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Toyota Motor Company is credited with developing the kanban system of manufacturing, which takes its name from the Japanese word for "sign" or "placard." In the kanban system, each shipment of parts used in making a product comes with a "kanban," or sign. When the parts are nearly exhausted, the sign is sent to suppliers, who ship new ones to the assembly line. In the early 1980s, "kanban" became a buzzword in the American business community-offering a perfect example of how languages often reflect larger societal trends … and how trading partners often trade more than durable goods.

: a manufacturing strategy wherein parts are produced or delivered only as needed

Examples

"To stay competitive," Rob said, "we need to reduce our manufacturing costs by switching to a kanban system."

"The inbox and calendar are used to generate kanban and schedules. This helps to discriminate between what you are doing and what you should be doing." - From an article by Marc A. Feldman in the Quality Progress, November 2012