The Art of Kanban - Creative Safety Supply April 2014 | Page 14

The Art of Kanban
Cutting Costs
Cutting costs is probably the most important feature of a Kanban system. If
you were to look at your costs for maintaining inventory, you will probably
quickly see that it is quite expensive. When you are able to reduce inventory
you are also able to reduce costs. The same can be said for reducing
overproduction and costs. All of these things cost money, while a Kanban
system costs very little to implement and can save in big ways.

Another way that it cuts costs is by reducing logistical costs and wait times.
When your employees do not have the materials to do their job you lose
money. When you have to pay extra to get the things you need to get your
production moving along you also spend extra money. Using Kanban
prevents both of these problems because it is all based on supply and
demand. You should never again have to pay people to do nothing or pay
extra for a rush delivery of supplies.

Kanban is a system that saves time, saves money, reduces waste, and
maintains and improves employee morale. If you have all of these things in
place, continued success is sure to follow. These principles allow production
to flow in a more easy and manageable way so that there are fewer errors
and in fact, less room for them in every day processes.

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