LEAN INVENTORY MANAGEMENT

What is Inventory Management?

Inventory management is a systematic approach to sourcing, storing, and selling inventory— raw materials, and finished goods. In Lean Manufacturing terms, it means managing the right stock, at the right levels, in the right place, at the right time, and the right cost as well as price. Lean Consultants can contribute significantly to controlling the wastes of higher inventory, reducing carrying costs through strategic deployment of inventory management tools.

Benefits of Lean Inventory Management:

Increased Sales

Increased Information Transparency

Shorter Lead Times

Lower Operational Costs

Improved Delivery Performance

Increased Employee Efficiency

Accurate Planning

Decreased Stock-Outs

Increased Inventory Turnover

KANBAN

What is Kanban?

KANBAN is a sign, signboard, or signal that is specified for controlling information and regulating material conveyance. Kanban is thus a signalling device that gives authorization and instruction for the production or withdrawal of items/goods. Kanban coupled with takt time, flow processing, pull production, and level scheduling is what enables JUST IN TIME production to be achieved in a value stream.

Benefits of Kanban

Prevent overproduction or material between production process
Provide specific production instructions between process based upon replenishment principles
Serve as a visual control tool for production supervisor to determine schedule adherence status
Establish a tool for continuous improvement
Improved flow efficiency
Improved throughput
Prevents overburden on the system infrastructure
Increased agility and flexibility