| Kanban | Used as part of a Just-In-Time production operation where components and sub-assemblies are produced based upon notification of demand from a subsequent operation. Historically, Kanban has been a physical notification such as a card (kanban cards) or even an empty hopper or tote sent up the line to the previous operation. Kanban is actually a simplistic means of both signaling the need for inventory as well as controlling the inventory levels (by limiting kanban cards or containers). |
| Key Performance Indicator | Key Performance Indicators (KPI) are financial and non-financial metrics (measurements) used to quantify objectives to reflect the strategic performance of a process or entity. A KPI is used to assess the present state of business and to prescribe the course of action. They help an organization measure progress towards their organizational goals. A KPI is a key part of a measurable objective, which is made up of a direction, target and timeframe. For example, in 'Increase Average Revenue per Customer from $100 to $500 by December 2007', 'Average Revenue Per Customer' is the KPI. |
| Kitting | A "kit" represents a preset group of items, of varying quantities, that is represented as a unique item in your supply chain. Kitting can involve light assembly, or the picking and packing of order components and collateral materials into a "kit," or complete set of items ready to ship. |
| KPI | See Key Performance Indicator |