Solved: What are the benefits of using Kanban for JIT scheduling?

Kanban system is an integral part of Just-In-Time production which is aimed at reducing waste and improving flow of production. Kanban is a japanese term for an instruction or signal card. Below are the benefits of using Kanban for JIT scheduling –

1. Better managed inventory level – Inventory levels are managed well as the system helps in ordering for the component as and when the previous component quantity is consumed.

2. Eliminating the risk of overproduction – This eliminates the risk of overproduction as the component quantity supplied for production would be the quantity which is exactly required.

3. Reducing the risk of inventory obsolescence – As inventory is not stocked, there won’t be any obsolescene of any kind of inventory – raw materials, work-in-progress, finished goods

4. Smoother manufacturing flow – The system brings a discipline to the flow of manufacturing through signaling and ordering as per the requirement of the job.

5.Reduces total cost – The system reduces total cost of production by reducing the inventory holding costs, inventory obsolescence costs etc.