ABSTRACT
Visual management techniques can have a profound impact on a company’s inventory levels. Cases from actual companies have shown that purchased inventory levels can be reduced by millions of dollars while maintaining production that meets customer demand. In addition to the materials consumed in the manufacture of an end product, consumables such as gloves, glues, solvents, rags, tapes, cutters, mills, welding rod, and similar supplies also have been minimized dramatically. There are many reasons companies carry more inventory than what is needed to meet current and forecasted customer demand. Given the challenges of the emerging global supply streams, pointing to the uncertainties of delivery and quality performance by suppliers, many material managers are being asked to “stock up” as a preventive measure. Visual tools are used to indicate and communicate the need for parts and consumable supplies, including both the demand from a production area to the stock room and demand from stockroom to the suppliers and vendors.
