What benefits may be achieved by implementing a Manual Kanban System?
Most companies reduce inventory levels 30% – 65% and experience reductions in part shortages of up to 80%. In addition, these companies typically reduce the typical order/receipt/inspect/issue time by over 85% and significantly lower the overhead expenditures of operations. This is accomplished by the total elimination of non-value-added activities associated with the replenishment system. Those areas where they cannot be eliminated are greatly minimized, enabling immediate response to demand. Q: Can all of the part numbers of a company go on Kanban? A: Typically not. What determines if a part is a candidate for Kanban includes the following: • The part has a robust, linear demand. There is a test that can be performed to determine if the part should be on Kanban or remain on its current method, which is covered in our seminars. • The part has a history of outstanding quality. • The part is not being phased out. • The lead-time for the item is realistic. The usual reason a part is not
