Kanban Definition
Kanban is a powerful inventory management tool that provides the stability required to improve operations. A card or sheet used to authorize production or movement of an item; when fully implemented, kanban (the plural is the same as the singular) operates according to the following rules: 1. All production and movement of parts and material take place only as required by a downstream operation 2. The specific tool which authorizes production or movement is called a kanban. The word literally means card or sign, but it can legitimately refer to a container or other authorizing device. 3. The quantity authorized per kanban is minimal, ideally one. The number of available kanban for an item is determined by the demand rate for the item and the time required to replenish.