The basis of a Kan Ban 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.
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 onto stock. Rather than 10 deliveries from different suppliers, unpack and check quantities delivered of each individual item, then locate and place in upto 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 labour on stock picking or replenishing parts bins on production line.
Quality Control: If there is parts left in the box then something has been ommited from the product being assembled.
Inventory: Inventory could be carried out on a montly or even weekly basis to monitor the exact postion of 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 seperate parts by 90% allowing the streamlining of the company and saving costs throughout production.