solution lies in dividing the tasks between a centralized materials department and a series of empowered work cells. However, certain key tasks, such as vendor selection, price negotiations, and purchase order maintenance, need to be managed by trained materials professionals. With kanban scheduling, key tasks traditionally performed by the materials department, such as placing orders, warehouse layout, and vendor selection and evaluation, need to be transferred to the shop floor (see Figure D-1).

Functions of the Materials Department after Decentralization

One of the primary functions that...