The Kanban system is an inventory control system that will be used in JIT’s (just-in-time manufacturing). It is a Japanese word that translates to visual card, and it means a system in which you use visual cues to promote the action needed to keep the process flowing. Taiichi Ohno developed this. He is an industrial engineer at Toyota.
The Kanban system is a thought response and signal system. If an item runs low at an operational station, a visual cue specifies how much to order from a supply. The user using the parts will order the quantity indicated by the Kanban, and the supplier will provide the amount requested.
This system will be used efficiently within a factory to purchase inventory from external suppliers. It will create fantastic, extraordinary visibility for both suppliers and buyers. One of the essential reasons to use this system is to limit the buildup of excess inventory at any point on the production line.
Benefits of Kanban
The system carries various benefits, from internal efficiencies to positive impact on the customer. Let us look at some of them:
It helps in Visualising the flow of processes and tasks. Because of this, it brings greater visibility and transparency to the flow of objectives. By rendering these steps and the order in which they should occur, project participants will better understand the flow of work and the importance of interrelated steps.
Businesses that use Kanban will also have a greater predictability for what will come in the future. When you outline the further steps and tasks, your company will have a greater sense of the rest or issues that would have otherwise slowed in the process. You can free-handedly work in different processes to avoid future difficulties.
One of the primary goals of Kanban is to provide excellent customer service. You can charge your customers low prices when you have low wastage in the production process. And when you do this, your customers will be attracted to your service. This will also result in faster production and a fast supply of goods.
