KANBAN - - Just In Time tool

KANBAN have been developing by TOYOTA late 1940. KANBAN has been using for quality developing and material replenishment. It is a part of JIT (Just-In-Time) through the process flow at manufacturing.

KANBAN means “card” or “signal” in which it is able to tell the process flow status and designed as using it for controlling through the operations. Whenever there is a use of material - - KANBAN signals for replenishment. All signals responds the right requirements and right replenishments between the assembly team and material team.

There are several types of KANBAN signals:
- KANBAN card
- Look-see
- E-mails
- Electronic KANBAN

KANBAN can be used within the organisation or with others.
1. Internal KANBAN : there is a use of KANBAN card as the signal for material replenishment from warehouse to the assembly line.
2. External KANBAN : the same card that was carried from the assembly line will be sent out to supplier as the signal for replenishment from supplier to warehouse.

Here are the important details given on a KANBAN card.
1. In order to encourage JIT (Just-In-Time) manufacturing - - it is a must that there are always the safety stock of the materials available for any pulls.
- At the manufacture, there are always the safety stock of materials for any replenishments required via KANBAN cards from assembly line.
- At suppliers, there are always the safety stock of materials for any replenishments required via KANBAN cards from manufacture.

2. KANBAN card is very important, it’s as a note used to buy the stuffs in which they’re required.
- Internal: assembly line is a warehouse’s customer.
- External: warehouse is a supplier’s customer.
What are the details in card?
(1). Code and material description
(2). Supplier (this distinguishs the right supplier when the same materials are produced by different suppliers).
(3). Quantity (it is equivalent to the note value).
- In order to trace the component more easier and to define more precise level of the safety stock - - the quantity is a pack size in which is always standard.
(4). KANBAN card number
- The numbers which are issued for each component are the result from the following formula. (Safety stock quantity + leadtime to receive the new lot)/standard packsize.
- It is very important to ensure no lost of card - - otherwise, there is a risk for material shortage because there is no card represents the requirement in the right leadtime.

Profits of running KANBAN system
1. Improves the process flow between suppliers, manufacturing warehouse and the assembly line.
2. Place more control at the operation level.
3. Minimizes risk of having shortage of materials.
4. Reduces inventory value, improves the cash flow.