Kanban System

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VAP – A True Kanban System

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History

Kanban was developed by Taiichi Ohno, at Toyota around 1940. It is a system designed to improve and maintain a high level of production. Kanban is very popular method used in lean manufacturing and JIT (Just in Time) concepts.

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Introduction

Kanban uses the rate of demand to control the rate of production, passing demand from the end customer up through the chain of customer-store processes. Kanban aligns inventory levels with actual consumption; a signal is sent to produce and deliver a new shipment when material is consumed. These signals are tracked through the replenishment cycle, bringing visibility to both the supplier and the buyer.

Kanban is also known as “Pull” system. Pull Systems/Kanban control the flow of resources in a production process by replacing only what has been consumed.

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Types of Kanban

Kanban Cards are a key component of kanban and signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier in to the production facility. The kanban card is, in effect, a message that signals that there is a depletion of product, parts, or inventory that, when received, the kanban will trigger the replenishment of that product, part, or inventory. Consumption therefore drives demand for more production, and demand for more product is signaled by the kanban card.

Electronic Kanban (With or without combination of visual signal). Many manufacturers have implemented electronic kanban systems6 aka an “e-kanban system.” These help to eliminate common problems such as manual entry errors and lost cards.7 E-kanban systems can be integrated into enterprise resource planning (ERP) systems, enabling real-time demand signaling across the supply chain and improved visibility. Data pulled from e-kanban systems can be used to optimize inventory levels by better tracking supplier lead and replenishment times.

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  1. Ohno, Taiichi (June 1988). Toyota Production System – beyond large-scale production. Productivity Press. p. 29.
  2. What is Kanban? – LeanKit
  3. Maximize Your Time, Improve Efficiency with the Kanban System – LeanKit
  4. Improve Your Cash Flow, Throughput, and Competitive Position – West Virginia Manufacturing Extension Partnership
  5. Vernyi, Bruce; Vinas, Tonya (December 1, 2005). “Easing into E-Kanban”. IndustryWeek. Retrieved April 12, 2008.
  6. Drickhamer, David (March 2005). “The Kanban E-volution”. Material Handling Management: 24–26
  7. Cutler, Thomas R. (September 2006). “Examining Lean Manufacturing Promise”. SoftwareMag.com. Retrieved January 29, 2013

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