Avoiding Overproduction using the Kanban System
One of the key elements when implementing changes in organizations is to be clearly aware of the impact of changes when they actually happen. By means of a Lean Production Simulation, in a game, participants of this workshop experience and measure the economic impact and managerial benefits achieved through the Pull System.
The main outcome of this activity is that managers who experience it, visualize the real benefits of using the Kanban system in a make-to-stock environment.
They will learn that this is not just an “inventory management” system, but a Best-In-Class planning system; increasing production planning effectiveness and profitability
Every manufacturing firm working under a make-to-stock environment is using more resources than those absolutely necessary; and almost none of them are aware of it.
Even knowing this is true, the difficult question to answer is “What is the boundary separating necessary from excessive resources?”.
Excessive labor, inventory, machinery or scheduled man-hours add to overhead costs, and in the end, negatively impacts the bottom-line.
Besides, when they are close to have the right amount of resources available, then it becomes difficult to balance inventory, workload and service level.
Participants will also understand why the so called “lean tools” were born and which are really necessary.
Without this activity, there is a risk that companies engaging in the adventure of Implementing a Lean System may apply just a set of isolated tools, just because these are part of the traditional “Lean Catalog”, but without having a clear understanding of the final result and its implications.