Kanban: America’s Ubiquitous “Just in Time” Inventory System–A Fragile House of Cards
When I give lectures or do radio interviews, I’m often asked for proof when I mention that we live in a “fragile society.” Here is one prime example: kanban. The kanban or “just in time” inventory system was developed in Japan, and became popular in America starting in the 1970s. It is now ubiquitous in nearly every industry. The concept is simple: Through close coordination with subcontractors and piece part suppliers, a manufacturer can keep its parts inventory small. (Kanban is a key element of “lean manufacturing.”) They only order batches of parts as needed (“just in time”), sometimes ordering …