Definition
A puller that transmits the replenishment signal upstream based on actual customer usage, eliminates excess production and controls inventory at the level required to meet demand.
In detail
The Kanban system is a pull-based material control tool that uses signal cards or electronic signals to transmit replenishment requests upstream based on actual downstream consumption. It addresses the problems of overproduction and inventory buildup, synchronizing production with demand. Compared to DMP, Kanban is a specific execution tool, while DMP is an overall material management framework. Kanban is often used in conjunction with supermarkets, two-bin systems, etc., and its outputs are the number of Kanban cards, replenishment trigger points, and visual control mechanisms.
Example in practice
When a production line needs frequent material replenishment, but traditional planning leads to excessive inventory, kanban can be used. For example, an assembly workshop uses a two-bin kanban system, with each material bin having a kanban card. When the first bin is empty, workers place the kanban card in a collection box, and material handlers collect them periodically and replenish accordingly. This way, materials are replenished only when needed, inventory decreases, shortage risk reduces, and the floor is tidier.