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.

13. Kanban User removes a standard sized container Signal is seen by the producing department as authorization to replenish Part numbers mark location Signal marker on boxes

14. Kanban Signals As a customer “pulls” an order from finished goods, a signal (card) is sent to the final assembly area The final assembly area produces and resupplies finished goods When final assembly needs components, it sends a signal to its suppliers, a subassembly area and a work cell These areas supply final assembly The work cell, in turn, sends a signal to the raw material supplier and the subassembly area notifies the work cell and purchased parts supplier of a requirement

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

16. Advantages of the Kanban A simple and understandable process Provides quick and precise information Low costs associated with the transfer of information Provides quick response to changes Limit of over-capacity in processes Avoids overproduction Is minimizing waste Control can be maintained Delegates responsibility to line workers

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