2. 2 What is KANBAN system?
•"Kanban" is an inventory scheduling system originally developed by the
Japanese but now used worldwide. The main objective of kanban is to reduce
inventory costs. This is achieved by moving inventory only as and when
needed.
•The system is used in many manufacturing and service companies. Kanban
places an increased emphasis on quality production, low variability and tight
schedules.
Companies following kanban have developed it to suit their own production
•
processes. Employees are trained to familiarize them to the specifics of the
kanban process as used within their organization.
3. 3 Function of KANBAN
•"Kanban" is a system used for inventory scheduling in companies
that follow Just-in Time (JIT) or lean production methods.
•Kanban means "card" in Japanese, and the system uses a card or
some other signal to indicate the time has come to move inventory
from one area of the production process to another.
The process of moving inventory through the plant only when it is
•
needed in the different areas is called the "pull" system.
4. 4 The 2-Bin KANBAN
•One of the simplest and most common Kanbans is the 2 (or 3) bin
system, normally 2 containers of parts are held within the production
area, the production process utilizes the components within the first bin
until it is empty, they then start using the second bin and return the empty
to the stores or the previous operation for replacement.
•This is the signal to (deliver the 3rd bin in a 3 bin system then) replenish
the stock in the bin, thus only those components that are being used are
produced.
• When filled the container is then delivered to the production area and
they wait for the next empty bin.
5. 5
How 2-Bin KANBAN is used in Fast Food Industry?
•Application: example is that of a certain fast food / burger joint,
between the server and the kitchen is what is known as the “burger
regulator.”
•As the servers remove burgers from the regulator this is the signal
to produce more to the kitchen behind. Batch sizes for production
are changed during the day to match expected demand for peak and
slow periods
•95% of customers should find their order freshly available without
having to wait.
6. 6
Benefits of 2-Bin KANBAN
system
•Low costs associated with the transfer of information (simple
techniques involved)
•Provides quick response to changes (eg: quality problems visible)
•Delegates responsibility to line workers
•Lead times are reduced.
•Low fixed stock
•Highly Stable
