|
Kanban provides
a number of benefits.
Reduce inventory and product obsolescence.
Since
component parts are not delivered until just before
they are needed, there is a reduced need for storage
space. Should a product or component design be upgraded,
that upgrade can be included in the final product ASAP.
There is no inventory of products or components that
become obsolete.
This
fits well with the Kaizen
system on continual improvement. Product designs
can be upgraded in small increments on a continual basis,
and those upgrades are immediately incorporated into
the product with no waste from obsolete components or
parts.
Reduces
waste and scrap
With
Kanban, products and components are only manufactured
when they are needed. This eliminates overproduction.
Raw materials are not delivered until they are needed,
reducing waste and cutting storage costs.
Provides
flexibility in production
If
there is asudden drop in demand for a product, Kanban
ensures you are not stuck with excess inventory. This
gives you the flexibility to rapidly respond to a changing
demand.
Kanban
also provides flexibility in how your production lines
are used. Production areas are not locked in by their
supply chain. They can quickly be switched to different
products as demand for various products changes. Yes,
there are still limits imposed by the types of machines
and equipment, and employee skills, however the supply
of raw materials and components is eliminated as a bottleneck.
Increases
Output
The
flow of Kanban (cards, bins, pallets, etc.) will stop
if there is a production problem. This makes problems
visible quickly, allowing them to be corrected ASAP.
Kanban
reduces wait times by making supplies more accessible
and breaking down administrative barriers. This results
in an increase in production using the same resources.
Reduces
Total Cost
The
Kanban system reduces your total costs by:
- Preventing
Over Production
- Developing
Flexible Work Stations
- Reducing
Waste and Scrap
- Minimizing
Wait Times and Logistics Costs
- Reducing
Stock Levels and Overhead Costs
- Saving
Resources by Streamlining Production
- Reducing
Inventory Costs
Learn More About Kanban
The
Benefits of Kanban by Steve Hudgik
|
