What is Kanban Inventory Management?
KanBan Inventory Management
The KanBan system originated in Japan in the 1960s through the study of product flow in supermarkets, and was subsequently adapted to the automotive industry, drawing inspiration from supermarkets. It was observed that implementing KanBan allowed companies to achieve leaner and more controlled product flow, eliminate many production steps, and ultimately achieve maximum efficiency/profitability at minimum cost.
But why?
Essentially, the production process is divided into small units, with each unit being a supplier to the next unit and a customer to the previous one. Each unit pulls the product it needs from the supplier unit at the required time and quantity. This prevents excess products and product delays. Furthermore, units are responsible for the quality of the products they deliver and release them into the system with zero defects. Any faulty or missing products are removed from circulation by the units. Traditionally, products move through the production process using cards. There is a "supermarket" that feeds all units, and the necessary products are pulled from this supermarket by processing the cards in circulation. In its most basic and simple form, the system described above is actually more of a "pull" system for organizing product flow than a simple inventory management system. It should also be noted that the use of KanBan cards is decreasing nowadays, and product control, evaluation, and processing processes are increasingly carried out electronically/virtually.
Toros Management uses the KanBan mindset in fastener inventory management to enable our clients to work more efficiently and effectively. Our KanBan Inventory Management System is based on a "pull system" principle between production units, where fasteners used in production are kept in toolboxes on shelves in the production area in the required quantities. These shelves are positioned either at a single point (e.g., in supermarkets where multiple production lines exit from a single point, for example, in star-shaped production lines) or along the production lines next to the operators, depending on the client's production system and configuration. In our KanBan system, empty boxes are perceived as orders, and a full box is sent to replace the empty one, ensuring a cycle. This allows our clients to significantly simplify their ordering processes and avoid losses due to increases or decreases in demand.
Benefits of Kanban
Being prepared for all kinds of uncontrollable external factors (especially positive or negative demand changes) undeniably makes companies more competitive today. This "preparation" often manifests as high inventory levels, forcing companies to bear the cost of raw materials (which remain in their warehouses) in the face of unexpected demand decreases.
KanBan Inventory Management reduces inventory costs, thereby lowering equity requirements. Simultaneously, because smaller quantities of products are stored on KanBan shelves in the warehouse, less storage space is needed within the production area. Furthermore, the internal flow of products, documents, and information becomes much simpler and more controllable. For example, in KanBan, empty boxes are recognized as orders, directly triggering the ordering process in parallel with production. Additionally, there is no need for production planning or needs assessment analyses. Regular shipments make product logistics much simpler and more efficient. Moreover, all these advantages are achieved with less document movement between departments within the company.
Another positive effect of KanBan is seen in the circulation/movement of products within the company during the production phase. Because KanBan racks are positioned according to the company's production method and culture, the relevant products are located within easily accessible areas for production lines and operators, and in ideal quantities within the racks. This minimizes product movement outside of production.
KanBan Inventory Management has a positive impact on company culture in many areas, including stability, quality, workflow, efficiency, and communication. Healthy KanBan Inventory Management practices often constitute a company's greatest competitive advantage.
Toros Management observes its clients' production structures and company cultures, takes into account client-specific situations/conditions, and implements the most effective KanBan Inventory System application.
Practical Installations
Color Sorting by Product Category, Convenient Packaging
Quick and Easy with Visuals Showing Options and Usage Areas.
Product Selection. Shelf-mounted design to facilitate inventory tracking.
Effective Inventory Management Through Product Planograms
Smart Shelving Systems
With Smart Shelf Technology, you can quickly control your inventory with a single click.
And by providing practical store management, you can always keep your shelves organized.
We're keeping you one step ahead. Making inventory tracking easier.
Thanks to the Smart Shelf technology, you can access the shelf without going to it.
Take control.
Communication
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