The document summarizes Kanban signals and the Kanban system. As a customer pulls an order, signals are sent through the production process to replenish parts. Signals move from finished goods to final assembly and then to suppliers. Advantages include providing precise information with low costs and quick response to changes while avoiding overproduction and waste.

15. Kanban Signals Purchased Parts Supplier Work cell Raw Material Supplier Kanban Sub-assembly Ship Kanban Kanban Kanban Kanban Finished goods Customer order Final assembly Kanban

22. The Inventory Process Suppliers Customers Finished Goods Raw Materials Work in Process Fabrication & Assembly Inventory Storage Inventory Processing

25. Comparison of JIT and Traditional Assets Necessary to do the work Workers Partners Long-term relationships are unusual Vendors Many, short runs Few, long runs Setup; runs Small Large Lot sizes Many, small Few, large Deliveries Minimal necessary to operate Much to offset forecast errors, late deliveries Inventory JIT Traditional Factor