It is basically an information system to support JIT inventory for manufacturing operations. It signals supply of material when used. Kanban, meaning signboard or label, is used as a communication tool in the inventory system. A kanban is attached to every box of parts as they go to the assembly lines. Because these parts are funneled to the line as needed, the kanban can be returned as parts are used to serve both as record of work done and as order for a new lot. Kanban coordinates the inflow of parts and components to the assembly line, minimizing replenishment processing. Kanban is used in process logistics for movement of parts and components on the shop floor of a manufacturing plant (Figure 7.8). The system was first evolved at the Toyota Motor Company in Japan to support the concept and practice ofJIT in the assembly line. The philosophy behind it is “use one, buy one.”
Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.
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