The IUP Journal of Operations Management
The Effects of Implementation of Kanban System on Productivity: A Case Study of Auto Parts Company

Article Details
Pub. Date :Feb, 2019
Product Name : The IUP Journal of Bank Management
Product Type : Article
Product Code : IJIT41902
Author Name : Sachin Kumar Sharma and Vikas Singla
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 13

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Abstract

This paper presents a case study of Kanban system implementation in an auto parts manufacturing company. The control system was implemented on three largest selling parts, namely, Emblem Maruti Suzuki, Emblem S Mark and Emblem VXI. These products go through the process of injection molding, plating, painting, assembly and final inspection. Data suggested specifically high in-process inventory during injection molding stage. To reduce such Work-in-Process (WIP) inventory, Kanban was implemented firstly by deducing the number of Kanban required at every stage of process and then examining its effect on reducing stock levels and lead times. The findings suggest significant reduction in daily production quantity, WIP level and process lead time of all three emblems.


Description

Relentless market competition and rapid technology development force managements of manufacturing industries to improve productivity and cost-effectiveness of their products. This leads manufacturing industries to adopt the philosophy of time-based management of inventory using Kanban technique—an integrated Just in Time (JIT) philosophy. Kanban is one of the primary techniques of JIT philosophy which signals a cycle of replenishment for production and materials. It is a card-based control system to transfer instruction based on logic that nothing will be produced until needed.


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