Case Interview Prep

Answer: B - The kanban system is a Toyota-developed system that reduced the waste due to quality issues in intermediate parts in their manufacturing process.

Key Takeaway: Without the kanban system, parts were made in large quantities and then passed on to the next station for assembly. If portions of the parts were defective, it was not discovered until many of the same defective parts were made. This increased rework and inefficiency in the process. To reduce the amount of defective intermediate parts made, Toyota implemented a kanban system where intermediate parts were only made in small quantities as needed.