A Simulation Analysis of the Japanese Just‐in‐time Technique (With Kanbans) for a Multiline, Multistage Production System

The Japanese “just‐in‐time with kanban” technique reduces in‐process inventory to absolute minimal levels, in concert with the Japanese belief that inventory is an unnecessary evil. Due to the success of Japanese firms that employ this type of system, American firms would like to import this technique and emulate Japanese successes. But this Japanese success may be attributable not only to the just‐in‐time with kanban technique but also to the production environment in which the technique is employed. This paper simulates the just‐in‐time with kanban technique for a multiline, multistage production system in order to determine its adaptability to an American production environment that might include such characteristics as variable processing times, variable master production scheduling, and imbalances between production stages. The results have practical implications for those firms considering adoption of the Japanese technique.