Kanban systems signal when and how much material is needed based on customer demand. Developed by Toyota, it aims to have only necessary materials on hand. Visual aids like kanban cards are used to show when a part is needed. Kanban systems help achieve just-in-time manufacturing and can use other signs besides cards.
Kanban systems are used to signal when a material needs to be produced or ordered and how much is needed. It is a type of drive system that is based on customer demand and where materials are only made when they are needed. A kanban system is a type of lean manufacturing and strives not to have more material on hand than necessary.
The first kanban systems were developed by Taiichi Ohno for use by Toyota® manufacturing. In the mid-1900s, Ohno studied the inventory strategies used in supermarkets. Many supermarkets actually work as a kanban system and have tabs for each type of item sold. Ohno took what he learned from supermarkets and applied it to manufacturing.
Subsequently, Toyota issued six rules to guide its kanban system. Most of these rules deal with ordering only what is needed to keep the production rate as constant as possible. Whenever a defect is found, it must be immediately repaired or scrapped. If you let a defective product go down an assembly line, you waste time and money.
Visual aids are used in kanban systems to show when a specific part is needed. These visual aids are usually kanban cards showing the part name, image, code, and quantity needed. Kanban cards are often attached to a bin where they become visible as soon as the quantity reaches a point where more needs to be ordered.
A stable level of demand is almost a requirement for kanban systems. Companies that produce seasonal items, such as snow suits or beach toys, need to adjust their numbers to the season. Otherwise, there will be too much stock in the off season and too little when needed.
Kanban systems are also a tool to achieve just-in-time (JIT) manufacturing. JIT manufacturing occurs when a facility has a stable production rate. In an assembly line, each station must finish at exactly the right time to keep the line moving. Kanban systems ensure that no one ever completely runs out of a material, so the line never stops moving.
Although the kanban system was originally created to use kanban cards for each item, some manufacturing plants now use other items. Other signs, such as kanban squares or golf balls, can be used to signal the need for more material at a workstation. Some manufacturing plants have even implemented electronic kanban systems.
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