A company has three objectives: lowering costs, increasing capacity and improving responsiveness.

As part of the lean approach, reducing manufacturing times will not only reduce costs and free up human and industrial capacities, but it will also break up production batches and reduce queues. The ultimate goal is essentially to produce in a continuous flow, piece by piece.

Methods used to reduce manufacturing times:

  • SMED
    Reducing changeover times and reducing the size of initial batches.
  • 5S
    Eliminating wasted time, improving working conditions.
  • Poka-Yoke
    Avoiding wasted time due to operator errors.
  • Time analysis methods (MTM, MTM2, MTS).

Impact on the parameters of Kanban

Reducing changeover times leads to reduced batch sizes and lead times. Kanban parameters must be updated with a direct impact on the company’s inventory:

  • Average inventory formula: SM (security) + EOQ/2 (Economic Order Quantity)

We can immediately see that by using the Kanban method (or pull flow), dividing the lot sizes by two makes it possible to reduce the stock and related outstanding amounts by approximately 25%.

For more information on the Kanban method,
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