Kanban - Ordering materials

Delivery oriented towards consumption

’Kanban’ is Japanese and means sheet of paper or (index) card. Ordering parts and materials through Kanban is a “pull” mechanism in the process chain (the pull principle). Working on the basis that “whatever’s gone must be replaced!” a Kanban card signals when supplies have reached a critical level and new material has to be ordered/supplied.    

This ensures that the right materials are in the right place at the right time. The Kanban system guarantees smooth operation without the need for a large inventory.

The Kanban principle can be used in all areas of a company, from administration to manufacturing.

Advantages gained from Kanban:

• smaller inventory
• improved response to production demands
• greater transparency
• discharged subsidiary departments