Kanban

You already know that Lean is the way to go, you might even be aware that the Pull system is the better way of production without excessive WIP inventory, but …

How can the kanban system be implemented in my company?
What if kanban causes or may cause material shortages and production stoppages?
What are the prerequisite before the implementation of kanban?
Or, simply you struggle with...?
Your customer’s demand that you respond more effectively to their kanban system?
Inventory building up due to push production?
Production lot sizes not synchronized with actual demand?
Shortages of parts or materials from suppliers (internal or external)?
If you answered "yes" to any of the above, Kanban might be the course you need, in order to explore the possibility for your organization to be Lean.

KanBan is often seen as a central element of “Lean” manufacturing and is probably the most widely used type of “Pull” signaling system. Kanban stands for Kan- card, Ban- signal and as you probably guessed, is of Japanese origin.

Simply described a “pull” production system controls the flow of work through a factory by only releasing materials into production as the customer demands them i.e. only when they are needed. A “push” system on the other hand would release material into production as customer orders are processed and material becomes available, MRP (Material Requirement Planning / Manufacturing Resource Planning) systems are typically “push” systems. What must be made clear at this point is that Kanban is not a scheduling system but rather a production control system.
 

Kanban provides a number of benefits

Reduces inventory and product obsolescence.

Since component parts are not delivered until just before they are needed, there is a reduced need for storage space. Should a product or component design be upgraded, that upgrade can be included in the final product ASAP. There is no inventory of products or components that become obsolete.

Reduce waste and scrap
With Kanban, products and components are only manufactured when they are needed. This eliminates overproduction. Raw materials are not delivered until they are needed, reducing waste and cutting storage costs.
 

Provides flexibility in production

If there is a sudden drop in demand for a product, Kanban ensures you are not stuck with excess inventory. This gives you the flexibility to rapidly respond to a changing demand.

Increases Output
The flow of Kanban (cards, bins, pallets, etc.) will stop if there is a production problem. This makes problems visible quickly, allowing them to be corrected ASAP. Kanban reduces wait times by making supplies more accessible and breaking down administrative barriers. This results in an increase in production using the same resources.
 
 Reduces Total Cost By:

Preventing Over Production
Developing Flexible Work Stations

Reducing Waste and Scrap
Minimizing Wait Times and Logistics Costs
Reducing Stock Levels and Overhead Costs
Reducing Inventory Costs

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