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CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT

In a JIT system using Kanban, a production Kanban attached to a container authorises the work centre to do which of the following?

A production Kanban authorises a work centre to make a replacement quantity for what downstream consumed. It is a pull signal that triggers production only when stock has been used, thereby preventing overproduction, whereas a withdrawal Kanban authorises movement of parts.

  1. AWithdraw materials from the preceding stores without any limit
  2. BProduce a replacement quantity of the item to refill the container that was consumedCorrect
  3. CDispatch finished goods to the customer irrespective of demand
  4. DIncrease the batch size when machines are idle

Explanation

A production Kanban signals that a container has been consumed downstream and authorises the work centre to produce exactly that quantity to replace it. A withdrawal (move) Kanban, not the production Kanban, authorises collecting parts from the preceding process. Production without a card would cause overproduction.

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