Chapter 4

Agile Sales Concept 4: Kanban

The word “Kanban” (meaning signboard or billboard in English) and its model used in production are credited to Taiichi Ohno of Toyota and are a vital part of the Toyota Production System (TPS). Ohno is thought to have discovered the process in the late 1940s by studying supermarket stocking systems. The supermarkets Ohno saw were using a visual min–max inventory system for managing shelf stock. This simple process eliminated stock-outs and minimized stock wastage in these supermarkets which were seen as critical factors in customer satisfaction.

Toyota and many manufacturers since have used a Kanban system to create a visual min–max style inventory system for every aspect of the production process from ...

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