Application Of Kanban System For Managing Inventory

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while simultaneously decreasing

Production practices have had an important role in satisfying the dynamic market. Many approaches have being developed in order to respond effectively to specific business requirements. In fact, some areas of management have focused its study on the overseeing, designing, and controlling the process of production in an effort to find the best methodology that ensures the business success and performance. However, complexities arise in this field because many variables such as costs, inventory, scheduling, suppliers, etc have to be considered in any business. Lean approach and the traditional approach are two points of view that aim to address this complexities, and those will be examined in this essay.

Abstract: To sustain the competition and remain alive in market the enterprises must implement the practices of Lean manufacturing techniques. The implementation of Lean producing enhances productivity of plant at the same time reducing scrap within the processes. In small scale process industry the major problem is of In-process inventory which increased the overall cost. In this paper such In-process inventory problem is analyzed by Break Even Analysis Method. Finally, the qualitative approach was used to decide most effective tool and Major potential benefits of Lean Manufacturing Techniques.

To maximize the efficiency and effectiveness at Riordan, a make-to-stock process is used. Filling customer orders as received from finished goods inventory and maintaining a small inventory on hand reduces gaps in seasonal fluctuations at Riordan. Forging a strong alliance with Chinese supply chain partners will increase quality and volume of the

Riordan Manufacturing is planning to implement a lean production strategy which will work to eliminate waste in production, minimize inventory levels by enabling suppliers and production lines real-time access to inventory data, and minimize the potential for the duplication of effort. The new procurement process design will make the entire organization more efficient while reducing overhead. This move will increase the effectiveness of the supply chain management and support the optimal efficiencies for the production of the electric fans for Riordan Manufacturing.

“Lean manufacturing systems produce what customers want, in the quantity they want, when they want it, and with minimum resources. Applying lean concepts in manufacturing typically presents the greatest opportunities for cost reduction and quality improvement” (Jacobs & Chase, 2011, p. 423), Riordan Manufacturing can better position themselves as market leaders.

Chase et al. (2006) state that “lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods” (p. 471). The essential components of lean production are surplus elimination, constant work-flow, and consumer appeal. The minute these components are in the neighborhood of supply, quality and cost, this outlines the groundwork for a lean production organization. A Japanese plan of continuous progress named the Kaizen is responsible for the lean production idea. Riordan can adjust the lean production concept by employee empowerment and advancement, staying focused on making processes stronger, impact of consumer relations, rapid merchandise growth and production, and cooperation with suppliers are the imperative strategies of Riordan managing lean. Features of a lean enterprise include a combined single piece continuous workflow and near incorporation of the entire value series from raw material to finished product. In addition, demand drives production rather than predictions. This means that manufacture designing is by consumer demand or appeal and not to become system loading or strict work flows on the company floor. This will help Riordan keep minimal inventories at each step of the production process. It is also important to know that having a working participation by employees involved in

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while

This paper presents a relevant contribution for practitioners and managers to deal with the implementation of lean. It shows that through the effective use of available tools to measure the lean manufacturing implementation of the company. Lean methods are available for them to identify specific problems and opportunities to improve the lean practice implementation.

Since the lean operation and the total quality management model are based on a highly technical approach, toolsets and qualitative analysis, hence sufficient training in leadership, functional and technical skill will be mandatory for the employees in every category, including the operation, functional and business area to ensure a successful operation and to communicate and maintain proper control in the process. The Company will follow the agile manufacturing practice which comprises a set of quality standards, practices and iterative testing process driven by the end user feedback method to deliver a high quality customizable product that fits the exact need for a specific market segment and keep constant focus to reduce production overheads and eliminate any unnecessary steps in the process engineering that could potentially increase the cost and the delivery timing (Schnaars,

The seventh chapter is titles with “Kanban Rules”. The theme is “to identify whether the team using the lean production process is familiar with basic rules of Kanban”. Lean production is used to reduce the idle

Countess firms have taken up lean production in their manufacturing process. This is because the process is known to have countless benefits when effectively implemented. For lean production to be effectively implemented, some principles have to be considered. These principles have been discussed in detail in this paper. The different principled in lean production as well as the different principles in effective business communication. How they are related and hence how they lead better production and hence better output from the firm.

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the

This essay is going to analyze a case study based on lean thinking principles and techniques. It is could divide in four significant parts. First, to outline the definitions of Lean manufacturing philosophy and applied the strategies to achieving, next create future state Value Stream Map, Furthermore justification Lean Six Sigma tools and techniques, which would appropriate, and critically discussed the key successful should his idea to the Evenort Company.

This system integrates all the processes of production department to help the continuous flow of goods throughout the system. It helps in the regular examinations and continuous improvement of the system flow. Kanban is a Japanese term used very commonly in the lean productions and was also used by Japanese car makers Toyota. It is a manual system used for controlling the movement of parts and materials that responds to signals of the need for delivery of parts or materials. This is applied both to delivery to the factory and delivery to each workstation. The result is the delivery of a balanced stream of input throughout the workday. Each input container holds a small supply of parts or materials. New containers are delivered to replace empty