Andon is a japanese term that refers to a system of notification which is widely used today. The system provides management, maintenance or other employees of a quality issue, line stop or process problem. The andon system utilizes sensory notifications to alert others of a problem and more importantly the need for support. The alerts are are normally activated manually by a worker who observes the issue or by automated means that senses an abnormality somewhere in the process.
Implementing pull systems can be complicated. Fortunately we can follow six basic steps that will help us stay on track and get pull set up. So, what are those steps? Pull-it! Pull-it is a simple way to remember the six steps shown below.
Holding costs are all of the expenses a company incurs to hold inventory items over a period of time before they are used to fill orders. Generally speaking, Inventory carrying/holding costs are the costs you incur as a result of holding inventory. It is most often described as a percentage of your inventory value. The percentage is often unique to organizations and includes the amount of capital invested in inventory as well as depreciation, space occupied, insurance and opportunity costs. Inventory carrying or holding costs generally account for 15-30% of a business’s total inventory value.
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