Kanban
Kanban is a management method designed to enhance process efficiency and product development by regulating supplies, inventory, and manufacturing. Originating from Japan, the term “Kanban” translates to “visual card,” reflecting the system's reliance on visual cues to signal when and how much inventory is needed. Developed by Toyota in the mid-20th century, Kanban operates as a demand-driven "pull" system, aligning production closely with customer needs and minimizing waste. The Kanban method not only improves productivity and profit margins but also facilitates collaboration among teams, promoting an atmosphere of continuous improvement.
The implementation of Kanban involves visualizing workflows, focusing on completing ongoing tasks, and developing efficient processes. It excels in environments with stable customer demand, allowing for precise inventory management. This approach emphasizes clear communication and empowers employees by providing them with straightforward guidelines on their responsibilities. Kanban has also been adapted beyond manufacturing, finding applications in diverse fields such as technology and personal organization. Overall, it fosters a culture of efficiency and customer-centricity, aiming for a streamlined process that satisfies both internal stakeholders and end customers.
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Kanban
Kanban is a management and process improvement method for regulating supplies, inventory, and product development and manufacturing. It is a demand-based process that relies on visual cues to help workers know what is needed, when it is needed, and how much is needed. The goal of Kanban is to improve productivity and profit while reducing waste and excess inventory. It also encourages collaboration and teamwork and facilitates ongoing improvement.
Background
Kanban comes from the Japanese words kan, meaning "visual," and ban, meaning "card." Together, the words refer to visual cards or cues that are at the heart of the Kanban system. The system is sometimes referred to as a "pull" system because it pulls inventory and supplies when they are needed. It is also part of the category of management systems known as "lean production" because it helps companies operate in a manner that makes efficient use of both time and resources.
The Kanban system was first formalized by the Toyota Corporation in the 1940s and 1950s. The idea was borrowed from a process used in supermarkets in the United States. Toyota engineers observed that when a store employee saw a visual signal, in the form of an empty shelf, they would restock it with a specific quantity. The employee would then inform the person responsible for ordering, how many items had been moved from inventory to the store shelf. The ordering personnel then contacted the supplier for just the right amount of product to replace the inventory. The initial supply on the shelf was calculated to be the amount that the store could usually expect to sell in the time it took the supplier to bring more. For example, if it took five days for a new supply to arrive and the store could expect to sell fifty boxes of a particular kind of cereal in five days, there would be fifty boxes on the front shelf and fifty boxes in the back storage area. In this way, the store always had what its customers needed, but did not have so much that storage was a problem.
Toyota employee Taiichi Ohno took this idea of pulling inventory based on customer demand and created the Toyota Total Production System (TPS), which aimed to eliminate the waste of time, supplies, and inventory in the manufacturing process. This new concept of lean manufacturing was part of a move to just in time (JIT) manufacturing. A concept in which all aspects of the Toyota manufacturing process were focused on having exactly what the customer wanted ready exactly when the customer wanted it. It took more than fifteen years for Toyota to develop and implement the full concept.
Many others took the process and adapted it for use in other industries, including software and technology designs. Some sources credit American businessman David J. Anderson with revolutionizing the Kanban method. Anderson published Kanban: Successful Evolutionary Change for Your Technology Business in 2010, and explained the use of Kanban in the technology industry. Others have developed tools, technology, and methods to use Kanban in many types of businesses as well as for personal organization. All of this is derived from the process originated by Ohno.
Overview
The basis of Kanban is a series of cards or other cues that trigger different steps in a process. While these cues can be literal pieces of paper, they can also be steps in a computer program, markers on a large board (low-tech or electronic), or any other system that identifies those responsible for a process and a timeline. Those working in a process using the Kanban method require some form of visual cue that they respond to and that they use to indicate to the next person or department what steps need to happen. Every step has a Kanban cue of whatever type is used in the company's system, and nothing is done or made unless a card or cue is in the correct place to initiate the process.
There are four key steps to implementing the Kanban method. The first is to visualize the workflow. Those responsible for the process take time to define how the existing process is done, where there are problems, and ways to correct the issues. The next step is to focus on completing work that is in progress to limit the amount of incomplete work. This minimizes the need for extra resources and time spent prioritizing tasks; every task is worked on until complete. These first two steps also help reduce employee resistance to starting a new Kanban workflow because it keeps familiar tasks and processes. The implementation then moves to the next steps of focusing on developing workflows and team processes that keep work moving along the path of the Kanban cues and helping to find ways to improve the workflow efficiency.
The Kanban method works best for companies that have a steady level of demand from customers; that makes it possible to anticipate how much inventory or work needs to be completed in a set period. It is also more effective when there is an opportunity to manage inventory by diversifying as late in the process as possible. For example, a factory can be more efficient if all of its products are made out of the same plastic instead of multiple kinds of plastic. Using smaller, simpler machines that do one or two things very well can improve efficiency over large machines that require more adjustment and maintenance. This also reduces the amount a company spends on capital expenses for equipment.
This method also emphasizes customer service at all levels; especially interior customers. In the Kanban system, fulfilling the needs of another department is an important step in the process towards the end goal of ultimately satisfying the customer. Ideally, as each area is called upon to fulfill its part in the process, each department responds quickly and efficiently and is able to take pride in seeing its contribution in the overall process completed.
Kanban is successful for a number of reasons. It provides employees with a clear understanding of what is required and when, eliminating the need for guesswork about quantities or what is needed to complete a task. Using data collected based on actual demand, they simply order or make exactly what has been used. The method also encourages efficiency and fosters collaboration.
Bibliography
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Sabry, Hisham. "Six Rules for an Effective Kanban System." Process Excellence Network, 14 Sept. 2010, www.processexcellencenetwork.com/lean-six-sigma-business-transformation/articles/what-is-kanban. Accessed 20 Dec. 2024.
"Taiichi Ohno." Economist, 3 July 2009, www.economist.com/node/13941150. Accessed 20 Dec. 2024.
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