This paper focuses on inventory control using kanban system for a
typical manufacturing industry. The earlier method used was to get work done from the
suppliers within a specified time using an order memo. The problems with order memo were
that the exact production status of the supplier were unknown, due to which the
parent company was unable to receive the finished product from the vendors in the required
time. Also, due to improper scheduling of the transportation facilities there was a chance
of delay in production.
To solve this type of problem, JIT system is used. The concept aims to reduce
inventory by material flow regularization. Inventory is reduced by JIT policy with the help of
the kanban system.
The next section gives a brief idea about JIT manufacturing, its evolution, the
elements of JIT and of continuous flow manufacturing. The subsequent sections detail the
process of kanban, types of kanban, determination of number of kanbans required, adaptation to
fluctuations in production, basic rules and relevance of kanban used in JIT manufacturing.
JIT is termed as "a philosophy of manufacturing based on planned elimination of
all wastes and continuous improvement of
productivity.'' The important aims of JIT manufacturing are
only to have the required inventory when needed, to improve
quality to zero defects and reduce lead time of production by reducing
the setup time. Therefore, parts produced in JIT
meet the manufacturing requirements but not like the
traditional approach of production. |
