8.3 Kanban Systems
4 min read•july 31, 2024
systems are a key component of lean production, revolutionizing inventory management and workflow. They use visual signals to control work-in-progress, eliminating overproduction and reducing waste by producing only what's needed, when needed, in the right quantity.
Originating from Toyota's lean practices, Kanban supports just-in-time production by syncing supply with demand. It improves efficiency, cuts lead times, and enhances production flow in various industries, from automotive assembly to software development, promoting through .
Kanban Systems: Concept and Purpose
Origins and Core Principles
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Top images from around the web for Origins and Core Principles
All About Pull Production – Kanban Components | AllAboutLean.com View original
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Going beyond Triviality: The Toyota Production System—Lean Manufacturing beyond Muda and Kaizen View original
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Kanban, Flow and Cadence | AvailAgility View original
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All About Pull Production – Kanban Components | AllAboutLean.com View original
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Going beyond Triviality: The Toyota Production System—Lean Manufacturing beyond Muda and Kaizen View original
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- Kanban originates from Toyota's lean manufacturing practices meaning "signboard" or "visual signal" in Japanese
- Manages and controls work-in-progress (WIP) inventory levels throughout the production process
- Eliminates overproduction and reduces waste by producing only what is needed, when needed, and in the quantity needed
- Improves overall efficiency, reduces lead times, and enhances production flow in manufacturing and service industries (automotive assembly lines, software development)
- Supports just-in-time (JIT) production by synchronizing supply with customer demand and minimizing excess inventory
- Achieves continuous improvement (Kaizen) by identifying bottlenecks and inefficiencies in the production process
Implementation and Benefits
- Implements tools to communicate inventory levels and trigger replenishment or production actions
- Utilizes driven by downstream demand where each process "pulls" materials or work from the preceding process only when needed
- Promotes transparency and facilitates quick decision-making by providing immediate status updates to all team members
- Reduces inventory holding costs and improves cash flow by maintaining optimal stock levels
- Enhances quality control by limiting WIP and allowing for quicker identification of defects
- Increases flexibility and adaptability to changing customer demands or market conditions
Visual Signals and Pull Systems in Kanban
Visual Management Tools
- Employs Kanban cards, boards, or electronic systems to communicate inventory levels and production status
- Utilizes Kanban boards to visually represent work flow through different stages (To Do, In Progress, Done)
- Implements color-coded Kanban cards or bins to indicate product types, priority levels, or replenishment urgency (red for urgent, yellow for moderate, green for normal)
- Adopts electronic Kanban systems (e-Kanban) using software and digital displays for real-time visibility across the supply chain
- Creates visual indicators for maximum and minimum inventory levels to trigger replenishment actions
- Incorporates Andon lights or digital displays to signal production issues or quality problems
Pull System Mechanics
- Initiates production or replenishment based on actual customer demand rather than forecasts
- Moves items through the production process one at a time, reducing batch sizes and lead times
- Establishes pull points and supermarkets (buffer inventory locations) strategically within the production process
- Calculates optimal Kanban quantities considering daily demand, replenishment , and safety stock requirements
- Implements Kanban rules such as "never pass on defective products" and "withdraw only what is needed"
- Utilizes Kanban metrics (lead time, , ) to continuously monitor and improve system performance
Kanban Principles for Optimization
Work-in-Progress (WIP) Management
- Limits Work in Progress by setting maximum item counts for each process stage
- Prevents overloading and bottlenecks in the production system
- Implements a continuous flow model to reduce batch sizes and lead times
- Balances workload across different stages of the production process
- Identifies and addresses capacity constraints or bottlenecks quickly
- Promotes focus and reduces multitasking, improving overall productivity and quality
Inventory Optimization Techniques
- Establishes pull points and supermarkets strategically within the production process
- Calculates and optimizes Kanban quantities using factors like daily demand and replenishment lead time
- Regularly reviews and adjusts Kanban loop sizes and card quantities to accommodate demand changes
- Implements safety stock levels to buffer against unexpected demand fluctuations or supply disruptions
- Utilizes ABC analysis to prioritize inventory management efforts (A items receive more frequent monitoring)
- Applies Just-in-Time (JIT) principles to minimize inventory holding costs while maintaining service levels
Kanban vs Traditional Production Systems
System Characteristics and Performance
- Kanban responds to actual customer demand in real-time while push systems rely on forecasted demand
- Traditional push systems often result in higher inventory levels and work-in-progress
- Kanban systems typically have shorter lead times and greater flexibility in responding to demand fluctuations
- Push systems may lead to overproduction and increased waste (excess inventory, obsolescence)
- Kanban focuses on producing only what is needed, reducing excess inventory and associated costs
- Traditional systems often rely on complex MRP (Material Requirements Planning) while Kanban uses simpler visual cues
Organizational Impact and Culture
- Kanban promotes a more collaborative and empowered workforce by giving employees greater control
- Requires cultural shift towards continuous improvement and problem-solving
- Enhances cross-functional communication and collaboration within the organization
- Fosters a mindset of continuous improvement and waste reduction among employees
- Encourages decentralized decision-making and problem-solving at the point of occurrence
- Supports agile and lean methodologies in both manufacturing and service industries (software development, healthcare)
Key Terms to Review (18)
Bottleneck identification: Bottleneck identification is the process of recognizing the stage in a production or operational workflow that limits overall capacity and hinders performance. This identification is crucial as it helps in pinpointing inefficiencies and areas that need improvement, ultimately optimizing the flow of processes and ensuring smoother operations within systems like Kanban.
Capacity Planning: Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products or services. It involves assessing current capabilities and forecasting future needs to ensure that resources are aligned with strategic objectives, balancing operational efficiency and customer satisfaction.
Continuous improvement: Continuous improvement is an ongoing effort to enhance products, services, or processes over time by making incremental improvements. This concept is essential for organizations striving for efficiency, quality, and responsiveness, often using systematic methodologies to identify areas for enhancement.
Cycle Time: Cycle time is the total time it takes to complete one cycle of a process, from the beginning to the end, including both active working time and any waiting time. Understanding cycle time is essential as it impacts efficiency, resource allocation, and overall productivity in operations.
Jira: Jira is a project management tool developed by Atlassian that helps teams plan, track, and manage software development projects. It is widely used in Agile environments, particularly in Scrum and Kanban methodologies, allowing teams to visualize their workflows, prioritize tasks, and monitor progress effectively.
Kanban: Kanban is a visual scheduling system that helps manage and improve work across human systems by balancing demands with available capacity. It supports continuous delivery while allowing teams to visualize their workflow, limit work in progress, and optimize the flow of tasks. This method is often linked to the principles of lean production, just-in-time philosophy, and is a core element of kanban systems, enhancing process improvement and inventory management.
Kanban Board: A kanban board is a visual tool that helps teams manage and track work in progress, enhancing efficiency and workflow. By using cards and columns to represent tasks and their status, teams can quickly see what needs to be done, what is in progress, and what has been completed. This system supports agile methodologies, encouraging continuous improvement and flexibility in project management.
Lead Time: Lead time is the total time it takes from the initiation of a process until its completion, encompassing all stages of production and delivery. This term is crucial in various fields as it directly impacts efficiency, inventory management, and customer satisfaction, influencing how organizations plan processes, allocate resources, and streamline operations.
Pull system: A pull system is a production strategy that emphasizes the actual demand for products rather than forecasting or pushing products through the supply chain. In this system, each step in the manufacturing process is triggered by the demand from the next step, promoting efficiency and reducing waste. This approach aligns closely with principles of lean production, where the goal is to produce only what is needed, when it is needed, leading to smoother workflows and minimized inventory levels.
Service Delivery Manager: A service delivery manager is a professional responsible for overseeing and managing the delivery of services to clients or customers, ensuring that these services meet quality standards and customer expectations. This role often involves coordinating between various teams, monitoring service performance, and implementing improvements to enhance customer satisfaction. Service delivery managers play a crucial role in aligning service operations with business objectives, particularly in environments that utilize methodologies like Kanban for efficient workflow management.
Signal Card: A signal card is a visual tool used in Kanban systems to indicate the need for replenishment or production of items within a manufacturing or service process. It typically contains information about the item, such as quantity and type, and acts as a communication medium between different stages of production. This helps streamline operations by maintaining optimal inventory levels and reducing waste.
Team member: A team member is an individual who actively participates in a group working towards a common goal or objective, contributing their skills, knowledge, and efforts. Team members play vital roles in collaboration, communication, and problem-solving within various frameworks, making their contributions essential for overall project success.
Throughput: Throughput is the rate at which a system produces its output or processes items within a given timeframe. It reflects the efficiency of operations and is critical for evaluating performance in both manufacturing and service environments.
Trello: Trello is a web-based project management application that utilizes a Kanban-style approach for organizing tasks and projects. It allows users to create boards, lists, and cards to visually track the progress of tasks, making it an effective tool for collaboration and workflow management in various projects.
Visual management: Visual management is a practice that uses visual cues to convey information about processes, performance, and workflows, making it easier for teams to understand and manage their work. By employing tools like charts, signage, color coding, and displays, visual management enhances communication and helps identify issues at a glance. This approach is particularly important in lean environments where efficiency and clarity are crucial to achieving operational goals.
WIP Limit: A WIP (Work In Progress) limit is a constraint set in production processes to restrict the maximum amount of work items that can be in progress at any given time. By limiting WIP, teams can improve flow, reduce cycle times, and enhance overall efficiency. It encourages a focus on completing existing tasks before starting new ones, which helps in identifying bottlenecks and optimizing resource allocation.
Work item card: A work item card is a visual tool used in Kanban systems to represent a specific task or work item that needs to be completed in a workflow. It provides key information about the task, such as its description, status, priority, and any relevant details, enabling team members to manage work effectively and efficiently.
Workflow optimization: Workflow optimization is the process of improving the efficiency and effectiveness of a series of tasks or processes within an organization. By streamlining workflows, organizations can reduce waste, eliminate bottlenecks, and enhance productivity. This approach often involves analyzing existing processes, identifying areas for improvement, and implementing changes that promote smoother operations and better resource utilization.