Kanban and MRP (Material Requirement Planning ou Management of Production Resources) are two different methods of production management. While the Kanban method uses a pull flow logic, the MRP method works on a push flow basis. It is based on sales forecasts to decide which production or supply orders to choose.
In MRP, launches are decided within the full lead time horizon of the supply chain and do not adjust well to varying demand. This management method requires accurate technical data and a permanent effort to adjust decisions with often disappointing results (large and unbalanced stock). The Kanban method ,first used by Toyota at the end of the 1950s, does not rely on forecasts in deciding on launches. It uses forecasts for its configuration (ADC), but relies on actual consumption to trigger launches. The Kanban method makes it possible to reduce stock by adapting upstream production to downstream demand. The production of a component or product is not anticipated but triggered just-in-time.
The Kanban method to control your flows and your stock
places the customer at the heart of the structure and brings performance to the supply chain30% reduction in stocks
- Reduced labour and handling costs
- Decreased amount of information to manage
- Reduction of investment needs
- Improved customer satisfaction
While the MRP method is still used in many companies, it does not have the adaptability of the Kanban method (i.e. pull flow) or the resulting productivity gains. With a customised approach and strong expertise in this area, ALBERT DELOIN can develop an action plan for your business. Our know-how has already proven itself in more than 300 companies since 1989.
For more information on the methode Kanban, contact ALBERT DELOIN
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