Lean Manufacturing Techniques - Pull / Kanban Systems

The term "pull" in lean manufacturing describes demand of the customer for product. Pull systems (make-to-order) now invariably replace push systems (make-to-stock), which traditionally have been based on the (often inaccurate) anticipation of demand. Push systems, which are heavily dependent on the planning of demand (and production capacity matching), are usually characterised by a high level of in-progress stocks, which are generally unwieldy and expensive to maintain and to finance.

Companies that use lean manufacturing techniques design their operations to be responsive to the ever-changing level of customer demand. Those companies that are able to make to customer order do not need to support the levels of inventory that traditional batch make-to-stock manufacturers rely upon. The reliable supply of product in direct response to customer orders will engender confidence in the customer base and encourage repeat business.

Kanban

Kanban (Japanese for "card" or "sign") is a stock management system that provides a means to transfer parts or products from one department to another within a plant, or from one plant to another. The kanban system ensures that production systems respond to the real needs, ultimately of its customers, and not to predictions or forecasts of demand. The kanban system will trigger the automatic movement, production or supply of parts or products, when inventory levels drop to a preset minimum. The authority to move or produce a part, or parts, is based on usage and typically can be represented in the form of a marking on the floor, bench or rack, or on a container or, in its simplest form, can be a card or an electronic signal. Physical kanbans, kanban squares, or shelf reserves are used when the producing and consuming work sites are physically adjacent. Card kanbans are used when the move time and distance between producing and consuming departments are significant.

Benefits of Pull - Kanban Systems

  • Efficient control of inventory
  • Significant WIP reduction
  • Increased productivity
  • Reduced floor space
  • Improved lead times
  • Better overall customer response