Visual Signals are Essential for Effective, Efficient Inventory Control
Kaban is the Japanese term for card or signal. It has evolved as a Lean tool to manage inventory based upon customer demand. Traditional inventory systems “push” material from one operation/department to the next. As such, production runs are not based upon customer orders, but rather the setup times, equipment availability and MRP driven data. Oftentimes, variations in process control, scrap and rework are not taken into consideration when production plans are created.
The Result: Traditional inventory systems…
1. Do not produce what the customer actually needs, and;
2. Are driven with inaccurate information — thus driving waste.
Instead of pushing inventory through an organization, Kanban “pulls” inventory that is directly related to customer demand. Kanban utilizes simple visual signals instead of sophisticated software systems to trigger production or replenishment.
Click below to download the Visual Workplace 7 Pillars Lesson: VISUAL management techniques for optimum INVENTORY form, fit and function
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