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Kanban

Kanban is a visual management system used to manage and control the production process of products or services. It is a pull-based system meaning that when the inventory level of components reaches a pre-defined limit, it automatically pulls in new components to replenish the inventory level. It helps streamline operations by ensuring that production is just-in-time (JIT) so that excess inventory is not built up, eliminating waste and saving costs.

The kanban system was developed by Taiichi Ohno, an industrial engineer at Toyota. He based the system around five core principles: visual management, limiting work-in-progress (WIP), flow, quality, and process improvement. It uses visual cues to prompt the action needed to keep a process flowing, such as a card or sign telling an operator when to order new parts or materials. The idea behind this is to reduce the amount of waste generated in the production process and allow for unforeseen problems to be lessened through quick reaction and adaptation.

When implemented successfully, kanban can provide improved customer response, improved cost savings, and improved quality. It can also allow for greater visibility into manufacturing performance, allowing for targeted interventions to prevent unplanned bottlenecks and other related issues. The system also encourages communication and feedback between departments and employees, so that any understanding of customer needs can be incorporated into the production process.

Kanban systems may vary depending on the production processes of a particular company, but they all strive to accomplish the same goal of limiting inventory and increasing productivity. For example, a company may set up a kanban board to monitor inventory levels and prompt the necessary restocking instructions. Another type of kanban system consists of cards or containers that move along a production line and have information provided on them at each stage to inform the next operator of the task.

Kanban systems have the potential to create greater efficiency and make production process more predictable. When applied correctly, the system helps companies save resources, by reducing the need for large amounts of inventory and processing time, leading to greater overall profitability.

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