Question
A manufacturing unit uses colour-coded cards to signal
when materials must be replenished from the previous process stage. Production starts only when such a signal is received. This system ensures demand-driven production. Which Lean tool is being applied?Solution
Kanban is a Japanese term meaning "signboard" or "signal card". It is a visual management tool used in a Pull System to trigger the production or replenishment of items only when they are consumed. In this system:Â
- Visual Signals:Â Colour-coded cards or bins are used as signals to indicate that materials have been used.
- Demand-Driven:Â Work starts only when a signal is received from the subsequent stage (the "customer"), ensuring production is driven by actual demand rather than forecasts.
- Waste Reduction:Â By limiting work-in-progress (WIP), it prevents overproduction and reduces inventory costs.Â
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