What Is The Kanban System?
The Kanban System was designed to provide control of logistical chains. The system was designed by Toyota’s Taiichi Ohno. He discovered that the system boosted production levels within the automobile manufacturing plant. It has proven to achieve just-in-time productions at such high levels that more manufacturers are utilizing it.
The way in which it operates is that as products are shipped a signal is generated to increase production. It utilizes a replenishment cycle that informs suppliers of how many products are required each time one is purchased. The data is sent through the manufacturing plant where more products are completed.
The technique schedules production based on the system's ability to forecast demand for the product. It anticipates the number of products to create based on sales within a given time frame. An evaluation is performed to determine which products are slow sellers and to establish a window for further creation of these items.
The Kanban System sends out this signal immediately to the supply chain. This method allows for a quicker response time and allows management to schedule production more accurately. Manufacturers who use this system do not lose sales due to short inventories. They do, however, increase their bottom line by ensuring that an adequate supply of products are readily available to the public.
It also determines whether existing products have defects. The system evaluates the condition of manufactured parts and products for quality assurance. Inspection of these items is performed more effectively. Products with defects or imperfections are removed from the line immediately. As they are removed the system notifies suppliers and provides them with an accurate count of products for replacement. An order for these additional products is sent through the system and sent to the management staff within the manufacturing plant.
Electronic systems utilize electronic cards to provide information within the database. These options are often integrated into other systems such as enterprise resource planning. More manufacturers are utilizing these cards to track inventory.
They also use it to replenish and optimize their existing inventory. These options improve turnaround times for supplying products to customers and ensure an adequate inventory of products.
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