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reasons include cultural differences, geographical dispersion of suppliers, supplier power, different management style and so forth” (p.225). By knowing the Kanban’s benefits and risks, companies can better prepare its operations and employees to face any challenges and take advantage of opportunities. The success of JIT production can be driven by the worker’s experience and commitment on the work floor. Managerial implicationsSupply chain managers should determine their priority policies. Many conventional JIT systems are based on the policy of first-come, first-served (FCFS) to select the item to produce next. Although the JIT system was originally designed for repetitive performance and worked well with the FCFS policy, the business environment has had to adapt to the very demanding market and customers. Companies have had to adjust the JIT system to fit the supply chain’s need for flexibility in volume, specifications, and complexity. According to Diaz R. & Ardalan A. (2010), mention that as the “system’s environment and operational characteristics become more complex and dynamic, additional information may be used in determining the production sequence to improve system performance” (p. 235). For example, Mr. Ohno had a constant concern to obtain and maintain an ideal model of JIT. He was afraid that either his employees were going to order too much or too soon from its suppliers. Mr. Ohno faced this challenge but was able to solve it by improving the company’s Kanban priority policy. In this case, the physical notification of a Kanban card was needed to run the production process smoothly.
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JOURNAL ARTICLE 2 5In addition, managers should integrate all the concepts of the Kanban method within a complete system and pay close attention to the fundamental principles. According to Tăgăduan, he mentions that “when a system is introduced for the first time, several cards are issued in case they should be needed. Their number is gradually reduced, and the problems can be identified,
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