The main advantage of the Kanban system lies in its innate ability to drive down costs and waste by improving the flow of production.
The evolution of Kanban and warehouse management systems has opened the door for Electronic Kanban to replace the original paper cards. Now, instead of using Kanban cards and passing them upstream for replenishment, we let computers and software track inventory levels for every physical storage location.
Automated Kanban System works well with Lean manufacturing. When a company uses Automated Kanban System in conjunction with Lean manufacturing, the company does not have excessive inventory which helps eliminate obsolete or defective stock items.
When you don’t have a lot of inventory to store, there’s more space available to work. Additionally, only stocking the amount of inventory needed saves money.
The Kanban System is an integral part of implementing the Just in Time (JIT) manufacturing philosophy which was designed to control inventory and reduce waste. The history of the Kanban system can be traced back to the late 1940s when Toyota made a cultural commitment to continuous improvement to drive its manufacturing processes to peak performance.