From the course: Lean Inventory Management
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Kanban
- Without a doubt, Kanban is the foundation of managing a lean inventory system. Kanban means signal in Japanese. When you need more inventory, you send a signal to have that inventory delivered to you. The signal is commonly a kanban card, but it can be any signal you wish to use. The kanban card notes exactly how much inventory you need, and that's what is sent, no more, no less. Some factories use a container for the signal. The container holds exactly the amount of inventory needed. When inventory is needed at one work station, an empty container is sent to the upstream work station, the container is filled and then sent back. Some distribution centers designate a kanban area that holds a specific amount of inventory. When an item is taken from the area, a replacement is sent. Again, the signal doesn't have to be a card. It can be anything you wish. Kanban cards enabled Toyota to create a manufacturing system based totally on demand. This is often called a pull system because…
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