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Kanban

Kanban is a Japanese word for card or sign. A card can be generated to identify production of part(s) to replenish in-house inventories, a withdrawal of product for shipment to a customer or to signal the replenishment of raw materials and parts.

When a unit is sold and a Withdrawal Kanban is removed from a finished goods package, it is placed in a slot for the supervisor or their designate to pick up. This pulls the production of a package to replace the unit sold making a Kanban system the heart of a pull manufacturing system. The product is pulled through the production sequence based on an order from the customer.

A Signal Kanban, similarly, will be placed in a slot when a box or package of raw materials is issued to the production floor. The purchasing staff or their designate will pick up the signal kanbans to direct them on what to purchase. In this way, raw materials will be well regulated which prevents huge inventories and you should not run out of any raw materials.

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