KanBan Item Selection
This topic contains 3 replies, has 2 voices, and was last updated by Steve Trudell 2 years, 3 months ago.
- February 15, 2011 at 3:37 pm #53731
We are trying to develop some rules to be followed when determining if an item should be KanBan’d or discreetly purchased. We are looking into variation in demand over time, etc., as factors that can be used. Does anyone have anything similar in practice now?February 17, 2011 at 3:59 am #191262
There are no hard and fast rules, but there are some things you should consider to have an effective system. Are you in a make to stock environment or a make to order environment? Do you have long term agreements in place with your customers? Do you have long term agreements in place with your suppliers? What is the carrying cost of your inventory and what SKUs make up a majority of that cost?
What you truly need to understand is the fundamentals of the business and what your risks are based on the business climate in which you operate. The rest (average demand, demand variance) is just math.February 17, 2011 at 4:08 pm #191264
Thanks. Understood. What I was looking for is if anyone has actually put a number to the demand variance to say “above this is too much variation to be a candidate”, etc.
I realize the number is highly dependent on the environment.August 24, 2016 at 8:13 am #200005
Have you done a hystogram on the historical useage? That should give you a good idea looking back. Looking forward, do you have an orderbook to guage by? Do you have LTA’s that guarantee consumption?
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