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Man on a front loader loading boxes in warehouse


The incoming warehouse is holding over $3,000,000 of raw materials. The warehouse consumes over 3,000 square feet of floor space. Three full time material stagers unload, store and deliver the materials to assembly lines as needed.


  • Eliminate the need for a warehouse within four months

  • Work with suppliers to design and implement a point of use Kanban Pull System.

  • Decrease the days supply of inventory from 50 to 4.

  • Reduce the raw materials warehouse floor space from 3,000 square feet to zero.

  • Eliminate the need for the three stagers (Reinvest them into value added jobs).


  • Charter a raw materials replenishment team.

  • Provide Kanban Pull System Training.

  • Calculate demand for each item number and establish standard Kanban quantities and containers.

  • Set up Kanban Inventory Locations at the point of use on each assembly line.

  • Set up blanket orders for each item number with suppliers.

  • Right-size the inventory level for each item by allowing the assembly lines to pull excess materials down to the new maximum inventory level.

  • Begin replenishing to point of use using the new Kanban Pull System.

  • Shut down incoming warehouse.

  • Reinvest three stagers into value added positions.

  • Present results to the management team.

Lean Techniques Taught and Utilized:

  • Flow (Lean) Manufacturing

  • Kanban Pull Replenishment System

  • 5-S Workplace Organization

  • Visual Factory

Results Realized:

  • 3000 square foot of floor space became available for value added activities.

  • Improved On Time Delivery to the assembly lines.

  • Reduced material carrying costs.

  • Reduced indirect labor costs.


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