A comparative analysis of an MRP lot-for-lot system and a Kanban system for a multistage production operation

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Abstract
Japanese production methods and operational control techniques have been the subject of much recent attention from American production managers and the media. In this paper the Kanban aspect of the 'just-in-time' concept is analysed in order to ascertain the potential for scheduling in an ill-structured production operation and to compare its effectiveness with the traditional MRP lot-for-lot scheduling and control procedure. The analysis will be conducted using a hypothetical production operation that includes multiple workcentres, machines and product structures, and serial and assembly operations. Simulation model results are discussed and principles for selecting the more cost-effective system are outlined for the general MRP lot-for-lot versus Kanban scenarios.