An effective pull system can help managers control inventory and reduce costs. Just-in-time is the key to such a system. In this video, Steven shows how the Kanban method can limit work-in-process inventory and benefit the entire organization.
- [Narrator] Technology management consultant…David J. Anderson recently wrote,…"An interesting side effect of pull systems…is that they limit work-in-progress…to some agreed-upon quantity."…Now that's a great line,…but I'm not so sure I agree about it being a side effect.…It seems to me that the actual purpose of a pull system…is to limit that inventory to the lowest level possible…while still meeting your customer's requirements.…A pull system is driven by the customer requirements.…
For example, material is moved through a factory…only when needed to fill a customer order,…or in some factories, an anticipated order,…one based on a demand forecast.…Okay, but how do we do that?…A common approach is the use of a Kanban system.…Kanban is a production control system…that uses visual signals to control…what will be produced and when.…A standard signal in a factory, for example,…is a Kanban card or container.…Based on a customer order, each workstation in the factory…uses the card or container to request material needed…
Lean concepts have been successfully applied to every aspect of doing business. In this course, learn the principles of lean and how they are used in processes, production, and services. Instructor Steven Brown also explains how lean thinking impacts the organization, from the overall business culture to day-to-day work activities.
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Cite the focus of a lean strategy.
- Explain what a “rule of complexity” is.
- Name the three key measures of inventory.
- List the 5S tools.
- Define a lean transportation system.
- Describe the characteristics of a lean purchasing organization.
- Identify the characteristics of a lean company.