Kan Ban
The basis of a KanBan system is to allow fast and easy stock control and inventory.
How It Works
Companies that produce a product that has a variety of parts, these parts are supplied in kit form ready for assembly, one kit per box.
Once the item has been assembled then the box is interstacked ready for collection.
The Benefits
Purchasing department: One order number, one part number, one supplier. Progressing an order one phone call.
Accounts department: Book in goods from and pay one supplier.
Goods Inwards: Receive one delivery count boxes and place it onto the stock. Rather than 10 deliveries from different suppliers, unpack and check quantities delivered of each individual item, then locate and place in up to 50 different stock locations.
Stores: Only having one box of parts, rather than 10 to 20 bins of stock to monitor for stock replenishment per product line.
Personnel: Reduce time and labor on stock picking or replenishing parts bins on the production line.
Quality Control: If there are parts left in the box then something has been omitted from the product being assembled.
Inventory: Inventory could be carried out on a monthly or even weekly basis to monitor the exact position of the stock, work in progress, product valuation, and company performance.
When considering a product range of 50 items with an average of 10 items per kit, this would reduce the stock monitoring of 500 separate parts by 90% allowing the streamlining of the company and saving costs throughout production.