Kanban is the name given to the inventory control card used in a pull
system. The primary benefit of kanban is to reduce overproduction -- the
most critical of the seven deadly wastes. A kanban system produces exactly
what is ordered, when it is ordered, and in the quantities ordered. It is
essentially a work order that also moves with the material. Each kanban
identifies the part or subassembly unit and indicates where each one came
from and where each is going. Used this way, kanban acts as a system of
information that integrates your plant, connects all processes one to
another, and connects the entire value stream to customer demand.
In addition to reducing the waste of overproduction, kanban will help your
company increase flexibility to respond to customer demand, coordinate
production of small lots and wide product variety, and simplify the
procurement process.
