CMA Final · Strategic Cost Management · Just in Time (JIT)
Under JIT manufacturing, which of the following best describes the role of a kanban?
A kanban is a card or signal that authorises production or movement of parts only when the next stage actually needs them. It operates a pull system that limits work in progress, unlike forecast-driven push scheduling, overhead allocation bases or end-of-line inspection.
- AA card or signal that authorises production or movement of parts only when downstream demand arisesCorrect
- BA forecast of annual demand used to schedule long production runs
- CA cost allocation base for overheads in a cellular layout
- DA quality check carried out by the inspection department at the end of the line
Explanation
Kanban is a pull-system signal: production or withdrawal of components occurs only when the next stage needs them. It is not a forecast, an overhead base or end-of-line inspection.
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