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Definition: Kanban

Kanban is the Japanese word for a Sign Board. It is a system which enables a manufacturing facility to estimate as to What to produce, how to produce and when to produce.

It was started by Tahiichi Ohno at the Toyota Facility to enable lean manufacturing and JIT.

How Kanban works? - It is a responsive mechanism that helps schedule the reorder point rather than managing rather than maintaining a level of inventory. It controls the rate of production as per the rate of demand. So it response to the demand passed by the end customer.

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