In 1985, Albert DELOIN was Managing Director of MAJORETTE, one of the French leaders of the toy industry. He discovered the Kanban method and the just-in-time concept implemented at Toyota in the 1950s. Between 1974 and 1988, Majorette’s turnover increased from 20 to 412 million francs. A success and a revelation that prompted Albert DELOIN to create the consulting firm that still bears his name today.
In the 80s, ERPs appeared one after another… and unfortunately, they were all alike. By translating predicted sales into a rigid manufacturing plan, we expose ourselves to discrepancies with the reality of orders. The consequences of this classic MRP operation then trigger well-known problems and grievances: overstocking, breakdowns, deficient communication, lack of reliability of information, reversal of priorities, etc. So, in 1978 and then in 1985, we rectified, refined and attempted to improve the information system and we equipped ourselves with more powerful computers. But there was no clear improvement. The impression is that each time, we change the dressing without ever questioning the MRP principles, naively hoping that IT will “magically” provide the solution.
In 1985, Albert DELOIN discovered Kanban by visiting the RVI workshops in Lyon 3. It was a form of revelation. A project group was then responsible for studying the method, adapting it to the context of MAJORETTE and deploying it across industrial and supply flows. The adoption of Kanban and just-in-time completely challenged the principles of MRP by focusing on what is essential. Very basic relationships were established:
- Management by label reflects the flow and does not require IT,
- The flows, sized by scheduling, are managed by operators as part of customer-supplier relationships between workshops,
- Communication takes place in real time and in a transparent manner.
In 1987, after a year of operation, the consequences on the performance of the supply chain exceeded expectations:
- Customer service rate: 99%
- Stock reduction of 35%
- 8% increase in overall productivity starting in the 1st year
And the financial result of the year confirms it:
- Turnover: 420 millions francs
- Employees: 800 persons
- Net advantages: 12%
What are the prerequisites for using the Kanban method?
