Meaning of Kanban System
The Kanban System (where “kan” means visual and “ban” means card) is the concept related to Just-In-Time Production that is a signaling system to trigger action. This is a pull system that determines what to produce by the actual customer demand. Historically, it uses cards to signal the need for an item, however, other devices such as plastic markers or empty bins can also be used. When a card or marker is issued or a bin is empty, it is a signal that is needs to be refilled. The Kanban System is devised so that all production steps are linked to the supply chain which can be described as a loop. The exact amount required is provided with only one spare so there will never be an issue of over-supply or built-up inventory.
Source: http://www.sceaonline.org/prof_dev/CEBoK-Glossary.xls
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