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Rule One (1) of the dual card kanban is: No parts are made unless there is a production kanban to authorize production. If no production kanban are in the "in box" at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the "pull" nature of the process control.
Fixed Cost
Regular, unwavering expenses in business operations that do not fluctuate with changes in production level or sales volume.
Cost Formula
An equation used to calculate the total cost of production or service delivery, considering both fixed and variable components.
Variable Selling Expenses
Costs associated with selling a product or service that vary directly with the level of sales or production volume.
Fixed Expenses
Costs that do not fluctuate with changes in production or sales volume, such as rent, salaries, and insurance.
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