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→top: Wikify, copy edit; just-in-time manufacturing redirects to lean manufacturing
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'''Kanban''' ([[Japanese language|Japanese]]: {{lang|ja|看板}}, meaning [[signboard]] or [[Billboard (advertising)|billboard]]) is a [[Scheduling (production processes)|scheduling]] system for [[lean manufacturing]] (also called just-in-time manufacturing, abbreviated JIT).<ref>{{cite web | url=http://dictionary.reference.com/browse/Kanban | title=Kanban | publisher=Dictionary.com | work=Random House Dictionary | year=2011 | access-date=April 12, 2011}}</ref> [[Taiichi Ohno]], an [[industrial engineer]] at [[Toyota]], developed kanban to improve manufacturing efficiency.<ref>{{cite book|last = Ohno |first = Taiichi |author-link = Taiichi Ohno |title = Toyota Production System: Beyond Large-Scale Production |publisher = Productivity Press | location = Cambridge, MA |date = June 1988| page = 29 |isbn = 0-915299-14-3}}</ref> The system takes its name from the cards that track production within a factory. Kanban is also known as the ''Toyota nameplate system'' in the automotive industry.
Kanban became an effective tool to support running a production system as a whole, and an excellent way to promote improvement. Problem areas are highlighted by measuring lead time and cycle time of the full process and process steps.<ref>{{cite book|last = Shingō |first = Shigeo | author-link = Shigeo Shingo |title = A Study of the Toyota Production System from an Industrial Engineering Viewpoint |publisher = Productivity Press |year = 1989| pages = 228 |isbn = 0-915299-17-8}}</ref> One of the main benefits of kanban is to establish an upper limit to [[work in process]] inventory to avoid overcapacity. Other systems with similar effect exist, for example [[CONWIP]].<ref>{{cite journal|last = Hopp|first = Wallace J.|title = To Pull or Not to Pull: What Is the Question? |journal = Manufacturing & Service Operations Management|date = Spring 2004|volume = 6|issue = 2| pages =
A goal of the kanban system is to limit the buildup of excess inventory at any point in production. Limits on the number of items waiting at supply points are established and then reduced as inefficiencies are identified and removed. Whenever a limit is exceeded, this points to an inefficiency that should be addressed.<ref>{{cite book |first=R.J. |last=Schonberger |year=2001 |title=Let's Fix It! Overcoming the Crisis in Manufacturing |location=New York |publisher=Free Press |pages=70–71}}</ref>
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===Three-bin system===
An example of a simple kanban system implementation is a "three-bin system" for the supplied parts, where there is no in-house manufacturing.<ref>{{cite
|url=https://www.academia.edu/35236482
|title=The essential supply chain|last1=Madkour|first1=Dina}}</ref> One bin is on the factory floor (the initial demand point), one bin is in the factory store (the inventory control point), and one bin is at the supplier. The bins usually have a removable card containing the product details and other relevant information, the classic kanban card.
When the bin on the factory floor is empty (because the parts in it were used up in a manufacturing process), the empty bin and its kanban card are returned to the factory store (the inventory control point). The factory store replaces the empty bin on the factory floor with the full bin from the factory store, which also contains a kanban card. The factory store sends the empty bin with its kanban card to the supplier. The supplier's full product bin, with its kanban card, is delivered to the factory store; the supplier keeps the empty bin. This is the final step in the process. Thus, the process never runs out of product—and could be described as a closed loop, in that it provides the exact amount required, with only one spare bin so there is never oversupply. This 'spare' bin allows for uncertainties in supply, use, and transport in the inventory system. A good kanban system calculates just enough kanban cards for each product. Most factories that use kanban use the colored board system ([[heijunka box]]).
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==Electronic kanban==
[[File:Virtual Kanban.png|thumb|Virtual Kanban e-kanban system]]
Many manufacturers have implemented '''electronic kanban''' (sometimes referred to as e-kanban<ref>{{cite web |url=http://archive.li/sxld3#selection-335.0-280.1|work=Momentum, the midsize business center newsletter |title=Taking control of costs |publisher=Microsoft|date=2008-07-19 }}{{dead link|date=September 2016}}</ref>) systems.<ref>{{cite journal |last=Vernyi |first=Bruce |author2=Vinas, Tonya |title=Easing into E-Kanban |date=December 1, 2005 |access-date=April 12, 2008 |journal=IndustryWeek |url=http://www.industryweek.com/ReadArticle.aspx?ArticleID=11009 |url-status=dead |archive-url=https://web.archive.org/web/20060316091741/http://www.industryweek.com/ReadArticle.aspx?ArticleID=11009 |archive-date=March 16, 2006 }}</ref> These help to eliminate common problems such as manual entry errors and lost cards.<ref>{{cite journal |last=Drickhamer |first=David |date=March 2005 |title=The Kanban E-volution |journal=Material Handling Management |pages=24–26 |url=http://www.mhmonline.com/viewStory.asp?nID=3950&S=1 }}{{dead link|date=September 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> E-kanban systems can be integrated into [[enterprise resource planning]] (ERP) systems, enabling real-time demand signaling across the supply chain and improved visibility. Data pulled from E-kanban systems can be used to optimize inventory levels by better tracking supplier lead and replenishment times.<ref>{{cite journal |last=Cutler |first=Thomas R. |title=Examining Lean Manufacturing Promise |date=September 2006 |access-date=January 29, 2013 |
E-kanban is a signaling system that uses a mix of technology to trigger the movement of materials within a manufacturing or production facility. Electronic Kanban differs from traditional kanban in using technology to replace traditional elements like kanban cards with [[barcode]]s and electronic messages like [[email]] or [[Electronic data interchange]].
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