At the heart of Reata Engineering’s assembly strategy is the kanban system.
Kanban is an inventory system developed by Taiichi Ohno, the father of the Toyota production system. Successful application of kanban involves maintaining a stock of required parts for customers instead of waiting for an order to come through each time.
At Reata, we use the kanban approach to keep a supply of a customer’s assembled parts in stock for a set period. We send these parts to customers as required to restock their inventory. Afterward, we replenish the parts we sent to the customer.
Our proactive system ensures customers have what they need when they need it, a principle that forms the foundation of not only our kanban approach but also our entire business.
How Our Kanban Approach Benefits Customers
The kanban system optimizes Reata’s manufacturing process to serve customers in a timely manner, enhancing customer experiences. This unique approach to assembly also drives cost savings, flexibility, and reliability in the manufacturing process.
Here are five ways the kanban approach streamlines manufacturing and empowers customers to stay on top of their assembly needs:
1. Availability and reliability
One of the central advantages of the kanban system is its reliability. Customers can rest easy knowing that pre-built assembly parts are always ready to ship as soon as the demand arises. With parts immediately available, there’s no need to worry about delays due to material shortages or potential supply chain disruptions.
2. Cost savings
The kanban system allows customers to place orders in larger quantities and receive them as needed, resulting in a more favorable price point.
3. No expedite fees
Expedite fees can be a real pain point in manufacturing. When customers face an unexpected surge in demand, they often resort to expediting parts, incurring additional expenses. The kanban approach helps customers avoid these fees by providing the safety stock necessary to fulfill urgent orders without costly last-minute accommodations.
4. Reduced inventory costs
With Reata’s kanban approach, customers can significantly reduce their inventory costs. With parts readily available on a predetermined schedule, there’s no need to hold excess inventory. This “just in time” strategy ensures that customers have precisely what they need when they need it.
5. Payment flexibility
The kanban approach allows for flexible payment schedules. Customers only pay for parts as they are shipped and used, which is especially beneficial for smaller companies with lower cash flow.
How Our Kanban Approach Benefits Our Shop
While the benefits of the kanban approach are evident for customers, Reata Engineering also reaps its fair share of rewards. Kanban streamlines operations for us, and we pass the cost savings on to our customers.
For Reata, kanban gives our team the flexibility to strategically schedule jobs and plan around maintenance. We can run all the parts for the next few months at once or space them out, depending on our production schedule.
We can also choose between building parts ahead of schedule to ensure a comfortable buffer or producing precisely enough parts for the next month’s production run. This flexibility guarantees that we can meet our customers’ evolving needs efficiently and effectively.
Reata’s commitment to the kanban approach helps us accommodate customer requests promptly. Whether we’re building ahead or producing on a monthly basis, we can meet customer requirements with agility and precision every time.
Getting Started with Kanban at Reata Engineering
When a customer wants to take advantage of our kanban approach to assembly, we start with a solid foundation of information. We ask that customers provide critical details, including their yearly outlook, forecast, and monthly or periodical usage. While the kanban approach can be tailored to the customer’s preferred increment, the commitments usually span at least a quarter.
In essence, the kanban approach functions like a built-up blanket order featuring the added security of a safety stock. This comprehensive strategy ensures that the right amount of parts is always on standby, ready for shipment when needed.
Which industries benefit most from kanban assembly?
Kanban can benefit clients in various industries; however, it’s most effective for industries with complex demands, where outside processing requests can sometimes result in extra long lead times.
Industries like aerospace and medical, in particular, are no strangers to such protracted processing times. Reata implements solutions like kanban assembly for prompt aerospace machining and medical component manufacturing.
Streamline Success with Kanban Assembly
In a world where adaptability and efficiency reign supreme, Reata stands at the forefront of innovative manufacturing developments with our kanban assembly approach.
Our kanban system is a reflection of our commitment to delivering top-quality services while maintaining the flexibility to cater to the ever-evolving needs of our customers.
See the benefits of kanban for yourself. Request a quote.