Kanban - Ordering materials
Delivery oriented towards consumption
’Kanban’ is Japanese and means sheet of paper or (index) card. Ordering parts and materials through Kanban is a “pull” mechanism in the process chain (the pull principle). Working on the basis that “whatever’s gone must be replaced!” a Kanban card signals when supplies have reached a critical level and new material has to be ordered/supplied.
This ensures that the right materials are in the right place at the right time. The Kanban system guarantees smooth operation without the need for a large inventory.
The Kanban principle can be used in all areas of a company, from administration to manufacturing.
Advantages gained from Kanban:
- smaller inventory
- improved response to production demands
- greater transparency
- discharged subsidiary departments