What does the term "Kanban" refer to in a manufacturing context?

In a manufacturing context, the term "Kanban" specifically refers to a signal system for material needs. This approach is integral to just-in-time (JIT) manufacturing, which focuses on reducing inventory and increasing efficiency by ensuring that materials and components are produced and delivered only as they are needed in the production process.

The Kanban system utilizes visual signals, typically in the form of cards or other indicators, that help manage and control the flow of materials. When inventory levels drop below a predefined point, a Kanban signal is triggered, prompting the need to replenish stock. This method not only facilitates smooth production flow but also helps to avoid excess inventory and associated carrying costs.

Utilizing Kanban fosters better communication among teams and ensures that production is responsive to actual demand, thereby optimizing the manufacturing process.