2.2 Kanban
Kanban system is one of the tools under lean manufacturing system that can achieve minimum
inventory at any one time. Kanban system provides many advantages in managing operations and
business in the organization. Using Kanban system is a strategic operational decision to be used in
the production lines. It helps to improve the company’s productivity and at the same time minimize
waste in production. The Kanban system requires production only when the demand of products is
available. Manufacturing companies especially in Japan have implemented Kanban system successfully
as this system originates from this country. However, it was found that not all companies in
Malaysia, particularly, among the small and medium enterprises (SME) in manufacturing sector, are
deploying the Kanban system. Even though there are small