The best example of “pull” system can be found in Toyota Motor Corporation. Just-in-time manufacturing, which is described as “Producing only what is needed, in necessary quantity and at necessary time.” (Toyota Production System 1995), kanban production system, or, more specifically the famous "Toyota Production System" is the best example of such a system in practical action. (Ibrahim 2008)
Toyota often refers to the kanban system as the ‘supermarket concept’. The managers in a supermarket always ensure that the shelves are full with items in such a way that almost all the customers get what they want. Taiichi Onho considered subsequent processes as customers and preceding process as a supermarket, ready to supply whatever is required in exact quantities that are necessary so that subsequent processes need not unnecessarily hoard components to survive in temporary stock-out situations.
In Toyota manufacturing units all subsequent processes send signals to the preceding processes indicating the exact quantity that needs to be manufactured and the accurate time when it needs to be supplied by those preceding processes. These signals are conveyed through kanban cards which in Japanese mean signboard. This form or ordering production in reverse is not only carried out between different production departments of the company but also between its vendors thereby bringing inter-process inventory to a minimum. (McCoby 1997)
However, such a fine-tuned production process can run with clockwork precision only when each process unambiguously defines the exact permissible duration during which a particular job has got to be fully finished by that particular process. This is done by measuring Takt (a German word meaning meter) time which is measured using the formula:
If there is a demand for 50 vehicles per day and if