Wednesday, March 27, 2019

Practical Pull System: adjustable kanban

A Kanban system keeps a very small amount of inventory on hand, so as soon as a customer places an order, they receive an item from the inventory. Then the factory builds more of that item, builds work in process needed for the item, and reorders any raw materials needed, working all the way backwards through the system to ensure the entire system will be ready to go for the next customer order. The exact amount of product moved depends on the batch sizes and the customer demand. This system can change over time as the business adjusts batch sizes and has changes in sales volume.

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