(Solved): BUSINESS COMMUNICATION – Homework | Problem 5 ...

Just-in-time is a pillar of a lean system. One of the key components in just-in-time is the control of material movement in a pull manner. The authorization to move material through visual controls is a Kanban system. Kanban is Japanese word meaning card. The visual control of material movement is often accomplished through signal cards called kanban. A two-card system is very common. The volume and mix of production is controlled by the number of cards in the system.

1. In your own words, explain how a two-card kanban system operates. Describe the flow of material and information.
2. Explain at least two reasons Toyota's kanban system has not been universally adopted.
3. Some companies pay production workers on piecework incentive systems; that is, the more a worker produces, the more pay is received. Other companies have group incentive systems in which the more processed by an area, the more pay everyone working in that area receives. Still other companies compensate workers for their time; workers receive an hourly wage for each hour at work regardless of the production volume. Discuss the benefits and problems of each of these pay systems for a production area where material movement is governed by a kanban system.