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Kanbans link the supply chain together : Single-piece continuous flow is the most
effective and cost-efficient way to produce or process anything. It is what lean
is all about. However, we also realize this is not always possible. There are
steps within the process that run at dissimilar speeds. If the process steps or
equipment speeds cannot be synchronized or changed, we need to inject a buffer
inventory into the systems so as to simulate single piece continuous flow. Kanbans
are signals which automate the replenishment of repetitively used materials and
supplies from internal or external suppliers to the buffer inventories. Kanbans
reduce outages and shortages of materials and supplies, which improves customer
service levels. Kanbans support “pull production” and continuous flow,
since material is not produced at the supplier until a signal to replenish material
is received from the customer. Using this approach, kanbans will reduce overall
inventory levels (30 percent reduction on average). Kanbans can be used anywhere
in the organization where there is repetitive usage including: maintenance supplies,
janitorial supplies, raw materials, office supplies, etc. The type of signal used
in a kanban is only limited by your imagination, but there must be agreement on
the type of signal and the information it contains between the supplier and the
customer. (In general, all kanban development is accomplished by negotiation,
at least for the first few kanbans, between the supplier and customer.)
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