Kanban

A A A

DEFINITION

A specific type of inventory control system. The kanban system is based upon a series of colored cards. These cards denote such factors as quantity, the type of part and the manufacturer. A card is placed in the bin or other container with each group of manufactured items as an identifier for those involved with the next phase of production or distribution.

INVESTOPEDIA EXPLAINS

Kanban is a Japanese term meaning signboard or graphic. Cards appear as the container of goods or materials is emptied, allowing the production and delivery of more before a hold-up or shortage develops. These cards may have several colors that are ordered according to priority. Frequently a two-card system is employed where "move" cards are employed to move goods from one area of production to another, while "production" cards that replace materials after they are sold or used.


RELATED TERMS
  1. Two-Bin Inventory Control

    An inventory control system used to monitor the quantity of an item left behind. ...
  2. Inventory Management

    The overseeing and controlling of the ordering, storage and use of components ...
  3. Inventory Accounting

    The body of accounting that deals with valuing and accounting for changes in ...
  4. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures that companies ...
  5. Inventory

    The raw materials, work-in-process goods and completely finished goods that ...
  6. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency and decrease waste ...
  7. Inventory Turnover

    A ratio showing how many times a company's inventory is sold and replaced over ...
  8. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding share of common ...
  9. Billing Cycle

    The interval of time during which bills are prepared for goods and services ...
  10. Amortization

    1. The paying off of debt in regular installments over a period of time. 2. ...
Related Articles
  1. Inventory Valuation For Investors: FIFO ...
    Fundamental Analysis

    Inventory Valuation For Investors: FIFO ...

  2. Operating Cash Flow: Better Than Net ...
    Markets

    Operating Cash Flow: Better Than Net ...

  3. Working Capital Works
    Insurance

    Working Capital Works

  4. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

  5. An Introduction To The CMA Designation
    Professionals

    An Introduction To The CMA Designation

  6. Why do companies decide to unbundle ...
    Investing Basics

    Why do companies decide to unbundle ...

  7. Top 4 Most Competitive Financial Careers
    Professionals

    Top 4 Most Competitive Financial Careers

  8. Operating Profit
    Investing

    Operating Profit

  9. Current Assets
    Investing Basics

    Current Assets

  10. Learn How To Invest Defensively From ...
    Investing News

    Learn How To Invest Defensively From ...

comments powered by Disqus
Hot Definitions
  1. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  2. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  3. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  4. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  5. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  6. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
Trading Center