ITPEC FE Morning October 2022 Question 71

Pulling the parts a line needs from the previous process to minimize intermediate stock — that is the kanban (just-in-time) system.

Just-in-time produces only what is needed, when it is needed, in the quantity needed. Each process withdraws parts from the previous process, and the kanban card that travels with them tells that process what to make to replace what was taken. Production is levelled by the production plan, so the work in process between processes stays small.

Answer (b)

Why not others:

• •(a) — procuring parts with unified specifications is standardization of parts; it helps efficiency but does not control stock between processes
• •(c) — buying from affiliated companies is a choice of supplier, not a production control method
• •(d) — competitive bidding among designated suppliers is a purchasing policy aimed at quality or price

Key rule: Kanban is a pull system: a process makes only what the next process has withdrawn, so intermediate inventory stays minimal.

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