Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Adoption of KANBAN in LDK
1. A good decision is based on knowledge and not numbers.
- Plato
An analysis by:
DAKSHAYA RATAN SINGH
MBA Finance
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ABOUT THE COMPANY
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LDK is a Delhi based start up which deals with the production
and sales of un orthodox quirky products like – mobile covers,
LED Neon products, smoking accessories, apparels
Established in March 2015, LDK has faced a lot of challenges
in establishing itself in the market and making its presence
felt
A major problem faced by LDK was managing its inventory as,
the demand for its products was very irregular
LDK is an organisation for the youth and by the youth. The firm
is built with a very strong marketing backbone.
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THE KANBAN PROCESS
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‘Kan’ means visual
and ‘ban’ means
card
Zero inventory
system
A method of controlling
the inventory by only
replacing what has been
consumed
Brought forward by
Toyota
Pull based
inventory system
KANBAN
Developed in the
1940s
4. ADOPTATION OF PROCESS
• The manager adopted the process fairly recently in November 2015.
• The need for adoption came about when inventory started piling up.
• The process has helped in achieving systematic and efficient inventory
management
• As the company is in its early stages, this process has helped it cut down
the costs, which is crucial at this point of time
5. CHALLENGES FACED
• A large amount of time and money was invested in conducting research
as to how the stock should be managed
• Estimation of demand is very cumbersome process
• Change in the operational climate faced a certain amount of resistance.
Confidence building took a little time.