ABSTRACT

The kanban system is one of the methods of control utilized within the Toyota production system. The Toyota production system is unique and unparalleled. The thinking behind it and the method of implementation have been perfected after long years of trial and error. Only when the Toyota production system in its totality is satisfactorily conducted, can there be an effective utilization of the kanban system. Without changing the method of making things, it is impossible to engage in the kanban system. Industrial engineering (IE) plays an extremely important role in managing a company. Companies that are not engaged adequately in IE are very much like houses built on sand. The Toyota system is a series of activities that promote cost reduction through the elimination of waste to achieve enhanced productivity. All company-wide improvement activities must directly contribute to the goal of cost reduction.