{"id":7179,"date":"2020-03-30T19:56:58","date_gmt":"2020-03-30T19:56:58","guid":{"rendered":"https:\/\/monroeengineering.com\/blog\/?p=7179"},"modified":"2024-12-03T20:27:26","modified_gmt":"2024-12-03T20:27:26","slug":"will-covid-19-kill-kanban","status":"publish","type":"post","link":"https:\/\/monroeengineering.com\/blog\/will-covid-19-kill-kanban\/","title":{"rendered":"Will Covid-19 Kill Kanban?"},"content":{"rendered":"\n
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Most Americans are not familiar with the business model that delivers their groceries. In fact, \u201csupermarkets\u201d were the source for most of the good practices that have evolved into \u201cjust in time manufacturing\u201d. The term \u201cKanban\u201d evolved from grocery stores to also define the process by which manufacturers only bought components \u201cas needed\u201d or \u201cjust in time\u201d to make things like cars. <\/p>\n\n\n\n

When interest rates and the cost of money were high it made sense for companies like Toyota, Ford, and GM to avoid the cost of inventory by only receiving parts as needed thus installing a pull system where suppliers are burdened with matching demand and production. Kanban really took hold in the 90\u2019s and drove good practice in a lot of ways. Purchasing systems became more robust, and suppliers were driven to find efficiencies. In the end, by pushing inventory cost- control upstream to suppliers, the big manufacturers lowered cost through the innovation it demanded at the supplier level. The advent of cheap money and variations in the economy never outweighed the benefits of the system.<\/p>\n\n\n\n

This discussion began with one of my friends asking why there was no toilet paper to be found. My first answer of course was that there was plenty of toilet paper- inventoried in their neighbors closet. In manufacturing terms, toilet paper went from a vendor managed inventory item to an end user stockpile. Why? Toilet paper is relatively cheap so carrying a stockpile does not hurt your household business model. The \u201ccost of inventory\u201d was fairly low. People were not hoarding cars, boats, or home improvement products. It is a testimony to the \u201cjust in time\u201d system we have built in manufacturing that there is now and will be toilet paper on the shelves. The \u201cinventory\u201d pull on toilet paper is over…use did not increase…the system prevailed. <\/p>\n\n\n\n

The short answer to all of us in manufacturing is that Covid-19 will not kill Kanban, good practice, or Vender Managed Inventory programs. Manufacturing distributors like Monroe Engineering are the shock absorbers for the system. Driven to good practice by our customers; we are part of a global supply chain that works. So don\u2019t worry too much about getting your spring plungers, hinges, or even ventilator parts. Covid-19 will not kill the good practice of \u201cjust in time Inventory\u201d. More importantly, it is showing just how strong our global supply chain really is.
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Most Americans are not familiar with the business model that delivers their groceries. In fact, \u201csupermarkets\u201d were the source for most of the good practices that have evolved into \u201cjust in time manufacturing\u201d. 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